Decoding Bac Giang's resilience - Vietnam's economic growth phenomenon: Part 1 - Economic growth continuously holds the "champion" position

Editor's note: Once a purely agricultural province, Bac Giang has made a spectacular breakthrough, leading the country in economic growth rate for many consecutive years. Not only attracting a series of large technology corporations in the world, Bac Giang is also forming an increasingly complete industrial - service - agricultural ecosystem. This topic delves into the endogenous resilience that has turned a province without many advantages into a growth phenomenon in Vietnam and opens up great expectations when Bac Giang merges with Bac Ninh to enter a new era of development.

BAC GIANG - From 2022 to present, Bac Giang has continuously led the country in economic growth rate, reaching 19.3% in 2022, 14.99% in 2023 and 13.85% in 2024, nearly double the national average. Thanks to a favorable business environment, effective investment attraction policies and drastic management, the province has become a destination for many large technology corporations, gradually forming a dynamic industrial center in the North. With such outstanding results, Bac Giang was assigned by the Government an economic growth target of 13.6% in 2025, the highest in the country.

Many large corporations "nest"

Thanks to the initiative in improving the investment environment and the focused and key attraction policies, Bac Giang is increasingly affirming its role as an emerging industrial production center of the North. Many transnational corporations in the fields of electronic components, semiconductors, renewable energy from Singapore, China, Korea, and Japan have chosen the province as the place to set up production facilities, typically: Foxconn, Luxshare, JA Solar, Hana Micron... Of which, Foxconn and Luxshare are currently the two enterprises employing the most labor in the province, with a scale of up to tens of thousands of people. Along with that, the advantage of convenient traffic infrastructure has attracted a series of satellite enterprises in components and spare parts from neighboring localities such as Thai Nguyen, Bac Ninh , Vinh Phuc, contributing to the formation of a cohesive production value chain in the key economic region of the North...

Electronic equipment manufacturing at Hosiden Vietnam Co., Ltd. (Quang Chau Industrial Park). Photo: Do Quyen.

A typical example of high-tech capital is the phase 2 expansion project of Hana Micron Vina Co., Ltd. (Korea) in Van Trung Industrial Park, with a total capital of nearly 600 million USD, reaching an investment rate of about 90 million USD/ha - 8 times higher than the average level in industrial parks in the province. This is the first semiconductor manufacturing project in the North, opening up opportunities to welcome more high-tech projects in line with national orientation. Among the large corporations, Foxconn is the most typical investor.

Since 2007, the Group has implemented 11 projects in Bac Giang, with a total capital of more than 2.2 billion USD and is currently the largest FDI enterprise in the province, employing about 80,000 workers. In 2024, revenue will reach 268,000 billion VND, exports will exceed 11 billion USD, and budget contributions will exceed 550 billion VND. Revenue growth in 2024 will exceed 70% and Foxconn aims to increase by another 50% in 2025.

From 2022 to present, Bac Giang has continuously achieved double-digit economic growth and led the country. In 2022, it reached 19.3% (more than double the national average); in 2023, it was 14.99% (the whole country grew 5.07%); in 2024, it reached 13.85% (the whole country grew 7.09%).

In April 2025 alone, many Foxconn member companies such as Fukang Technology, Fuyu Precision, and Fulian all recorded revenue increases of 2-3 times compared to the same period last year, demonstrating the strong resilience of the electronics industrial cluster in Bac Giang. Foxconn representatives informed that the Group will continue to expand investment, improve technology level, and at the same time commit to fulfilling social responsibility, creating a good working environment for employees, and accompanying the province in sustainable development.

According to the Provincial Industrial Parks Management Board, Bac Giang currently has more than 512 investment projects in industrial parks, including 392 FDI projects and 120 domestic projects, with a total registered capital of more than 11.2 billion USD and 41 trillion VND. These enterprises are creating jobs for more than 227,000 workers - the highest level ever, continuing to increase by 6,000 people in just one month. The increase in scale and efficiency of operations in industrial parks has helped the province's industry maintain a growth rate of more than 20% for many years, making Bac Giang a new growth pole in the Northeast region.

According to economic expert, Dr. Can Van Luc, Bac Giang has emerged as a bright spot for investment attraction thanks to its favorable geographical location, synchronous infrastructure investment and dynamic business environment. From Bac Giang, businesses can easily connect to the capital Hanoi, international airports, seaports and border gates, creating ideal conditions for international trade and global supply chains.

