Vietnam is still classified as a low-income country with GDP per capita at 2,587 USD in the year 2018, as per the classification by World Bank Atlas method. Therefore, industrialization is set as an appropriate policy for economic development. In Vietnam, industrial zone establishment is planned, developed and controlled by the state in order to accelerate the industrialization process. This article discusses about the importance and impact of industrialization and ongoing internal migration, as a result of industrial development, on socio-economic development by reviewing the relationship among them using multivariate statistical and comparative research methods. Case study research methodology has also been used by the researchers to examine the positive and negative impacts of immigration on infrastructure of destination locality. The article presents the statistical data and the practical experience gained in Binh Duong province which has a huge number of industrial zones and with highest in-migration rate in the country; a detailed analysis of the challenges faced by local governments is presented with the appropriate recommendations for policymaking.