Ba Thien 2 Industrial Park aims for full occupancy

Hoang Thieu Son, general director of the park developer Vina CKP,
a member of the asset management group VinaCapital

The construction of the Ba Thien 2 Industrial Park (IP) started in 2011. Could you shed some light on the park’s development progress and current occupancy rate?

Ba Thien 2 has split construction into four phases. The first phase is finished and is currently operational, with complete infrastructure and utilities. Six projects have been registered and are being carried out with the combined investment capital of $90 million and occupying 70 per cent of our park’s available area.

We are now developing the infrastructure for the second phase and we expect to complete this phase by the end of the first quarter next year, when investors can start leasing land.

In accordance with our investment certificate, Ba Thien 2 is capitalised at $65 million. So far we have disbursed $25 million.

Vinh Phuc seems to be emerging as a motorbike and automobile manufacturing hub, with big names like Toyota and Honda already on the ground. Also, the province is in close proximity to Samsung and Nokia’s electronics complexes in neighbouring Bac Ninh and Thai Nguyen provinces. Does Ba Thien 2 plan to attract firms to supply these industries?

Yes, absolutely. We are developing the infrastructure network in accordance with the guidance set out by Vinh Phuc authorities. We have also organised investment promotion activities in Japan and South Korea to attract supporting industry firms, particularly those that supply spare parts to these big companies.

Vinh Phuc-based IPs have reportedly reached a collective occupancy rate of 50-60 per cent. In this context, are you facing any challenges in competing with other IP developers in the province?

The quality of infrastructure and customer services is our competitive edge. Vina CPK gives assistance and advice to customers throughout the administrative, procedural, construction, employee recruitment and operations processes. Our impressive occupancy rate in the first phase is the best indicator of this.

When do you expect Ba Thien 2 to reach full occupancy?

Generally speaking it takes other IPs around seven to ten years to reach full occupancy. For Ba Thien 2 our target is five years.

Benefits investors will get when investing in Ba Thien 2

I. Cost saving

-For transportation cost reduction, Ba Thien 2 offers a strategic location

-For construction cost reduction, Ba Thien 2 has the best topography:

+ Hard solid ground that is favourable for building factory foundations, it helps reduce about 20 per cent of construction cost.

+ The park is 19 metres above sea level so it is flood free.

lBa Thien 2 has a competitive land leasing price compared to other industrial cities or provinces nearby.

II. Time saving

-Ba Thien 2 offers the complete infrastructure with high standard included:

+ Prepared land parcels

+ Completed traffic, lighting, technical infrastructure system

+ Stable, adequate electric power and water supply

-One-Stop Service

+ Ba Thien 2’s service centre supports investors to complete legal investment procedures quickly. Investors will be supported with all legal procedures needed both before and after their operations.

III. Abundant labour force

-The local labor force can meet the demand for economic development in term of quantity and quality.

IV. Strong support from local authorities

-Vinh Phuc has created an attractive investment environment with investment supporting policies for businesses.

-Together with the common policies of the government, the Vinh Phuc Industrial Zones Management Board assists initial fees for establishing projects, proclaiming establishment of a business, promoting products, environmental impact reports, and licensing land use rights.

V. Quality lifestyle

-Ba Thien 2 is designed with nearly 14 per cent of green area which creates a better working and living environment for tenants.

-The community surroundings Ba Thien 2 is further enriched by a range of facilities such as schools, hospitals, supermarkets and so on, to ensure comfort and convenience for its residents.

-There are also many resorts and sightseeing places close to Ba Thien 2 such as Dai Lai Lake, Dai Lai Golf Course, Dai Lai Resort, Tam Dao Resort and Tam Dao National Park.