Economic Growth Rate Comparison Table (Grdp), 2016

QL.1A: National Highway 1A runs from Hanoi to Lang Son.

QL.17: National Highway 17 runs from Hanoi - Bac Ninh - Bac Giang - Thai Nguyen

QL.18: National Highway 18 runs from Noi Bai - Bac Ninh City - Ha Long - Cai Lan Port - Mong Cai.

QL.38: National Highway 18 runs from Bac Ninh City to Ha Nam.

- Provincial roads:

Bac Ninh has provincial roads passing through most districts, towns and cities of Bac Ninh province, creating a synchronous and interconnected traffic network between neighboring provinces.

Economic indicators

Bac Ninh province is considered an important growth pole in the urban area of Hanoi capital with miraculous changes in the field of industrial production and manufacturing. Creating growth momentum for the Northern Delta region. Currently, Bac Ninh is striving to become a centrally-governed city by 2022, building Bac Ninh into a cultural - ecological - intellectual urban area, following the smart urban model.

Chart 2.5: Economic structure of Bac Ninh province in 2019

Agriculture, Forestry, Fisheries

Industry & Construction

Service

21%

76%

Table 2.2: Economic indicators of Bac Ninh province in 2019

Economic indicators

2019	Forecast 2020
GRDP growth (%)	1.1%	up 5.4%
Economic scale (trillion VND)	1.24
GRDP (USD/person/year)	6.163
Budget revenue (billion VND)	30,431
Total social development investment capital (billion VND)	70,071	up 8.2%
- Public investment capital (billion VND)	5,102.6
- Domestic investment (million USD)
- Foreign investment FDI (billion USD):	0.85	increase 10%
- Cumulative foreign investment (billion USD)	17.2
- Export (Billion USD):	35	up 2.7%

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Source: Bac Ninh Provincial Statistics Office

According to the report of the Bac Ninh Provincial Statistics Office, in 2018, Bac Ninh's GRDP growth in 2018 reached 10.6%, lower than in 2017 (18.6%) because the capital from Samsung Display Company had been fully disbursed. This figure is higher than Hanoi's GRDP growth (7.47%). Bac Ninh's GRDP growth in 2019 reached only 1.1%. The reason for Bac Ninh's low growth in 2019 is that the industrial - construction sector in the first 6 months of 2019 had negative growth, the service sector increased but contributed insignificantly. In the first 6 months of 2020, due to the impact of the Covid-19 epidemic, many

The key economic sectors decreased sharply in the second quarter, especially the industrial sector, so the gross regional domestic product (GRDP) (at 2010 comparable prices) decreased by 3.3% over the same period. This is the second consecutive year that Bac Ninh province's GRDP has decreased in the first 6 months of the year since 2010, when the project of Samsung Electronics Vietnam Co., Ltd. (SEV) came into operation. Of which, the agriculture - forestry - fishery sector decreased by 3%; the industry - construction sector decreased by 2.8%; the service sector decreased by 7%; and product tax alone increased by 4.9%. Bac Ninh province aims for GRDP to increase by 5.4% over the previous year in 2020 (the plan is 7%).

Chart 2.6: Comparison table of economic growth rate (GRDP), 2016 - 2019

20%

15%

10%

2016

2017

Bac Giang

2018

Hanoi

2019

Bac Ninh

forecast 2020

Source: Bac Ninh Provincial Statistics Office

FDI attraction

In the trend of integration and globalization, attracting foreign direct investment (FDI) is considered one of the measures to exploit external resources to promote internal resources for socio-economic development. It is an important part of the foreign economic policy of the Party and the Government. Expanding and improving the effectiveness of foreign investment attraction is a long-term task, closely linked to the industrialization and modernization of the country, in which the task of each locality is to improve the investment environment to attract more and more businesses, thereby contributing to the state budget and actively developing the regional economy. Currently, Bac Ninh is a province with a rapid industrialization rate.

The province with the highest FDI capital in the country in the past 10 years, the leading province in attracting FDI capital, Bac Ninh is a province with an extremely favorable geographical location, abundant labor resources... along with open and flexible policies for investors, Bac Ninh is increasingly showing an extremely effective development strategy. Accordingly, the total newly registered FDI capital and increased capital in 2019 of the province reached 858.87 million USD. Cumulative FDI capital reached 17.2 billion USD from about 1,424 valid projects. Currently, in Bac Ninh province, there are a total of 16 concentrated industrial parks approved by the Prime Minister. Of which, 10 industrial parks have been put into operation with an occupancy rate of nearly 70%. The remaining industrial parks are continuing to complete legal procedures and site clearance to put into infrastructure construction. In addition, Bac Ninh province also has many small and medium-sized industrial clusters and handicraft villages attracting hundreds of thousands of workers. Industrial parks currently employ over 292,300 workers, of which 77,204 are local workers (accounting for 26.41%), 4,518 are foreign workers and the rest are workers from neighboring provinces and cities across the country.

Map of industrial parks in Bac Ninh province

Chart 2.7: FDI capital attraction in Bac Ninh from 2015 - 2019 (billion USD)

3.65

1.24

0.84

0.87

0.408

2015

2016

2017

2018

2019

Source: Bac Ninh Provincial Statistics Office

Bac Ninh is also one of the localities with the most craft villages in the country. In Bac Ninh, there are currently 70 craft villages, creating jobs for nearly 77,000 workers, the production value of the craft village sector reaches about 650 million USD. Some famous craft villages in Bac Ninh are Dong Ky wood village, Da Hoi iron and steel, Phong Khe paper, Dai Bai bronze casting, Dong Ho paintings, etc.

