Hung Yen: An attractive destination for the semiconductor industry

As global supply chains undergo restructuring, semiconductors have emerged as a strategic industry, where every investment decision is evaluated against stringent criteria, including infrastructure, workforce quality, administrative procedures, logistics capabilities, long-term predictability, and confidence in local governance.

With a newly expanded development space and growing competitive advantages, Hung Yen is increasingly being viewed as a promising destination for high-tech investment capital in northern Vietnam.

Thang Long II Industrial Park has attracted numerous Japanese investors in the semiconductor industry.

Positive signals from high-tech investment flows

Hung Yen enjoys a strategic location with convenient connectivity to Hanoi, Hai Phong, Quang Ninh, and other major manufacturing hubs in northern Vietnam. This represents a significant advantage for industries that place high demands on supply chains, logistics, technical infrastructure, and operational reliability.

According to the Management Board of Hung Yen Industrial Parks, under its new development strategy, the province is shifting its focus from investment expansion in scale to investment quality, prioritizing projects with high added value, advanced technologies, environmental sustainability, and strong potential to integrate into global supply chains.

A notable highlight is the development orientation of Industrial Park No. 05, which is being positioned to prioritize investment from companies in the semiconductor, high-tech electronics, and supporting industries sectors. The investment projects of Seojin System and Texon Co., Ltd., with a combined registered capital of approximately USD 500 million, are regarded as an important signal that Hung Yen has entered the radar of investors directly involved in the production of semiconductor components and equipment.

Beyond newly announced projects, Hung Yen has already built a solid foundation in the electronics and advanced materials industries over many years. At Thang Long II Industrial Park, the presence of Japanese companies such as Kyocera Vietnam, Shin-Etsu Vietnam and Seiko Vietnam demonstrates that the province has developed important links within the supporting industries ecosystem for electronics, sensors, materials and equipment used in high-tech manufacturing. While these segments may attract less attention than semiconductor chip fabrication, they are indispensable to building a precision-driven, highly disciplined manufacturing base that meets international standards.

At the same time, Lien Ha Thai Industrial Park, located in the southern part of Hung Yen Province, is emerging as a new hotspot for high-tech foreign direct investment. Lotes Vietnam Co., Ltd. has invested in a manufacturing facility producing RAM connectors, cable assemblies and metal components for high-tech, semiconductor and electronics equipment, with a total investment of approximately USD 120 million. Other projects, including Good Way Vietnam (USD 45 million), Compal Electronics Vietnam (USD 260 million) and Ohsung Vina (USD 40 million), are further strengthening the province’s manufacturing base in electronics, connectivity devices, components and technology products. While these investments may not yet qualify Hung Yen as a full-fledged semiconductor hub, they represent critical building blocks that will enable the province to gradually move up the value chain and strengthen its position within the broader high-tech manufacturing ecosystem.

Lien Ha Thai Industrial Park, located within Thai Binh Economic Zone, is emerging as a new bright spot for attracting high-tech foreign direct investment (FDI).

Reform, human resources and investor confidence

From the perspective of investors, the message for Hung Yen is becoming increasingly clear: high-tech industries require more than just ready-to-use industrial land and investment incentives. They also depend on a stable, transparent and predictable business environment that enables companies to plan and operate with confidence over the long term.

At a dialogue conference between Hung Yen provincial leaders and Japanese businesses, Mr. Kenta Kawanabe, General Director of Thang Long II Industrial Park Co., Ltd., emphasized the need for the province to place greater focus on developing a highly skilled workforce for its industrial parks.

According to Mr. Kenta Kawanabe, in industries such as semiconductors, precision electronics and automation, an abundant supply of low-skilled labor is no longer a sufficient competitive advantage. What investors increasingly require is a workforce of skilled technicians, engineers and production management professionals who possess strong discipline, technical expertise and the ability to adapt to international standards.

The Management Board of Hung Yen Industrial Parks is enhancing the quality of services provided to businesses and investors.

From another perspective, Mr. Lee Jeesoon, General Director of VTK Hung Yen Industrial Park Investment and Development Co., Ltd., suggested that Hung Yen should continue streamlining administrative procedures and removing unnecessary barriers to better support investors. According to Mr. Lee, for foreign-invested enterprises, fast, transparent and predictable administrative processes are an integral part of a locality’s competitiveness. A delay in procedures can disrupt investment plans, while prolonged administrative bottlenecks may affect construction schedules, production timelines and commitments to global customers.

For the semiconductor industry, investment incentives are no longer the sole deciding factor. Investors closely assess a wide range of criteria, including technical infrastructure, power and water supply, environmental management, logistics capabilities, workforce quality and the effectiveness of government support and coordination. Therefore, to attract high-tech investment capital, Hung Yen must demonstrate not only its readiness in terms of infrastructure and resources, but also its ability to provide efficient and reliable services throughout the investment and operational process.

Mr. Hoang Van Mai, Deputy Head of the Management Board of Hung Yen Industrial Parks, noted that investors in high-tech industries, particularly semiconductors and precision electronics, are becoming increasingly demanding. They require ready-to-use industrial land, reliable infrastructure, efficient logistics and administrative procedures that are transparent, streamlined and predictable. According to Mr. Mai, Hung Yen is working to shift from a mindset of merely “attracting investment” to one of “partnering with investors”, viewing the success of businesses as a key measure of the effectiveness of local government services and support.

Mr. Hoang Van Mai, Deputy Head of the Management Board of Hung Yen Industrial Parks, speaks with Business Forum Magazine.

Sharing a similar view, Mr. Nguyen Van Lan, Deputy Head of the Thai Binh Economic Zone Authority emphasized: “The attraction of high-tech projects to Lien Ha Thai Industrial Park demonstrates that when infrastructure is well prepared, administrative procedures are handled efficiently, and local authorities work closely alongside businesses, major investors gain the confidence needed to commit their investments. For Hung Yen, leveraging the experience gained from successful investment attraction in key industrial parks will create significant opportunities for the province to attract even higher-quality projects in the years ahead."

It is evident that Hung Yen is not rushing to position itself as a “semiconductor hub”. Instead, the province is taking a pragmatic approach, focusing first on segments that align with its current strengths, such as semiconductor components, precision electronic parts, electronic materials, connectivity devices, metal components and supporting industries. Through this strategy, Hung Yen aims to gradually move up the value chain and strengthen its role within the broader high-tech manufacturing ecosystem. This approach is well aligned with the province’s existing capabilities while leaving ample room for future growth and advancement.