Property group Korea Land Corp is looking to establish an industrial zone designed specifically to accommodate South Korean factories in one of Hanoi’s neighbouring northern provinces.
The investor is currently considering a suitable site in either Vinh Phuc, Hai Duong or Bac Giang provinces to locate the pipelined industrial park (IP), with an investment of close to US$100 million anticipated for the furnished internal infrastructure facility.
Dam Tam So, a senior official from Vinh Phuc Authority for Industrial Parks, told Vietnam Investment Review that Korea Land Corp had already visited two locations in Vinh Phuc earlier this month and expressed interest in the province.
“We [local government] are aware that South Korean investments in Vietnam have been substantially increasing,” said So.
“South Korean firms are also looking to set up an IP similar to the model of Japanese-invested Nomura IP in Hai Phong, currently reserved for Japan-invested manufacturing factories,” he added.
Vinh Phuc government have already recommended two locations to Korea Land Corporation, including 600 hectare in Tam Duong and 200 hectare in Binh Xuyen.
So said that Tam Duong was a hilly region about 55 kilo metres north west of Hanoi, with local government formulating plans to upgrade the infrastructure network in the area.
Binh Xuyen on the other hand already houses locally-invested IP -Son Loi, sitting just 40 kilometres north-west of Hanoi.
“Featuring favourable geographical conditions and fast economic growth, Vinh Phuc is becoming a more attractive prospect to both domestic and foreign investors. Our government intends to offer incentives to IP development projects in a bid to draw in more investors,” said So.
Authority information shows that Vinh Phuc has four operating IPs -Quang Minh, Kim Hoa, Binh Xuyen and Khai Quang, with an additional five on the drawing board.
Figures also indicate that IPs currently facilitate 400 tenants valued at US$2 billion.
Quang Minh and Khai Quang have previously had full occupancy rates, while only 40% of Kim Hoa and Binh Xuyen’s available land is covered by factories.
South Korea’s Daewoo Bus Corp is preparing to build its US$30 million bus assembly factory in Khai Quang IP, with other South Korean parts producers being drawn into the province in order to support Daewoo’s 3,000 unit capacity facility.
South Korea is currently the third biggest foreign investor in Vietnam with 1,000 active projects worth US$5.2 billion.