News Dec 18 23

Strategic Choices: Optimize Your Business with a Factory for Lease in Hung Yen

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Exploring the dynamic industrial terrain of Hung Yen unveils a compelling narrative of economic prowess and strategic growth. Nestled over 60 kilometers northwest of Hanoi, this province emerges as a focal point for industrial development, ranking among the top 10 nationwide in foreign investment attraction. 

With a regional GDP surge of 8.61% by the end of Q3 2023, Hung Yen is not only a powerhouse in economic growth but also a prime destination for businesses seeking expansion, evident in the rising demand for a factory for lease in Hung Yen

Join us on this journey as we delve into the flourishing industrial landscape of this thriving Vietnamese province.

A General Overview of Hung Yen’s Industrial Manufacturing Landscape

Accessibility & Connectivity

Strategic Choices: Optimize Your Business with a Factory for Lease in Hung Yen
A corner of Hung Yen city, looking from above. Photo from Vietnammoi.

Situated advantageously in close proximity to Vietnam’s capital, Hanoi, Hung Yen boasts a prime location, facilitating seamless integration with key transportation networks. This includes easy accessibility to major highways, railways, and prominent international airports such as Noi Bai and Cat Bi. This strategic positioning proves invaluable for businesses seeking streamlined logistics and optimized supply chain management. 

For enterprises prioritizing operational efficiency and punctual delivery of goods and services, choosing a factory for lease in Hung Yen becomes particularly advantageous.

Workforce for factory for lease in Hung Yen

With its skilled and versatile workforce, Hung Yen stands out as an appealing industrial center. The province’s proximity to esteemed educational institutions in Hanoi guarantees a substantial reservoir of well-educated white-collar professionals eager to apply their expertise.

Additionally, its strategic location near Hanoi, Hai Duong, Thai Binh, and other densely populated areas in Northern Vietnam establishes Hung Yen as a pivotal recruitment hub for blue-collar labor—a vital asset for the manufacturing sector.

Economic Growth

Hung Yen province has achieved remarkable socioeconomic progress by surpassing the state revenue budget target for the first nine months of 2023. It stands proudly among the top 10 regions nationwide in terms of attracting foreign investment. By the close of the third quarter of this year, the regional GDP experienced an impressive 8.61% year-on-year increase.

Economically, the province ranks fifth among the 11 localities in the Red River delta and tenth out of the 63 nationwide. As reported by the Hung Yen Department of Statistics, the province’s budget revenue exceeded $1 billion by the end of September, reaching 105% of the full-year estimate.

During the initial 10 months, the province’s budget revenue soared to $1.12 billion, surpassing the 2023 estimate by nearly 16%. Notably, the proportion from foreign-invested enterprises increased by 20%, and that from the private sector experienced a remarkable 230% surge.

A General Overview of Hung Yen's Industrial Manufacturing Landscape
Hung Yen is a newly-rising, modern, and crowded city in Northern Vietnam. Photo from Tạp chí Quản lý Nhà nước

In October, the Industrial Production Index (IIP) witnessed a 6.18% year-on-year increase, with the manufacturing and processing sector growing by 6.92%. The ongoing focus on enhancing transport and industrial infrastructure has significantly contributed to attracting investments in the area.

Such a trend in investment shows how potential Hung Yen is as a newly rising manufacturing and logistics hub. Choosing a factory for lease in Hung Yen as the place to settle your manufacturing hub now is a pretty wise choice.

Challenges Businesses Could Meet When Choosing a Factory for Lease in Hung Yen

Lack of English Speakers

Despite the fact that Hung Yen is the newly-rising hub for international investors, it is still on the verge of developing and internationalizing. Hence, there is still a shortage of fluent English speakers in the area compared to such hugely developed cities as Ho Chi Minh City, Hanoi, and Da Nang. It could be remarkably challenging for international businesses to operate in this area using English speakers only. The blue collar, or even the authority, could have hard times working with businesses.

Complicated Zoning Law & Restriction For Factory For Lease In Hung Yen

Challeges Businesses Could Meet When Choosing a Factory for Lease in Hung Yen
Credit: Unsplash

Every province has its own laws and restrictions that every business owner has to follow. Hung Yen is the same. However, it is challenging for foreigners to understand Vietnam’s laws since most of them are written in advanced, academic Vietnamese. Besides, the application of the law is usually adapted case by case, making it extremely confusing for foreign workers to understand and navigate it correctly.

After years of working and consulting in the industry, we highly suggest hiring a local team in charge of law and compliance to help prevent unexpected situations.

At CORE5 Vietnam, we could assist you on all of that quickly and effectively. Contact our expert team here.

Strong Influences of Local Business Culture

Navigating the industrial landscape in Hung Yen presents businesses with unique challenges, particularly when opting for a factory for lease in Hung Yen. One noteworthy factor is the strong influence of the local business culture. 

For example, people coming from Germany, Japan, or Finland prioritize the culture of early arrival and follow the rules strictly. However, in Vietnam, the custom of being flexible with timelines is widely accepted and followed. As a newcomer, business owners must understand and adapt to that.

Or, the communication styles between Westerners and Northern Vietnamese are quite opposite. While Westerners prefer approaching directly, straight to the point, and making it bluntly, Vietnamese usually approach indirectly to save face.

Understanding and adapting to the intricacies of Hung Yen’s business practices in particular and Vietnam’s in general are crucial for seamless operations. From negotiation styles to communication preferences, these cultural nuances play a pivotal role in establishing successful ventures. 

Hence, choosing a factory for lease in Hung Yen requires a keen awareness of these cultural dynamics, ensuring a harmonious integration into the local business environment.

Strong Influences of Local Business Culture
Photo from CORE5

That is all you need to know about Hung Yen’s industrial landscape and its potential difficulties. In general, Hung Yen is the place worth considering for your manufacturing and distribution hub because of its fast growth in a short period of time.

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