Changing the mindset for breakthrough development

Dong Nai is facing major opportunities for breakthrough development in a new era, as the Central Government and the Politburo have identified the city as a national growth engine.

Production activities at ONSEMI’s semiconductor manufacturing plant in Bien Hoa 2 Industrial Park (IP).

According to Ngo Van Tuan, Party Central Committee member and Minister of Finance, Dong Nai plays an exceptionally important role in the country’s overall development. The city currently ranks fourth nationwide in both economic scale and budget contributions. Every one-percentage-point increase in Dong Nai’s economic growth contributes approximately 0.05 percentage points to national GDP growth. Therefore, the double-digit growth target assigned to the city by the Central Government carries particular significance, contributing to the successful achievement of the nation’s broader double-digit growth objective.

Escaping traditional industrial development model

Dong Nai was among the first localities in Vietnam to develop concentrated industrial parks and adopt a foreign direct investment (FDI) attraction strategy. This process has helped establish the city’s current position on the national economic map. However, amid growing demands for higher-quality, faster and more sustainable growth, restructuring both its investment attraction strategy and industrial development space has become increasingly urgent.

The traditional mindset that having a large number of IPs and workers is a source of pride is no longer suited to current development requirements. If IPs continue to be dominated by enterprises using outdated technologies and producing low-value-added products through processing and assembly activities, while relying heavily on low-skilled labor and consuming vast amounts of land, water and energy, the resulting pressure on transport infrastructure, schools, hospitals and the environment will be substantial and long-lasting.

This is evident in the persistent overload facing transport infrastructure and educational facilities over many years. In localities surrounding major industrial parks such as Long Binh, Trang Dai, Ho Nai, Long Hung and Tam Hiep, the proportion of schools meeting national standards remains relatively low due to overcrowded classrooms.

According to Vu Hong Van, Member of the Party Central Committee and Secretary of the Dong Nai City Party Committee (CPC), before being granted investment certificates, investors in Dong Nai must commit to their investment capacity, project commencement schedule, factory completion timeline and the expected launch date of their first products. If investors fail to fulfill these commitments, the city will resolutely revoke their projects.

Le Kim Huong, Chairwoman of the Trang Dai ward People’s Committee, noted that the ward’s population has grown to approximately 140,000 residents largely as a result of Dong Nai’s period of industrial investment attraction. Workers from across the nation came to Dong Nai for employment opportunities and eventually settled in the area. Rapid population growth, driven by migration, combined with weak management in the past, led to the emergence of unplanned residential areas, illegal construction and mounting pressure on infrastructure and public services. These consequences have taken many years to address.

During a working session between Prime Minister (PM) Le Minh Hung and the CPC’s Standing Board on June 13, Chairman of Dong Nai People’s Committee Nguyen Van Ut acknowledged that the quality of FDI attraction has yet to match the city’s potential. Dong Nai currently hosts more than 2,300 FDI projects with total registered capital exceeding US$45 billion. However, most projects remain concentrated in labor-intensive processing and manufacturing industries with relatively low added value, while the number of high-tech enterprises remains limited. Labor-intensive industries, he noted, continue to place significant pressure on social infrastructure, particularly schools, hospitals and housing.

According to PM Le Minh Hung, Dong Nai must strengthen and further develop its position as a modern industrial center for both the Southern Key Economic Region and the country as a whole. The city should pursue a more selective investment attraction strategy within industrial parks, review industrial land resources and industrial park occupancy rates, and prioritize projects in high technology, supporting industries, precision engineering, automation, advanced materials and energy-efficient manufacturing. Dong Nai must shift from a model based on mass production and raw exports to one driven by green exports, digital exports and high-value-added products.

A new vision for development

According to standing members of the Dong Nai CPC, industrial development over the past decades has created the foundation for the city’s current achievements. However, previous approaches to attracting investment and developing IPs are no longer suitable.

If Dong Nai continues along its current path, it risks remaining a destination primarily for low-tech, labor-intensive industries that consume large amounts of land, water and energy. Workers employed in such sectors often face limited income prospects, while public revenues remain modest and local authorities must spend additional resources addressing social welfare needs.

As Dong Nai’s infrastructure network becomes increasingly complete, particularly with the upcoming operation of Long Thanh International Airport and the opening of multiple expressways, the value and development potential of industrial land in areas such as Bien Hoa, Long Thanh, Nhon Trach, Cam My and Xuan Loc have fundamentally changed. As a result, the city is determined to restructure its industrial park system to better match the characteristics and scale of future investment projects. Dong Nai is prioritizing the development of high-tech industrial parks, next-generation industrial parks, innovation research centers and information technology hubs in Long Thanh, Nhon Trach and Cam My. Meanwhile, heavy industrial projects that require extensive land areas but are capable of generating high added value will be encouraged to locate in the Northern part of the city.

To implement this strategy, Dong Nai has stopped accepting low-technology projects while creating the most favorable conditions for high-tech projects. Examples include facilities operated by Coherent Corporation in Nhon Trach 1 IP (Nhon Trach Ward) and ONSEMI in Bien Hoa 2 IP (Tran Bien Ward).

Particularly noteworthy are two next-generation industrial parks being developed by KN Holdings near Long Thanh International Airport. These projects are rapidly completing infrastructure development while attracting investors in high-tech and core-technology sectors such as semiconductors, chip manufacturing, electronics and electric vehicles.

During a working session with the CPC’s Standing Board on May 18, Party General Secretary and State President To Lam stressed that Dong Nai must build a new growth model and move beyond the limitations of a traditional industrial center.

The city’s new status requires development to be driven by productivity, technology, knowledge intensity, innovation capacity and its ability to create spillover effects for domestic enterprises, rather than relying on industrial land, cheap land or the number of investment projects.

According to To Lam, the spirit of Politburo Resolution No. 57-NQ/TW on breakthroughs in science and technology development, innovation and national digital transformation must be integrated into every enterprise if Dong Nai is to achieve sustainable growth. At the same time, the city must complete a modern industrial and logistics network while ensuring that gateways and new urban space must be connected within an integrated industrial ecosystem.

High technology, modern aviation services, eco-industrial development, high-value-added services, supporting industries, the digital economy, the green economy and high-tech agriculture should become the pillars of Dong Nai’s next stage of development.

By C. Nghia – Translated by M.Nguyet, Thu Ha