Hung Yen shows immense industrial potential

August 28, 2023 | 15:00
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The province of Hung Yen is building on the success of the Hanoi-Haiphong motorway, 28 km of which passes through its territory, by focussing its efforts on several important routes, such has Ring Road 4 and the road between Tan Phuc and Vong Phan.

Just over 19 km of Ring Road 4 will traverse Hung Yen, with construction begun in late June 2023, with the total investment amount predicted to be a little under $220 million.

Ring Road 4 will pass through Yen My ward in Hung Yen which has a high concentration of industrial zones (IZs) such as Pho Noi A, Det May Pho Noi, Thang Long II, and Yen My. The project hopes to alleviate traffic concerns while also providing an additional connection to neighbouring localities. The road is expected to provide a boost to real estate value wherever it passes through.

Hung Yen shows immense industrial potential

Along the connection between the Hanoi-Haiphong and Cau Gie-Ninh Binh motorways, there are several IZs being built currently, such as Industrial Zone No. 5 and Ly Thuong Kiet residential area with a total area of over 290 hectares (ha) and more than $100 million in total investment value.

"Industrial Zone No. 5 is currently finalising basic facilities after construction commenced in March, and is now ready to welcome secondary investors," said Nguyen Tuan, director of Yen My IZ Investment JSC.

Sach industrial zone, which is shared between the wards of Khoai Chau and An Thi, has a total investment of $77 million and spans about 143ha.

According to the Management Board of Hung Yen Industrial Parks, there have been eight foreign-invested projects in Sach, with a total investment of $40 million. Also of note is the Pham Ngu Lao - Nghia Dan IZ with a total area of 75ha, which is also close to completion.

Hung Yen shows immense industrial potential

At present, there are 17 IZs in Hung Yen, nine of which have been or are being built along the Hanoi-Haiphong motorway with a total area approximating 4,400ha.

11 IZs have been so far cleared to receive investment and are currently in operation, with total investment of $9 billion, accommodating 437 projects, including 249 overseas funded and 188 domestic projects, creating 78,300 jobs. These projects generated an estimated $5.5 billion in total revenue in 2022, with $3.1 billion coming from exports and contributing $114 million to the local budget.

According to Tran Quoc Van, Chairman of Hung Yen People’s Committee, to attract investment to Hung Yen, the province will focus on developing facilities for industrial and technology companies.

"The main aim is to turn Hung Yen into a major industrial and IT centre for the Red River Delta region, and we have investment strategies for developing transportation facilities and connections up to 2050," said Van.

According to Van, by 2030, Hung Yen plans to have developed 30 IZs with an area of over ​​9,500ha, increasing to 35 IZs covering ​​12,000ha by 2050.

Hung Yen shows immense industrial potential

Yen My Industrial Zone JSC held a launching ceremony in July for the Taiwanese high-tech zone in Industrial Zone No.5, along with Taipei's Vietnamese Office for Economy and Culture, and businesses from the technology sector.

Speaking at the ceremony, Tran Hong Kham of the Vietnam-Taiwan Business Association, said, "This Taiwanese high-tech zone marks an important milestone and highlights the advantages for Taiwanese electronics companies to operate in Hung Yen."

The Japanese Sumitomo Corporation is currently expanding the third phase of its Thang Long II park and is planning for the fourth phase of the expansion. Thang Long II is currently home to 106 foreign-invested projects, with a total investment of close to $3.35 billion. The investors are primarily Japanese such as Kyocera, Hoya, Nippon, Daikin, Toto, and Panasonic.

COT Corporation from Singapore has also picked Hung Yen as its Vietnamese base. According to preliminary plans, COT will rent 6.6ha of real estate in Thang Long II and may expand its scope to about 20ha with a total investment of between $500 and $800 million.

Hung Yen’s IZs have proved their ever-increasing appeal by landing such big tenants, and they are opening up new opportunities for the province to become a robust development centre within the high-tech industry sector.

Nguyen Huu Nghia, Secretary of the Hung Yen Party Committee, said, “We will continue to focus on attracting large international corporations in the high-tech sectors to create a sustainable and environmentally friendly supply chain.”

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By Quynh Nga

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