1. OVERVIEW OF SOUTHWEST REGION IN VIETNAM
Geographical features of Southwest region should be considered key factor of many investors coming for projects due to certain effects on costs of construction or industries matching with economy strategy of this region. The land level is flat which is good for land bank of project investment, but it is low over sea level, which means that if the sea level rises, many places in Southwest region is severely affected. This is the region of Southern Vietnam to be warned of severe impact by climate change.
About economy aspects, the Southwest region has both the strength of agricultural development (rice, aquaculture, fruit) thanks to its geographical features along Mekong river. The South West next to the Southeast region, which is the most developed region in Vietnam and both areas connect each other so well. Therefore, the Southwest has really large area of land for both agriculture and industry development.
About economy aspects, the Southwest region has both the strength of agricultural development (rice, aquaculture, fruit) thanks to its geographical features along Mekong river. The South West next to the Southeast region, which is the most developed region in Vietnam and both areas connect each other so well. Therefore, the Southwest has really large area of land for both agriculture and industry development.
2. WHICH PROVINCES IN SOUTHWEST ARE CHOOSEN?
Why are the Southwest region important? The geographical location that brings the abundance of minerals, fertile soil and adjacent to sea will create development advantages for many provinces here, but the proximity to the Southeast region also brings a great advantage, which should be considered an key factor for attracting resources for investment and development. In details:
First, the Southeast region has many river ports and sea habors from which many enterprises may export to other countries in ASEAN or to India, Australia, Middle East, etc.. Therefore, proximity to the Southeast means to get closer many connection points to export markets with lower traffic costs. Therefore, many companies also want to locate offices and manufacturing facilities in Southwest provinces near the Southeast region.
Second, the industrial zones or industrial parks of the Southeast (Ho Chi Minh City, Binh Duong, Dong Nai, Ba Ria - Vung Tau), after a long time attracting many projects, industrial land have been fulfilled, leading to high cost of leasing land. Therefore, investors want to find a location which is close to the Southeast with cheaper land lease cost, but also close to connection points such as sea ports and air ports of Southeast region.
In fact, there has been a wave of investors coming from the Southeast to the provinces of the Southwest. Due to being close to the centre of Ho Chi Minh, Long An province must be the good choice recently, followed by Tien Giang, Ben Tre province and Vinh Long province. Then, these provinces with close distance are more likely to be selected than those with the further distance thanks to expressway system. However, the closer the distance is, the stronger the influence of the geographic location is made; However, the further the distance is, the longer time for the decision of the business will be made instead of distance such as high-quality work force and suppliers available. For example, a business wants to be close to a seaport in the Southeast like Cat Lai port or Cai Mep port, they will decide to choose Long An, Tien Giang, Ben Tre province instead of choosing further area such as Ca Mau or Bac Lieu province. But investors should list what they prioritize first and then decide which provinces in Southwest should be choosen.
First, the Southeast region has many river ports and sea habors from which many enterprises may export to other countries in ASEAN or to India, Australia, Middle East, etc.. Therefore, proximity to the Southeast means to get closer many connection points to export markets with lower traffic costs. Therefore, many companies also want to locate offices and manufacturing facilities in Southwest provinces near the Southeast region.
Second, the industrial zones or industrial parks of the Southeast (Ho Chi Minh City, Binh Duong, Dong Nai, Ba Ria - Vung Tau), after a long time attracting many projects, industrial land have been fulfilled, leading to high cost of leasing land. Therefore, investors want to find a location which is close to the Southeast with cheaper land lease cost, but also close to connection points such as sea ports and air ports of Southeast region.
In fact, there has been a wave of investors coming from the Southeast to the provinces of the Southwest. Due to being close to the centre of Ho Chi Minh, Long An province must be the good choice recently, followed by Tien Giang, Ben Tre province and Vinh Long province. Then, these provinces with close distance are more likely to be selected than those with the further distance thanks to expressway system. However, the closer the distance is, the stronger the influence of the geographic location is made; However, the further the distance is, the longer time for the decision of the business will be made instead of distance such as high-quality work force and suppliers available. For example, a business wants to be close to a seaport in the Southeast like Cat Lai port or Cai Mep port, they will decide to choose Long An, Tien Giang, Ben Tre province instead of choosing further area such as Ca Mau or Bac Lieu province. But investors should list what they prioritize first and then decide which provinces in Southwest should be choosen.
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