Korean industrial park developer shares local vision

Chairman of C&N VINA and president of the Association of the South Korean in Ho Chi Minh City Lee Chung Keun talked to VIR’s Ngoc Tuan about the company’s future plans.

Why did C&N VINA choose to invest in Vietnamese IPs?

In recent years, Vietnam’s economy has grown strongly and become an attractive destination for international investors. South Korean businesses consider Vietnam a fascinating investment market, which has led to South Korea becoming one of the leading foreign investors in Vietnam. The wave of Korean investment in Vietnam helped C&N VINA decide to develop IPs in the country. Our objective is to establish the most favourable and suitable IPs for Korean enterprises.     

What successes has C&N VINA achieved in Vietnam over the past ten years?

C&N VINA picked the southern province of Binh Phuoc for its first project. In 2004, we set up the 192 hectare Minh Hung–South Korea IP in Chon Thanh district. The company built a wastewater treatment reservoir as part of our $9.7 million investment which has led to it being 95 per cent occupied. Currently, 34 out of 56 operating businesses in the IP come from South Korea, China and Taiwan. So far, the IP has attracted 39 foreign investors with total registered capital of $155 million.

In order to provide the most favourable conditions for over 4,000 workers at the Minh Hung–South Korea IP, we are seeking to inject a further $2.6 million to build 10 hectares of accommodation facilities. At the same time, we have also set aside 15 hectares for services, restaurants, schools and health services.     

C&N VINA also plans to build a 20 megawatt power plant in Chon Thanh district. The plant will use South Korean technology to turn waste material from the wood processing industry such as tree bark, branches and sawdust into clean energy and steam for production lines of garment plants at the IP. The power plant will require total investment capital of $50-$70 million, and will be funded by the Foreign Infrastructure Investment Fund under South Korea’s Ministry of Infrastructure and Land Resources Management.   

As a wave of Korean investors crash against Vietnam’s shores, C&N Vina is looking to catch every drop

What difficulties has C&N VINA faced while investing in Vietnam?

When investing in Binh Phuoc, we suffered from poor infrastructure to link us to ports and economic hubs like Ho Chi Minh City, so it was difficult to attract investment. In addition, the local workforce is insufficient and unqualified, while administrative procedures relating to land, construction and the environment remain a hindrance.  

What are C&N VINA’s development strategy and priorities for the future?

We are determined to invest long-term in Vietnam. Currently, the company is building two additional IPs in the central region, including the Phong Dien IP covering 700 hectares with the 126 hectare-first phase's total investment capital of $20 million in Thua Thien-Hue province, and the Tam Anh-South Korea IP also covering 700 hectare with the first 200-hectare first phase's total investment capital of $25 million at Chu Lai Open Economic Zone in Quang Nam province. C&N VINA will start to invite investors to both projects next year.    

We intend to increase the Min Hung-South Korea IP’s area and build the power plant I mentioned previously. We are also seeking to build a high tech weaving-dyeing zone to serve the garment industry. Our partners from the garment associations of the US, the UK, France and South Korea are expected to invest in this zone.

We are looking forward to continued success and even greater possibilities in Vietnam.