The province is rapidly expanding its industrial base to accommodate new investment, helping sustain strong economic growth and support its goal of achieving double-digit growth.
Strong industrial growth bolsters FDI momentum
According to Hung Yen Provincial Statistics, the province's Index of Industrial Production (IIP) rose 15.78% year on year in the first eight months of 2026, with manufacturing and processing industries remaining the main engine of growth, expanding 16.45% over the same period.
Several industrial sectors posted particularly strong growth. Repair, maintenance and installation of machinery and equipment surged 90.49%, while pharmaceutical, pharmaceuticals, medicinal chemicals and medicinal materials rose 40.56%. Paper and paper products grew 31.62%, apparel manufacturing increased 28.50%, and the production of electronic, computer and optical products rose 21.85%.
Strong growth was also recorded across a range of key industrial products. Output of integrated electronic circuits increased 47.62%, insulated copper wire 42.52%, motorcycles and motorbikes with engine capacities below 50cc 32.32%, plastic bags and sacks 27.56%, flat-rolled non-alloy steel products in coils 21.51%, and garments 19.45%.
FDI inflows also remained strong. By the end of August 2026, Hung Yen had attracted 40 newly registered FDI projects with total registered capital of $645.67 million. The province had a cumulative 1,006 valid FDI projects with total registered capital of $20.23 billion.
Investors from Northeast Asia account for a particularly significant share of Hung Yen's FDI. Japan ranks first, with 204 projects and more than $8.19 billion in registered capital, representing 40.49% of the province's total FDI. China follows with 389 projects and more than $4.64 billion, or 22.94%, while South Korea has 217 projects with more than $2.33 billion, accounting for 11.53%.
Combined, Japan, China and South Korea account for roughly 75% of total registered FDI capital in Hung Yen. The figures underscore the province's strong appeal to Northeast Asian investors and reflect a broader trend of businesses seeking locations with well-developed industrial infrastructure, strong connectivity and room for long-term expansion.
Expanding industrial space to attract new investment
To create additional space for new investment, Hung Yen is accelerating the development of industrial parks and clusters. To mark the 81st anniversary of National Day, the province simultaneously broke ground on or inaugurated 10 industrial parks and clusters, including six projects launched on September 12.
The projects represent a combined investment of VND18.222 trillion and $288 million. They are expected to serve as key drivers of industrial development by creating new production space and expanding the province's capacity to attract both domestic and foreign investment.
Among them, Tho Hoang Industrial Park covers 250 hectares, while Lac Dao Industrial Cluster spans approximately 42.5 hectares, with combined investment of nearly VND6 trillion. The two projects are expected to attract a further VND10 trillion in domestic investment in supporting industries and logistics.
Hung Yen has also broken ground on Industrial Park No. 10 in An Thi Commune, covering 199.62 hectares with investment of nearly VND3 trillion; Industrial Park No. 15 in Nguyen Trai Commune, spanning 199 hectares with investment of more than VND2.8 trillion; and Van Giang Industrial Park in Nghia Tru Commune, covering 203.55 hectares with investment of VND3.32 trillion.
Notably, Lien Ha Thai Industrial Park (Green iP-3) in Thai Ninh Commune covers 234 hectares and has total investment of VND2.4 trillion. Meanwhile, Nitto Vietnam's project at Thang Long II Industrial Park has been inaugurated with an investment of $160 million, further highlighting Hung Yen's appeal to Japanese and other Northeast Asian investors.
According to the Hung Yen Provincial People's Committee, the new industrial parks and clusters will focus on attracting light industry, diversified industrial projects and environmentally friendly investments, as well as businesses operating in fields such as cybersecurity, big data, cloud computing and AI applications.
Laying the groundwork for double-digit growth
FDI is not the only driver of Hung Yen's economic momentum. The province's domestic business sector is also expanding rapidly. Since the beginning of the year, 3,775 new businesses have been registered, with total registered capital of VND41.535 trillion, while 610 businesses have resumed operations.
Real estate accounted for the largest share of newly registered capital, at VND19.872 trillion or 47.84%, followed by manufacturing and processing at 19.40% and wholesale and retail at 14.72%. New investment is generating greater synergies across industrial development, infrastructure, logistics, trade and supporting services.
Commercial activity has also maintained strong growth. Total retail sales of goods and consumer service revenue in the first eight months of the year were estimated at VND197.106 trillion, up 17.57% year on year. State budget revenue was estimated at VND50.374 trillion, while realized investment capital from locally managed state budget funds reached VND24.098 trillion, up 15.88%.
Chairman of the Hung Yen Provincial People's Committee Nguyen Manh Quyen said the province benefits from well-developed infrastructure, major modern industrial hubs and a young, dynamic workforce. These advantages provide a strong foundation for rapid industrial development, contributing significantly to socioeconomic growth and strengthening Hung Yen's position as it enters a new era.
The province is currently reviewing and updating its 2021–2030 Master Plan, with a vision to 2050, with a focus on expanding its development space. In the industrial sector alone, Hung Yen has planned 66 industrial parks covering more than 23,000 hectares, along with 126 industrial clusters spanning nearly 8,000 hectares.
With industrial infrastructure continuing to improve, development space expanding and the investment climate becoming increasingly attractive, Hung Yen is well positioned to attract more high-quality foreign investment, particularly from Northeast Asia. These inflows will provide an important source of momentum for the province's industrialization, raise the value of industrial production and help sustain double-digit economic growth in the years ahead./.
Hashtag: #HungYen
The issuer is solely responsible for the content of this announcement.
Hashtag.net.au
