The poor Central province has continuously been invested in by technology giants, soon reaching the 1 billion USD mark in attracting FDI

Nghe An is known as a province with per capita income always in the bottom of the country. Despite having a low per capita income in the country, the province’s average income has improved over time.

Specifically, in 2016, the province’s average income reached 1.82 million VND/person/year, ranking 54/63 localities. By 2021, the province’s average income will reach 3,095 million VND/person/year, ranking 45/63 localities. Nghe An has improved by 12 levels by 2022 with an average income of more than 3.6 million VND.

Besides, Nghe An is a province whose poverty rate is always in the top 15 localities with the highest poverty rate in the country. Accordingly. In 2018, the province’s poverty rate was 13.5%, ranking 12th out of 63 provinces and cities. By 2022, Nghe An’s poverty rate will decrease to 6.2%, ranking 23/63 in the country.

To improve the quality of life for people and reduce the rate of poor households, Nghe An has focused on attracting FDI inflows to create momentum for economic development. In 2023, Nghe An strives to attract 100 - 120 investment projects with a total registered capital of about 32,000 - 35,000 billion VND; Of which, FDI capital is about 500 - 600 million USD. Currently, the province has achieved its goal, having attracted 890 million USD since the beginning of the year and the 1 billion USD mark is very close to being awarded investment certificates for 2 new projects.

Some projects with large investment capital such as: Luxshare - ICT electronic components factory (140 million USD); Factory manufacturing electronic products, network equipment and multimedia audio products of Goertek Group (500 million USD), Electronic components manufacturing project of Everwin Precision Technology Co., Ltd. Vietnam (199.8 million USD), Ju Teng electronic product components and auto parts factory project (200 million USD). Foxconn - Apple’s leading partner has also decided to invest in a project with a total capital of 100 million USD in WHA Nghe An Industrial Park.

Why have major electronics companies recently chosen Nghe An as their destination?

According to Mr. Nguyen Tien Chung, Deputy General Director of TERMO Vietnam Co., Ltd., considering that Nghe An province is currently being invested in by businesses to build factories, there can be a number of reasons. First, Nghe An province is currently receiving strong infrastructure investment, considered not inferior to the northern regions, where manufacturing factories are crowded.

Not only that, the distance and travel time between Hanoi - Dien Chau is shortened because the highway is about to be inaugurated in early September. Seaports such as Nghi Son, Vung Ang, Cua Hoi are being invested in. to become the main trading ports in Vietnam.

Besides, Mr. Chung said, the labor source in Nghe An is considered to have good exploitation potential, as Nghe An province and surrounding areas have a very high labor rate, and also undergo training. by many businesses and factories. Nghe An people are currently working mainly in remote provinces, the number of large local businesses is not many, and competition for the labor force is not high.

In addition, the policy of 4 exemptions, 9 reductions for businesses investing and supporting investment in the Southeast Economic Zone and industrial zones in Nghe An province is also considered an advantage when choosing Nghe An province as a location. destination.

“The current Nghe An province market, with its lack of a diverse supplier system, is considered similar to the Bac Ninh market of 10 years ago. However, with the interest and investment of businesses currently choosing Nghe An as a destination, it will not be long before the Nghe An market will be even more developed, and is expected to become vibrant and bustling. as busy as Bac Ninh at the present time," Mr. Chung emphasized.