Note: This article looks broadly at the business environment in Dong Nai. For specific details on setting up a company in Vietnam see: How to Start a Business in Vietnam.
Dong Nai province, located in the southeastern region of Vietnam, has emerged as a dynamic economic hub in recent years. Its strategic location, coupled with robust infrastructure and a supportive government, has positioned it as an attractive destination for both domestic and foreign investors. The province boasts a thriving industrial landscape, with a particular focus on manufacturing, processing, and export-oriented activities.
Dong Nai offers a favourable business environment with a skilled workforce, competitive labour costs, and a growing network of transportation and logistics facilities. The province’s proximity to Ho Chi Minh City, Vietnam’s economic powerhouse, provides businesses with access to a large consumer market and a wealth of supporting services. Furthermore, the government of Dong Nai has implemented various incentives and policies to encourage investment and facilitate business operations.
As Vietnam continues to integrate into the global economy, Dong Nai has become an increasingly important part of the country’s growth story. With its strategic location, strong industrial base, and supportive business climate, the province presents significant opportunities for companies seeking to expand their operations in Southeast Asia.
Key economic sectors in Dong Nai
Dong Nai’s economy is characterised by a strong industrial focus, making it a manufacturing powerhouse within Vietnam.
Manufacturing
The manufacturing sector is the backbone of Dong Nai’s economy. The province has successfully attracted investments in various industries, including electronics, textiles, footwear, and automotive components. Its strategic location near Ho Chi Minh City and access to a skilled workforce have made it a preferred destination for both domestic and foreign investors.
Supporting Industries
To complement the manufacturing sector, Dong Nai has developed a robust network of supporting industries. Logistics, transportation, and warehousing are vital components of the province’s economy, facilitating the efficient movement of goods. Additionally, the growth of auxiliary services such as finance, banking, and real estate has supported the overall business environment.
Agriculture and Forestry
Despite its industrial focus, Dong Nai still maintains a significant agricultural sector. The province is known for its production of rubber, coffee, and livestock. While not as prominent as manufacturing, agriculture contributes to the overall economic diversity of Dong Nai.
These key economic sectors have propelled Dong Nai’s growth and established it as a major contributor to Vietnam’s economy. The province’s strategic location, coupled with its industrial infrastructure and skilled workforce, continue to attract investors and drive economic development.
Box 1: Dong Nai as a hub for garment and textile manufacturing
Dong Nai is extremely popular among garment and textile manufacturers and clothing suppliers. Among the big names that have set up shop in Dong Nai is the self-proclaimed biggest shoe maker in the world, Taiwan’s Pou Chen. It should be noted, however, that man of these businesses unr contract manufacturing operations whereby the produce good on behalf of bigger brands–Adidas, Puma, and Nike to name just a few.
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 Dong Nai, the PAPI provides insights into the city’s governance effectiveness.
PAPI, Dong Nai, 2019 to 2023
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Participation | 4.34 | 4.78 | 4.40 | 4.65 | 4.84 |
| Transparency of Local Decision-making | 4.59 | 4.96 | 4.87 | 5.21 | 5.31 |
| Vertical Accountability | 4.14 | 4.18 | 4.46 | 4.97 | 5.14 |
| Control of Corruption in the Public Sector | 6.48 | 6.54 | 6.34 | 6.92 | 7.08 |
| Public Administrative Procedures | 7.03 | 7.16 | 7.16 | 7.52 | 7.44 |
| Public Service Delivery | 7.00 | 7.66 | 7.59 | 6.71 | 7.40 |
| Environmental Governance | 2.99 | 2.83 | 2.85 | 3.25 | 3.59 |
| E-Governance | 3.35 | 3.15 | 3.29 | 3.28 | 3.15 |
| Unweighted PAPI Score | 39.91 | 41.26 | 40.95 | 42.50 | 43.94 |
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. Dong Nai, as Vietnam’s economic hub, is always a focal point in PCI reports.
