Note: This article looks broadly at the business environment in Ba Ria-Vung Tau. For specific details on setting up a company in Vietnam see: How to Start a Business in Vietnam.
Ba Ria-Vung Tau, a coastal province in southern Vietnam, has emerged as a strategic location for businesses seeking to tap into the country’s burgeoning economy. With its prime geographical position and well-developed infrastructure, this province offers a favourable environment for investors from various sectors.
The province’s strategic location along the Southern Key Economic Zone, combined with its proximity to Ho Chi Minh City, the country’s economic hub, provides businesses with excellent connectivity to both domestic and international markets. This accessibility facilitates the movement of goods, services, and capital, making Ba Ria-Vung Tau an attractive destination for foreign investors.
In addition to its strategic location, Ba Ria-Vung Tau boasts a robust industrial base, with a particular focus on heavy industries such as shipbuilding, oil and gas, and petrochemicals. The province’s industrial parks and economic zones offer a wide range of incentives and support services to attract foreign investors, making it an ideal location for businesses looking to establish manufacturing facilities or expand their operations in Vietnam.
Key economic sectors in Ba Ria-Vung Tau
Ba Ria-Vung Tau has a diverse economy, with several key sectors contributing significantly to its growth. Here are some of the most prominent sectors:
Oil and Gas Ba Ria-Vung Tau is a major oil and gas production hub in Vietnam, accounting for a significant portion of the country’s reserves. This sector has spurred the development of related industries, including petrochemicals, oil exploration, machinery, power generation, LPG, fertiliser, steel, logistics, and construction materials.
Manufacturing The province has numerous industrial parks and economic zones that attract a wide range of manufacturing industries. Manufacturing sectors include shipbuilding, automotive components, electronics, textiles, footwear, and food processing.
Tourism Ba Ria-Vung Tau’s coastal location and beaches make it a popular tourist destination. The province has invested in tourism infrastructure, including hotels, resorts, and entertainment facilities.
Logistics and Transportation The province’s strategic location and transportation infrastructure make it a hub for logistics and transportation activities. Ba Ria-Vung Tau has several major seaports, including Cai Mep International Terminal, which is one of the largest in Southeast Asia.
Agriculture and Fisheries The province’s coastal location provides opportunities for agriculture and fisheries. Aquaculture, particularly shrimp farming, is a significant sector in Ba Ria-Vung Tau.
These sectors contribute to Ba Ria-Vung Tau’s economic growth and position it as a strategic location for businesses looking to invest in Vietnam.
Public Administration Performance Index
The Public Administration Performance Index (PAPI) measures the efficiency and quality of public administration services provided by a government. In the context of Ba Ria-Vung Tau, the PAPI provides insights into the city’s governance effectiveness.
PAPI, Ba Ria-Vung Tau, 2019 to 2023
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Participation | 4.64 | 4.32 | 4.27 | 5.17 | 5.32 |
| Transparency of Local Decision-making | 5.64 | 5.18 | 5.04 | 5.80 | 5.78 |
| Vertical Accountability | 4.27 | 4.25 | 4.24 | 5.16 | 5.05 |
| Control of Corruption in the Public Sector | 7.22 | 6.95 | 6.46 | 7.07 | 6.89 |
| Public Administrative Procedures | 7.45 | 7.08 | 6.75 | 7.55 | 7.37 |
| Public Service Delivery | 8.16 | 7.86 | 8.00 | 7.63 | 7.73 |
| Environmental Governance | 3.53 | 3.20 | 3.08 | 3.23 | 3.27 |
| E-Governance | 3.66 | 3.15 | 2.77 | 2.84 | 3.84 |
| Unweighted PAPI Score | 44.57 | 41.99 | 40.61 | 44.46 | 45.25 |
Source: The Vietnam Provincial Governance and Public Administration Performance Index
Provincial Competitiveness Index
The Provincial Competitiveness Index (PCI) is a key tool for evaluating the business environment in Vietnam’s provinces. Ba Ria-Vung Tau, as Vietnam’s economic hub, is always a focal point in PCI reports.
