Vietnam Seeks Investment in Nam Dinh
Located in the southern part of the Red River Delta region of northern Vietnam, Nam Dinh province is among the emerging destinations for investment in Vietnam. In 2021, the locality attracted the highest amount of capital ever while also stepping up a remarkable 16 places in the Provincial Competitiveness Index 2021 (PCI). Here, we highlight the opportunities available for investors in the province.
Strategic Location and Infrastructure
Nam Dinh province is located in the southern part of the Red River Delta region of northern Vietnam. It borders Ninh Binh province to the southwest, Ha Nam province to the northwest, Thai Binh province to the northeast, and the Gulf of Tonkin to the southeast. The locality also has an advantageous geographical location. Nam Dinh belongs to the economic triangle Hanoi – Hai Phong – Quang Ninh, 93km away from the capital Hanoi, 130km away from Noi Bai International Airport, and about one hour by road from the Hai Phong port.
The locality’s logistic infrastructure, though yet to be fully developed, is diverse. It includes a Trans-Vietnam railway, through the province, 42 km long, with six stations catering for transporting passengers and goods; a 72 km coastline and a river system consisting of four major national rivers: Red River, Dao River, Day River, and Ninh Co River flowing through 251 km; Nam Dinh river port with a wharf length of 500m along the right bank of the Dao River in Nam Dinh city, with a capacity of 200,000 tons per year; Hai Thinh seaport with a capacity of 3 million tons per year and will be upgraded to a general commercial seaport with a capacity of 4.5 million tons per year. The province has also begun the construction of a backbone road for marine economic development, which will connect the province’s marine economic zone with the Cau Gie – Ninh Binh Expressway and other economic and political centers in the region as well as connect with national highways 10, 37B, 37C, 21B, and coastal roads.
Skilled Labor Force and Education
Nam Dinh’s labor force is abundant at around one million, with the labor force participation rate standing at 76 percent in 2020. Noticeably, Nam Dinh has been among the top provinces leading the country in education and training for many years in a row, with four universities and seven colleges, providing thousands of highly-skilled engineers and workers every year.
Related: Vietnam International Financial Center Tax and Regulatory Guide
Resilient Economic Performance
Despite facing numerous difficulties imposed by the pandemic as well as global price hikes, last year, Nam Dinh enjoyed a GRDP growth of 7.9 percent – the top 11 highest growth in the country. Also in 2021, the province’s industrial output value expanded by 14 percent while the export value rose 34.4 percent year on year to US$2,927 million. Nam Dinh’s total social investment jumped 15.5 percent to US$3.7 billion and has had the best economic performance so far. In the first seven months of 2022, the province managed to maintain economic growth momentum, featured by GRDP growth of 9.69 percent, agricultural growth of 3.13 percent, and construction growth of 12.1 percent.
In 2021, Nam Dinh climbed 16 places from 2020, in the Provincial Competitiveness Index (PCI), one of the best results ever. Particularly, compared with previous years, time cost climbed by 45 places, access to land by 33 places, informal charges by 31 places, and legal and security institutions by 16 places. These improvements show that Nam Dinh is progressing in speeding up administrative reforms and improving provincial competitiveness.
Investment Opportunities in Nam Dinh
Over the 2016-2020 period, the province licensed 461 new investment projects; witnessed a solid increase in corporate establishments; simplified 210 administrative procedures, all of which were public and transparent; and promoted e-Government construction, which was ranked one of the seven best reformers of Level 4 administrative procedures nationwide by the Ministry of Information and Communications. In the 2020 – 2025 term, Nam Dinh is committed to creating a business-friendly environment, offering incentives and support for investment projects in its industrial parks.
