Project

Addressing human resource issue in industrial parks

Published

5 months ago

March 14, 2025

With the attraction of nearly 1.75 billion USD from 15 newly licensed projects and 14 projects with increased capital in 2024, Nghe An Province has maintained its position in the group of 10 leading provinces and cities in attracting foreign direct investment (FDI).

As a locality with a large population, Nghe An Province has about 50,000 people added to the workforce every year, but businesses in the province are facing difficulties in recruiting and attracting workers, especially skilled and high-quality workers.

Attracting workers is difficult, “retaining” them is even harder

The Southeast Economic Zone and industrial parks of Nghe An Province currently have 322 valid projects, with a total investment capital of over 185 trillion VND. There are 224 domestic projects and 98 FDI projects. The project focuses on producing electronic products, optics, auto parts and some green products (solar panels, high-performance batteries, etc.).

Notably, several technology corporations in the global value chain have built production facilities in the Southeast Economic Zone, with high investment value, production capacity and large market scale.

Regarding labour, more than 49,000 workers and labourers are working in the Southeast Economic Zone and industrial parks of Nghe An Province. The proportion of labourers aged 15-34 accounts for 35%, and those aged 35 and over accounts for 65%. With the rapid development of projects in industrial parks in the province, the demand for labour is increasing rapidly, especially projects in the textile and electronics sectors. The local labour shortage affects the production and business of enterprises, affecting the province’s investment attraction.

According to the Southeast Economic Zone Management Board, the labour recruitment demand of enterprises in economic zones and industrial parks, especially FDI enterprises, will continue to increase by more than 40,000 workers in 2025.

In VSIP Nghe An Industrial Park, there are currently seven investment projects in the ecosystem of Luxshare – ICT Group. Do Nhat Hoang Tat, Human Resources Director of Luxshare – ICT Nghe An Company, said: In June 2020, Luxshare – ICT Group decided to invest in VSIP Nghe An Industrial Park.

After four years, the Company has developed seven factories and more than 14,000 workers. In August 2022, the Group’s leaders came to survey and decided to invest in Luxshare – ICT Nghe An 2 Project. Initially only processing, the enterprise has gradually produced electronic, optical, acoustical and other products.

It is expected that by 2028, the enterprise will need up to 28,000 workers. “This is a big challenge that we are facing, and we need great attention and support from local authorities at all levels and vocational schools,” a Luxshare – ICT Nghe An Company representative emphasised.

According to Teng Wei Hong, General Director of VSIP Nghe An Company Limited: In Nghe An, VSIP is developing two major projects. From the first VSIP Nghe An project implemented in 2015 in Hung Nguyen District, in 2023, VSIP will continue to implement the VSIP Nghe An 2 project in Dien Chau District.

To date, the total FDI capital of VSIP Nghe An and secondary investors in the industrial park has reached 3.1 billion USD. The occupancy rate at VSIP Nghe An Industrial Park in Hung Nguyen is over 90%. “Thanks to the support of the local authorities and the Southeast Economic Zone Management Board, we have attracted more than ten leading manufacturers in electronics, precision mechanics and smart equipment. The number of workers in the Industrial Park has increased more than ten times.

Before the COVID-19 pandemic, there were only 2,000 people, now it has increased to 23,000 people. In the next two years, the above industrial park is expected to create jobs for about 35,000 workers. This is a joy, but also a great pressure on attracting and recruiting workers,” Teng Wei Hong shared.

Statistics from the Nghe An Provincial Employment Service Centre show that in recent times, many FDI enterprises have recruited a large number of workers, but have been unable to retain them. Many enterprises have had more than 50% of their employees quit.

A typical example is Luxshare – ICT Nghe An Company, the leading enterprise in Nghe An Province in arranging accommodation for workers (with a dormitory area of more than 2,000 rooms). Specifically, in 2023, this company recruited 7,126 workers, but there were up to 3,793 cases of resignation.

In 2024, the number of workers applying for resignation and job transfer is also very large. It is forecasted that from 2025-2029, FDI projects in Nghe An alone will need to register to employ about 98,700 workers.

