Vietnam has become an attractive destination to foreign investors in Southeast Asia thanks to a strong network of free trade agreements. As a result, Viglacera has been successfully getting attention from foreign investors in 2018.
In 2018, Viglacera’s Industrial Parks (IPs) continuously welcomed lots of leading enterprises from China, Taiwan, Hong Kong, South Korea, Japan and Europe for land lease. There was a surge in number of client day after day, especially at the end of the year, when companies were preparing for 2019 business plans.
Owning a series of premise located in many provinces, Viglacera can offer its investors a variety of options and meet particular needs of each business. So far, Viglacera has developed 11 industrial parks and 01 special economic zone with a total area of 4,038 ha, attracting nearly 12 billion USD in Bac Ninh, Quang Ninh, Thai Binh, Ha Nam, Hung Yen, Thua Thien Hue, and ViMariel Special Economic Zone in Cuba.
Alone in November 2018, Viglacera’s IPs successfully attracted leading enterprises with an estimated leasing land to reach 40ha in Yen Phong Industrial Park (Bac Ninh), Dong Van IV Industrial Park (Ha Nam), Tien Hai Industrial Park (Thai Binh).
Specifically, Shandong Intco Medical Product Co., Ltd. signed a land lease agreement in Tien Hai Industrial Park (Thai Binh) to manufacture medical gloves.
Image of Shandong Intco Medical Products Corporation Ltd. Factories in Zhenjiang, China
In Yen Phong Industrial Park, Deli Group Co., Ltd., a world leading stationery brand, decided to invest in constructing and operating a factory.
The world leading stationery brand Deli invested in a factory in Yen Phong Industrial Park
Additionally, Dong Van IV Industrial Park (Ha Nam) welcomed the Autonics Corporation to rent land for sensor equipment production, meanwhile some other electronic enterprises also decided to invest in this industrial park.
Image of the Autonics Group headquarters in Busan, South Korea
Apart from those enterprises, Viglacera continued to meet and consult many other investors interested in Vietnam market in general, and Viglacera’s IPs in particular. Nowadays, all industrial parks have available land to welcome businesses to rent and build factories.
Viglacera is proud to be the leading industrial park developer in Vietnam with the list of active industrial parks including: Tien Son Industrial Park (Bac Ninh), Yen Phong Industrial Park (Bac Ninh), Phu Ha Industrial Park (Phu Tho), Hai Yen Industrial Park (Quang Ninh), Dong Mai Industrial Park (Quang Ninh), Tien Hai Industrial Park (Thai Binh), Dong Van IV Industrial Park (Ha Nam), Phong Dien Industrial Park (Thua Thien Hue), Vimariel Special Economic Zone (Cuba). These IPs have attracted over 300 investors around the world, of which are such reputable brands as Samsung, Orion, Canon, Toyoda Gosei, Yazaki, Ariston, Texhong. In 2019, Viglacera plans to start constructing the next industrial parks in Yen My (Hung Yen) and Thuan Thanh (Bac Ninh).
For further information, please contact our hotline: (+84) 8888 22 55 88 | Website: https://viglaceraip.com
Three major transport projects include Van Don international airport, Ha Long international cruise port and Ha Long – Van Don highway.
These three projects were invested under the public-private partnership model, with the goal of improving transport infrastructure, shortening the distance to boost the socio-economic development of the province.
Specifically, when it is in operation, Ha Long – Van Don highway will reduce travel hours to 2 hours from Hanoi to Van Don, instead of 4.5 hours as it is now. Van Don international airport, when it comes to be in use, is expected to cater 5 million passengers per year and serve big jets such as Airbus A350, Boeing 777. Hon Gai cruise port is also desired to support local travel, it was constructed under the private-public partnership between Quang Ninh province and Sun Group.
After 4 years of implementation, these three transport projects have been completed and put into operation from December 30, contributing to connect the province with others in the region as well to form a link between the North economic development region and the whole country.
Source: VTV
Foreign investment is strongly attracted
According to the report of Savills, Viet Nam is one of the fastest developing industrial markets regionally. The country has greatly competitive position to receive the flow of foreign investors, such as Apple’s manufacturers recently have raised their concerns over moving to Vietnam avoiding $200 billion tariff on goods produced in China.
In 2018, Vietnam remains emerging as the next Asian manufacturing centre. During the first half of the year, Vietnam received 1,366 newly registered projects with a total investment capital of 11.8 billion USD. In particular, the manufacturing and processing sector attracted 477 new projects, accounting for 39% of the total registered foreign directed investment (FDI), reaching 7.9 billion USD, increased by 12.7% over the same period of last year. The total FDI of Japan in Vietnam accounted for 32% with 6.4 billion USD, followed by South Korea with 5 billion USD and Singapore with 2.3 billion USD.
