Identifying industrial development as one of the key drivers of local socio-economic growth, Tan Yen District has leveraged its advantages and focused resources on fostering the industrial sector. However, the number of enterprises (EEs) registering investments in the area remains limited. The district is implementing various measures to attract both domestic and foreign investments and increase occupancy rates in industrial zones (IZs) and industrial clusters (ICs).

Low Occupancy Rates

In recent years, Tan Yen District has taken significant steps to promote industrial development, such as land clearance, upgrading transportation systems, and improving infrastructure in IZs, ICs, and urban areas. Despite these efforts, the number of enterprises investing in the area remains low, leaving many plots in the IZs and ICs underutilized.

The district’s master plan includes five industrial zones—Phuc Son, Thuong Lan – Ngoc Thien, Ngoc Ly, Que Nham, and Ngoc Thien—and eight industrial clusters, covering over 1,100 hectares. As of now, the district has established one industrial zone and four industrial clusters. Between 2021 and 2024, the district attracted ten industrial projects with a total registered capital of over VND 2 trillion, bringing the number of active enterprises to nearly 600 and providing regular employment for over 12,000 workers with monthly wages starting at over VND 6 million per person.

However, investment attraction in the district’s ICs has not matched their potential, resulting in low occupancy rates. For instance:

• Lang Cao IC (48 hectares, covering Cao Xa and Ngoc Ly communes) has completed most of its infrastructure but has only attracted eight projects, with an occupancy rate of around 20%.
• Kim Trang IC (Viet Lap commune) has had only one foreign direct investment (FDI) project occupying 4 hectares since 2021, equivalent to about 4% of the total area.
• Ngoc Chau IC (75 hectares) has two domestic enterprises renting 2.8 hectares (5% occupancy).
• Dong Dieu IC (Nha Nam town and Tan Trung commune) spans 40 hectares but has just one project utilizing 0.7 hectares.

According to Nguyen Thi Lan Huong, Head of the District’s Economic and Infrastructure Division, the primary reasons for these challenges include economic fluctuations, pandemics, and natural disasters, which have impacted investment activities domestically and globally. Additionally, the lack of synchronized infrastructure, limited availability of cleared land, and insufficient auxiliary services, such as restaurants, hotels, and commercial facilities, reduce the district’s competitiveness compared to neighboring areas. Most enterprises investing in the district are small or micro-sized, with limited financial, management, and technological capabilities, resulting in minimal added value.

Comprehensive Solutions for Clean Industrial Development

Under Bac Giang Province’s 2021–2030 master plan with a vision to 2050, Tan Yen District is slated for development under an urban-industrial model. By 2025, the district aims to complete phase one of land clearance for Phuc Son IZ and the infrastructure for Dong Dinh and Lang Cao ICs. The goal is to achieve an 80% occupancy rate at Dong Dinh and Lang Cao ICs and 20% at other ICs. The district aims for industrial output to contribute approximately 50% of total production value by 2025.

Nguyen Van Thuong, a representative of Tan Yen Industrial Investment and Service JSC, which manages Lang Cao IC, noted that the company has worked closely with local authorities to accelerate construction. The “build-as-you-go” approach has ensured the completion of essential infrastructure such as roads, electricity, and water, attracting several enterprises. To achieve full occupancy by 2025, the management board is actively promoting central and provincial investment incentives while working with the district authorities to create cluster-specific policies, expected to be finalized by Q1 2025.

In tandem with guiding industrial zone and cluster management boards to enhance competitiveness and attract enterprises, the district has directed functional departments and local authorities to review and adjust sectoral and regional plans. Key focus areas include:

• Expanding and upgrading transportation networks to eliminate bottlenecks, such as completing improvements to Provincial Road 398B (connecting to Bac Giang City) and Hoang Quoc Viet Road (from Cao Thuong Town to Hop Duc commune).
• Strengthening connections between industrial zones, urban areas, and economic centers within the province.

Accelerating Infrastructure and Policy Implementation

Tan Yen District is expediting the establishment and infrastructure development of industrial zones and clusters, linking industrial growth with urban, service, transportation, energy, and telecommunications infrastructure to provide optimal support for business operations. Priority is given to attracting investors with strong financial capacity, foreign investment projects, environmentally friendly operations, and the ability to generate local employment. Additionally, the district is improving the investment environment by offering tax incentives, streamlining administrative procedures, and reducing input costs to appeal to domestic and foreign investors.

Nguyen Quoc Hung, Chairman of the Tan Yen People’s Committee, emphasized the importance of direct dialogues between local authorities and investors to promptly address difficulties and support businesses. The district is also promoting its investment incentives and enhancing cooperation with enterprises and vocational training institutions to develop a high-quality workforce that meets market demands. These efforts aim to maximize the district’s potential and leverage regional connectivity effectively.

By 2025, Tan Yen District aspires to:

• Complete phase one of land clearance for Phuc Son IZ.
• Finish infrastructure development for Dong Dinh and Lang Cao ICs.
• Achieve 80% occupancy at Dong Dinh and Lang Cao ICs and 20% at other ICs.
• Have industrial output account for 50% of the district’s total production value.