Foreign Investment Capital Attraction: Positive Signs Early 2011

Director of Department of Planning and Investment Bo Ngoc Thu has a working session with senior experts from Mitsubishi Institute on exploring cooperative opportunities.

* A start from Tan Phu Industrial Park

The most notable event is that Tan Phu has had its first factory into operation after three years of building and calling for investment.

It is the second factory of Fashion Garments Co., Ltd. of Hirdaramani Corporation.

Hirdaramani has had 16 years of operation in Vietnam (in Bien Hoa Industrial Zone 2).

Mr. Vinod, the CEO of Hirdaramani Group said: “Since 2009, Fashion Garments has thought of expanding facilities to meet customer’s needs. The investment project in Tan Phu industrial park costs US$4.2 million. The factory with 42 garment lines is built on an area of 42,000 square meters. It needs 4,000 workers.”

“Despite disadvantages like the long distance between this factory and the main one plus high transportation costs, we still choose Tan Phu industrial park for two reasons. First, Tan Phu Industrial Park Management Board promises us favorable conditions. Second, this region has plentiful and skilled workforce”, added Vinod.

As the investor of Tan Phu Industrial Park, Deputy General Director of Tin Nghia Corporation Nguyen Thi Bach Huong said: “This event marks the start of Tan Phu Industrial Park in a mountainous area”.

In addition to such advantages as complete infrastructure, reasonable land leasing price and flexible payment methods which are customized according to every investor, Tin Nghia Corporation provides a wide range of support services for investors: investment certificate registration, seal, tax code, import and export procedures, customs clearance, customs declaration and freight forwarding.

Although Tan Phu Industrial Park has a qualified and relatively complete wastewater treatment system, it has had its first factory after nearly three years to call for investment through different channels, said Director of Tan Phu Industrial Park Truong Thanh Tung.

"Investors are not afraid of geographical distance thanks to Tan Phu’s favorable infrastructure conditions and commitment to provide a trained workforce for them. Besides, the Industrial Park Management Board offers investors the greatest assistance when they start their production. I hope that this is a new breeze to bring more investors here,” said, Tung.

* New projects and production capacity expansion

Investment capital increase and factory size expansion have occurred in many projects in other industrial parks.

The growing foreign investment flow shows that Dong Nai remains a destination for foreign investors in 2011.

The company was established in late December, 2010 on the basis of the factory bought from a South Korean investor, said Nobuhiro Morioka, Deputy Director of J-Spiral Steel Pipe (100% Japanese-invested company in Tam Phuoc Industrial Park in Long Thanh district).

Nobuhiro Morioka added: "J-Spiral Steel Pipe with its main product, steel piles for infrastructure and traffic projects, will have many opportunities to develop because Vietnam is beginning its building of infrastructure. We are a new investor. The information we get from other Japanese investors reveals that the recovery of the global economy along with positive changes in Dong Nai has helped both existing businesses to expand production and new start-up ones to pour investment into the province.”

Dong Nai is the biggest livestock market in Vietnam and a key market of De Heus. Thus, De Heus started the building of its new plant worth US$15 million in Dau Giay Industrial Park early January, said Gabor Fluit, the CEO of De Heus Vietnam

Dong Nai De Heus is the third plant in Vietnam, but this is 100% newly-built one. It applies the advanced technology in the world and has a capacity of 300,000 tons per year, continued Gabor Fluit.

Particularly, we get over 40 per cent of production materials from local sources. We have a lot of expectations in De Heus Dong Nai. That’s why we have decided to put our major investment here after more than two years of conducting market surveys and setting up distribution systems, added Gabor Fluit.

Among the new projects into Amata Industrial Park, the most notable one is that Nestle Vietnam (in Bien Hoa Industrial Zone 2) has just hired more than 10 hectares to expand its factory size.

The new factory is scheduled to go into operation by 2012.

In 2011, Amata will build another wastewater treatment plant to serve the new projects into Amata in the forthcoming time, said Deputy General director of Amata Industrial Park Pham Thi Thanh Huong.

This will be the fourth wastewater treatment plant in Amata Industrial Park. The plant’s designed capacity is 3,500 to 5.000 cubic meters per day.

Head of Dong Nai Industrial Zones Management Board Vo Thanh Lap said that Dong Nai’s guidelines in 2011 are to continue to call for and to encourage large corporations with the potentials of technology, markets and investment capital to invest in high-tech industries:  engineering, machinery and electronic device manufacturing, information technology and telecommunications with the aim of making products of high-tech content and high added value.

Foreign investment attraction in 2010 and in January 2011 showed that global economic recovery has assisted operational businesses in expanding production capacity to acquire the market share. Simultaneously, new start-up businesses grow stronger to seek for investment opportunities, stated Lap.

Source: Dong Nai Newspaper, Translated by Duy Minh