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In recent years, Hai Duong has emerged as a promising hub for foreign direct investment (FDI) in Vietnam. This thriving province, strategically located in the Red River Delta, has attracted significant foreign capital, propelling its economic growth. In this article, we delve into the FDI landscape of Hai Duong, uncovering the key factors driving investment in the region and the role FDI plays in its development. We will also explore the challenges and opportunities that lie ahead as Hai Duong continues to position itself as an attractive destination for foreign investors.
Hai Duong: A Glimpse
Unveiling Hai Duong’s Geographic and Economic Profile
Nestled within the central Red River Delta, Hai Duong province serves as a link connecting Hanoi and Hai Phong. Its strategic location allows for seamless economic exchanges with neighboring regions and boasts an extensive transportation network, featuring well-connected national highways and waterways.
Over the years, Hai Duong has experienced a significant economic transformation, with a growing emphasis on industrial production and services. This shift is a testament to the province’s adaptability and commitment to modernization, fostering a conducive environment for businesses and investors alike.
Moreover, the province has made remarkable strides in enhancing its technical infrastructure system and other critical economic infrastructure. These investments have laid the foundation for a thriving business environment, making Hai Duong an increasingly attractive destination for both domestic and international ventures.

Present Economic Scenario: The Allure for Foreign Capital
The province has successfully positioned itself as an appealing destination for foreign direct investment (FDI). According to the Department of Planning and Investment, Hai Duong is currently home to 496 FDI projects, boasting a total capital injection of over 9.2 billion USD. These investments hail from 26 different countries and territories, showcasing the province’s global reach.
The processing and manufacturing industries take the lead in attracting FDI, with 437 projects and a total capital infusion of 8,672.6 million USD, constituting a significant 94% of the registered capital. The service sector follows suit, with 42 projects worth 316.2 million USD, representing 3.4% of the total registered capital. Additionally, the agricultural sector contributes 17 projects with a capital investment of 226.9 million USD, making up 2.6% of the total registered capital.
Among the 26 countries and territories investing in Hai Duong, Asian nations account for a substantial 90% share, with the remaining portion stemming from the Americas and Europe. Hong Kong leads the way as the largest investor, contributing 40% of the total registered capital, followed closely by Japan at 16.3%, South Korea at 15.4%, and Taiwan at 7.8%.
Furthermore, the province’s industrial parks have played a critical role in attracting FDI. These industrial parks have already exceeded their annual targets, drawing investments worth $889.16 million as of November 12, 2023. The Management Board of Industrial Parks in Hai Duong granted investment certificates to 45 FDI projects, accumulating a total investment capital of $771.39 million. Additionally, 26 existing FDI projects received capital injections amounting to $117.77 million.
These new FDI ventures predominantly focus on manufacturing, processing, electricity, electronics, and more. Notably, investors from Hong Kong (China), Singapore, South Korea, China, and Taiwan (China) have been actively participating in the province’s growing economy. Hong Kong (China) remains the top FDI contributor, accounting for 40% of the total registered investment capital, with Japan, South Korea, and Taiwan (China) following closely behind.
In fact, Hai Duong’s industrial parks have managed to attract a total of 278 FDI projects from 23 countries and territories, boasting a combined registered investment capital of $5.87 billion. This exceptional influx of foreign investment reaffirms Hai Duong’s status as an enticing destination for businesses seeking growth and opportunities in the heart of Vietnam.
FDI’s Impact on Hai Duong’s Development
Economic Contributions of Foreign Direct Investment
FDI capital has played an essential role in Hai Duong’s economic landscape, constituting a substantial portion of the province’s overall investment structure. As per the Department of Planning and Investment, in recent years, FDI capital has consistently represented 35% to 40% of the province’s total investments, with the lion’s share, over 90%, flowing into the dynamic manufacturing industry. These FDI enterprises are instrumental, contributing over 60% of the industrial production value in Hai Duong. This robust industrial presence actively drives economic restructuring and bolsters the province’s industrial production capacity.
Hai Duong’s stellar economic performance is evident in its impressive GRDP growth. Northern Hai Duong province secured a commendable seventh position in the Red River Delta region and 15th nationwide in GRDP growth during the first half of the year. This growth, estimated at 7.23% year-on-year, underscores the province’s thriving economic landscape and reaffirms the instrumental role that FDI plays in propelling its prosperity.
Societal Transformations: The Role of FDI in Hai Duong
FDI’s impact transcends mere economic statistics; it extends to transformative societal changes within Hai Duong. The province has witnessed a positive metamorphosis in living standards and residents’ quality of life, all attributed to the influx of foreign investment. FDI has generated a plethora of employment opportunities, offering improved income prospects to the local workforce. As a direct consequence, the standard of living has risen, accompanied by enhanced access to education, healthcare, and essential services. The far-reaching benefits of FDI have permeated through the community, fostering a pervasive sense of prosperity and overall well-being.

Opportunities in Hai Duong’s FDI Landscape
While Hai Duong offers compelling opportunities for foreign investors, it must continue to streamline its administrative processes and enhance its regulatory framework. The province is committed to improving its ease of doing business, reducing bureaucracy, and ensuring swift resolution of administrative matters. This commitment is critical in maintaining and elevating Hai Duong’s appeal as a preferred FDI destination.
To further enhance its attractiveness, Hai Duong aims to expand its supply of quality industrial real estate. The plan includes the development of 15 additional industrial parks and 50 industrial clusters by 2030. Infrastructure enhancement, legal support, and efficient administrative procedures will be prioritized, creating a conducive environment for foreign investors. The province’s focus on high-tech fields, smart technology, biotech, new materials, processing, manufacturing, and supporting industries demonstrates its dedication to maximizing the efficiency of FDI capital.
Additionally, Hai Duong actively collaborates with international organizations and diplomatic representatives, organizing investment promotion delegations in various countries. The province’s strategic planning of industrial zones, especially those specializing in high-tech, services, and eco-friendly industries, further enhances its attractiveness. Investments in modern infrastructure and a clean land reserve for projects underscore Hai Duong’s commitment to effective investment management and growth.

Final Thoughts
Hai Duong‘s journey to attract foreign direct investment (FDI) has been marked by remarkable achievements and a commitment to growth. The province has emerged as an enticing destination for foreign investors, offering a strategic location, thriving industries, and transformative societal changes. As we look ahead, the prospects for FDI in Hai Duong are promising. With a focus on streamlining regulations, expanding industrial real estate, and fostering a stable business environment, Hai Duong is poised for continued economic development.
To be part of this exciting future and explore the wealth of FDI opportunities in Hai Duong, we invite you to connect with Viettonkin. Our expertise in navigating the FDI landscape can help you make informed investment decisions and seize the potential that Hai Duong has to offer.