Note: This article looks broadly at the business environment in Long An. For specific details on setting up a company in Vietnam see: How to Start a Business in Vietnam.
Long An province has emerged as a promising investment destination in Vietnam, particularly for manufacturing and agriculture. Its strategic location, coupled with government support, has attracted a growing number of domestic and foreign investors.
The province boasts a young and dynamic workforce, making it an attractive location for labour-intensive industries. Additionally, Long An’s proximity to Ho Chi Minh City and key transportation infrastructure provides excellent connectivity to both domestic and international markets.
While Long An offers significant opportunities, businesses should carefully consider factors such as infrastructure development, skilled labour availability, and market competition. By understanding the local landscape and leveraging the province’s strengths, companies can successfully establish and grow their operations in Long An.
Key Economic Sectors in Long An
Long An province has experienced significant economic growth driven by several key sectors:
- Agriculture: As part of the Mekong Delta, Long An is known as the “rice bowl” of Vietnam. Rice cultivation remains a dominant sector, but the province is also focusing on higher-value agricultural products like fruits, vegetables, and aquaculture.
- Manufacturing: While primarily an agricultural province, Long An is undergoing industrialization. The manufacturing sector is growing, with a focus on food processing, textiles, footwear, and supporting industries.
- Real Estate: The province’s economic growth has led to increased demand for housing and commercial properties. Real estate development is becoming a significant contributor to the local economy.
- Logistics and Transportation: Long An’s strategic location near Ho Chi Minh City and key transportation infrastructure has positioned it as a logistics hub. The sector is growing rapidly to support the province’s increasing trade activities.
These sectors contribute to Long An’s overall economic development and offer opportunities for businesses looking to invest in the province.
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 Long An, the PAPI provides insights into the city’s governance effectiveness.
PAPI, Long An, 2019 to 2023
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Participation | 4.57 | 4.81 | 4.28 | 4.94 | 4.48 |
| Transparency of Local Decision-making | 4.80 | 4.74 | 5.06 | 5.07 | 5.08 |
| Vertical Accountability | 3.87 | 4.00 | 4.17 | 4.66 | 4.41 |
| Control of Corruption in the Public Sector | 6.71 | 6.24 | 7.23 | 7.63 | 7.10 |
| Public Administrative Procedures | 7.23 | 7.22 | 7.24 | 7.60 | 7.46 |
| Public Service Delivery | 6.76 | 6.83 | 7.73 | 6.90 | 7.02 |
| Environmental Governance | 3.40 | 3.15 | 3.44 | 3.26 | 3.41 |
| E-Governance | 3.49 | 2.81 | 2.94 | 2.61 | 2.75 |
| Unweighted PAPI Score | 40.83 | 39.81 | 42.11 | 42.68 | 41.70 |
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. Long An, as Vietnam’s economic hub, is always a focal point in PCI reports.
PCI, Long An, 2019 to 2023
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Entry Costs | 7.18 | 6.98 | 7.1 | 7.64 | 7.05 |
| Access to land | 6.89 | 7.17 | 7.49 | 7.74 | 7.33 |
| Transparency | 5.99 | 6.38 | 5.93 | 6.06 | 6.55 |
| Time Costs | 8.4 | 8.43 | 8.13 | 9.06 | 7.74 |
| Informal Charges | 7.74 | 7.74 | 7.27 | 7.64 | 6.79 |
| Policy Bias | 6.54 | 6.35 | 5.56 | 8.52 | 7.35 |
| Proactivity | 7.24 | 7.54 | 7.4 | 7.57 | 7.4 |
| Business Support Policy | 6.9 | 5.84 | 7.54 | 7 | 7.16 |
| Labor Policy | 6.07 | 5.33 | 5.44 | 6.38 | 6.2 |
| Law & Order | 7.83 | 7.02 | 7.3 | 7.16 | 7.57 |
| PCI Scores | 70.94 | 68.45 | 66.58 | 70.37 | 68.82 |
| Ranking | 2 | 10 | 16 | 3 | 8 |
Source: Provincial Competitiveness Index 2023
Foreign direct investment in Long An
Long An has emerged as a promising investment destination in Vietnam, attracting significant foreign direct investment. Its strategic location, coupled with a supportive business environment, has made it a preferred choice for investors seeking to capitalise on the country’s growth.
Notably, in the first seven months of 2024, Long An launched 70 new projects with registered capital of just shy of US$485.7 million. This was a slight decrease over the registered capital Long An recorded in the first seven months of 2023 which was just US$553 million.
Entertainment and Nightlife in Long An
Long An, primarily an industrial province, offers a relatively quieter and more laid-back atmosphere compared to larger cities like Ho Chi Minh City. While the entertainment and nightlife scene is still developing, there are options available for those seeking relaxation and entertainment.
You can find a few local bars and restaurants in the larger towns, offering a taste of local cuisine and beverages. However, for a wider range of entertainment options, including cinemas, shopping malls, and international cuisine, visitors often prefer to travel to neighbouring Ho Chi Minh City.
While the nightlife scene is not as vibrant as in other parts of Vietnam, Long An offers a peaceful environment for those seeking a break from the hustle and bustle of city life.
What’s next?
Long An province presents a promising investment landscape for businesses seeking opportunities in Vietnam. Its strategic location, coupled with a focus on agriculture and manufacturing, offers a solid foundation for growth. While the province is still developing its infrastructure and business environment compared to larger cities, it provides a cost-effective alternative for companies looking to tap into the Vietnamese market.
To succeed in Long An, businesses should carefully assess the local market, build strong relationships with government officials, and invest in talent development. By understanding the province’s strengths and challenges, companies can capitalise on the opportunities offered by this emerging economic hub.
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