Lang Son Rises as Key China Alternative

Lang Son province in Vietnam is drawing attention from investors seeking a “China+1” manufacturing base, offering proximity to China while providing a distinct business climate.

Why Lang Son is gaining traction

Located in the northeast of Vietnam, Lang Son spans about 8,310 km² and borders China’s Guangxi region. Its position makes it a natural gateway for cross‑border trade and a conduit to the broader ASEAN market.

The provincial People’s Committee points to a railway network and road links that connect key Vietnamese economic hubs, turning the area into a cargo transshipment point for both Chinese and ASEAN destinations.

With a population near 790,000 and a mix of ethnic groups, the labor market remains active. Economic growth has hovered between 8 % and 9 % from 2011 to 2018, and officials project a further 6 %–7 % rise from 2022 onward.

Lang Son’s competitiveness has improved, climbing to 36th on the Provincial Competitiveness Index with a score of 63.92, up 13 places since 2020. Its 2021 PAR Index reached 87.11 %, placing it 23rd among 63 provinces.

Foreign direct investment (FDI) activity is notable: more than 40 projects total US$240 million, and a recent approval added 37 projects worth US$1.9 billion for the 2019–2025 period.

Related: Trustee seeks halt on climate reporting rules

Infrastructure upgrades are underway, including the 115‑km Dong Dang–Tra Linh expressway and improvements to Highway 4B, which are expected to boost logistics capacity.

Comparing Guangxi’s role

South‑west of China, the region shares a border with Vietnam and is linked to Guangdong, Yunnan and other provinces. Though historically less developed, it benefits from deep‑water seaports, land ports, and an extensive expressway network that connects ports to inland areas.

Labor costs in Lang Son remain competitive, and the political environment is considered stable, adding to its appeal for diversification away from China’s larger factories.

For companies evaluating a “China+1” strategy, the combination of Lang Son’s logistical links, favorable investment climate, and proximity to the growing FTZ offers a practical alternative to relocating entirely out of the region.

Investors are watching closely.