Thanh Hoa has the potentials to calling for large investment projects
Some of the major foreign investment projects that are interested in Thanh Hoa province must be mentioned such as: Foxconn, an industrial group specializing in the production of electronic equipment and components for many global technology firms, has come to Thanh Hoa for checking factory locations; WHA Industrial Development Company (Thailand) decided to research and invest in 2 projects of industrial construction infrastructure with a total investment of about 335 million USD, total area of about 1,339 ha (539 ha in Nghi Son EZ. and 800 hectares in Phu Quy Industrial Park); AVG Capital Partners Group (Russia) signed an online memorandum of understanding (MOU) with the People's Committee of Thanh Hoa province on the implementation of the pork processing complex project with an investment scale of up to $1.4 billion …
Not only foreign investors, in recent years, Thanh Hoa province has also created a special attraction with large domestic corporations, such as Vingroup, Sun Group, FLC... In which, Vingroup has pioneered to bring the whole ecosystem of leading brands Vinhomes, Vinpearl, Vinschool and the future VinFast.
According to statistics, as of 20th August, 2021, Thanh Hoa has attracted 164 FDI projects, with a total registered capital of 14.57 billion USD, ranking 8th in terms of FDI attraction in the country.
In the locality, there are Nghi Son EZ (with an area of 106,000 ha) and 8 industrial zones in operation (including Le Mon, Dinh Huong - Tay Bac Ga, Bim Son, Hoang Long, Lam Son - Sao Vang, Ngoc Lac, Bai Tranh and Thach Quang). There are some large investment projects located in this province, such as Nghi Son Oil Refinery, Nghi Son 1 - 2 Thermal Power Plant, Nghi Son Steel Rolling Factory...
According to the development plan of Economic zones and Industrial zones in Thanh Hoa province in the period of 2021 - 2030, with a vision to 2045, Thanh Hoa will develop Na Meo border gate economic zone in Quan Son district and 2 urban (service industrial zones in the West and north of Thanh Hoa city) in addition. Specifically, the northern area of Thanh Hoa city has an area of 800 hectares, with the goal of developing clean industry, high-tech industry, towards the "industry 4.0"; the western area of Thanh Hoa city plans a total area of 1,200 hectares, including 900 hectares for industrial development, the rest are urban areas and public areas.
Advantages of attracting investment
According to experts, macro policy is the most important reason for Thanh Hoa to be able to attract large investments. Resolution No.58 on construction and development of Thanh Hoa province to 2030, with a vision to 2045 has been issued by the Politburo, opening lots of new development opportunities for the locality to become a new growth pole in the north of Vietnam. Accordingly, Thanh Hoa together with Hanoi, Quang Ninh and Hai Phong will form a development quadrangle in the north. It can be seen that the Government has many plans to develop the infrastructures in Thanh Hoa. The North-South expressway route from Ninh Binh to Thanh Hoa is underway and will have a great positive impact on the economic development in general and tourism in particular of Thanh in the near future.
Moreover, Thanh Hoa has an important strategic location with Nghi Son deep-water port, capable of handling more than 100 million tons of cargo per year and capable of receiving ships of 100,000 DWT. Nghi Son EZ has an area of 106,000 ha and is one of 8 coastal economic zones operated with special incentives in terms of company income tax (CIT), land rent, import tax... Meanwhile, Tho Xuan airport is planned to become an international airport, Na Meo border gate helps to connect with Laos and Southeast Asian countries by road. In addition, Thanh Hoa is also blessed with many scenic spots, notably Sam Son beach, which has been invested in many high-class resorts and hotels.
Additionally, Thanh Hoa province has abundant human resources with more than 2.5 million people of working age, accounting for more than 60% of the province's population, bringing investment opportunities in some sectors such as retail, residential or office projects.
According to market research units, the average rental price of industrial real estate in Thanh Hoa is about 40-50 USD/m2/lease term. This price is extremely attractive compared to neighboring provinces and cities. For instance, the price in Hanoi is 140 USD/m2, Hai Phong is 95 USD/m2, Hung Yen is 75 USD/m2 and Hai Duong is about 60 USD/m2 per lease term. The land use term of industrial parks usually is more than 50 years, and the term for payment depends on the lease term of the rest of the land use, specified in relevant legal documents.
Future growth potential
With many FTAs signed, real estate in Vietnam's industrial zones is assessed to have many prospects in the future, the demand for industrial real estate, warehouses or ready-built factories is likely to increase significantly over the country. This also has a knock-on effect and makes the rental price of real estate in Thanh Hoa Industrial Park expected to increase in the long term.
The focus of attracting future investment projects of Thanh Hoa is identified as Sam Son City, Nghi Son Economic Zone, Bim Son Industrial Park and Lam Son - Sao Vang Industrial Park. The province also identified six pillars to attract investment and promote growth, namely processing and manufacturing industry; high-tech agriculture; travel; medican; urban infrastructure development and human resource development. In the past year, the province has concentrated on investing in technical and social infrastructure, including intra-provincial roads, leading to Nghi Son EZ, industrial parks and tourist areas connecting Thanh Hoa with other provinces.
Thanh Hoa is located in an area with many energy resources, so heavy industries will be noted for development in the coming years. With the success of Nghi Son EZ and many other strengths, Thanh Hoa promises to become a modern industrial province in the near future.