In recent years, Thai Nguyen has been one of the top performers in urban development among the northern provinces and the country as a whole. The province’s regional GDP increased by an average 11 per cent per annum during the 1997-2017 period, and in the five years from 2012 to 2017 it averaged 16.7 per cent per annum, hitting 33.2 per cent in 2015. In 2019’s Provincial Competitiveness Index (PCI) initiated by the Vietnam Chamber of Commerce and Industry (VCCI), it ranked 18th nationwide.
According to VCCI chairman Vu Tien Loc, Thai Nguyen has acquired a stable position in the group of localities with good PCI performance. The province has received particular praise for its workforce training, the safety of its legal institutions, and the pioneering role of local governance, all of which are drawing attention from long-term investors. This explains why local and global giants like Samsung, Vingroup, Xuan Truong, and TNG have chosen to launch major projects in Thai Nguyen.
Furthermore, amid the current US-China trade tensions, the province has been regarded as a key destination for economic transformation for international investors, with growing investment into the industrial real estate field.
As of now, Thai Nguyen is home to six large-scale industrial zones including Song Cong I and II, Nam Pho Yen, Yen Binh, Diem Thuy, and Quyet Thang. Four operating industrial zones (Song Cong I, Nam Pho Yen, Yen Binh, and Diem Thuy) have been accommodating thousands of domestic and foreign specialists and managers, and more than 100,000 workers from different localities, leading to big demand for housing.
In addition, average income per capita in Thai Nguyen has risen sharply in recent years, from VND77.7 million ($3,380) in 2018 to an estimated VND83 million ($3,610) this year, nearly VND23 million ($1,000) more than the country average.
This has contributed to pushing up investment needs into building infrastructure for commercial and residential apartment buildings to catch up with soaring local demands.
Industry experts assumed that the arrival of South Korean tech giant Samsung in Thai Nguyen in 2013 would be a catalyst for propelling the development of the province’s urban infrastructure, yet the market remained short of large-scale, well-planned projects.
However, the situation has witnessed a turnaround in the past three years with the arrival of leading domestic and international groups who have landed sizable projects in the province, helping to gradually modernize the landscape.
Than Thanh Dung, deputy general director of Tien Bo Group JSC, commented that the arrival of leading businesses in 2017 marked a milestone in Thai Nguyen’s urban infrastructure development.
Besides clear advantages in terms of location, improved infrastructure, and economic development, the strong presence of specialists and workers in Thai Nguyen, particularly down to Samsung’s two major industrial production complexes, have resulted in soaring demands for housing. These factors have led to robust development of the province’s urban infrastructure.
Noteworthy projects include the privately-held Kosy Group’s Kosy Song Cong urban area; Thien Loc Construction Investment JSC’s Thong Nhat residential area; Pho Yen Residence in Pho Yen town, and FLC Thai Nguyen resort and entertainment complex in Thai Nguyen city.
Arguably the most significant is the Apec Mandala Wyndham Thai Nguyen hotel complex located southeast of the city. The project marks the first time Thai Nguyen has hosted a five-star hotel development managed by the prestigious global hotel management brand Wyndham Hotel Group.
The presence of the US hotel management firm is expected to help elevate the service quality of the province’s hotel and hospitality industry.
Another important factor is the success of the Thai Nguyen investment promotion conference in July 2018, as the province courted nearly VND47 trillion ($2 billion) in investment capital value with the presence of major real estate businesses.