The Vietnam Industrial Real Estate market has been drawing attention of foreign investors. Image: Tien Son Industrial Park
In addition, during the same period of first half of 2018, the Vietnam’s Purchasing Managers’ Index (PMI) had climbed to its peak since the first half of 2011, reaching 55.7 points which exceeded the expansion standard of 50 points. Increased output led to the dramatic number of additional recruitment from companies in June. Accordingly, the surge of new enterprises has also resulted in manufacturing growth in the next year. The Vietnam’s Index of Industrial Production (IIP) was 12.3% in June, 2018, increasing 10.5% year over year (YoY).
Savill has pointed out factors contributing to the promotion of Vietnam’s competitiveness capacity which include: the low labor costs, reasonable land rental charges, preferential tax rate, the participation in trade agreements, the proactive labor force as well as the convenient geological approach to natural resources and target market.
Industrial Real Estate: demand exceeds supply
As estimated by the Ministry of Planning and Investment, Vietnam has 325 industrial zones (IZ) with the total area of 95,000 hectares, occupancy rate reaching 53% at the end of June, 2018. In particular, 231 IZs have been putting into operation, while 94 IZs are constructing infrastructure or compensating for land clearance. The demand for industrial real estate has been exceeding the supply of well-performed IZs with the total occupancy rate of 73%. Additionally, Vietnam has owned 17 coastal IZs with the total provided area of 845,000 hectares.
According to Savills, Vietnam industry has been considerably attracting foreign investment during the first half of 2018. The current supply of industrial property provides advantages for manufacture. Also, large scale industrial real estate deals have consolidated the believes of investor.
‘The government needs to promote the investment in core infrastructure and multimodal transport system to reduce the costs of logistics and respond to higher valued projects in the future. The government also needs to pay more attention on simplifying superfluous administrative and customs procedures as well to improve the connection among economic areas’, suggested Savills.
Source: CafeF
On October 23rd, 2018, Deputy Minister of Foreign Trade and Investment of Cuba – Antonio Carricarte Corona and Cuban Ambassador to Vietnam Lianys Torres Rivera paid a working visit to the head office of Viglacera Corporation – JSC at No.1 Thang Long Avenue, Hanoi.
Deputy Minister of Foreign Trade and Investment of Cuba – Antonio Carricarte Corona and Cuban Ambassador to Vietnam Lianys Torres Rivera with representatives of Cuban trade corporations visited the Viglacera traditional house.
On arrival at Viglacera Corporation, Deputy Minister of Foreign Trade and Investment of Cuba and Cuban Ambassador to Vietnam visited Viglacera’s traditional house. They were impressed with the space, light, artifacts and images that were designed, displayed skillfully to reflect the building materials history as well as the areas of operation and development of Viglacera.
Deputy Minister Antonio Carricarte Corona was particularly interested in Viglacera’s development orientation
Mr. Nguyen Anh Tuan – General Director of Viglacra Corporation JSC has shared many information on issues related to some key projects that Viglacera is deploying in Cuba. General Director expressed his wish that the Ambassador and Deputy Minister of Construction of Cuba continued to support and create conditions for Viglacera and its partners to accelerate the procedures to ensure the progress and quality of the projects.
Overview of a meeting
Currently, Viglacera Corporation has established ViMariel SA company operating in the field of industrial development in the Mariel Special Zone and Sanvig Joint Venture between Viglacera Corporation and Prodimat Company of the Cuban Building Materials Group (Geicon) investing in sanitary wares and ceramic tiles production. Viglacera is promoting its work with its partners, government agencies and the Cuban Government to launch projects in Cuba. In particular, Viglacera is focusing on the preparation of the industrial zone in Mariel in November 2018.
Deputy Minister Antonio Carricarte Corona and Cuban Ambassador to Vietnam Lianys Torres Rivera said thank for the warm welcome of Viglacera Corporatio and congratulated the Corporation for its progress in all aspects.
Deputy Minister of Foreign Trade and Investment of Cuba – Antonio Carricarte Corona shared his comments on Viglacera Corporation – JSC
Deputy Minister of Foreign Trade and Investment of Cuba and Cuban Ambassador to Vietnam affirmed that they would support enterprises like Viglacera Corporation in order to achieve good results in Cuba, contributing to the economic development of both Vietnam and Cuba in the coming time.
The working visit of Deputy Minister of Foreign Trade and Investment of Cuba – Antonio Carricarte Corona, Cuban Ambassador to Vietnam and representatives of Cuban trade corporations at the head office of Viglacera Corporation JSC contributed to tightening the good relationship between Viglacera and Cuban state and businesses. This is the foundation for the successful cooperation of the parties in the near future.