Belgian businesses increase investment in Hai Phong’s Izs

14:36 | 17/02/2014 Economy

(VEN) - The northern port city of Hai Phong recently permitted the Dinh Vu Industrial Zone Joint Stock Company (including Rent-A-Port, a major Belgian shareholder) to invest in an additional industrial zone (IZ) in Cat Hai, which is as large as the Dinh Vu IZ.

The reason for Hai Phong to give permission to the company is that Rent-A-Port and Belgian investors have worked closely with local authorities in the last 16 years via the successful development of the Dinh Vu IZ project, which has contributed to developing IZ infrastructure and investment promotion in Hai Phong.

The Belgian-invested Dinh Vu IZ is considered to be the most successful project in Vietnam. Through the partnership with Rent-A-Port the Hai Phong People’s Committee has turned Dinh Vu from a barren, marshy peninsula into a northern major strategic economic zone, which has favorable seaway, riverway and overland links and is near an airport.

The Dinh Vu IZ covers 1,463ha of Dong Hai Ward in Hai An District, including 655ha for general industrial development (of this, 145ha is planned for light industries, 191ha for heavy industries and 254ha for chemical industries), 130ha for a deep-water port able to receive vessels with a capacity of up to 50,000 tonnes, 65ha for residential and commercial development, and 613ha for services and tree planting.

Investors have poured hundreds of millions of US dollars to develop infrastructure in the zone including a complete power, water, wastewater and information systems. This is the only IZ in the north to have a liquid cargo jetty and common pipeline support system including the first liquid cargo jetty, which has a design capacity of 10,000 tonnes and was put into operation in 2005.

So far, about 70 percent of the Dinh Vu IZ has been leased (including almost 200ha in the first phase and almost 200ha in the second phase). Many domestic and foreign businesses in major areas have invested in the zone. By the end of last year, the zone had attracted 52 projects with total registered investment capital of US$2.2 billion. In 2013 alone it welcomed nine new projects with total investment capital of US$800 million. International giant brand names have made their presence felt in the zone such as Nakashima, Bridgestone, Shell, Chevron, Petrolimex, PVOIL, PVTEX, Shin-etsu, Proconco and Toyota Tshusho. It is expected that about US$150 million worth of investment capital of Japan and other countries will go to the zone this year.

Many investors have chosen the Dinh Vu IZ for their factories or distribution centers in order to make the most of its strategic position, convenient services and attractive tax preferences. Bridgestone in particular decided to expand production by doubling investment capital for its tire production factory in the Dinh Vu IZ in 2013./.

By Lan Ngoc

Bridgestone Vietnam Director Susumu Yazaki said that Bridgestone’s decision to invest in the Dinh Vu IZ was based on its evaluation of the potential benefits for the group via a series of infrastructure, strategic position, human resources and investment cost surveys.