Vietnam’s Geographic and Infrastructure Advantages

Jun 18th, 2021

Vietnam offers many strategically important geographical features and a well-developed transportation infrastructure that provide significant competitive advantages to foreign investors over other countries in the region. The nation shares a border with China, the world’s second-largest economy, and also boasts a shoreline of over 3,200 kilometers close to numerous international shipping routes, making Vietnam a prime location for maritime trade.

The country is also unique in how its business activities are distributed around the country, rather than being concentrated in one geographical area. In the South is the business hub of Ho Chi Minh City, with additional industries spread across the Mekong Delta in major cities including Can Tho, Ba Ria and Vung Tau, as well as nearby the Dong Nai and Binh Duong provinces. In the North, Hanoi and Haiphong and surrounding provinces are the centers of business activity, with Da Nang in the Central region.

Vietnam has made considerable investment in recent decades to develop world-class infrastructure for transporting people and freight, beginning with well-equipped, modern airport facilities. International airports in Hanoi, Ho Chi Minh City and Da Nang connect the country with major regional cities such as Bangkok, Phnom Penh and Kuala Lumpur, as well as important destinations in greater Asia, Europe, the United States. In addition, a  fourth major airport, Long Thanh International Airport is currently under construction east of Ho Chi Minh City. Expected to be operational by 2025, this “super-hub” will become Vietnam's largest airport.

Several projects are underway to upgrade rail transportation in Vietnam. Construction of new subway lines in Hanoi and Ho Chi Minh City are currently underway, and a trans-Vietnam high-speed railway connecting the North and South is expected to begin construction in 2021. Eventually the line will connect with high-speed rail lines in China, Cambodia and Thailand, which will providing connecting express rail service as far as Malaysia and Singapore.

The Vietnamese government is also continually improving the country’s expressways and ports to make transportation more convenient. One important new port project is Lach Huyen Deep Sea Port in Haiphong, which is located close to Amata City Halong in the North.

Image: Vietnam Connecting Supply Chains in ASEAN (Source: Krungsri Research), Long Thanh New International Airport, Dong Nai Province Vietnam (Source: Vietnam Airport Services)

Article copyright: Amata