HUNG YEN LURES IN $374 MILLION TO INDUSTRIAL ZONES

Industrial zones in the northern province of Hung Yen have taken in $374 million in newly committed and supplemental capital so far this year, bringing total cumulative investment to nearly $7.2 billion.

According to Pham Truong Tam, director of Hung Yen Industrial Zones Management Authority, in the first half of this year, the authority received 26 projects, including eight domestic and 18 international ones, worth $272.6 million. Besides that, 25 existing projects acquired $102.1 million in supplemental capital during the period.

The authority has been collaborating with investors to increase marketing activities in order to attract more activity in the industrial zones (IZs).

The majority of investment is for high-tech sectors such as mobile device and electronic component manufacturing, and IT. Other manufacturing sectors are also well-represented, such as aluminium refactoring and food processing, among others.

Hung Yen is currently home to 17 planned IZs, covering a total area of 5,000 hectares, of which 11 have seen $1.02 billion of funding.

With focus on infrastructure and facilities, nine IZs have been put in operation, with occupancy rate currently ranging from 15 per cent to 84.5 per cent.

Among 22 countries who have landed ventures into the zones, Japan sits atop with 142 projects, representing $3.32 billion in value, accounting for over half of the projects and 61 per cent of total investment.

In second place is China with 49 projects, worth $728 million in total registered capital, and South Korea in third with 52 projects valued $575 million.

Other countries such as the United Kingdom, the United States, Italy, the Netherlands, and Thailand have a total of 37 projects, collectively accounting for 12.9 per cent of projects and 15 per cent of investment.

During operation, all investors have appreciated the advantages of investing in Hung Yen. In 2006, Sumitomo Corporation invested in Thang Long II IZ to allure secondary businesses.

Meanwhile, Long Thanh II IZ is currently in its third phase. Established by Sumitomo Corporation in 2006, the project has enticed six businesses who have registered around $500 million.

Hiroyoshi Masuoka, director of Thang Long II IZ Co. Ltd. said, “Hung Yen has provided timely support for businesses. There have been discussions with the investors and the labourers in the IZ to bolster mutual understanding. We highly appreciate the support of the local authority and hope that Hung Yen will keep on this level of support in the future.”

Hung Yen’s investment environment has been constantly improved, mirrored by the Provincial Competitiveness Index, which has seen Hung Yen jump 28 ranks in 2022, sitting at 14th out of all localities across the country.

In addition, the index that ranks the level of environmental friendliness from a market point of view has also put Hung Yen in 14th position.

Aside from the advantages of facilities and investment environments, Hung Yen has paid heed to feedback from businesses and their investors. In April, the province held a conference to gather opinions in an attempt to find resolutions to ease business operations.

Source: VIR