More than 30 years after the establishment of Tan Thuan Export Processing Zone, Vietnam’s first industrial zone, the country has achieved remarkable progress in the development of industrial parks (IPs) and economic zones (EZs). These zones have played a critical role in driving economic growth, industrialization, and modernization across the nation.
Industrial Parks as Pillars of the National Economy
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The expansion of industrial and economic zones has left a strong mark on Vietnam’s socio-economic transformation. Today, Vietnam remains an attractive destination for domestic and foreign investors alike.
According to the Ministry of Planning and Investment, as of 2021, Vietnam had 369 industrial parks (including those within economic zones) across 61 out of 63 provinces and cities, covering a total area of nearly 114,000 hectares.
Alongside physical development, Vietnam has gradually established a comprehensive legal framework for industrial zones, empowering local management boards with one-stop administrative mechanisms that streamline investment licensing, supervision, and regulatory compliance.
Thanks to favorable infrastructure, incentives, and policies, IPs have become magnets for foreign direct investment (FDI). Between 2016–2019, IPs and EZs contributed over VND 400 trillion to the national budget, further confirming their strategic role in strengthening Vietnam’s competitiveness and fostering sustainable industrialization.
Challenges in Industrial Zone Development
Despite these achievements, several limitations remain. Many IPs still focus on extensive development (expanding land area) rather than intensive growth (enhancing efficiency, technology, and value).
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The technology level in several IPs remains low.
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Some regions prioritize filling land quotas over sectoral and technological quality.
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The national investment promotion strategy for IPs is not yet synchronized with regional advantages and industry priorities.
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Land clearance, environmental protection, and worker welfare still face challenges and lag behind expected standards.
Strategic Solutions to Strengthen Industrial Parks
According to Mr. Tran Quoc Trung, Deputy Director General of the Department for Economic Zone Management (Ministry of Planning and Investment), both global and domestic dynamics are shifting rapidly, presenting new opportunities and challenges that require fundamental innovation in Vietnam’s industrial zone strategy for the 2021–2030 period, with a vision to 2045.
Key development directions include:
1. Redefining Industrial Parks as a Core Growth Model
Continue positioning IPs and EZs as strategic tools for economic restructuring and industrialization, ensuring balanced regional development and sustainable growth across economic, social, and environmental dimensions.
2. Diversifying and Modernizing Industrial Park Models
Encourage new-generation IPs such as eco-industrial parks, innovation hubs, and digital industrial clusters that align with international standards and foster technological innovation.
3. Developing Integrated Infrastructure
Ensure synchronized infrastructure development that supports production, social welfare, and environmental protection. Promote public–private partnerships (PPPs) to strengthen connectivity and efficiency in IP management and operation.
4. Selective and Sustainable Investment Attraction
Prioritize high-tech, high-value, and environmentally friendly projects that integrate into global value chains. Focus on technology transfer, resource efficiency, and labor productivity aligned with Industry 4.0 trends.
5. Strengthening Governance and Social Inclusion
Enhance the leadership role of the Communist Party, the effectiveness of state management, and the proactive participation of trade unions and local communities in protecting workers’ rights and ensuring transparent, inclusive industrial development.
Towards Smart, Green, and High-Tech Industrial Parks
In the context of Industry 4.0, traditional advantages such as low labor costs and abundant resources are no longer sufficient. Vietnam’s next-generation industrial parks must emphasize:
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Smart governance and digital management;
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Green infrastructure and clean production;
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Innovation-driven investment ecosystems.
Well-planned and intelligently managed industrial zones will be the foundation for Vietnam’s sustainable industrial transformation and long-term competitiveness in the global supply chain.