Why the north of Vietnam rather than the south?


North Vietnam has quickly caught up with the south thanks to major infrastructure investments, but still offers outstanding investment opportunities to the automotive industry as well as other businesses.

1. Notable northern factors include:

Ample power capacity, about 50% from renewables

Prime industrial zones under full development

New road networks and highways between Hanoi and Haiphong and from Haiphong to China, as well as to coastal provinces

Airport expansion projects in both Hanoi and Haiphong

Lach Huyen deepsea port project in Haiphong which, with 14m depth, will be one of the deepest in the country.

2. DEEP C — at the centre of a multimodal logistics network

It offers prime land next to Haiphong international airport and close to Hanoi international airport; it is close to the Red River Delta central highway network; and importantly right next to Lach Huyen deepsea port on Haiphong’s Cat Hai Island.

Lach Huyen is vital. It will become operational (first two berths) in 2018 and that 14m depth translates to vessels up to 100,000dwt.

As a deepsea port able to handle ships of that size, it will cut about 800km off the shipping route for exports from western China, getting them to market faster and more cheaply.

It will also slash lead times to North America from 17 days to 10-12 days.

And it gives the automotive industry and other foreign businesses another major incentive to use Vietnam as their regional base, not least because it is likely to become a transhipment and consolidation hub for Chinese exports/imports.

It could lure shippers away from more expensive hubs, such as Singapore and Hong Kong.

3. Confidence — the Tan Vu–Lach Huyen Bridge

The longest sea-crossing bridge not only in Vietnam but in all Southeast Asia, the Tan Vu–Lach Huyen bridge opened in 2017 and is the direct link from the DEEP C Industrial Zones to Lach Huyen deepsea port.

It costs nearly USD525 million, is 5.4km long with a 10.2km approach road, has six lanes, and stretches from the Hanoi-Haiphong expressway

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