Why Are Large Companies Shifting to the North?

Why Are Large Companies Shifting to the North? – Detailed Analysis

1. Strategic Geographical Location
Northern Vietnam borders China – the largest trading partner of Vietnam.
Convenient for international trade through Huu Nghi and Mong Cai border gates, and Lach Huyen International Port (Hai Phong).
Easily connected by road, rail, sea, and air to Northeast Asian markets such as Japan, South Korea, and Taiwan.

2. Strong Industrial Infrastructure Development
Numerous major industrial zones such as VSIP Bac Ninh, Deep C Hai Phong, Yen Phong, Nam Dinh Vu, and An Duong have been comprehensively invested in.
Expressways Hanoi – Hai Phong – Quang Ninh, Hanoi – Lang Son shorten transportation time.
Noi Bai International Airport serves fast international cargo transportation.

3. Competitive Labor and Operating Costs
Average wages for workers in the North are 10–15% lower than in southern provinces.
Young, abundant workforce, many trained from technical universities and colleges.

4. “Boost” Effect from Major Corporations
Samsung, Foxconn, LG, Canon, VinFast, etc. have factories in Bac Ninh, Thai Nguyen, and Hai Phong, creating an industrial ecosystem and attracting hundreds of supporting companies.
Provinces offer tax exemptions/reductions and investment procedure support.

5. “China+1” Trend
Many international companies want to diversify production outside China but remain close to optimize logistics.
Northern Vietnam meets these requirements thanks to its proximity to China, low costs, and political stability.

6. Large Domestic Consumer Market
The North accounts for about 30% of the country’s population, with rising incomes.
Factories near the consumption market help reduce transportation costs and speed up delivery.

Comparison Table: North vs. South in Attracting Investment