Vietnam has rapidly emerged as one of the most attractive destinations for foreign investors and manufacturers looking to establish operations in Southeast Asia. With its strategic location, competitive labor costs and favorable trade agreements, Vietnam industrial zones offer a great environment for businesses in many industries.
I. Where are Vietnam Industrial Zones?
Vietnam industrial zones are primarily concentrated in two key regions: the North and the South. Each region offers unique advantages, catering to different industries and operational needs.
Industrial zones in Northern Vietnam
Northern Vietnam has become a hub for manufacturing and electronics, thanks to its proximity to China and strong logistics infrastructure. The region’s industrial zones attract major global players due to easy access to supply chains and export routes to North Asian markets.
Major industrial zones in key cities/provinces:
Bac Giang is rapidly establishing itself as an attractive destination for technology businesses, with key companies like Foxconn and Luxshare investing in the region.
Bac Ninh is a leading electronics manufacturing hub, home to giants like Samsung and Foxconn, which have established large production facilities in the region.
Hai Phong serves as a crucial transportation hub for the northern provinces, linking the region to both domestic and international networks. Its unique advantages in logistics thanks to Hai Phong Port, the largest seaport in the North, make the city an ideal location for multinational companies like LG Displayand LITEON.
Hung Yen is becoming a center for garment manufacturing and electronics, hosting major players like SENKO, BANGJIE VIET NAM, and Panasonic.
These cities and provinces have attracted significant foreign investment in recent years, underscoring their growing importance in Vietnam’s industrial landscape. As of 2024, the average land rental price in these key provinces is US$132/m², with Bac Ninh topping the list at US$148/m². (Source)
Industrial zones in Southern Vietnam
Southern Vietnam is the country’s largest industrial base, known for its diversified industries, including consumer goods, food processing, chemicals, and logistics. The region benefits from a well-developed port system and proximity to international shipping routes.
Major industrial zones in key cities/provinces:
Binh Duong and Long An are not only leading centers for consumer goods and electronics manufacturing, hosting major companies like Lego, but they also serve as a significant hub for garment manufacturing businesses.
Dong Nai focuses on high-tech industries and automotive production, attracting significant FDI from Japan and Thailand. The province is home to companies like Amata Corporation, Bosch, and Toshiba, which have set up large-scale manufacturing facilities.
Ho Chi Minh City offers strong logistics capabilities and is a key hub for trade and light manufacturing. The city hosts prominent companies such as Intel, along with Unilever and Nestlé, contributing to the city's role as a major player in global supply chains.
Land rental prices in the South are slightly higher, averaging US$167/m², which is 28% more than in the North. (Source) This reflects the region's advanced infrastructure and logistics capabilities.
See all Industrial zones in Vietnam with our interactive map:
II. What makes Vietnam a strategic location for foreign manufacturers?
Access to skilled and diverse workforce
Vietnam provides access to a young, dynamic, and skilled workforce, which is a significant advantage for manufacturers compared to other markets. The country has a large talent pool for both high-tech industries like electronics and traditional sectors like textiles and food processing. In the North, there is a growing demand for technical experts and engineers, especially in regions like Bac Ninh and Hai Phong. Meanwhile, the South offers a diverse workforce suitable for manufacturing, logistics, and consumer goods industries. The Vietnamese government’s continuous investments in education and vocational training ensure that the workforce remains competitive and capable of meeting the evolving demands of global businesses.
Developed infrastructure and logistics networks
According to ManpowerGroup Vietnam's Salary Guide 2025, the Vietnam freight and logistics market is on a strong growth trajectory, projected to reach US$71.88 billion by 2030, while already ranking among the top 5 ASEAN countries for logistics in 2023. This growth is driven by the country’s rapidly expanding infrastructure, including a network of modern highways, ports, and airports that seamlessly connect key industrial zones to both local and international markets.
Hai Phong port in Hai Phong City, Northern Vietnam is one of the most major seaports in Vietnam
Source: VGP News
For instance, Vietnam's major seaports, including Hai Phong Port in Hai Phong City, Cai Lan Port in Quang Ninh, Cai Mep-Thi Vai Port in Ba Ria-Vung Tau, and Saigon Port in Ho Chi Minh City, play a crucial role in facilitating trade across various industries, with each port specializing in handling different types of goods. Additionally, Vietnam operates 10 international airports, including Noi Bai International Airport in Hanoi, Van Don International Airport in Quang Ninh, and Tan Son Nhat International Airport in Ho Chi Minh City. These airports support swift and reliable air cargo services, helping manufacturers meet tight delivery schedules and ensuring efficient global connectivity.
