Amidst the dynamically evolving global manufacturing landscape, Vietnam is emerging as a crucial investment destination, offering foreign investors a highly advantageous environment to thrive in.

Photo: Workers leaving the City Bien Hoa industrial park in the evening hours

Vietnam's status as a rising manufacturing powerhouse is reinforced by the constant flow of Foreign Direct Investment (FDI). This is evident in the impressive 7.7% year-on-year increase in foreign capital, which now stands at around USD 20.21 billion as of September 2023^[1].

Photo: Cat Lai Port is the nearest port to AMATA's projects, just some 20-25km away

The impressive growth of the processing and manufacturing sector in Vietnam has resulted in a significant contribution of over USD 14 billion, accounting for 69.3% of the total foreign investment. This emphasizes the undeniable advantages of establishing manufacturing facilities in AMATA's industrial estates. Furthermore, the substantial investments from Singapore, China, Japan, and Korea underscore the unwavering confidence the international community has in Vietnam's manufacturing sector.This makes AMATA's estates an excellent option for global investors looking to access the vast Asian market.

Regulatory Compliance

Vietnam's regulatory environment is designed to foster foreign investments. Acquiring an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC) are primary steps towards starting operations^[1]. AMATA supports this process by offering expert guidance through the legal maze. Vietnam is dedicated to providing a favorable business environment for foreign investors. This commitment is evident through the implementation of the Law on Investment 2020 and Law on Enterprises 2020. These laws aim to streamline the process and make it easier for foreign investors to operate in the country^[2].

Market Analysis

Vietnam’s geographic and economic positioning offers many benefits for manufacturers eyeing the expansive Asian market. The resemblance of Vietnam's manufacturing growth trajectory to China's well-established manufacturing hubs is noteworthy^[3].
AMATA's industrial estates are strategically located to optimize supply chains and reduce logistical costs. The combination of affordable labor and a competent workforce opens up exciting possibilities for diverse manufacturing sectors, including electronics and consumer goods.

Financial Feasibility

The financial blueprint for setting up a factory is a crucial determinant of its long-term sustainability. AMATA's unparalleled facilities, commitment to quality, and the option of ready-built factories help mitigate high upfront construction costs. A financial assessment of Vietnam’s manufacturing enterprises indicated a direct correlation between well-strategized financial planning and enhanced profitability^[4].Setting up a factory in Vietnam becomes even more financially feasible when considering the cost-effectiveness of operations here, especially when compared to other manufacturing hubs.

Operational Considerations

Operational prowess is the cornerstone of a successful manufacturing venture. AMATA's industrial estates offer a robust infrastructure, reliable utility services, and an incredibly efficient network of suppliers that ensure a seamless supply of raw materials without any interruptions. AMATA's estates have adopted international quality standards and practices as a core part of our culture. By doing so, we can guarantee that our operations are in alignment with global standards of excellence, ensuring a consistently delivered quality and performance that is unparalleled.

Location Analysis

The strategic positioning of AMATA's estates near major transport arteries ensures seamless logistics and robust supply chain operations. Proximity to urban centers also implies access to a skilled and diverse labor pool, indispensable for sophisticated manufacturing processes. AMATA operates multiple industrial estates in Vietnam, situated in the Northern, Central, and Southern regions of the country. Here are the details of their locations:

Bien Hoa

Photo: Birdview on the industrial park which was established almost 30 years ago

AMATA City Bien Hoa offers a strategic location to launch manufacturing operations in Vietnam.

The prime location of Bien Hoa City (pop 1.3 million) in Dong Nai's provincial capital offers several key advantages:

• It boasts a strong infrastructure, ensuring seamless connectivity and easy accessibility.
• Its strategic positioning grants access to a skilled and abundant workforce, a valuable asset for any business.

Taking advantage of these benefits can greatly enhance opportunities for success and growth.

Photo: soft facilities included, such as the AMATA service center offering office space as well, a valuable feature for businesses and individuals providing them with convenient access to office facilities and support services.

With over 29 years of valuable experience and trusted shareholders, AMATA City is a powerhouse that delivers comprehensive, fully-equipped infrastructure spanning an impressive 513 hectares. It features a dynamic ecosystem of over 190 exceptional tenants. The site offers flexible investment options including land leases, ready-built factories and office rentals. Nearby highways, seaports and airports allow efficient logistics and exports.

Attractive provincial government incentives combined with AMATA's comprehensive support for licensing, recruitment and supply chain integration further facilitate smooth setup and operations. AMATA City Bien Hoa's strategic location, robust infrastructure and business-friendly environment make it an ideal location to commence your Vietnam manufacturing venture.​^[5]​.

Long Thanh

Photo: Kingfa Science & Technology (Vietnam) Company recently signed a land lease agreement for a 14.4-hectare plot dedicated to the production of new materials. These materials encompass innovative materials, high-performance plastics, biodegradable materials, and synthetic resins, with a total project investment of USD80 million.

AMATA City Long Thanh in Dong Nai province provides an optimal location to launch a manufacturing venture in Vietnam. One of the main advantages is the quick and convenient access to expressways and the proximity to the upcoming Long Thanh International Airport. These ensure seamless transportation and highly efficient logistics. The prospects at AMATA City Long Thanh are incredibly diverse, encompassing industrial manufacturing and commercial developments.

