DEEP C Industrial Zones: a model of sustainable growth in northern Việt Nam

January 18, 2025 - 09:29
In northern Việt Nam, where the Red River meets the fertile plains, a modern industrial transformation is quietly unfolding. At the heart of this shift lies the DEEP C Industrial Zones, an emerging hub that blends economic growth with environmental responsibility, positioning itself as a key player in the country's manufacturing and automotive industries.

 

A view of DEEP C Industrail Zone 2 in northern city of Hải Phòng. Unlike many traditional industrial zones, DEEP C was conceived with sustainability in mind. Photo courtesy of the firm

HẢI PHÒNG — In northern Việt Nam, where the Red River meets the fertile plains, a modern industrial transformation is quietly unfolding. At the heart of this shift lies the DEEP C Industrial Zones, an emerging hub that blends economic growth with environmental responsibility, positioning itself as a key player in the country's manufacturing and automotive industries.

Located in Hải Phòng, one of Việt Nam’s busiest seaports, DEEP C is more than a collection of factories. It is a model of how industrial zones can thrive while prioritizing sustainability, attracting foreign investments and becoming a cornerstone of the automotive, high-tech, renewable energy sector.

Unlike many traditional industrial zones, DEEP C was conceived with sustainability in mind. Its developers envisioned a space that not only drives economic growth, but also meets Việt Nam’s long-term environmental goals. Today, DEEP C stands as one of the country's leading eco-industrial parks under UNIDO and Ministry of Planning and Investment collaboration, integrating green technologies, waste management and energy-efficient systems into its operations. This commitment to environmental responsibility is a competitive advantage, appealing to multinational corporations that seek to align with global sustainability standards.

DEEP C comprises multiple zones dedicated to various industries, such as high-tech, logistics, automotive. What truly sets it apart is the seamless integration of economic development with environmental preservation. The sprawling complex features green spaces, water treatment systems and solar energy projects, while waste is carefully sorted and recycled. For investors, DEEP C’s adherence to strict environmental regulations provides both peace of mind and a solid reason to choose it as a sustainable investment location.

Over the past decade, DEEP C has emerged as a critical centre for the automotive industry in northern Việt Nam. The country’s rapidly growing automotive market, coupled with government incentives for foreign direct investment, has drawn car manufacturers and suppliers to DEEP C. The zone is home to several major automotive companies, including assembly plants for international and local brands.

The strategic location of Hải Phòng and Quảng Ninh has been key to DEEP C’s success as an automotive hub. Proximity to China and other ASEAN countries allows easy access to raw materials and markets, while the zone’s modern logistics infrastructure - such as dedicated container terminals - ensures the efficient movement of goods. These advantages make DEEP C an ideal location for automotive giants to establish production bases in Việt Nam.

Beyond the major manufacturers, DEEP C is fostering a thriving ecosystem of suppliers and service providers. From precision parts makers to electronics firms, local businesses are taking advantage of the zone’s ecosystem, contributing to the growth of the automotive supply chain. This network of support is vital for the expansion of Việt Nam’s automotive sector, and is one that DEEP C has carefully cultivated.

What truly distinguishes DEEP C from other industrial zones in Việt Nam is its ability to attract foreign investment. The combination of eco-friendly practices, cutting-edge infrastructure, and a strategic location makes the zone highly appealing to multinational corporations. Investors are not only drawn to the promise of competitive labour cost and tax incentives, but also to the efficiency and sustainability DEEP C offers.

In addition to automotive manufacturing, DEEP C hosts businesses across a variety of sectors, including electronics, logistics, food processing and renewable energy. The presence of global names like Pegatron, USI, and Foxconn has solidified the zone’s reputation as a world-class industrial park, while also creating ripple effects throughout the local economy. DEEP C has become a driver of job creation, technology transfer and the development of a skilled workforce.

The Vietnamese government has played a pivotal role in the zone’s success by offering incentives to foreign investors and improving infrastructure nationwide. The government's support, along with a steady economic growth trajectory, has made Việt Nam an attractive destination for companies seeking to expand in Southeast Asia.

The future of DEEP C looks bright. According to a recent Business Confidence Index (BCI) report by Eurocham, 75 per cent of respondents indicated they would recommend Việt Nam as an investment destination. The report highlights Việt Nam’s strategic position as a growing economic force in Southeast Asia, bolstered by its expanding infrastructure and stable policy environment.

DEEP C is already planning further expansion to accommodate new industries, such as semiconductors, renewable energy and digital services. As Việt Nam’s economy continues to show resilience, DEEP C is well-positioned to remain a central player in the country’s industrial evolution.

In many ways, DEEP C exemplifies the future of Việt Nam’s industrial sector - a future that is both green and innovative. The zone’s success is a testament to the power of sustainable planning and forward-thinking investment. As DEEP C continues to attract new businesses and create jobs for the local community, it will undoubtedly remain a cornerstone of Việt Nam’s industrial landscape for years to come.

 

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