Bac Giang does not wait for investors to come but proactively "builds a nest to welcome eagles", because Bac Giang determines that the success of investors is also the success of the province.

Impressive economic picture

From 2016 to 2020, Bac Giang's GRDP increased by an average of 13.8% per year, with industry alone achieving an impressive growth rate of 23.2%. In 2021, despite being strongly affected by the Covid-19 pandemic, the province still achieved a growth rate of 7.82%, ranking 10th in the country; industry increased by 12.7%, ranking 4th. Notably, from 2022 to present, Bac Giang has continuously achieved double-digit economic growth and led the country. In 2022, it reached 19.3% (more than double the national average); in 2023, it was 14.99% (the whole country grew by 5.07%); in 2024, it reached 13.85% (the whole country grew by 7.09%). Export turnover also recorded strong progress: In 2023, it reached more than 27.4 billion USD, an increase of 22.3%, bringing the province to 6th place in the country and the only locality with a trade surplus. In the first quarter of 2025, exports ranked 2nd in the country for the first time, after Ho Chi Minh City.

Bac Giang litchi is famous at home and abroad, contributing greatly to the growth of the agricultural sector. Photo: The Dai.

In 2025, for the first time, the Government assigned specific growth targets to each locality. Bac Giang was assigned the highest level in the country, 13.6%. To realize this target, the Provincial Party Standing Committee issued an Official Dispatch implementing Conclusion No. 123-KL/TW dated January 24, 2025 of the Party Central Committee on the Project to supplement socio-economic development in 2025. Comrade Nguyen Viet Oanh, Chairman of the Provincial People's Committee, said: Bac Giang set a growth target of 14-15%, higher than the target assigned by the Government.

Since the beginning of the year, most of the province's socio-economic indicators have exceeded the plan. The province has assigned 105 specific tasks, clearly assigning responsibilities to each department, branch and locality. Units have proactively seized opportunities, synchronously deployed solutions by field; accelerated investment in transport infrastructure, industrial parks and clusters and digital infrastructure.

Bac Giang identifies industry as the main driving force but at the same time attaches importance to developing agriculture and services to ensure sustainable growth. In particular, the province stands out in restructuring agriculture associated with the application of science and technology, creating a new look for the countryside. Lychee has become a "typical Vietnamese agricultural product", produced according to VietGAP and GlobalGAP standards, exported to more than 30 countries, including Japan, the United States, the EU, etc. Bac Giang is currently leading the Northern Midlands and Mountains region in terms of added value in the agricultural sector.

According to the Provincial Statistics Office, Bac Giang's economic growth in the first quarter of 2025 is estimated at 14.02% - the highest in the country. Of which, the industrial and construction sector increased by 17.24%, of which industry increased by 17.97%; agriculture, forestry and fishery increased by 1.05%; services increased by 5.79%. Total state budget revenue in the area reached more than 6,400 billion VND, up 31% over the same period last year. Average income per capita is estimated at 5.16 million VND/month, up 1.33%, reflecting the trend of improving people's lives in parallel with economic growth.

Bac Giang's economic picture continues to show stable and strong growth even in a challenging context. Export, GRDP and budget revenue indicators all increased, affirming the province's increasingly clear role in the national economic structure. Comrade Dong Van Sung, Head of the Provincial Statistics Office, said: The industrial and construction sector continues to be the main driving force, accounting for more than 75% of GRDP and contributing 12.68 percentage points to the overall growth rate. In particular, the group of electronic, computer and optical products plays a key role, accounting for more than 53% of the added value of the entire industry.

In 2025, Bac Giang is assigned the highest growth target in the country. The first quarter exceeded expectations, the second quarter is estimated to reach about 13.8% - positive signals for the province to continue to maintain growth momentum. With a solid foundation and an increasingly improving investment environment, Bac Giang continues to be a strategic destination for many large corporations.

The results achieved do not come from temporary luck but are the crystallization of a process of choosing the right direction, implementing methodically and persistently through each term, especially in key areas such as industry, regional connectivity, attracting investment and improving the business environment.

PVKT GROUP

Source: https://baobacgiang.vn/giai-ma-suc-bat-bac-giang-hien-tuong-tang-truong-kinh-te-cua-viet-nam-bai-1-tang-truong-kinh-te-lien-tuc-giu-vi-tri-quan-quan--postid418832.bbg