Many solutions to “pull” workers back to the locality

The reasons leading to the difficulty in recruiting workers for industrial parks in the area have been identified by the departments and branches of Nghe An Province. First of all, it is due to the rapid increase in labour demand for enterprises, especially FDI enterprises operating in electricity, electronics, footwear, semiconductors, garments, etc.

Secondly, Nghe An is one of the leading provinces nationwide in the number of people going abroad to work. In 2024, Nghe An Province had more than 21,000 workers working abroad under contracts, with incomes many times higher than those working in enterprises in the province and the country.

Thirdly, not only Nghe An but also many other provinces and cities need to recruit a large number of workers.

The income and benefits of enterprises in the northern and southern regions are higher. On average, enterprises in Nghe An Province pay salaries and monthly income to workers at 6.63 million VND, while the national average is 8.49 million VND.

For example, Hai Phong is more than 8.8 million VND/person/month and Ho Chi Minh City is 11.4 million VND/person/month. Right next to Nghe An Province are Thanh Hoa and Ha Tinh provinces, the monthly income of workers is also higher, Thanh Hoa is nearly 7.9 million VND, and Ha Tinh is about 7.7 million VND.

Meeting the demand for labour is one of the “five readiness” that Nghe An Province has identified that must be well prepared to attract investment, including planning, investment premises, essential infrastructure, human resources, reform, promotion and active support.

To overcome the situation where the province’s labour force does not meet the demand for quantity and skilled labour, on January 2, Nghe An Provincial Party Committee issued a Project on strengthening the Party’s leadership in connecting labour supply and demand, solving employment, and attracting labour for domestic enterprises and FDI enterprises in the province in the 2025-2030 period.

Immediately after the Project was issued, the Standing Committee of Nghe An Provincial Party Committee also issued a Directive requesting Party committees, Party organisations, authorities and socio-political organisations to thoroughly grasp and promote the implementation of key tasks in this work.

At the Job Fair organised by the Management Board of the Southeast Nghe An Economic Zone and the Department of Labour, War Invalids and Social Affairs of Nghe An Province right after the Lunar New Year 2025 at VSIP Industrial Park (Hung Nguyen District), sharing with reporters, most of the workers participating in the event wanted to find suitable jobs right in their hometown.

Traveling nearly 100 km in cold and rainy weather to the location of the job fair, Nguyen Thi Hang (born in 2001, residing in Do Luong District, Nghe An Province) said that she had worked in an industrial park in the north with a good income.

With her experience, she hopes to find an office administrative job, such as quality inspection or personnel recruitment. Hoang Thi Ha (born in 1986) and Le Thi Thao (born in 1983), both residing in Hung Nguyen District, used to work as garment workers in Binh Thanh District, Ho Chi Minh City, and now also want to find work in their home district.

Or the case of Vo Thi Hien (born in 1989, residing in Hung Nguyen District), who worked as a worker at an electronics company in Taiwan (China) and has just returned, now also wants to find work in her hometown.

Attending the above event, hundreds of parents came to learn about recruitment information to send to their children working in other localities. Many workers said that working close to home is very enjoyable, however, it is also necessary to put on the “scale” the monthly income and expenses to consider.

According to the Management Board of the Southeast Economic Zone of Nghe An Province, 24 enterprises are consulting at this Job Fair, recruiting labour with more than 42,000 job positions. There are 36,000 unskilled workers and more than 4,000 trained workers.

Specifically, An Nam Matsuoka Garment Company Limited, operating in the garment industry, needs to recruit 2,000 workers. Luxshare – ICT Nghe An Company needs to recruit 33,000 more workers, administrative staff, accountants, and engineers.

Le Tien Tri, Head of the Management Board of the Southeast Economic Zone of Nghe An Province, said: The Job Fair is the first event in a series of tasks and solutions to implement Directive No. 33-CT/TU and Project No. 40-DA/TU of the Provincial Party Committee Standing Committee on strengthening the Party’s leadership in connecting labour supply and demand, solving employment, attracting labour for domestic enterprises and FDI enterprises in the province in the period of 2025-2030.

This is also an opportunity for workers who work far away to return home to celebrate the Lunar New Year of At Ty, and to grasp and learn directly about the working environment in their hometown, thereby having more options for suitable positions and jobs, helping workers stabilise their lives right in their hometown.

Project

Vietnam’s Exclusive Economic Zone boasts over 1,000 GW of wind power potential: report

Published

3 months ago

April 27, 2025

Industrialzone.net

Vietnam’s Exclusive Economic Zone (EEZ) has a wind power potential of 1,068 GW, nearly 470 GW more than previously estimated, according to a report released Friday by the National Center for Hydro-Meteorological Forecasting (NCHMF).

An offshore wind power project in Vietnam. Photo courtesy of VnEconomy.

The report, titled “Detailed Assessment of Wind Resource Potential in Coastal (up to 6 Nautical Miles) and Offshore Areas in Vietnam,” was conducted by the NCHMF with support from the United Nations Development Program (UNDP) and the Norwegian Embassy.

This wind potential was measured at a height of 100 meters above sea level, said Mai Van Khiem, director of the NCHMF. He noted that from November to February each year, wind capacity accounts for half of the annual total – peaking in December and gradually decreasing, with the lowest levels recorded in May.

The southern offshore areas account for 894 GW of this potential, while the northern areas contribute 174 GW.

In nearshore zones (up to 6 nautical miles), the total technical wind power potential is 57.8 GW. The Bac Lieu-Ca Mau region alone contributes nearly 30% of this, while the Ninh Thuan-Binh Thuan area accounts for 24 GW. Although the Quang Tri-Hue region has lower potential, it offers stable wind speeds during the winter months. The Red River Delta has a modest potential of 0.17 GW.

Compared to previous assessments, such as the World Bank’s 2021 study and data from the Global Wind Atlas (GWA), this report provides more detailed and higher-resolution information, both spatially and temporally.

“Notably, the EEZ potential outlined in this report exceeds the World Bank’s estimate by 469 GW, primarily due to the broader scope of the survey and more refined climate modeling using domestic observational data,” the research team explained.

They also emphasized the use of the Weather Research and Forecasting (WRF) model customized specifically for Vietnam, which enhanced the accuracy of the results.

The findings are based on wind data collected from 26 coastal and island meteorological stations, satellite sources from CCMP, ASCAT, and SCATSAT-1 (covering 30 years of ocean surface wind data), as well as buoy data from Nghe An province and seabed depth measurements.

A key innovation in this report is the integration of potential impacts from extreme weather events. Typhoons and tropical depressions occurring between August and October pose structural and safety risks to wind turbines. Meanwhile, strong winds and high waves during the northeast monsoon season can hinder access to and maintenance of offshore wind systems.

To support model calibration and long-term observation, the research team recommends increased investment in offshore wind monitoring stations at heights exceeding 100 meters. They also suggest incorporating these findings into offshore wind development strategies and national marine spatial planning.

Additionally, the team advocates for expanding research into other forms of marine renewable energy, such as wave, tidal, and ocean thermal energy.

“Vietnam has some of the most promising offshore wind resources in the region, creating a strong foundation for the development of a large-scale offshore wind industry. This will contribute to energy security, green economic growth, and the achievement of net zero commitments,” they said.

The study provides a vital scientific basis for policy planning, identifying priority development zones, attracting investment, building infrastructure, and training the future offshore wind workforce, the team added.

Hoang Duc Cuong, deputy director of the Department of Meteorology and Hydrology, emphasized that Vietnam lies within a strong and stable Asian monsoon belt, giving it abundant wind energy potential. He noted that this renewable source will play a key role in meeting the country’s climate change goals and advancing a low-carbon economy.

However, he also warned that marine-based natural disasters are highly complex and could significantly impact the stability of offshore wind operations and energy generation.

Project

Uncertainty weighing on real estate

Published

3 months ago

April 26, 2025

Industrialzone.net

The ever-changing status of the global economy following last week’s tariff shocks continue to loom large among investors in Vietnam’s real estate market.

All real estate segments are at risk of losing appeal if high global tariffs are eventually put in place, photo Le Toan

Pham Lam, vice chairman of the Vietnam Real Estate Association, said that while it is premature to determine the full impact of new US import tariffs on Vietnam’s property market, early signs point to shaken investor sentiment and potential disruptions to foreign investment.

“If multinational corporations scale back or delay their factory expansion plans, the demand for land and factory leasing could decline, which may place downward pressure on industrial rents, lead to increased vacancy, and postpone new industrial zone developments,” he said. “This would affect key industrial property markets such as Bac Ninh, Bac Giang, Haiphong, Long An, and Binh Duong.”

Meanwhile, real estate expert Nguyen Hoang said that the United States remains one of the most critical export destinations for Vietnam’s foreign-invested enterprises.

“Any change in tariffs will significantly influence capital flows, investor confidence, and manufacturing strategies of companies operating in Vietnam. If a high tariff is fully implemented in 90 days, it could seriously diminish Vietnam’s investment appeal – affecting all real estate segments as a result,” Hoang said.

Vietnam’s property market has only recently emerged from a prolonged two-year downturn.

“It remains highly sensitive to economic and policy shocks. Investors have remained cautious, and any further external pressure could threaten to break the fragile liquidity recovery, potentially sending the market back into a period of short-term stagnation,” Hoang added.

Alex Crane, managing director of Knight Frank Vietnam, said that the recent tariff twists by the US casts a shadow of uncertainty, with potential implications for various segments of the market.

While manufacturing has shown resilience, it is still on the path to full recovery from the pandemic, particularly in labour-intensive sectors like garments and furniture. Tariffs imposed now would not have as severe an impact as they might have during Vietnam’s 2019 peak, but consequences are still expected, Crane said.

“I may expect that major transactions, especially those involving large capital outlays, are being paused or undergoing extended due diligence as investors and developers reassess assumptions and underwriting models and commercial occupiers are expected to defer large capital expenditures in the short term,” Crane said.

In addition, the response from the State Bank of Vietnam, particularly regarding monetary policy, will be crucial. While a rate cut may not effectively stimulate residential demand (as demonstrated in 2024), targeted lending for key industries and easing of loan-to-value ratios or debt-to-income limits for developers could provide relief.

“At present, most segments of the real estate market are in a holding pattern, awaiting clarity from the evolving negotiations between the Vietnamese and US governments. While uncertainty is unsettling, Vietnam’s underlying fundamentals remain sound, and the market’s long-term outlook is still viewed positively,” he added.

Nguyen Dung Minh, deputy CEO of MIK Group, has warned that under the new US tariff regime, many investors will be forced to reassess their strategies, likely leading to a decline in the demand for industrial land.

“Investors will need time to re-evaluate their actual demand and incoming orders and make necessary adjustments before they can fully gauge the extent of the impact,” Minh said.

He added that the implications go beyond just industrial land. “The new US tariffs are also expected to disrupt supply chains and negatively affect supporting sectors such as logistics, warehousing, and raw materials manufacturing. As production slows, so too will the demand for land associated with these services,” Minh said.

