Deli Group breaks ground on $270 million factory in Hai Duong

September 30, 2024 | 18:17
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Deputy Prime Minister Ho Duc Phoc attended the groundbreaking ceremony for Deli Hai Duong Factory on September 28, a major project from China's Deli Group.
Deli Group breaks ground on $270 million factory in Hai Duong
Deputy Prime Minister Ho Duc Phoc

The factory is to be part of the second phase of the Dai An Industrial Park (IP) expansion project and is expected to become a significant hub for stationery production in Vietnam. Spanning more than 21 hectares and backed by an investment of nearly VND6.5 trillion (approximately $270 million), the facility will have an operational timeline extending to 2073.

The factory is projected to produce over 104 million stationery items annually, including paper and plastic products, more than 33 million adhesive products, and nearly 24 million household and office equipment items. In addition, it will manufacture 2.4 million units of electronic office devices such as personal computers, photocopiers, shredders, barcode scanners, and time-attendance machines. Another key product segment will be 22.5 million rubber-based items, including balls, mats, and cleaning equipment.

As the largest foreign venture from Deli Group to date, the factory will strengthen the company’s presence in Vietnam and globally.

Deli Group breaks ground on $270 million factory in Hai Duong

At the groundbreaking ceremony, Le Ngoc Chau, Chairman of Hai Duong People's Committee, said, "This is a significant milestone, symbolising the successful cooperation between foreign investors and local authorities. It moves us closer to our goal of making Hai Duong a modern industrial province and a key driver of industrial growth in the Red River Delta."

Lou Fuan, chairman of Deli Group, said, "We are confident that this expansion will enhance Deli's global brand presence and broaden our business network, while delivering higher-quality products to our customers. Additionally, Deli will utilise advanced manufacturing technology and management expertise to bolster Vietnam’s manufacturing sector. We will foster open collaboration and uphold our commitment to producing top-quality products and pursuing continuous improvement."

"This factory is a key part of our expansion strategy, reinforcing our commitment to long-term growth in the region," he added. "The plant is expected to begin operations in the fourth quarter of 2026, generating an estimated $5 million in annual revenue and creating around 3,000 jobs."

Deputy Prime Minister Ho Duc Phoc expressed optimism, saying, "This project will contribute to Hai Duong's development, reinforcing its position as one of the country’s leading provinces in attracting foreign investment."

Founded in 1981, Deli Group is a top manufacturer of office supplies and educational equipment, known for its large-scale production and modern technology. In 2018, Deli established a factory in Yen Phong IP in the northern province of Bac Ninh, covering 110,000 square metres, which became operational in 2020.

The company’s products are sold in 140 countries, including key markets in the United States, Europe, South America, the Middle East, and Southeast Asia, with a portfolio of approximately 9,000 products. Deli first entered Vietnam in 2005 and has since expanded significantly. In 2019, Deli Vietnam launched on e-commerce platforms such as Shopee, Lazada, and Tiki, where it has become a major online stationery brand over the past four years. Deli Vietnam now operates across 60 provinces with nearly 15,000 sales points.

Hai Duong has emerged as a major destination for foreign investment, attracting 584 foreign projects from 27 countries and territories, with a combined capital of over $10.5 billion. Domestically, the province hosts more than 1,750 projects, ranking fourth in the Red River Delta region and 11th nationally.

The expansion of Dai An IP is a key element in Hai Duong's strategic development plan. By 2030, the province aims to become a modern industrial centre and a driving force in the delta region.

Notable projects in the province include Hyundai Kefico Vietnam’s $400 million high-tech automotive component plant, Sumidenso Vietnam’s $300 million project for manufacturing electrical and electronic wire harnesses, and Deli Hai Duong with a $270 million investment.

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