Investing in Dong Nai – A Resilient FDI Destination in Vietnam
Investing in Dong Nai – A Resilient FDI Destination in Vietnam
Dong Nai has been one of the most dynamic industrial provinces of Vietnam for the past five years. With the convenient location and well-developed infrastructure, this province is becoming the logistics hub of the region, especially in the South of Vietnam.
Despite being affected by COVID-19, Dong Nai remains a go-to destination for foreign investors due to its supportive policy, strategic location, developed infrastructure, and skilled and abundant labor force.
Dong Nai Economic Profile | ||
 | Area | 5,894.73 km2 |
 | Population | 3.2 million people |
 | Labor force | 1.76 million people |
 | Neighboring provinces | Binh Thuan, Binh Duong, Bia Ria – Vung Tau, Ho Chi Minh City, Lam Dong, Binh Phuoc |
 | Key industries | Food Processing, Textile & Garment, Computer & Electronics, Automotive, Hi-tech projects |
 | GRDP growth rate | Estimated 2.29% in 2021 |
 | Total FDI projects | 1,790 projects |
 | FDI | US$ 0.93 billion (2020) | US$ 1.2 billion (first 11 months of 2021) |
Economic Growth during the Pandemic
The estimated gross regional domestic product (GRDP) of Dong Nai in 2021 is about US$1 billion, increased by 2.29%, lower than the increase of 4.44% in 2020 and 9.05% in 2019. In 2021, Dong Nai was oneis one of the four provinces and cities that wereare heavily affected by the pandemic when the social distancing was implemented in 2021. According to the Center for Disease Control of Dong Nai province, as of December 14, 2021, Dong Nai has a total of 92,946 people infected, mainly in Bien Hoa (an area with several industrial zones) with 40,893 cases. As a result, nearly 900 enterprises had to suspend production and dissolve during this time. Despite the impact of COVID-19, Dong Nai’s export turnover reached nearly 16.3 billion USD, increasing by more than 21% compared to 2020.
FDI and Industrial Zones
Dong Nai remains an attractive FDI destination despite COVID-19. According to the Ministry of Planning and Investment (MPI), as of November 2021, Dong Nai has 1,790 FDI projects with a total investment of US$32.67 billion USD, ranked 5th out of 63 provinces in Vietnam. Irrespective of the pandemic, Dong Nai received US$1.25 billion in 11 months of 2021, with a total of 46 new projects, exceeding the target for 2021 (US$1 billion). Out of 47 countries investing in Dong Nai, Korea, Taiwan, and Japan have the highest investment. Dong Nai is the home of several multinational corporations such as Forsoma, Nestle, Bosch, and 3M. In 2021, Nestlé Vietnam increasedVietnam has increased its investment in its Tri An factory to US$132 million. Besides, KSM ENG Vina's metal components production and processing facility at Giang Dien Industrial Park, with a total investment capital of US$10 million, is also one of the new key FDI projects in Dong Nai. | | 1,790 FDI projects |
| US$32.67 billion FDI | |
 | 32 Industrial parks | |
 | 95% occupied | |
 | US$104 per sqm | |
 | Top investors: Korea, Taiwan, and Japan | |
Dong Nai has an outstanding number of industrial parks to attract investment capital. 31 out of 32 industrial parks are in operation, leasing out 5,935.24 ha (occupied 95% of leasable industrial land). By the end of 2020 and the beginning of 2021, the Prime Minister has approved the plan to build five industrial zones in Dong Nai with a total area of more than 7,100 hectares, including:
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Transportation and Connectivity
Dong Nai has a strategic location for investment. In terms of transport connectivity, Dong Nai is 92km and 71.28km away from Ho Chi Minh City and Binh Duong, respectively, the two largest economic centers of Vietnam. There are four National Highways (No.1 No. 56, No.29, and No. 51) and 12 train stations, creating favorable conditions for cargo transportation. Bien Hoa - Vung Tau railway is a highlight railway infrastructure project of Dong Nai, which will connect the national railway with Cai Mep port and seaports in Ba Ria - Vung Tau.
Long Thanh International Airport, with the expected capacity of 25 million passengers and 1.2 million tonstonnes of cargo per annum, will be the largest airport in Vietnam when becomingstarting operational by the end of 2025. The airport is being built with the purpose of easing the pressure on Tan Son Nhat International Airport in Ho Chi Minh City in the short term whileand becoming the Southern region’s air transportation hub in the longin long term.
The People's Committee of Dong Nai is planning to establish a port system to synchronize the region's transportation infrastructure, including expressways, highways, and Long Thanh International Airport to make Dong Nai a logistics center of the region. Currently, Dong Nai has 17 seaports withincluding the two largest seaports in the South. According to the plan, the number will be increased to 46 seaports, including 20 regular ports and 26 special ports.
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