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flag Bac Ninh, Vietnam, surged as a manufacturing hub due to foreign investment, but faces rising costs and competition.

flag Bac Ninh, a northern Vietnamese city, has rapidly transformed from a rural area into a major manufacturing hub as companies shifted production from China to avoid trade tensions and tariffs. flag Driven by foreign investment, especially from South Korea, Japan, and increasingly China, the city has seen factory expansions, job growth, and infrastructure upgrades, including new highways and industrial zones focused on electronics and clean energy. flag However, rising labor costs—up 10%–15% since 2024—and worker shortages are challenging sustainability. flag Despite Vietnam’s growing role in global supply chains and a $121.6 billion trade surplus with the U.S. through November 2025, competition from Indonesia, the Philippines, and India is intensifying, and infrastructure gaps remain. flag The government is pushing to upgrade to higher-value manufacturing ahead of a key National Party Congress in January 2026.

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