Reporter’s Notebook: Vietnam’s New Industrial Zone Bets It Can Thrive Amid a Trade War

Amata City Ha Long is an industrial park located between Vietnam’s largest northern port, Haiphong, and the city of Ha Long in Quang Ninh province. Development began in 2018, and as of August 2024, the park covers around 700 hectares. The area is geographically advantageous due to its proximity to Haiphong port, the international airport, and the Chinese border, making it an attractive site for manufacturing and investment[para. 1][para. 4]. The park features established operations from solar module-maker JinkoSolar, precision machinery manufacturer Castem Co., Ltd., and metal parts producer F.C.C. Co., Ltd., among others, with ongoing construction signaling continued expansion[para. 2].

Amata Corporation PCL., a major regional player with industrial real estate holdings across Thailand, Vietnam, Laos, and Myanmar, is the developer of the park. Since its inception in 1989, Amata has expanded to nearly 150 square kilometers of industrial parks, with over 500 square kilometers in land holdings. In Vietnam, Amata operates four parks covering about 30 square kilometers[para. 3]. The development of Amata City Ha Long received its master plan approval in 2017 and investment license a year later. In 2021, JinkoSolar became its first tenant amid the COVID-19 pandemic[para. 4].

By mid-2024, the park hosts 16 companies across 21 projects, employing approximately 3,000 people and attracting a total investment of $2.9 billion. About 40% of the site’s land has been developed, primarily generating revenue from land leases as well as utility fees[para. 5]. Foxconn is a significant investor, having invested $246 million in 2023 for two factories, followed by an additional $263.7 million in 2024 for a third facility. These cover a combined 30 hectares and focus on assembling electronic components, EV chargers, and smart entertainment devices. The decision to expand in Quang Ninh was influenced by the province’s location, infrastructure, government support, and human resources. Given that Quang Ninh is relatively new to manufacturing, provincial leaders made concerted efforts to attract Foxconn’s investment[para. 6][para. 7].

In June 2024, Japan’s Marubeni Corp. acquired a 20% stake in the park and appointed its representative, Osamu Omika, as deputy general director. This represents Marubeni’s first industrial park project in Vietnam, selected after extensive review. Historically, about 50% of Amata’s tenants in Thailand are Japanese, and Amata aims for a similar—or greater—proportion of Japanese companies in Ha Long[para. 8][para. 9].

The park’s development faces some external challenges after the U.S. Trump administration imposed a 20% tariff on Vietnamese goods and a 40% tariff on “transshipped” goods. Nevertheless, park management believes Vietnam’s position remains competitive due to favorable labor, land costs, and investment incentives, as evidenced by ongoing investments and new negotiations post-tariff[para. 10]. The definition of “transshipped” is still under debate, but the U.S. trend is to require value-added manufacturing within Vietnam. This prompts more Chinese firms to invest locally, possibly increasing Chinese presence in the park[para. 11].

Regarding costs, land in Quang Ninh has risen by 20–30% over three years but remains cheaper than in areas closer to Hanoi or Ho Chi Minh City. The region offers a sufficient workforce able to transition from agriculture or fishing to manufacturing, with labor costs competitive but not especially low[para. 12][para. 13]. F.C.C. (Vietnam) CO., LTD., for example, invested $10 million in its Ha Long factory, beginning production with plans to scale up its workforce soon. The location was favored for favorable logistics, tax incentives, and less exposure to salt corrosion. However, the local supply chain remains underdeveloped, requiring reliance on suppliers nearer to Hanoi—with expectations of improvement as the park matures[para. 14][para. 15][para. 16].