Momentum for investment is finally building for Vietnam’s North-Central region, with key factors from global business support to domestic political backing falling into place in an area that has lagged in development until now.

Quang Tri is an attractive province because “it’s easy to secure talent, and transport convenience will improve with the construction of a new airport,” says Shigeo Fukuda, head of Sumitomo Corp.’s department for developing industrial parks overseas.

Sumitomo began selling lots in a planned industrial park in Quang Tri last month and has already received inquiries from about 20 prospective tenants. It will be the first such facility operated by the Japanese trading company in the North-Central region.

Besides Quang Tri, the region includes five other provinces: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh and Thua Thien Hue.

Travel between these provinces and Hanoi has improved, thanks to a major arterial road. Average monthly income in the North-Central region is about 30% to 40% below that in areas around Hanoi or Ho Chi Minh City, according to government data.

The low income levels indicate room for development in the North-Central region. Development in Southern Vietnam has long been driven by the garment and textile industry, and the northern areas have enjoyed economic growth fueled by investments from South Korean companies since the 2010s. Now the North-Central provinces have been busy attracting global companies.

Foreign investment in the North-Central region reached about $2 billion in 2023, a 39% jump on the year. Nghe An in particular was a strong magnet, attracting a record $1.6 billion.

Taiwanese tech giant Foxconn, a major Apple partner, grabbed headlines last year with plans to open a new factory in Nghe An in November 2024. The move is part of the iPhone assembler’s shifting of its supply chain out of China amid escalating tensions between Beijing and Washington.

Foxconn’s decision has prompted others in the Apple supply chain to follow suit. Radiant Opto-Electronics, also based in Taiwan, plans to set up a plant in Nghe An as well.

Development in North-Central Vietnam may also influence the government’s plans for its North-South high-speed railway project connecting Hanoi and Ho Chi Minh City, which has a completion target of 2045.

Concerns about profitability linger because the railroad’s stops would be limited to cities such as the beach resort of Da Nang. If major cities emerge in the North-Central region, this may increase ridership.

Behind the efforts to attract global companies and promote the enormous infrastructure project is the background of key government officials. Six of 16 Communist Party leaders with decision-making power — including the prime minister and the chair of the National Congress — are from the North-Central region.