Hue Attracts Investors With 3 Key Factors

Thua Thien – Hue is attracting investment in Vietnam’s central region through a mix of policy incentives, growing tourism, and strategic location. The province sits on the North Central Coast, covering about 4,902 square kilometers with a coastline stretching 120 kilometers. It serves as a gateway to the South China Sea and sits between major economic hubs like Da Nang and Hoi An. The local economy relies heavily on the imperial citadel, Dai Noi, which draws visitors, though the province also maintains a significant industrial base.

Business-Friendly Policies and Incentives

Thua Thien – Hue provides a regulatory environment designed to help foreign businesses enter the market. The Department of Planning and Investment offers legal assistance and transparent administrative procedures. Recently, the province signed a memorandum of understanding with a South Korean entity to develop a smart urban space model for Hue City. Dan Nguyen from Business Intelligence at Dezan Shira & Associates noted that the province is competitive with government incentives compared to other areas. The Chan May Lang Co industrial park, for instance, offers a 10 percent corporate income tax (CIT) rate for 15 years, compared to the standard 20 percent rate. This is followed by a four-year CIT exemption and a 50 percent reduction for the next nine years. Import tax exemptions for fixed assets are also available.

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Local authorities have expanded support through Resolution No. 01/2022/NQ-HDND. This resolution targets infrastructure projects in economic zones, industrial parks, high-tech zones, and social housing. Import duties on manufacturing materials, supplies, and semi-finished products are exempted for businesses in these zones. The province has also partnered with various regional and global organizations in recent years. The administration remains committed to providing efficient procedures and attractive policies within the legal framework.

Tourism Growth and Workforce Development

The tourism sector remained resilient despite global economic challenges in 2021. By September, the province welcomed 633,315 visitors, including 18,796 international tourists. Authorities are pushing digital transformation in tourism, using platforms like Zalo and Facebook to promote the destination. To support this growth, the Ministry of Culture, Sports, and Tourism partnered with the Ministry of Labor, War Invalids and Social Affairs to organize vocational training for hospitality workers. This creates a more professional labor force for the industry. The government is also facilitating infrastructure projects, such as new roads to the Gia Long mausoleum, and favors tourism firms aiming for net-zero carbon emissions.

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Despite the progress, the province faces a structural gap in the logistics sector. Chan May port, a deep-water gateway to the South China Sea, currently handles cargo ships of 50,000 tons. Plans are in place to upgrade capacity to 70,000 tons. However, the infrastructure at Chan May and Thuan An ports is limited, and the synchronization between warehouse tracking systems and customs authorities is not yet effective. This technical lag represents a potential opportunity for investors to supply large-scale container management or advanced tracking systems. The government’s digital transformation strategy may help modernize these connections.

Thua Thien – Hue has a competitive labor market with an estimated population of over 1.1 million and a workforce of around 620,000. In 2021, export revenues surpassed the initial target, reaching US$158 million. Total invested capital increased by 11 percent to approximately US$266 billion. The province also ranked eighth in the Provincial Competitive Index and topped the Provincial Governance and Public Administration Performance Index. These rankings suggest a positive business environment. Investors looking for an alternative to the north or south of Vietnam might find Thua Thien – Hue offers a balance of policy support, skilled labor, and strategic access to the East-West economic corridor.