Trang Bui, country head Cushman & Wakefield Vietnam While the effects of tariffs are typically delayed, most economists warn that they may eventually fuel inflation and dampen economic growth. Many manufacturing firms could opt to postpone their expansion plans in the short term if export duties become too burdensome. There is also a possibility that some companies may look to diversify their supply chains towards a Vietnam+1 model, shifting parts of their operations to neighbouring countries. This could lead to a decline in demand for factories and warehouse leasing, two key drivers of the industrial real estate segment. However, it is important to recognise that industrial real estate is fundamentally a long-term investment. Vietnam has long positioned itself as the manufacturing hub of Southeast Asia, thanks to its strategic location and the “bamboo diplomacy” approach, which has enabled the country to swiftly join trade negotiations and sign multiple free trade agreements. Moreover, many manufacturers in Vietnam have already established tightly integrated supply chains. As such, their investment plans tend to operate on a much longer time horizon than the near-term effects of tariff policy. Relocating supply chains typically requires at least 3–5 years, making short-term shifts less likely. Overall, Vietnam’s industrial real estate sector has proven resilient under various political and economic conditions. Investors would do well to focus on long-term trends and structural advantages. Manufacturers, in particular, may take this opportunity to secure high-quality industrial assets, invest in automation, and pull in skilled labour, while continuing to monitor developments in upcoming trade negotiations with caution. Nguyen Thi Bich Ngoc, CEO, Sen Vang Group When it comes to the reciprocal tariff policy announced by the US, the greater danger currently lies not in the tariff itself, but in the heightened sense of uncertainty it has triggered across the Vietnamese market, a sentiment clearly reflected in recent VN-Index fluctuations. In the short term, the policy will weigh heavily on Vietnam’s industrial real estate sector. However, in the long run, this challenge could serve as a catalyst for stronger growth. It presents an opportunity for the government and industrial zone developers to rethink their strategies, offering more competitive, attractive solutions to both foreign and domestic investors. Rather than relying solely on external trends like the China+1 shift, Vietnam should leverage its inherent competitive advantages, including a strategic geographic location, a skilled and cost-effective labour force, and political stability, to pull in long-term investment. These are undeniable strengths that set Vietnam apart. Moreover, this is also an opportune moment for Vietnam to re-evaluate and restructure its key sectors, prioritising strategic industries with high growth potential. Continued engagement in bilateral and multilateral trade agreements will open up new opportunities and elevate Vietnam’s position both regionally and globally. Ultimately, we must seize this challenge as a turning point, transforming pressure into momentum for sustainable development. Vo Hong Thang, Investment director DKRA Group The industrial infrastructure, commercial, and residential real estate segments are all likely to face increasing headwinds if a huge tariff increase is eventually implemented. In recent years, a number of developers have made significant investments in industrial zones, betting on a continued influx of foreign direct investment. However, the new tariff policy raises the possibility of such flows being diverted to other countries. Vietnam now faces the risk of having built the nest, but being unable to attract the eagle. In addition, liquidity in both residential and commercial real estate, including retail, office, and hospitality, is likely to weaken in the short term due to more cautious investor sentiment, defensive capital flows, and reduced purchasing power from end-users. Niche investment segments such as serviced apartments, tourism-related accommodations, and foreign buyer housing could also see demand drop, particularly as the foreign expert and executive workforce, typically a key demand driver, scales back plans to live and work in Vietnam.

Trang Bui, country head Cushman & Wakefield Vietnam

While the effects of tariffs are typically delayed, most economists warn that they may eventually fuel inflation and dampen economic growth. Many manufacturing firms could opt to postpone their expansion plans in the short term if export duties become too burdensome. There is also a possibility that some companies may look to diversify their supply chains towards a Vietnam+1 model, shifting parts of their operations to neighbouring countries.

This could lead to a decline in demand for factories and warehouse leasing, two key drivers of the industrial real estate segment. However, it is important to recognise that industrial real estate is fundamentally a long-term investment. Vietnam has long positioned itself as the manufacturing hub of Southeast Asia, thanks to its strategic location and the “bamboo diplomacy” approach, which has enabled the country to swiftly join trade negotiations and sign multiple free trade agreements.

Moreover, many manufacturers in Vietnam have already established tightly integrated supply chains. As such, their investment plans tend to operate on a much longer time horizon than the near-term effects of tariff policy. Relocating supply chains typically requires at least 3–5 years, making short-term shifts less likely.

Overall, Vietnam’s industrial real estate sector has proven resilient under various political and economic conditions. Investors would do well to focus on long-term trends and structural advantages. Manufacturers, in particular, may take this opportunity to secure high-quality industrial assets, invest in automation, and pull in skilled labour, while continuing to monitor developments in upcoming trade negotiations with caution.

Nguyen Thi Bich Ngoc, CEO, Sen Vang Group

When it comes to the reciprocal tariff policy announced by the US, the greater danger currently lies not in the tariff itself, but in the heightened sense of uncertainty it has triggered across the Vietnamese market, a sentiment clearly reflected in recent VN-Index fluctuations.

In the short term, the policy will weigh heavily on Vietnam’s industrial real estate sector. However, in the long run, this challenge could serve as a catalyst for stronger growth. It presents an opportunity for the government and industrial zone developers to rethink their strategies, offering more competitive, attractive solutions to both foreign and domestic investors.

