Resources

Vietnam’s automotive industry has become a juicy target for car manufacturers with the participation of big players such as Toyota, Honda, Ford, etc. Over the last few years, Haiphong city has earned its place as the automotive centre of Vietnam with the establishment of Vinfast Vietnamese first full-fledged carmaker, the formation of automotive cluster in DEEP C Industrial Zones led by Pyeong Hwa Automotive, a leading manufacturer of automotive moving parts in South Korea. Explore the major driving force behind its transformation and seize your opportunity to dive into one of the fastest-growing automobile markets in Southeast Asia.

With the coastline stretching over 3,200 kilometres, Vietnam possesses a particularly advantageous geographical location that provides convenient conditions for importing and exporting chemical and petrochemical products. More and more manufacturers seeking to locate their factories in Haiphong and Quang Ninh to capitalize their unique location along the northern coastline and existing port infrastructure. In DEEP C Haiphong, petrochemical companies are grouped together to play as key fuel and chemicals suppliers to the robust manufacturing and construction activities in and out of DEEP C. The demand for these products is constantly increasing and DEEP C Quang Ninh is set to become the next energy hub with greater capacity and on a larger scale.

The growth of manufacturing, coupled with maritime cargo throughputs in North Vietnam has fueled the rise of the seaport complex in Haiphong and Quang Ninh. While Haiphong has long been known as the biggest seaport in the North with Lach Huyen deep seaport and Dinh Vu port, Quang Ninh’s port landscape still has plenty of room for development. Logistically, all three industrial zones in DEEP C Haiphong are in close proximity to seaports, but two industrial zones in DEEP C Quang Ninh will be a different story. In the approved national port master plan, 2 general ports and 4 liquid ports will be built inside DEEP C Quang Ninh to form a port-connected industrial zone complex at the center of the highway and airport network. Though developed years later after DEEP C Haiphong, port development in DEEP C Quang Ninh holds a better geographical advantage thanks to its adjacency to South China’s industrial region.

Vietnam's Logistics industry is maturing. When manufacturing first arrived in Vietnam, logistics activities were still scattered. With time, the rapid development of manufacturing has led to a big boom in logistics demand, leaving ample room for logistics companies to grow. The logistics boom is further fueled by significant improvements in transportation infrastructure, which focuses on the northern coastal region: Haiphong and Quang Ninh. With a modern deep-sea port system, redundant air transport system, and extended highway networking linking to other regions, the movement of raw materials and finished goods has never been smoother and cost-efficient. In that aspect, DEEP C Industrial Zones is the ideal location for logistics companies looking to do business in containers (storage, inspection, repair, cleaning,…), CFS, dry and liquid bulk, exceptional cargo, a distribution center for spare parts, and air freight.

Possibilities for food and feed production are on the rise in Vietnam. Despite the impacts of the COVID-19 pandemic, the 2020 Index of Industrial Production of the food processing industry still increased by 5.3% compared with 2019 (GSO, 2020). In terms of number of companies, within 2 year period 2016-2018, Vietnam saw a sharp increase of 30% to nearly 9,224 companies. On the other hand, the demand for animal feed is huge, up to 25-26 million MTs yearly, worth around US$10 billion. The industry has grown steadily with a yearly average growth rate of 10%. The domestic market is large and the opportunity to expand the export market is huge with many free trade agreements (FTAs) that Vietnam has joined, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA).