The government has planned several strategies for each critical economic zone to strengthen each community and make the area a catalyst for national prosperity.

New Proposal for Dividing Socio-economic Regions

Currently, Vietnam has six socio-economic regions, including the Northern Midlands and Mountains (14 provinces), the Red River Delta (11 provinces and cities), the North Central region, the Central Coast (14 areas and cities), the Central Highlands (5 provinces), the Southeast region (6 provinces and cities) and the Mekong Delta (13 provinces and cities).

Implementing the Law on Planning, the Ministry of Planning and Investment (MPI) has researched, developed a set of criteria, and proposed zoning plans for 2021-2030. The Ministry of Planning and Investment has submitted to the Government two zoning plans as follows:

Option 01: Divided into 07 regions

• According to this plan, 02 regions will be remained (Red River Delta and Mekong River Delta).
• Separating the current Northern Midlands and Mountains into the Northeast and Northwest regions.
• Separating the current North Central and Central Coast regions into North Central and South Central regions (Thua Thien – Hue province included in the South Central region).
• Adjusting 01 province (Binh Thuan) to the Southeast region and merging 04 Central Highlands provinces (Kon Tum, Gia Lai, Dak Lak, Dak Nong) into the South Central region.
• The new Southeast region was formed on the basis of the current Southeast region and added two more provinces (Lam Dong and Binh Thuan).

Option 02: Divided into 06 regions

• This option proposes the formation of 06 new regions, in which the Northern Midlands and Mountains, the Red River Delta and the Mekong River Delta remain intact.
• Re-forming the three regions of the North Central, South Central and Southeast regions as in Option 01 above.

• Option 03: Divided into 08 regions

• This plan separates the whole country into 8 regions, of which 04 regions ramain unchanged: the Red River Delta, the Central Highlands, the Southeast and the Mekong River Delta.
• The Northern Midlands and Mountains are divided into two regions: Northeast and Northwest (as Option 1).
• The North Central Coast and the Central Coast are divided into two regions: the North Central Coast (from Thanh Hoa to Thua Thien – Hue) and the South Central Coast (from Da Nang to Binh Thuan).

Option 04: Maintain the current 06 socio-economic regions.

Option 05: Divided into 07 regions

• This plan proposes to keep 05 (five) regions: the Red River Delta, the Northern Midlands and Mountains, the Central Highlands, the Southeast and the Mekong River Delta.
• North Central and South Central regions will be formed by dividing the Central Coast and North Central regions.

Option 06: Divided into 07 regions, including the New Capital region

• According to this option, 03 (three) regions remain unchanged: the Central Highlands, the Southeast and the Mekong River Delta; while separating the North Central and Central Coast regions into the North Central and South Central regions.
• Bring 04 (four) provinces (Bac Giang, Phu Tho, Thai Nguyen and Hoa Binh), which belong to the Northern Midlands and Mountains, into the Red River Delta, to form the Capital region (or the expanded Red River Delta).
• The Northern Midlands and Mountains with the remaining provinces will be renamed the Northern Mountain region.

The Ministry of Planning and Investment proposes to choose Option 06 as the zoning plan for the 2021-2030 period due to the following advantages:

• Ensure high inheritance.
• Less disturbance to the area.
• Expanding the new development space for the Red River Delta region, forming the new Hanoi Capital region.
• Create conditions for some provinces formerly in the Northern Midlands and Mountains region to have more development conditions.
• Regional connectivity is enhanced.

This Option also overcomes the limitation that the North Central Coast and Central Coast have too long distances. With Option 6, the advantages of regions will be promoted, creating conditions for rapid and sustainable development of the regions and the whole country.

New Obstacles in Current Context

However, the current division of six economic zones is no longer suitable for the country’s actual situation and development goals, especially in the context of increasingly convenient traffic connections, digitization, and new technology applications.

“Regions and provinces are essential and urgent,” said Mr. Le Hoang Chau, Chairman of the HoREA. “Economic zoning is scientific, reasonable, and meets people’s aspirations to promote socio-economic development and serve as a basis for planning the national urban network.” The economic zoning is scientific, reasonable, meeting people’s aspirations to promote socio-economic development and serve as a basis for planning the national urban area,” said Mr. Le Hoang Chau, HoREA Chairman.

Therefore, HoREA sent a proposal to the Central Economic Commission, proposing economic zoning. Accordingly, HoREA said that it has researched and highly appreciated the suggestion of economic zoning plans of the Ministry of Planning and Investment and asked for comments on the division of 7 economic zones as follows:

1. The northern mountainous region has ten provinces (Ha Giang, Cao Bang, Bac Kan, Tuyen Quang, Lang Son, Lao Cai, Yen Bai, Dien Bien, Lai Chau, and Son La).
2. The Hanoi region (Northern Delta and Midlands) has 15 provinces/cities (including Hanoi, Hai Phong, Hai Duong, Hung Yen, Hoa Binh, Phu Tho, Thai Nguyen, Bac Giang, Vinh Phuc, and Bac Ninh). , Thai Binh, Nam Dinh, Ha Nam, Ninh Binh, Quang Ninh).
3. The North Central region has six provinces (including Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, and Thua Thien – Hue).
4. The South Central region has seven provinces/cities (including Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, and Ninh Thuan).
5. The Central Highlands region has five provinces (including Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong).
6. The Ho Chi Minh City region (Southeast region) has nine provinces/cities (including Ho Chi Minh City, Binh Phuoc, Tay Ninh, Binh Duong, Dong Nai, Ba Ria – Vung Tau, Binh Thuan, Long An, Tien Giang.
7. The Mekong Delta has 11 provinces/cities (including Can Tho, Ben Tre, Tra Vinh, Vinh Long, An Giang, Dong Thap, Kien Giang, Hau Giang, Soc Trang, Bac Lieu, and Ca Mau).

Conclusion

Each city and province in the region has different strengths and factors to be considered. Therefore, investors must build a foundational understanding to utilize the utmost local strengths.

If you are looking to invest in Vietnam’s key socio-economic regions, contact Viettonkin for the most up-to-date and reliable information. Viettonkin and our team of specialists have over 12 years of expertise in the sectors of investment and business consulting. Contact us now.