INTERNATIONAL INVESTMENT
AND PORTAL
In the first days of Lunar New Year, Bao Minh Industrial Park Infrastructure Investment JSC (Bao Minh JSC) immediately embarked on implementing new projects, in which the most prominent is the construction of Hai Long Industrial Park (IP), which is located in Thai Binh Economic Zone (EZ).
Bao Minh JSC is cracking on with building the new industrial park right after approval
On February 15, Bao Minh JSC was officially awarded an investment certificate to build the infrastructure for Hai Long IP. On the same day, the developer held a groundbreaking ceremony for the venture, which promises to become a magnet to attract investment flow to the locality. Hai Long IP could soon be an ideal choice for investors in the near future in the context of the existing IPs in large cities and provinces being fulfilled, while the area for expanded IPs is limited.
Speaking at the groundbreaking ceremony, Pham Tung Lam, director of Thai Binh Economic Zones Management Authority, said, “The authority expect Bao Minh JSC to accelerate the construction of Hai Long IP in order that this year, the IP can welcome high-quality projects.”
In parallel with the operation of the first phase and expansion phase in the northern province of Nam Dinh, Bao Minh JSC considered choosing the next destinations for the strategy of expanding the industrial infrastructure ecosystem. The company realised the great potential and room for development of Thai Binh EZ thanks to many advantages in terms of location and resources.
Especially in recent times, the construction of the coastal road connecting six cities and provinces has been accelerated, and now creates a smooth connection from Thai Binh EZ to the northern port city of Haiphong.
“We forecast that, in the rest of this decade, Vietnam will have a great advantage in attracting funding when free trade agreements with the EU and ASEAN are ripe, along with the global investment transfer, creating golden opportunities for industrial infrastructure developers,” said Nguyen Van Kiem, general director of Bao Minh Industrial Park Infrastructure Investment JSC.
“Thai Binh EZ is planned to increase the area up to 7,000 hectares of industrial land, which is expected to become the destination of a series of large-scale initiatives from multinational groups,” Kiem added. “With the clement weather and favourable terrain, the company also received support from the local authorities during the process to carry out the study and approval of the projects.”
Sustainable facilities
Following that solid foundation in collaboration with the support from the local authorities and business partners, after the government approved the IP’s investment plan in November 2022, Bao Minh JSC’s Board of Directors prepared the necessary resources in order that the company could embark on infrastructure construction as soon as it was handed over the clean ground.
Covering an area of 297 hectares in communes of Dong Tra, Dong Long, and Dong Xuyen (Tien Hai district), the project worth around $96 million is expected to contribute to creating a synchronisation in terms of technical and social infrastructure for Thai Binh EZ. It is expected to link between the development of the IPs and the urbanisation in Thai Binh.
In addition, once completed, Hai Long IP will generate new jobs and improve the income and living standard for thousands of local people and those from surrounding areas.
“We commit to rationally and effectively using the potential of local land and labour force, contributing to the economic restructuring process, increasing export value, and developing local industries,” said Kiem. “The IP will create a favourable environment to encourage and attract capital, especially foreign investment capital, contributing to increasing the state budget and promoting the socioeconomic development of Thai Binh.”
Thai Binh has promulgated many incentive mechanisms and policies to support and encourage large economic groups to pump money into the province in recent times. There are also special incentives for projects in the EZ with the maximum incentives on land rental fees, as well as supporting costs to build wastewater treatment systems and labour force training.
The province commits to funding technical infrastructure works and simplifying administrative procedures. To create favourable conditions for attracting investment, the leaders of Thai Binh People’s Committee understood that land clearance was a key political task from the outset.
Thanks to these favourable factors, in recent years, many IPs and large-scale foreign-invested projects have been deployed in Thai Binh. Financiers also receive the most favourable conditions to fund and develop ventures in terms of high-tech, supporting industries, and logistics.
Prestigious choice
Industrial real estate still has opportunities for breakthrough growth in the near future. However, some implementation methods and old IP models are outdated and are no longer suitable with new trends. Accordingly, to drive forward to sustainability, provincial leaders said it is necessary to change the mindset of industrial real estate developers and build green, clean IPs associated with urban areas and services.
As a result, when Bao Minh JSC decided to build its first IP in the northern province of Nam Dinh back in 2010, the company was determined to develop the best technical infrastructure to protect the environment and sustainable development for the zone. The company also noted that green and sustainable development was an inevitable direction to meet the increasingly strict requirements of the community, contributing more impetus to local economic fields for symbiotic development.
Bao Minh has invested more than $6.3 million to build a social housing area in Bao Minh IP, meeting the accommodation requirements for both foreign experts and other workers. In 2022, the park was voted by the Vietnam Chamber of Commerce and Industry as one of 12 outstanding IPs in the country.
The green and sustainable direction is also applied to the upcoming Hai Long IP. Accordingly, it is planned to become a modern IP with synchronous and green technical infrastructure. It will contribute to extending Thai Binh’s industrial land, synchronously connecting the infrastructure system, improving land use efficiency, creating favourable conditions for attracting projects using advanced technology, and being environmentally friendly, contributing to the province’s socioeconomic development.
Bao Minh IP, which is located on 215ha in Vu Ban district, boasts 13 tenants with 14 projects, including two foreign investors. It has fully leased the rentable area of the park, and has attracted $700 million from foreign-invested companies and approximately $87 million from domestic groups. Around 14,500 local workers have been employed there.
Thus far, Bao Minh IP has been an exemplary success in terms of ventures in Nam Dinh, based on criteria such as infrastructure, quality and efficiency, environmental protection, worker incomes, sectoral restructuring, and tax payments.
The IP saw expansion at the beginning of 2022, with the company welcoming customers from South Korea, Japan, Malaysia, Taiwan, and other markets seeking to locate their projects there. The company expects to reach full occupancy in 2023, and the expanded Bao Minh IP is still available to welcome investors who manufacture high-tech products in line with green and sustainable development, and who want to employ local people.
Vu Duc Giang-Board chairman Bao Minh Industrial Park Infrastructure Investment JSC
Immediately following the groundbreaking ceremony, the project will attempt to complete the funding and construction procedures, boost the full arrangement of resources, quickly complete the site clearance, deploy the construction of industrial park (IP) infrastructure, and aggressively pursue secondary investment in Hai Long IP.
With the support of the local authorities, we are committed to constructing the park with quality and standards on time, while maintaining a green environment and adhering to the law. We intend for this park to be more spacious, synchronised, and contemporary than the other infrastructure projects we have completed in the past 15 years.
Priority industries to attract foreign investment in Hai Long IP include high-tech, mechanical engineering, manufacturing and assembly, food processing, consumer goods, and the textile, leather, and footwear auxiliary industries. With the benefit of vast available land for development in the form of eight IPs and nearly 50 industrial clusters, nearly 3,000 hectares of land have been cleared. The northern province of Thai Binh continues to welcome promising and renowned global investors to consider and establish long-term funding and manufacturing facilities.
In particular, Thai Binh Economic Zone, with an area of more than 30,000ha situated in different coastal belts of Tien Hai and Thai Thuy, has been distinguished by the province as the engine and is the motivating factor to encourage investment, especially foreign-invested initiatives. There is also focus on innovative and cutting-edge tech, eco-friendly tech, clean energy, and renewables.
Thai Binh intends to construct and cultivate the economic zone into a model industrial, biodiversity, and tourist complex and make it a crucial and driving force in the province’s economic growth.
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