From the first IZ nationwide to the nation’s industrial capital

From the first industrial zone (IZ) established in the country over six decades ago, Dong Nai has become one of the leading localities nationwide in terms of the number and scale of IZs.

Growing from small to large, from few to many, and from low to high, Dong Nai today not only expands the number of IZs but also adopts a selective investment approach, aiming to develop industry in a modern, sustainable, and environmentally friendly manner.

Vietnam’s IZ development spotlight

Bien Hoa IZ (initially known as Bien Hoa Industrial Estate, renamed Bien Hoa 1 IZ after 1975), was established in 1963 and became operational in 1964 (now located in Tran Bien Ward). It is the first IZ of both Dong Nai and Vietnam. This IZ has fulfilled its historic mission when Dong Nai decided to convert its land use from industrial purposes to an urban – commercial – service zone while improving the environment. In the future, it is set to become Dong Nai’s premier political, administrative, urban, and commercial - service hub with a ripple effect across the whole region.

Drawing on experience from the first IZ, after the liberation of the South and national reunification, and especially since the country’s launch of the doi moi (renewal) process, Dong Nai has gradually established an increasing number of  IZs. Initially, only State-owned enterprises invested in, managed and operated IZ infrastructure. Over time, some private sector actors and foreign investors from Thailand and Japan have become involved in the investment, management, and operation of IZ infrastructure. Key State-owned developers included Sonadezi and Tin Nghia; later, Thai and Japanese corporations, followed by large private companies, have invested in and developed new IZs.

A corner of Ho Nai IZ. Photo: Vuong The

Dong Nai IZ Development Corporation (Sonadezi) is a pioneering and leading State-owned enterprise in Dong Nai in terms of the number of industrial park infrastructure projects within the province, as well as its expansion into other provinces and cities. Since taking the lead in IZ development nationwide in 1990, Sonadezi has invested early on in building a multi-value industrial ecosystem, becoming a brand highly favoured by both domestic and international investors. To date, nearly 1,000 foreign direct investment (FDI) and domestic enterprises have chosen Sonadezi’s IZs as their strategic and main production sites. Sonadezi is effectively developing and operating an ecosystem of 12 fully operational IZs, offering more than 4,600 hectares of industrial land and a diverse ecosystem for investors, attracting investments of 12 billion USD and over 30 trillion VND into the IZs it has developed.

Similarly, following the success of Amata IZ in Long Binh ward, Amata Group (Thailand) continued to invest in Long Thanh High-Tech Industrial Park (IP) (Long Thanh commune), covering 410 hectares with a total infrastructure investment of over 282 million USD.

According to Thai Hoang Nam, General Director of Amata City Long Thanh JSC, the firm is negotiating with dozens of potential investors and expects to welcome more projects soon. Investors in Long Thanh High-Tech IP will receive Amata’s support in expediting investment procedures to promptly obtain investment certificates.

Thanks to the early establishment and strong growth of IZs, Dong Nai has become an attractive destination for major FDI groups such as Vedan (Taiwan, China), Cargill (United States), Tripod and Formosa (Taiwan), Nestle (Switzerland), Hyosung and Changshin (Republic of Korea), Ajinomoto and Lixil (Japan), and CP and Amata (Thailand). Domestic enterprises have also invested strongly in the province. From Dong Nai, many of these investors have expanded production to other provinces and cities nationwide.

Currently, more than 679,400 workers are employed in Dong Nai’s IZs, economic zones, and high-tech parks, with 42% coming from other provinces. Workers with intermediate-level skills or higher account for 18%, while trained workers make up 67%. The leather and footwear sector employs the largest workforce at 33.4%, followed by textile and garment industry at 15.4%, electronics at 8.6%, and wood processing at 6.8%.

Bosch Group, a major high-tech investor from Germany, operates a factory producing continuously variable transmission (CVT) push belts for automobiles in Long Thanh IZ. Spanning over 16 hectares, this plant is one of the top FDI enterprises in Dong Nai in terms of revenue and tax contribution.

Brendan Sunderland, Vice President Technical at Bosch Vietnam, affirmed Bosch’s commitment to long-term high-tech investment in Vietnam. The company will continue to collaborate and contribute to digitalization, sustainable development, and advanced manufacturing, while also fostering innovation and supporting the aspirations of the local community.

Expansion of new IZs

Since July 2025, Dong Nai has officially merged with Binh Phuoc to become the new Dong Nai province. The merger expanded resources and advantages, including IZs previously located in Binh Phuoc. As a result, Dong Nai now has 83 IZs, economic zones, and high-tech parks, of which 59 have been established and 42 are operational. In 2025 and early 2026, construction commenced on several new industrial parks in the province, such as Phuoc An, Bau Can – Tan Hiep, Xuan Que, and Song Nhan, just to name a few.

