[Vietnam Biz – Part 2] What are the 3 key points to avoid failure when choosing a rental factory in a Vietnamese Industrial Park? (Part 2)

2. Regional Characteristics of Vietnamese Industrial Parks

Vietnam has more than 400–500 industrial parks, and manufacturing and logistics businesses are required to locate within these zones. Because the industries, purposes of entry, and infrastructure environments vary by region, understanding regional characteristics is essential when selecting a rental factory. Northern and southern Vietnam differ significantly in terms of industries present and locational advantages, and choosing a region that matches a company’s business plan and production structure is key to successful market entry. Below is an overview of the major characteristics of industrial parks in the north and south.

• ・Numerous industrial parks exist throughout Vietnam
  
• ・Industrial park entry is mandatory for manufacturing and logistics businesses
  
• ・Industries and entry objectives differ by region
  
• ・Industry composition and advantages vary between north and south
  
• ・Understanding regional characteristics is key to successful expansion

2.1. Characteristics of Northern Industrial Parks

Northern industrial parks are located in areas such as Hai Phong, Hung Yen, Hai Duong, Ha Nam, and Bac Ninh, and are home to many major manufacturers and related industries in electronics, electrical equipment, and automotive sectors. Due to proximity to the Chinese border, the region attracts attention for supply chain optimization and procurement cost reduction. In addition, parks such as Thang Long Industrial Park—developed as a joint venture between Sumitomo Corporation and a Vietnamese state-owned enterprise—are known for well-developed infrastructure and strong customer support services. Northern industrial parks benefit from efficient international logistics and the concentration of technologically advanced production bases, with a strong presence of Japanese and other foreign-affiliated companies.

2.2. Characteristics of Southern Industrial Parks

Southern industrial parks are distributed across Ho Chi Minh City, Ba Ria–Vung Tau, Dong Nai, Binh Duong, and Long An. Supported by strong domestic demand in Vietnam’s largest city, Ho Chi Minh City, the region has seen notable entry by consumer-related industries such as food, furniture, and fast-moving consumer goods (FMCG). Large-scale Japanese-led projects also exist, such as Long Duc Industrial Park, which involves companies like Sojitz and Daiwa House Industry, offering well-developed infrastructure and strong post-entry support systems. Furthermore, the south benefits from advanced port facilities and domestic logistics networks, providing major advantages for companies that prioritize transportation efficiency for raw materials and finished products. For businesses targeting domestic demand or ASEAN markets, southern industrial parks represent a compelling option.