- Tay Ninh province is one of the main industrial hubs in the key economic region of southern Vietnam, supported by infrastructure development and industrialization.
- The province has attracted a large amount of foreign investment in the infrastructure of industrial zones.
- To attract investment, the province facilitates the growth of logistics, international cooperation and the development of deep industries.
The Vietnamese province of Tay Ninh, located in the Southern Key Economic Region (SKER), serves as a key connection point between Ho Chi Minh City and Cambodia’s capital Phnom Penh, sharing a border with Cambodia at the Moc border crossings Bai and Xa Mat, the main shopping centers between the two countries. The province is also on the East-West Corridor, which is part of the Trans-Asian Highway connecting Vietnam to Laos, Thailand and Myanmar.
SKER is one of the four key economic regions that cover most of the country’s economic and investment hubs. SKER consists of Tay Ninh with Ho Chi Minh City, Binh Duong, Dong Nai, Long An, Ba Ria-Vung Tau, Binh Phuoc and Tien Giang.
The province is located at the intersection of arterial traffic routes in the Greater Mekong sub-region (GMS) with the southern economic corridor running from Dawei province in Myanmar through Thailand and Cambodia to sea ports. provinces of Vietnam Ba Ria – Vung Tau. GMS is a transnational region along the Mekong Basin in Southeast Asia with a program that supports trade and high priority projects in the six countries along the Mekong River.
In 2020, Tay Ninh’s gross domestic product (GDP) grew 3.9% over the same period. Of this total, 75.5% of the GDPR is attributed to the share of industrial production and services following the rapid pace of industrialization.
Ranked high in the PCI
According to the Provincial Competitive Index (PCI) 2020, Tay Ninh ranks 21st out of 63 provinces. The rankings are down six places from 2019. However, Tay Ninh remains in the group of provinces and cities with the best PCI scores and continues to aim for higher scores by facilitating economic growth and attracting foreign investment.
Compared to the previous period, the province has sharply increased both the number of newly registered companies and the amount of investment capital attracted.
Attract foreign investment
As of April 2021, Tay Ninh had attracted US $ 427.54 million in foreign capital, up 28% from the same period of 2020. Tay Ninh industrial parks and border economic zones attracted 362 projects. foreign and domestic investment with total registered investment capital. of US $ 7,486 million.
During the same period, the authorities of Tay Ninh signed cooperation agreements on investment in agriculture, trade, science and technology with several provinces of Cambodia as well as the cities of Gimhae and Chungju in South Korea.
The province gives priority to the attraction of large investment projects with cutting-edge technology, green projects, projects with modern management, high value-added content, spillover effects and connections to chains of global production and supply.
Regional competition
Tay Ninh is an attractive investment destination with a strategic geographic location, large land capacity and cost advantages. Compared to Binh Duong with the same travel distance to Ho Chi Minh City, Tay Ninh has a clear advantage in terms of transportation costs for goods exported from Ho Chi Minh via Tay Ninh to Cambodia and Thailand.
Tay Ninh is an area with a transition terrain from the south central highlands to the Mekong Delta, where the land is flat and hard, especially in the area of ​​Phuoc Dong commune. It is suitable for construction without having to implement pile driving, a technique of installing piles in the ground to build the foundation of large infrastructure, which saves construction costs and time.
According to Savills Vietnam, the average land rental price and land rental price in Phuoc Dong IP are US $ 83 / m2 and US $ 90 / m2 respectively. This price is significantly lower than the prices charged in industrial zones in adjacent provinces. For example, in Binh Duong the prices are 107 USD / m2, while in Dong Nai they are 98 USD / m2 and 123 USD / m2 in Long An.
Opportunities in Go Dau District and Trang Bang Town
Go Dau district and Trang Bang city are key locations in the province with a high attraction rate of foreign investment. As of April 2020, Trang Bang city attracted the highest number of FDI projects, with 203 projects, representing 62.1% of total FDI projects in Tay Ninh, followed by Go Dau district with 67 projects. , representing 20.4%.
In the future, the province plans to focus on the implementation of infrastructure constructions, including the construction of the Ho Chi Minh – Moc Bai highway.
The proposed construction is highlighted in Tay Ninh’s 2021-2025 infrastructure plan, which is expected to improve connection with other ASEAN countries. The 53 km highway, including nearly 24 km through Ho Chi Minh City, will start from Ring Road n ° 3 in the Hoc Mon district of the city to the international border gate of Moc Bai of Tay Ninh with Cambodia.
It is expected to cut travel time between Ho Chi Minh City and Tay Ninh in half and reduce traffic jams on National Highway No.22, the only road currently connecting Ho Chi Minh City and the Moc Bai International Border Post to Tay. Ninh.
Construction is expected to take place in two phases, with the first phase being completed in 2025 at a cost of around US $ 686 million with four lanes, while the second involves an extension from six to eight lanes.
Total capital investment in the project has increased significantly since its approval in August 2021, from approximately $ 430 million to $ 695.3 million, including $ 258 million for site clean-up, compensation and resettlement costs in Ho Chi Minh City. At the end of 2021, a pre-feasibility report will be submitted to the Prime Minister for approval of additional investments in the project.
Industrial park projector – Phuc Dong IP
Among several industrial parks, the Phuoc Dong Industrial Park (IP) is Tay Ninh’s largest IP with an area of ​​approximately 2,190 hectares as well as complete infrastructure, suitable for investment projects requiring large vacant areas.
Phuoc Dong IP, invested by Sai Gon VRG Investment Corporation, is regarded as an industrial-commercial-residential complex with environmentally friendly manufacturing environment and modern and creative living space.
Phuoc Dong IP is adjacent to the future Ho Chi Minh – Moc Bai highway, promising quick travel between IP and Ho Chi Minh City. The industrial park area spans Go Dau district and Trang Bang city.
Phuoc Dong IP has complete essential infrastructure for residents, such as hospitals, schools, education centers and entertainment centers. Investor Sai Gon VRG also prioritizes environmental protection to create a healthy and balanced lifestyle and workspace.
In addition, with good infrastructure connectivity with Ho Chi Minh City and the Thanh Phuoc river port, the logistics joint between Tay Ninh and the central highland provinces, Phuoc Dong IP has significant advantages in terms of location and of attraction for investors.
Take away food
In the medium term, Tay Ninh is expected to promote the application of information technology and modernize public administrative services, thereby significantly improving its PCI.
The province currently has three international border gates to Cambodia, contributing to the further development of industry, logistics services and the cross-border economy. The recent opening of Tan Nam International Border Gate underlines the province’s objective of promoting ecotourism, serving both local economic growth and job creation. These doors will continue to promote the economic, educational, cultural and commercial cooperation of Tay Ninh with Prey Veng and other localities in Cambodia.
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