Some notable examples include a cluster of IZs near Long Thanh International Airport, including Long Duc 3, Bau Can – Tan Hiep, Xuan Que – Song Nhan, and Phuoc An. Among them, Bau Can – Tan Hiep IZ, invested by Tan Hiep IZ JSC, is oriented as an industrial cluster focusing on supporting industries, logistics, chemicals, pharmaceuticals, metallurgy, machinery, data centres, electronics, plastics, wood products, paper, furniture, building materials, automobiles, and aviation.

According to Le Nu Thuy Duong, General Director of Tan Hiep IZ JSC, immediately after receiving investment approval, the company actively coordinated with provincial authorities to complete related procedures, with a view to accelerating progress and establishing a new-generation, modern IZ of regional scale.

New IZs have been established not only in the former Dong Nai area but also in the former Binh Phuoc area. For example, the Dong Nam Dong Phu IZ project, covering an area of about 2,000 hectares, is being studied for investment by Techtra Infrastructure Investment and Development JSC in Binh Phuoc ward.

In recent years, major projects such as Long Thanh International Airport, Phuoc An Port, and the expressway, railway, and road networks have attracted many investors to Dong Nai. However, the available land in existing industrial zones has been insufficient. Therefore, the province is expediting procedures to develop new zones to meet investors’ demand.

Tran Quoc Nguyen, Chairman of the Board of Directors of Techtra Infrastructure Investment and Development JSC, stated that the company has allocated financial resources to prepare for the implementation of its projects. It expects the province to facilitate registration and investor approval as soon as the master plan is endorsed.

According to Pham Viet Phuong, Deputy Head in charge of the Management Board of Dong Nai Industrial and Economic Zones Authority, the board has carried out a detailed 1/2,000 planning for new IZs, including Long Duc 3, Bau Can – Tan Hiep, Xuan Que – Song Nhan, and Phuoc An. For IZs not yet established but included in the planning, the board will continue the subzone planning process to submit to the province for the selection of the next investors.

Towards ecological and modern IZs

In the time ahead, to ensure sustainable development worthy of its position, Dong Nai needs to adapt to new trends. Contributing to the draft political report for the 1st provincial Party Congress, for the 2025–2030 tenure, Dr. Tran Du Lich, former Director of Ho Chi Minh City Institute of Economics and member of the Prime Minister’s Economic Advisory Group, noted that the province’s processing and manufacturing industries benefit from 20,000 hectares of land planned for industrial development and the industrial–service–urban corridor in the Southeast region. This has enabled breakthroughs in renewable energy, green industry, green transition, and digital transformation. He stressed that Dong Nai needs to capitalise on the advantages of the free trade zone linked to Long Thanh International Airport and Phuoc An Port to join global supply chains.

Enterprises invest in modern equipment and machinery for efficient and sustainable operations at Minh Hung III Industrial Park. Photo: Trung Quang

Although Dong Nai has vast industrial land and diverse industries, production value per hectare remains modest, and few FDI projects focus on high-tech products. The province thus seeks to attract FDI enterprises producing high-value goods to optimise industrial land use.

Based on this reality, Dong Nai has gradually adopted a selective approach in attracting investment projects. The aim is to minimise negative environmental impacts, as the province has developed industrial zones and drawn investment earlier than many other localities. Alongside economic growth, environmental challenges have emerged. Therefore, the province has chosen to prioritise high-tech industries that require less land while generating higher added value for products.

In developing industrial parks and attracting investment, Dong Nai aims to balance economic growth with environmental sustainability, giving priority to high-tech projects while limiting those that generate large volumes of waste.

Alongside selectively attracting individual investment projects, Dong Nai is developing IZs under the ecological model. Amata IZ is the first in the province to follow this approach.

Pham Anh Tuan, Senior Director of Water and Environmental Management at Amata City Bien Hoa JSC, said that sustainable development and circular economy bring clear economic and environmental benefits. Amata IZ is establishing industrial symbiosis, generating clear economic and environmental benefits while meeting export requirements. Future Amata projects in Quang Ninh and Long Thanh High-Tech IZ are also oriented towards ecological development.

Building on Amata model, Dong Nai plans to develop ecological IZs such as Long Duc, Phuoc An, and Bau Can – Tan Hiep. These zones will adopt green, closed-loop models, attract specialised projects, and create value chains with industrial symbiosis.

Vo Tan Duc, Deputy Secretary of the provincial Party Committee and Chairman of Dong Nai People’s Committee, affirmed that the province has set a roadmap to achieve a net zero target by 2050, with industry being one of seven priority sectors. In addition to greening existing IZs and factories, and selectively attracting new investment with clear emission reduction plans, the province will foster green, ecological IZs meeting net zero standards. The province calls on infrastructure developers and enterprises to accelerate the green transition, linking economic growth with environmental protection.

By Vuong The - Translated by My Le, Thu Ha