Rather than relying solely on external trends like the China+1 shift, Vietnam should leverage its inherent competitive advantages, including a strategic geographic location, a skilled and cost-effective labour force, and political stability, to pull in long-term investment. These are undeniable strengths that set Vietnam apart.

Moreover, this is also an opportune moment for Vietnam to re-evaluate and restructure its key sectors, prioritising strategic industries with high growth potential. Continued engagement in bilateral and multilateral trade agreements will open up new opportunities and elevate Vietnam’s position both regionally and globally.

Ultimately, we must seize this challenge as a turning point, transforming pressure into momentum for sustainable development.

Vo Hong Thang, Investment director DKRA Group

The industrial infrastructure, commercial, and residential real estate segments are all likely to face increasing headwinds if a huge tariff increase is eventually implemented.

In recent years, a number of developers have made significant investments in industrial zones, betting on a continued influx of foreign direct investment. However, the new tariff policy raises the possibility of such flows being diverted to other countries. Vietnam now faces the risk of having built the nest, but being unable to attract the eagle.

In addition, liquidity in both residential and commercial real estate, including retail, office, and hospitality, is likely to weaken in the short term due to more cautious investor sentiment, defensive capital flows, and reduced purchasing power from end-users.

Niche investment segments such as serviced apartments, tourism-related accommodations, and foreign buyer housing could also see demand drop, particularly as the foreign expert and executive workforce, typically a key demand driver, scales back plans to live and work in Vietnam.

Project

Central Vietnam city seeks $1.84 bln for 15 projects in economic zone

Published

3 months ago

April 26, 2025

Industrialzone.net

Authorities of Hue city in central Vietnam have released a list of 15 projects in Chan May-Lang Co Economic Zone which will need VND47.5 trillion ($1.84 billion) in investment capital between 2025 and 2026.

Chan May-Lang Co Economic Zone in Hue city, central Vietnam. Photo by The Investor/Dinh Duy.

Notable projects include the Chan May non-tariff zones No. 1 and 2 infrastructure development project, with a total area of over 503 hectares and combined investment capital of VND2.8 trillion ($108.23 million).

Another is the VND20 trillion ($773 million) Chan May Urban Area project (locations 1 and 2), which will cover 225 hectares and be implemented over five years.

The LNG terminal project at Chan May Port, 27 hectares with an investment of VND8.6 trillion ($332.43 million), is set for five-year implementation.

The 120-hectare Bai Ca eco-tourism project in Lang Co township will have investment capital of VND2.5 trillion.

The Lang Co beach resort, with an area of 45 hectares and total investment of VND4 trillion ($154.62 million), will be carried out over five years; while the 75-hectare Lap An lagoon tourism, urban development and resort complex in Lang Co township will cost VND6 trillion.

According to the management board of Hue Economic and Industrial Zones, since its establishment, Chan May-Lang Co Economic Zone has attracted 55 investment projects which remain valid, with total registered capital of VND97.32 trillion ($3.76 billion).

Among these, 15 are foreign-invested projects with combined capital of VND56.02 trillion ($2.17 billion), accounting for 57.56% of the total.

Several prominent foreign investors have established a presence in the zone, such as Banyan Tree Group (Singapore) with the Laguna Lang Co Resort and Winson Group (Taiwan) with the Billion Max Vietnam Export Processing Factory.

Chan May-Lang Co has become a destination for investments in sectors like tourism and resort development; seaport infrastructure; logistics; clean industry; and high-tech, environmentally friendly industries, with annual revenue reaching nearly VND4 trillion ($154.62 million) and tax contributions of around VND300 billion.

The management board said Hue city has proposed the Ministry of Construction review the adjustment of the EZ master plan through 2045, for submission to the Prime Minister.

The strategic goal is to develop Chan May-Lang Co into a key economic zone of central Vietnam – a coastal gateway offering logistics services for the central region and the East-West Economic Corridor, as well as a hub for high-end tourism services.

To attract investors, the local government will offer a range of incentives such as a 10% corporate income tax rate for 15 years from the first year the project generates revenue; import tax exemption for goods to create fixed assets for investment projects, and land and water surface rental exemptions, the board said.