Tourism

Bac Ninh currently has hundreds of historical and cultural relics with many communal houses, pagodas, festivals and Quan Ho folk songs. The rich history and culture have created potential for Bac Ninh to develop cultural tourism. Bac Ninh has 3 tourist areas: Co Me Quan Ho Cultural Tourist Area (Bac Ninh city); Dam Temple Cultural Tourist Area (Tu Son town); Phat Tich Cultural Tourist Area (Tien Du district). In addition, it is expected that there will be 3 other tourist areas: Thien Thai Forest Tourist Area (Gia Binh district); Nhu Nguyet Historical Cultural Tourist Area (Yen Phong district); Ham Long - Dam Mountain Spiritual Tourist Area (Bac Ninh city) and 22 selected relic sites are planned to develop into tourist destinations as a driving force for closed, interconnected and attractive tourist routes in the area. Among them are some typical historical and cultural relics to form attractive tourist destinations and routes such as Bac Ninh Temple of Literature, Phat Tich Pagoda, Kinh Duong Vuong Tomb, Dau Pagoda, But Thap Pagoda, Do Temple, Le Van Thinh Temple, Temple, Co Lung Pagoda (Noi Due Commune), Lim Pagoda. In addition, there is also community tourism in Phu Lang pottery village (Que Vo District), Dinh To soy sauce village, But Pagoda area.

Tower (Thuan Thanh district), Quan Ho Viem Xa village (Bac Ninh city) Dong Ky fine art wood village

According to statistics from the Department of Culture, Sports and Tourism of Bac Ninh province, in 2019, the province's tourism industry reached 1.7 million visitors for sightseeing, entertainment and accommodation (of which international visitors reached 27,000). The whole province currently has 604 accommodation establishments with 7,305 rooms. Of which, there are 3 5-star hotels and 1 4-star hotel.

Chart 2.8: Statistics of tourist arrivals to Bac Ninh, 2016-2019 (million)

Number of visitors

1.7

1.4

1.1

0.9

2016

2017

2018

2019

Average income per capita

The average income per capita of Bac Ninh province is estimated at 143.5 million VND. If calculated in US dollars, in 2019 it reached about 6,163 USD/person/year, equivalent to 2018. 2.5 times higher than the average income per capita of the whole country.

Chart 2.9: Comparison of average income per capita, 2016 – 2019 forecast to 2030

Bac Ninh

Nationwide

Hanoi

14000

13000

12000

10400

10000

8000

6500

6163

6000

5129

6000

5123

4000

3165

2214

3418

2385

4080

2587

2800

2000

2016

2017

2018

2019

Expected 2030

Featured projects in progress

- VSIP II Industrial Park invested by VSIP Bac Ninh Company Limited has a scale of 273.22 hectares, total capital of nearly 2,360 billion VND, project implementation locations are Tam Giang, Yen Phu, Hoa Tien communes and Cho town (Yen Phong).

- Yen Phong II-C Industrial Park invested by Viglacera Company has a scale of 221 hectares, total investment capital of 2,234 billion VND, located in Yen Phong district.

2.3.2. Housing market for sale in Bac Ninh

The transport infrastructure is invested synchronously, convenient for connecting with provinces and cities in the Northern region. Along with that, the development of a series of key industrial zones and the remaining land fund to take advantage of investment needs have created favorable conditions for Bac Ninh to become a bright spot in the Northern real estate market.

According to "Decision 558/QD-TTg approving the task of adjusting the general planning of Bac Ninh urban area to 2035, with a vision to 2050", the whole province focuses on the goal of planning, constructing and developing Bac Ninh urban area to meet the standards of a type I urban area directly under the central government, as a premise for building Bac Ninh province into a centrally-run city by 2022; building and developing Bac Ninh urban area into a cultural - ecological - intellectual urban area, following the smart urban model. The planning scope includes the following administrative units: Bac Ninh city, Tien Du district, town

Tu Son commune, Que Vo district and Yen Phong district with a total area of about 491.37 km2.

According to the Vietnam Real Estate Brokers Association, new real estate development projects are being implemented strongly in many provinces, including Bac Ninh, with an average absorption rate of over 60% of the quantity of goods each time they are offered to the market.

Explaining the development of the Bac Ninh market, the province is attracting about

60,000 foreign engineers and experts come to work in industrial parks and this workforce increases by 20-25% each year. This customer group has a need to rent or buy a house to settle down for a long time with high requirements. Projects must meet 4-5 star standards or villas in well-planned urban areas in the city center are very popular. However, the supply of this segment in Bac Ninh is limited in both quantity and quality.

a) Supply

The housing market for sale in Bac Ninh province is divided into 3 main types: commercial apartments/apartments for sale; townhouses for sale (townhouses/shophouses, villas); land. In which, apartment products are mainly concentrated in Bac Ninh city. In other districts such as Que Vo, Yen Phong, Tien Du and Tu Son town, there are only social housing or housing for low-income people with prices ranging from 10 - 12 million/m2. All areas in Bac Ninh province have investment projects to build townhouses for sale or land.

Bac Ninh City

In early 2020, the total supply of mid- to high-end commercial apartments on the market reached about 3,108 units from 7 projects. These apartment products are all combined with accompanying amenities such as swimming pools, sports areas, and commercial areas.

Table 2.3: Overview of the apartment market for sale in Bac Ninh City (Quarter I/2020)

Project Type

Number of projects

Number of apartments

Project for sale (absorption rate achieved)

from 40 - 60%)

1604

Project sold out

1504

3108