Thanh Hoa Province: Opportunities in the Emerging Manufacturing Hub 

Backed by robust government support, abundant labor, and a rising number of foreign direct investment (FDI) projects, Thanh Hoa is becoming a preferred destination for investors seeking long-term, cost-efficient growth in the manufacturing and export sectors.  

Thanh Hoa is one of Vietnam’s largest provinces by area and population, strategically located between Northern and Central Vietnam, with strong connectivity via highways, seaports, railways, and an airport. Home to Nghi Son Economic Zone, one of eight national coastal economic zones with the most attractive investment incentives in Vietnam, Thanh Hoa is rapidly emerging as a key hub for heavy industry, energy, and logistics.  

Overview and key statistics

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Located in north-central Vietnam, following the 2025 provincial merger, Thanh Hoa has become the fifth-most populous province in the country, with a population of approximately 4.32 million people and a total area of 11,129.48 square kilometers. It shares borders with Son La, Phu Tho, and Ninh Binh to the north and northeast, while neighboring Nghe An to the south. With a labor force of nearly 2.6 million people, Thanh Hoa plays a key role in the region’s economic and industrial development. 

The province’s diverse geography spans from mountains to coastline, giving rise to multiple ecological zones and creating opportunities across agriculture, industry, and tourism. Its strategic location along National Highway 1A, the North-South railway, and proximity to Tho Xuan Airport positions Thanh Hoa as a growing logistics and manufacturing hub in north-central Vietnam.  

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Key industrial zones of Thanh Hoa

Nghi Son Economic Zone  

Located in southern Thanh Hoa province along the North–South transport axis, Nghi Son EZ is about 190 kilometers from Hanoi, serving as a key gateway between northern and central Vietnam, as well as between northwestern and southern regions and markets in southern Laos and northeastern Thailand.  

As a multi-sector, multi-functional integrated economic zone, Nghi Son has been selected by the Vietnamese government as one of eight key coastal economic zones, offering the most attractive investment incentives nationwide. The zone is divided into 55 functional sub-zones, including 25 industrial sub-zones covering approximately 9,057.9 hectares. Strategically located along Vietnam’s north-central coast, it is anchored by the Nghi Son Refinery and Petrochemical Complex, one of the country’s largest energy projects. The zone supports a wide range of industries, including heavy industry, petrochemicals, logistics, shipbuilding, and power generation.   

Le Mon Industrial Zone  

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Le Mon Industrial Park is the first centralized industrial zone in Thanh Hoa province, situated just 5 kilometers east of Thanh Hoa city center and National Highway 1A, 1 kilometer from Le Mon Port, and 60 kilometers from Nghi Son Seaport. Le Mon Industrial Zone is positioned for light manufacturing, mechanical engineering, construction materials, and food processing.

It also benefits from proximity to the city’s administrative center, strong road connectivity, and an established labor pool. The zone is ideal for small and medium-sized enterprises (SMEs) looking to access domestic and export markets efficiently.  

Bim Son Industrial Zone  

Located in Bim Son town, just off National Highway 1A, this zone is a well-established center for cement, construction materials, mechanical assembly, and transport services. It plays a vital role in the province’s traditional industrial base and continues to attract investments in supporting and downstream industries. Its integration with the northern economic corridor enhances its appeal to domestic and foreign investors alike.

Bim Son Industrial Park (Kovipark Bim Son) primarily attracts investment in several key sectors, including agro-forestry processing, machinery assembly and repair, high-tech industries, garment and packaging manufacturing, as well as petrochemical production.  

WHA Smart Technology  

WHA’s upcoming industrial project in Vietnam’s North Central region marks a significant milestone in the company’s long-term vision to drive innovation, sustainability, and inclusive growth in Thanh Hoa Province.  

Planned to cover 540 hectares upon completion, the WHA Smart Technology Industrial Zone will offer world-class, environmentally sustainable infrastructure tailored to international standards. Its strategic location, just 12 kilometers from Thanh Hoa City, provides investors with access to one of the country’s largest and most educated labor forces, as Thanh Hoa ranks as Vietnam’s third-most populous province. The zone is purpose-built to attract high-value technology firms across multiple sectors, including electronics, telecommunications, robotics, aerospace, and optics. In the logistics space, it offers facilities for cold storage, inland container depots, and modern warehousing. 

It also accommodates the production of consumer goods such as processed foods, high-value agricultural products, and fast-moving consumer goods. Additionally, the park welcomes investment in medical equipment, pharmaceuticals, and light industrial chemicals, supporting Thanh Hoa’s broader objective of upgrading and diversifying its industrial ecosystem.  

Potential sectors for investment  

Petrochemicals and refining  

Thanh Hoa is home to the Nghi Son Refinery and Petrochemical Complex (NSRP), the largest refinery in Vietnam, with a capacity of 200.000 barrels per day and a total investment exceeding US$9 billion. The refinery supplies approximately 30-40 percent of the nation’s fuel needs, playing a pivotal role in national energy security. 

Looking forward, the province plans to expand downstream petrochemical production, positioning itself as a hub for plastics, chemicals, and material manufacturing. With a strong logistics infrastructure and favorable policies, Thanh Hoa presents compelling opportunities for investors in high-value petrochemical segments.  

Energy (coal-fired and renewable)  

Located within the Nghi Son Economic Zone, Thanh Hoa hosts major power generation projects of the Nghi Son 1 and Nghi Son 2 coal-fired power plants, with a combined capacity of 2,400 MW. In parallel, the province is accelerating its transition to clean energy through wind, solar, and biomass initiatives. Coastal and highland areas offer substantial potential for onshore and offshore wind farms, with regulatory backing to support renewable development. This balanced energy portfolio ensures both reliability for industrial growth and opportunities for investors focused on Vietnam’s energy transition.  

Agricultural processing  

With strengths in fruit cultivation, livestock, and aquaculture, Thanh Hoa has a robust agricultural foundation. In 2024, Thanh Hoa’s fishery production exceeded 140,000 tons, achieving 102 percent of the annual target and increasing slightly by 0.3 percent compared to the same period in 2023. The province is actively seeking investment in modern cold storage, meat and seafood processing, and packaging facilities. Supported by rural development initiatives and strategic access to domestic and export markets, Thanh Hoa offers significant opportunities for agro-processing firms looking to create value-added products and integrate into global supply chains.  

Textiles and garments  

Thanh Hoa is currently home to over 300 active textile and garment enterprises. Alongside adopting new technologies and improving production processes, these businesses are effectively leveraging traditional markets while actively expanding exports to new destinations such as the Middle East and South America. As a result, in 2024, the province produced over 700 million items, with around 450 million exported, reflecting a growth of approximately 20 percent compared to the previous year. 

With a competitive labor force and established supplier networks, Thanh Hoa is evolving into a high-value textile hub. The province is encouraging investment in sustainable manufacturing, automated production, and textile dyeing, creating opportunities for firms aligned with ESG (environmental, social, and governance) and compliance standards.  

Tourism and ecotourism  

Boasting destinations like Sam Son Beach and Pu Luong Nature Reserve, Thanh Hoa is emerging as a premier tourism destination. According to the Provincial Department of Culture, Sports, and Tourism, the province is expected to welcome nearly 58.3 million visitors during the 2021–2025 period, with an average annual growth rate of 16.9 percent.   

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To continue attracting tourists, Thanh Hoa is ramping up public investment in infrastructure, with Phase 2 of the Nam Song Ma Boulevard considered a key project. This boulevard not only connects economic zones but also brings vibrancy and density to the surrounding area. Stretching over 12 kilometers, the project is expected to expand urban space, boost trade activities, and enhance travel experiences for visitors. Notably, it directly links the new Thanh Hoa city center with Sam Son, forming a dynamic development corridor along the Song Ma Boulevard.  

The province is focusing on high-end coastal resorts, cultural heritage sites, and eco-adventures, supported by a strategic location and upgraded infrastructure. Investors are welcome in sectors like wellness tourism, green lodging, and community-based tourism, making Thanh Hoa ideal for sustainable and experiential travel ventures.  

FDI in Thanh Hoa   

In 2024, Thanh Hoa continued to make a strong mark on Vietnam’s FDI map by welcoming 17 new projects. As of February 2025, the province hosts 173 active FDI projects from 20 countries and territories, with a total registered capital of US$15.2 billion. Notable investors include Japan’s Idemitsu and Mitsui, South Korea, Singapore, and China, with many investing in energy, infrastructure, and manufacturing. The most prominent project is the Nghi Son Refinery and Petrochemical Complex, a joint venture with Kuwait Petroleum International, representing a strategic milestone in Vietnam’s energy landscape. 

Recent FDI trends show a growing shift toward industrial diversification, especially in clean energy, logistics, and high-tech manufacturing, driven by improved infrastructure, preferential policies, and Thanh Hoa’s rising profile as an investment hub.  

Tax incentives  

Projects located in the Nghi Son Economic Zone benefit from some of the most attractive incentives in Vietnam. These include:  

• Land lease incentives: Exemptions during the construction phase (up to 3 years) and from 11 to 15 years once operational, depending on project type. Special priority projects enjoy extended exemptions under government policy.  

• Corporate income tax (CIT): 10-percent preferential CIT rate for 15 years, a 4-year CIT exemption, followed by a 50-percent reduction for nine years.  

• Import tax exemptions: Exemptions apply to imported goods used for fixed assets and operations, and for 5 years on raw materials not yet locally available.  

Projects in industrial parks within the Nghi Son EZ enjoy similar CIT and import tax benefits. Meanwhile, projects outside Nghi Son EZ are eligible for a 2-year CIT exemption and a 50-percent reduction over the next four years, along with standard import tax incentives.  

Conclusion 

Thanh Hoa Province is rapidly emerging as a dynamic investment destination in Vietnam’s manufacturing sector, driven by its strategic location, robust infrastructure, and supportive government policies. With significant FDI and a diverse industrial base, including key industrial zones like Nghi Son and Bim Son, the province offers abundant opportunities for growth in various sectors. As it continues to develop, Thanh Hoa is poised to play a crucial role in the region’s economic and industrial landscape. 

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