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| Producing garments for export at the Chan May - Lang Co Economic Zone |
Strategic infrastructure projects gaining investment
In recent years, industry has played an increasingly important role in Hue City’s economic structure. With growing attention from both central and local authorities, investment in a number of strategic infrastructure projects has opened up new space for industrial development.
One of Hue City’s key advantages is its location along the North-South transport corridor, with access to road, rail, air and sea transport, while also serving as a gateway to the East-West Economic Corridor. This creates favorable conditions for industrial development linked with logistics, imports and exports, and regional supply chains. Notably, the Chan May - Lang Co Economic Zone and industrial parks such as Phu Bai, Phong Dien, Gilimex and VSIP are expanding, providing more land and infrastructure to attract large-scale projects. At the same time, the seaport system, Phu Bai International Airport, and the Cam Lo - La Son and La Son - Hoa Lien expressways are gradually being completed, helping strengthen interregional connectivity.
Another advantage is Hue City’s pool of trained workers from its network of universities, colleges and vocational education institutions. This provides an important foundation for the development of processing and manufacturing, electronics, high technology and supporting industries.
In particular, Hue City is developing an Industrial Development Project for 2025 - 2030, with a vision to 2045, oriented toward green, modern and environmentally friendly industry. This not only gives the city an advantage in competing for investment, but also aligns with the trend toward sustainable development as export markets impose increasingly stringent requirements on emissions, environmental standards and social responsibility. The direction is also consistent with Hue’s goal of becoming a distinctive heritage, cultural and ecological city of Vietnam.
Mr. Dang Huu Phuc, Member of the City Party Committee and Director of Hue City Department of Industry and Trade, said that industrial infrastructure in the Chan May - Lang Co Economic Zone and the city’s industrial parks has recently become increasingly integrated, helping attract a growing number of manufacturing projects and creating jobs for tens of thousands of workers. Industry and construction currently account for around 35% of the city’s GRDP, making an important contribution to economic growth and budget revenue. However, overall industrial scale remains below the city’s potential. Industrial output is still relatively modest; there are not yet many large enterprises, and most businesses are small and medium-sized. This limits spillover effects into other sectors and has yet to generate a major breakthrough for the wider economy.
Creating new momentum for growth
At a workshop held in March to gather feedback on Hue City’s Industrial Development Project for 2025 - 2030, with a vision to 2045, Dr. Hoang Truong from the Institute for Strategy and Policy Research for Industry and Trade under the Ministry of Industry and Trade said that despite its many advantages, Hue’s industrial sector remains modest in scale compared with other provinces and cities in the region. The number of high-tech projects is still limited, supporting industries are developing slowly, and linkages between domestic enterprises and foreign-invested companies remain relatively weak.
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| Assembling goods for export at Chan May Port |
According to experts, one of the most urgent priorities is to continue developing integrated infrastructure across economic and industrial zones, particularly transport links, electricity supply, environmental facilities, wastewater treatment and logistics, to meet the requirements of large-scale projects. At the same time, more specialized industrial parks should be planned, with priority given to attracting high-tech, high-value-added industries with limited environmental impact. Efforts should also be accelerated to establish a free trade zone within the Chan May - Lang Co Economic Zone.
Alongside infrastructure development, incentive policies relating to taxation, land, technological innovation and digital transformation need to be implemented flexibly to encourage businesses to make long-term investments. In addition to attracting major corporations, Hue City also needs to support the development of local enterprises so that an industrial ecosystem capable of participating in supply chains can take shape.
A representative of Kanglongda Hue One Member Co. Ltd., at Phong Dien Industrial Park said human resources remain a decisive factor in business competitiveness. Therefore, the city should strengthen links between businesses and universities and colleges to build a workforce capable of meeting the demands of modern manufacturing.
Another issue raised by many economic experts is the need to accelerate the development of supporting industries. As local companies become more deeply integrated into the supply chains of major corporations and foreign-invested enterprises, more added value can remain within the local economy and the city’s investment environment becomes more attractive. This is also essential to building a modern industrial ecosystem rather than relying on the development of isolated projects.
According to Dr. Vu Quang Hung, former Deputy Director of the Institute for Strategy and Policy Research for Industry and Trade under the Ministry of Industry and Trade, industry generates more than production value alone. It also creates strong spillover effects for logistics, trade, technical services, and science and technology. As industry grows, it creates more jobs, raises workers’ incomes and expands budget revenues, giving the city more resources to invest in infrastructure and social welfare.
By pursuing green, modern and environmentally friendly industrial development, Hue City is not seeking a heavy-industry model or growth at any cost. This approach is well suited to the character of a heritage city while opening up a more sustainable path for industry to become a major driver of Hue City’s economic growth in the years ahead.