PCI, Ba Ria-Vung Tau, 2019 to 2023
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Entry Costs | 7.24 | 6.95 | 6.48 | 7.1 | 5.86 |
| Access to land | 7.16 | 7.66 | 7.01 | 6.85 | 6.95 |
| Transparency | 6.94 | 5.93 | 6.07 | 5.64 | 6.87 |
| Time Costs | 7.97 | 7.81 | 8 | 8.45 | 7.3 |
| Informal Charges | 7.34 | 7.79 | 7.23 | 7.04 | 6.46 |
| Policy Bias | 5.79 | 6.99 | 6.52 | 6.16 | 6.31 |
| Proactivity | 6.7 | 7.21 | 6.77 | 6.03 | 6.02 |
| Business Support Policy | 6.57 | 6.03 | 7.81 | 6.22 | 6.87 |
| Labor Policy | 6.63 | 6.31 | 6.56 | 7.07 | 6.82 |
| Law & Order | 8 | 7.41 | 7.08 | 6.52 | 6.32 |
| PCI Scores | 69.57 | 70.26 | 69.03 | 65.48 | 66.96 |
| Ranking | 6 | 4 | 9 | 15 | 16 |
Source: Provincial Competitiveness Index 2023
Foreign direct investment in Ba Ria-Vung Tau
Ba Ria-Vung Tau’s proximity to Ho Chi Minh City, the country’s economic hub, and its access to key transportation infrastructure, including seaports and highways, provide good connectivity to both domestic and international markets. This has made Ba Ria-Vung Tau a popular FDI destination.
In fact, in the first seven months of 2024 added 20 new projects to its total foreign direct invested projects in the province, as well as US$1.54 billion in newly registered capital. This is a significant improvement over the same period in which the province recorded newly registered capital of just UU$250 million.
Entertainment and nightlife in Ba Ria-Vung Tau
Ba Ria-Vung Tau offers a diverse array of entertainment and nightlife options for visitors.
The province’s beaches, including Vung Tau Beach and Ho Tram Beach, provide opportunities for swimming, sunbathing, and various water sports. For those seeking a more active experience, the region offers activities such as jet skiing, parasailing, windsurfing, and kayaking.
Vung Tau city, the provincial capital, boasts a vibrant nightlife scene with numerous bars, clubs, and casinos. Visitors can enjoy live music, DJs, and dancing at local establishments or try their luck at one of the casinos. For a more cultural experience, traditional Vietnamese music and dance performances are often available at theatres and cultural centres.
Outdoor enthusiasts will find plenty to do in Ba Ria-Vung Tau. The province’s natural landscapes, including mountains and forests, offer opportunities for hiking, trekking, and golfing. Fishing enthusiasts can also enjoy the thrill of casting a line in the coastal waters.
For those seeking retail therapy, Ba Ria-Vung Tau offers a variety of shopping options. Local markets provide a unique opportunity to discover souvenirs, handicrafts, and local products, while modern shopping centres cater to those seeking a more conventional shopping experience.
What’s next?
Ba Ria-Vung Tau, a dynamic province in southern Vietnam, offers a compelling investment opportunity for businesses seeking to tap into the country’s growing economy.
Key factors driving investment in Ba Ria-Vung Tau include its proximity to Ho Chi Minh City, the country’s economic hub, and its access to key transportation infrastructure. The province boasts a thriving industrial sector, with numerous industrial parks and economic zones offering incentives and support services to attract foreign investors. Additionally, Ba Ria-Vung Tau’s abundant natural resources, particularly in the oil and gas industry, have attracted significant foreign investment.
While Ba Ria-Vung Tau offers numerous opportunities for businesses, it is important to conduct thorough research and due diligence before making investment decisions. Understanding the local market, regulatory environment, and cultural nuances is essential for success.
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