PCI, Dong Nai, 2019 to 2023
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Entry Costs | 6.85 | 7.16 | 6.92 | 6.48 | 7.13 |
| Access to land | 6.43 | 6.77 | 7.37 | 7.01 | 6.06 |
| Transparency | 6.64 | 5.49 | 5.98 | 6.34 | 6.6 |
| Time Costs | 7.75 | 8.03 | 7.93 | 8.05 | 8.02 |
| Informal Charges | 6.75 | 7.33 | 6.88 | 6.53 | 5.57 |
| Policy Bias | 5.44 | 5.86 | 5.48 | 6.39 | 6.04 |
| Proactivity | 6.41 | 6.57 | 6.51 | 6.23 | 5.92 |
| Business Support Policy | 7.28 | 6.04 | 7.42 | 5.87 | 6.88 |
| Labor Policy | 5.88 | 5.74 | 5.75 | 6.55 | 6.75 |
| Law & Order | 6.85 | 7.05 | 6.92 | 6.85 | 6.4 |
| PCI Scores | 66.28 | 65.67 | 65.75 | 64.56 | 65.82 |
| Ranking | N/A | 29 | 22 | 20 | 23 |
*N/A – From 2023 the PCI will no longer report rankings for provinces outside the top 30.
Source: Provincial Competitiveness Index 2023
Foreign direct investment in Dong Nai
Dong Nai province has emerged as a significant hub for Foreign Direct Investment (FDI) in Vietnam. Its strategic location, coupled with a robust infrastructure and supportive government policies, has made it an attractive destination for global investors.
By the end of July 2024, Dong Nai had recorded 56 new projects with combined newly registered capital of US$1.06 billion. This was a sharp increase over the same period in 2023 of about 41.3 percent.
Box 2: Swedish engineering group opens first factory in southern Vietnam
Sweden’s Trelleborg Group has inaugurated its first factory in Vietnam in Dong Nai last year. Covering 8,000 square metres the factory will create parts for the global automotive and industrial sectors. Trelleborg has also announced that it plans to build a US$37 million factory in Ba-Ria-Vung also in southern Vietnam, just a stone’s throw from Dong Nai. Read more…
Entertainment and Nightlife in Dong Nai
Foreign business persons looking to travel to the city for work can expect to enjoy their down time in a broad range of ways. Dong Nai offers a vibrant and diverse nightlife scene, catering to a wide range of tastes and preferences.
Dong Nai, while primarily an industrial province, offers a surprising range of entertainment and nightlife options. While it may not have the bustling nightlife scene of Ho Chi Minh City, it’s a growing area with a variety of options for locals and visitors alike.
Dong Nai’s Nightlife
- Bars and Pubs: The province has seen a rise in the number of bars and pubs, catering to a diverse clientele. These establishments often offer live music, sports screenings, and a relaxed atmosphere.
- Karaoke: A popular form of entertainment in Vietnam, karaoke is widely available in Dong Nai. Many restaurants and bars offer karaoke rooms for groups of friends or colleagues.
- Outdoor Activities: Dong Nai’s natural beauty provides opportunities for outdoor recreation, such as hiking, fishing, and camping.
These activities can be enjoyed during the day and often extend into the evening with bonfires and stargazing. - Local Festivals: The province hosts several cultural and religious festivals throughout the year, offering a glimpse into local traditions and customs. These events often feature traditional music, dance, and food.
While Dong Nai’s nightlife scene may be more laid-back compared to other parts of Vietnam, it offers a genuine and authentic experience. It’s a place to relax, unwind, and connect with the local culture.
What’s next?
Dong Nai province has emerged as a dynamic and attractive location for businesses seeking to invest in Vietnam. Its strategic position, robust infrastructure, and supportive government policies have created a favourable environment for industrial development and growth. The province’s focus on manufacturing, coupled with its proximity to Ho Chi Minh City, has made it a key player in Vietnam’s manufacturing and export sectors.
While challenges such as infrastructure development and labour skill gaps persist, Dong Nai’s potential for continued growth is significant. The province’s ability to attract foreign direct investment, coupled with its efforts to improve the business climate, positions it as a compelling choice for investors seeking to expand their operations in Southeast Asia.
As Vietnam continues its economic ascent, Dong Nai is well-placed to capitalise on the opportunities presented by the growing market.
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