Photo: The new Ho Chi Minh - Long Thanh - Dau Giay Expressway is a significant transportation project in Vietnam, designed to improve connectivity and reduce travel time in the region. AMATA's Long Thanh project is located adjacent to this expressway and enjoys direct access, offering a considerable advantage to facilitate logistics and transportation.

Our goal is to attract high-tech, environmentally friendly, and high-value-added industries, which is why we have invested in specialized infrastructure.

The site's strategic location amidst major infrastructure upgrades in Dong Nai province ensures connectivity. AMATA assists investors in navigating regulatory requirements and provides comprehensive support across setup and operations. Attractive government incentives in priority zones like Long Thanh coupled with affordable operations enhance financial viability.

Access to a growing pool of skilled workforce in the area, along with AMATA's comprehensive support, greatly enhances the ease of setting up in Amata City Long Thanh.

Choose AMATA City Long Thanh in Vietnam as the perfect place to start your manufacturing business. Investors can benefit greatly from these advantages^[6].

Ha Long

Photo: Birdview on the industrial park with Jinko Solar Factories in the center

AMATA City Ha Long, located in Quang Ninh province, boasts strategic advantages as an approved economic zone that offers the most generous incentives in Vietnam.

There are several key benefits to consider, including tax holidays, convenient access to highways, and the advantage of being close to Hai Phong port and Cat Bi airport. These advantages greatly enhance the efficiency of logistics operations.

The strategic location between the bustling cities of Ha Long and Hai Phong offers convenient access to a skilled and abundant workforce.

AMATA provides state-of-the-art infrastructure that is stable and of international standard. This infrastructure is specifically designed to cater to advanced manufacturers and technology firms.

The site presents cost competitiveness versus China, making it an optimal location for production transfers and China+1 strategies.

Due to its economic zone status, excellent infrastructure, and strategic location, AMATA City Ha Long is the perfect choice for establishing manufacturing operations in northern Vietnam.

Cultural, Political, and Economic Stability

To ensure smooth operations, it is imperative to have a deep understanding of Vietnam's cultural landscape. Moreover, the political and economic stability of Vietnam lays a solid foundation for fruitful foreign investments. Vietnam's manufacturing sector is growing steadily and currently represents around 48% of the country's registered capital. This indicates that the investment climate is favorable.

AMATA Offers Comprehensive Support

AMATA transcends the traditional role of an estate operator by offering an array of support services to investors. AMATA is fully dedicated to expediting your setup process and guaranteeing a smooth transition into Vietnam's manufacturing ecosystem. We handle all regulatory compliance and build strong relationships with local suppliers, so you can focus on your main business operations.

Conclusion

Embarking on a manufacturing venture in Vietnam is a decision burgeoned with potential. The pathway to success is laden with multiple facets, each demanding thorough consideration and adept navigation.

With AMATA by your side, you will have a powerful partner in this endeavor. They not only provide excellent locations for industrial estates, but also offer a wide range of support services to guarantee a seamless, productive, and triumphant establishment of your manufacturing facility.

Your vision of establishing a thriving manufacturing facility in Vietnam is a venture away. AMATA is ready to provide the groundwork and continuous support to turn this vision into a tangible, successful reality. AMATA is your ideal partner in navigating Vietnam's promising manufacturing landscape, with a proven track record of facilitating successful manufacturing setups.

Reach out to AMATA today for detailed consultations, tailored to your unique needs and industry specifications. We have a highly experienced team of professionals who are dedicated to assisting you throughout your investment journey. We will closely attend to every detail, ensuring a smooth market entry and sustainable operations in Vietnam.

The potential for manufacturing excellence in Vietnam is immense. Take the decisive step towards securing a prosperous manufacturing future. Contact AMATA today to explore the vast opportunities awaiting your venture in Vietnam.

Further Reading and References

• Procedures for setting up a factory in Vietnam – Crowe Vietnam​
• Financial and non-financial factors impacting Vietnam manufacturing enterprises – Emerald Insight​​
• Overview of doing business in Vietnam – Practical Law​
• Vietnam's manufacturing sector growth – CGTN​​
• Foreign Direct Investment trends in Vietnam – Vietnam Briefing​​
• Tax Incentives in Vietnam for Foreign Investment - Dezan Shira & Associates
• Manufacturing Facilities in Vietnam: How to Reduce Operating Costs - Vietnam Briefing

^[1] https://www.crowe.com/vn/insights/doing-business-in-vietnam/faq-about-investment-and-in-vn/11--procedures-for-setting-up-a-factory#:~:text=,and%20a%20Business%20Registration%20Certificate

^[2] https://uk.practicallaw.thomsonreuters.com/3-515-9149?contextData=(sc.Default)#:~:text=On%2017%20June%202020%2C%20the,both%20domestic%20and%20foreign%20companies

^[3] https://news.cgtn.com/news/2022-06-03/Is-Vietnam-ready-to-be-the-factory-of-the-world--1ayMCKBB2kU/index.html#:~:text=Shenzhen%27s%20mechanical%20and%20electrical%20products,Beijing%20News%2C%20a%20local%20newspaper

^[4] https://www.emerald.com/insight/content/doi/10.1108/IJSE-05-2019-0321/full/html

^[5] https://www.amata.com/our-location/vietnam/south-vietnam/bien-hoa

^[6] https://www.amata.com/our-location/vietnam/south-vietnam/long-thanh

^[7] https://www.amata.com/our-location/vietnam/south-vietnam/long-thanh