Many effective businesses

Bac Giang LGG Garment Corporation, located in the Nghia Hoa Industrial Cluster in Lang Giang district, was established in July 2018, specialising in producing fashion items for export.

An automatic sewing line at Bac Giang LGG Garment Corporation.

The company has seen growing revenue thanks to sound investment strategies and choosing a product segment that matches its capacity and the export market.

In 2018, its export turnover reached 57 million USD, with a contribution of 20 billion VND (775,046 USD) to the local budget. In 2024, these respective figures increased to 160 million USD and 54 billion VND.

To date, the company has invested hundreds of billions of VND in purchasing modern, automated production lines, opened two more factories, and invested in the Tan Soi Industrial Cluster in Yen The district.

It has created jobs and income for 6,500 workers, double the number at the time of its establishment. Nguyen Van Tu, Deputy Director of the company, stated that in addition to boosting production, the firm always cares for workers’ lives by increasing their income by 7-10% annually, ensuring they are comfortable and committed to the company.

Currently, many other companies in the province are also operating effectively, contributing tens of billions of VND to the state budget each year and ensuring good livelihoods for their workers. Among those are Lam Son Construction and Trading Co., Ltd. in Bac Giang city and Casablanca Vietnam JSC in Lang Giang district.

At the end of March 2025, there were over 18,300 businesses registered to operate in the province, most of them private companies with a total registered capital of 210.8 trillion VND (8.2 billion USD). In addition to local businesses, Bac Giang is home to over 640 foreign-invested enterprises with a total registered capital of over 4.53 billion USD.

The businesses operate in a wide range of fields, from garment manufacturing to producing electronic products and components. They include many large companies such as Hon Hai Technology Group (Foxconn), Luxshare ICT Vietnam Co., Ltd., and New Wing Interconnect Technology Bac Giang Co., Ltd.

Foreign-invested enterprises generate billions of dollars in production value annually. As a result, the province’s private economic sector contributed more than 5.6 trillion VND to the provincial budget in 2024, accounting for over 30.7% of the total domestic revenue.

Currently, private firms in the province employs 126,000 workers, 1.7 times higher than in 2017, with an average income of over 11.8 million VND per month, 2.2 times higher than in 2017.

Creating a favourable environment

Local private enterprises have registered to operate in various industries, contributing significantly to the province’s economic restructuring in the direction of increasing the share of the industrial sector, thus maintaining high economic growth.

These achievements stem from the province’s emphasis on the private economy, with a range of policies and mechanisms designed to foster its development.

The province allocates billions of VND annually to assist small and medium-sized enterprises in improving technology and adopting advanced machinery into production.

Nguyen Xuan Anh, Director of Anh Thao Packaging Trading & Production Co., Ltd. in Lang Giang, shared that in October 2021, the company received 300 million VND from the provincial industrial promotion fund to invest in two automatic packaging sewing machines worth 700 million VND. As a result, its output increased by 40%, creating additional jobs for dozens of workers.

However, despite these attainments, the private economic sector still faces several challenges. The majority of businesses are small or micro-sized, with limited competitive capacity and management skills.

Issues related to land compensation, site clearance, and resettlement for investment projects remain problematic. Although the province has prioritised human resource development, the quality of the labour force still falls short of market demands.

To help the private economy develop and make greater contributions to the country, Party General Secretary To Lam recently wrote an article titled "Developing the private economy - A lever for a prosperous Vietnam," emphasising the vital role and position of the private economy in the country’s development.

Following the Party Central Committee’s resolution and the General Secretary’s direction on developing the private economy, by 2030, Bac Giang aims to develop a team of businesspeople with high capability and qualifications who will play a crucial role in the economy, participate in the global value chain, master key industrial and agricultural value chains, and have international competitive capacity in priority and key industries.

Vu Van Cuong, Deputy Director of the provincial Department of Finance, said that to achieve these goals, the province will focus on several key tasks and solutions, such as enhancing communication to raise awareness among officials, party members, businesses, and entrepreneurs about the Party Central Committee’s resolution on developing the private economy.

Bac Giang will continue to innovate thinking and design more policies to support businesses in sustainable development. It will also create a favourable, safe, and equal investment and business environment for the private economy, enhance businesses’ access to resources like capital and land, and support them in technology research and transfer, innovation, and the development of high-tech zones and incubators.

Moreover, the province will work to eliminate biases and barriers, promoting administrative reform to facilitate the growth of the private sector.