BUSINESS

How Chinese Manufacturing Turned Bac Ninh Into a Vietnamese Boomtown

By Zhang Erchi, Hu Xuan in Hanoi and Ding Yi in Beijing

Published: Sep. 2, 2025 7:30 p.m. GMT+8

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Many well-known domestic brands have knockoff stores in ‌Bac Ninh, including a convenience store named ‌Tmall‌. Photo: Zhang Erchi/Caixin

When night falls in Bac Ninh, a 2-kilometer-long street downtown bustles with expats dining and shopping, reflecting the northern Vietnamese city’s growing appeal to foreign investors including a flood of Chinese money.

Since the late 2000s, suppliers of Samsung Electronics Co. Ltd. and Apple Inc. such as Foxconn, GoerTek Inc. and Luxshare Precision Industry Co. Ltd. have set up factories in the capital of Bac Ninh province, turning the city into one of the most important industrial hubs in the country.

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Bac Ninh has become a major industrial center in Vietnam, attracting $5.12 billion in FDI in 2024, mainly from Chinese investors and major suppliers for Samsung and Apple.
The city faces challenges from rising land and labor costs, with wages for factory workers doubling in recent years and industrial land costing up to $200,000 per acre.
Uncertainty over U.S. trade policy, including new tariffs, has slowed investment momentum and clouded the region's economic outlook.

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Who’s Who

Samsung Electronics Co. Ltd.: Samsung Electronics Co. Ltd. has played a role in the economic growth of Bac Ninh, Vietnam. Since the late 2000s, suppliers to Samsung, along with Apple Inc., established factories in Bac Ninh, transforming it into a major industrial hub.

Apple Inc.: Apple Inc. has suppliers like Foxconn, GoerTek Inc., and Luxshare Precision Industry Co. Ltd. that have established factories in Bac Ninh, Vietnam. This has transformed the city into a crucial industrial hub. The presence of these suppliers highlights Apple's involvement in the region's manufacturing landscape.

Foxconn: Foxconn, a major supplier for Apple Inc., has established factories in Bac Ninh, Vietnam, contributing to the city's rise as a key industrial hub. Along with other industry giants, Foxconn's presence has led to increased competition for labor and a significant rise in wages for assembly line workers in the region.

GoerTek Inc.: GoerTek Inc. is one of the foreign investors, alongside Foxconn and Luxshare Precision Industry Co. Ltd., that have established factories in Bac Ninh, Vietnam. These companies are suppliers for tech giants like Samsung and Apple. GoerTek has faced rising labor costs in Vietnam, with job advertisements offering assembly line workers up to 3,800 yuan monthly due to competition for labor from other large manufacturers.

Luxshare Precision Industry Co. Ltd.: Luxshare Precision Industry Co. Ltd. is a supplier for Apple Inc. and has established factories in Bac Ninh, Vietnam. The company is one of the many foreign investors contributing to Bac Ninh's development as a significant industrial hub. However, like other manufacturers in the region, Luxshare faces challenges from rising production costs and uncertainties in U.S. trade policies.

Lens Technology: Lens Technology is an industry giant that has set up factories in Vietnam. Along with other major companies, it has been poaching workers, contributing to rising labor costs in Bac Ninh.

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What Happened When

Since the late 2000s：: Suppliers of Samsung Electronics Co. Ltd. and Apple Inc. such as Foxconn, GoerTek Inc., and Luxshare Precision Industry Co. Ltd. have set up factories in Bac Ninh.

2018：: U.S. President Donald Trump hiked import tariffs on China-made products, prompting many Chinese manufacturers to shift production to Vietnam, marking the first wave of Chinese investors entering Bac Ninh.

After 2018：: The first wave of Chinese investors entered Bac Ninh following U.S. tariff hikes.

After the pandemic：: The second wave of Chinese investors entered Bac Ninh.

2024：: Bac Ninh province was Vietnam’s top destination for foreign direct investment (FDI), attracting $5.12 billion.

Late 2024：: The third wave of Chinese investors began entering Bac Ninh following Trump’s reelection as U.S. president.

Late 2024：: Visits by potential investors began to slow as the U.S. negotiates tariff arrangements with multiple countries, including Vietnam.

July 2025：: Trump announced a trade framework with Vietnam that includes a 20% import duty on Vietnamese exports (a reduction from the threatened 46%), and a 40% levy on goods transshipped through Vietnam.

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