Dinh Vu IZ sets sights on expansion

VIR talks with Frank Wouters, general director of Dinh Vu Industrial Zone Joint Stock Company, about the zone’s latest developments.

Please give us an update of the development of the second phase of Dinh Vu Industrial Zone and your firm’s expansion plans in Vietnam in the coming period?

Phase 2 has been in operation since the end of 2009. After three years, the land occupation rate has reached about 60 per cent. We are now at the final stage of completion of utilities and infrastructure development.

Phase 2 has been launched thanks to the success of the first phase. So I believe that expansion is certainly ahead as we are confident in finding business opportunities in Vietnam.

Our shareholders are committed to a long-term vision in Vietnam. In addition, Vietnam has emerged as an attractive destination for investors, so this is also good opportunity for our expansion and development.

How can Dinh Vu IZ become one of the most attractive destinations for Japanese investors?

We have welcomed many international companies in Dinh Vu over recent years. It shows that our efforts in developing an industrial zone in a good location with high quality infrastructure and utilities have been supported by our clients. I believe that Dinh Vu Industrial Zone is one of the most attractive destinations for Japanese investors in Vietnam. We are proud that 10 Japanese investors, including big names such as Bridgestone, JX Nippon Oil & Energy, Idemitsu, IHI, Nakashima and Yusen have chosen us as their manufacturing base in Asia. These enterprises decided to come to Dinh Vu because they find a fully equipped industrial zone with direct access to Dinh Vu Port, Dinh Vu jetty dedicated to petrochemical tenants and a location close to the city centre.

Dinh Vu Industrial Zone is predicting major expansion in the future

In addition, important transport infrastructure projects are being implemented, including the Lach Huyen deep sea port, the Hanoi – Haiphong- Dinh Vu motorway which will fundamentally change and increase the role of Haiphong as a spearhead location connected with the Red River Delta region and the rest of the world. Last but not least, investment projects in the zone are entitled to the best export zone tax incentive package in Vietnam. I would like to thank our clients, especially our Japanese clients, for their trust and long term commitment to our zone.

The under-construction Bridgestone plant, one of the most prominent projects in Dinh Vu IZ, has just received an investment certificate to double its investment to $1.22 billion, making it the largest tyre manufacturer in Vietnam. What are the implications of this move?

The first phase of the Japanese-backed Bridgestone plant is scheduled to begin operation in March of 2014, after 14 months of construction and will serve as an export base for PSR general purpose tyres sold in Europe, North America and Japan principally. It is not only good news for Bridgestone but also for Dinh Vu and Haiphong. It indicates the initial success of the Bridgestone project by putting a stronger footprint in Haiphong in general and in Dinh Vu in specific. The expansion of Bridgestone is vivid evidence of its confidence and satisfaction with DVIZ infrastructure during the first phase, as well as in doing business in Haiphong city.