Flexible industrial zone options and ready-built facilities
Vietnam offers a wide range of industrial zone options, catering to different business needs. Companies can choose from custom-built facilities or opt for ready-built factories and warehouses to speed up their setup process.
In the North of Vietnam, by 2024, the total supply of ready-built (RB) factories reached 4.5 million m², accounting for 30% of the national supply. Bac Ninh leads with 40% of the RB supply, followed by Hai Phong with 33%. In the South, RB supply is even higher, reaching 10.6 million m² and making up 70% of the national total. These flexible options make it easier for businesses to quickly establish operations and scale as needed.
Source: VnExpress
Political and trade stability with global partners
Vietnam has established favorable trade relations with major economies like the United States, the European Union, China, Japan, and South Korea. Additionally, the country’s participation in key trade agreements such as the EVFTA and CPTPP reduces tariffs and facilitates smoother cross-border trade, making it an attractive destination for global manufacturers.
Vietnam is increasingly adopting sustainable and eco-friendly manufacturing to meet the rising global demand for green production. Many industrial zones in Vietnam are integrating green practices, attracting businesses that prioritize ESG compliance. This shift towards greener supply chains is creating opportunities for companies to collaborate with certified green vendors, ensuring both regulatory compliance and long-term sustainability.
III. Key Factors to Consider When Choosing Industrial Zones in Vietnam
Operational costs and cost efficiency
Managing operational costs is crucial for businesses when selecting an industrial zone. Land rental prices vary across regions and depend on factors like location and plot size. Larger spaces in prime locations tend to have higher costs. Additionally, long-term lease agreements are common, requiring businesses to commit significant upfront investments, which may take time to recover. Companies must carefully balance cost and efficiency to ensure profitability while maintaining smooth operations.
Availability of skilled labor in industrial zones
Having access to a skilled and reliable workforce is a critical factor when choosing Vietnam industrial zone. According to ManpowerGroup Vietnam's Salary Guide 2025, industries such as electronics and automotive are in high demand for skilled engineers and technical professionals. These positions require strong technical knowledge and relevant experience, which can be challenging for businesses to recruit on their own.
Moreover, foreign companies entering the Vietnamese market may lack a deep understanding of the local labor market, making it difficult to navigate recruitment processes and ensure compliance with local regulations. In such cases, partnering with a professional HR service provider can simplify the hiring process, providing access to top talents and industry insights.
Proximity to business partners and industry clusters
For B2B companies, proximity to suppliers, clients, and industry-specific clusters in Vietnam industrial zones can reduce production and transportation costs. In the North, industrial zones are surrounded by major electronics manufacturers like Samsung, Foxconn, and their network of component suppliers in provinces such as Bac Ninh and Bac Giang. The South is home to diverse industries, including chemicals, logistics, and food processing, offering ample opportunities for collaboration with global partners in Ho Chi Minh City and Binh Duong.
IV. Enhancing Your Industrial Workforce Strategy with Manpower Vietnam
Foreign companies entering Vietnam may struggle to navigate the local labor market, facing obstacles such as understanding regulatory requirements, accessing qualified candidates, and competing with other firms for top talent. Additionally, the fast-growing industrial landscape has led to talent shortages in certain regions, making it even more challenging for businesses to meet their workforce needs.
Manpower Vietnam offers tailored workforce solutions to help businesses overcome these challenges and build a strong, efficient workforce. With extensive experience in Vietnam's industrial sectors, Manpower provides services that address every stage of the recruitment and workforce management process, including Mass recruitment, Staffing and Outsourcing, Headhunting, etc. By partnering with Manpower Vietnam, businesses can confidently navigate the complexities of the labor market, ensuring they have the right talent to drive their industrial success.
If you are looking for a recruitment, staffing, and outsourcing service provider in Vietnam to grow your business, reach out to Our Services page or input your contact information in the form below and we will get back to you soonest: