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|Quang Ninh: manufacturing nirvana|
Home to the world-famous Halong Bay, the northern province of Quang Ninh has been renowned as a bustling tourist attraction. But since manufacturing was made one of the pillars for economic development besides tourism, the province has been gearing up to becoming a major manufacturing hub both domestically and regionally.
Quang Yen, the new coastal economic zone, has been established to grow into a major investment receiver for the province. This zone’s strategy is proving to be effective as a large number of investors from a diversity of nations are keen on funding their projects in the region.
Bac Tien Phong Industrial Zone (IZ) has received nine projects in warehouses for petrochemicals, renewable energies, and components manufacturing, among others. The total investment value touches $1.5 billion.
DEEP C Industrial Zones, the Belgian developer of the DEEP C Quang Ninh industrial cluster, and formed by Bac Tien Phong IZ and Nam Tien Phong IZ, points out a trend of companies increasingly investing in ready-built warehouses and workshops for lease, accounting for four out of nine projects.
LOGOS, a global logistics real estate investor, signed an MoU with DEEP C Industrial Zones last year to develop ready-made properties over 10 hectares in Bac Tien Phong IZ. The investor is now preparing an application dossier for an investment registration certificate and land handover is scheduled for this month.
“Large industrial real estate companies are starting to pick up with the industrial transformation of Quang Ninh and are ready to take advantage,” said Bruno Jaspaert, general director of DEEP C Industrial Zones. “Some already built their base in DEEP C Industrial Zones in Haiphong and recently decided to expand business to Quang Ninh to diversify their portfolio.”
Sharing the ambition in Quang Ninh, a mega petrochemical complex and a plastic particle production facility covering 60ha are underway in Bac Tien Phong IZ.
To the south of Bac Tien Phong, Nam Tien Phong IZ has lured several projects, of which one has already submitted for an investment registration certificate.
|Quang Yen Economic Zone is already luring in interest to be the base for major ventures in renewables, petrochemicals, and more|
A decade of reforms has made Quang Ninh one of the most competitive provinces. For the last four years, it has topped the Provincial Competitive Index by the Vietnam Chamber of Commerce and Industry. The index has been conducted annually since 2005 to assess the ease of doing business, governmental support, and transparency and administrative reforms based on responses from businesses in Vietnam.
More companies are also choosing to supplement their Chinese operations with inputs sourced from production facilities in Vietnam and expand trade further to the ASEAN region.
Currently under construction, the Van Don-Mong Cai highway will significantly reduce the time from Quang Ninh’s IZs to Shenzhen, China’s tech megacity, to 12 hours, making deliveries of time-sensitive components feasible and cost-effective. As a result, electronic device manufacturing is among the primed industries for relocation in Quang Ninh.
Quang Ninh currently possesses the longest highway network in Vietnam, stretching 159km over three sections. Beyond that, this network is linked with Haiphong-Hanoi Expressway, which helps Quang Ninh shorten the travel time to Hanoi and form an economic triangle between the three.
Van Don International Airport was the first airport Vietnam ever developed under the build-operate-transfer model and was named the world’s leading new airport in 2019 by the World Travel Awards. The airport contributes to the ease of goods import-export to Asian countries and promotes trade with China.
From the perspective of an infrastructure developer, Jaspaert said, “While many can agree that Quang Ninh’s infrastructure and supply chain still have room for improvement, the government has been making strides to perfect them. Its border with China and proximity to manufacturing hubs like Shenzhen have made it a go-to choice for firms looking to relocate or supplement main operations in China.”
To keep the momentum going, Quang Ninh People’s Committee and the Ministry of Planning and Investment are initiating an investment promotion webinar targeting Taiwanese investors on November 9. IZ developers in Quang Ninh, including DEEP C, will work with provincial leaders in bringing Quang Ninh onto the radar for Taiwanese businesses.
Bac Tien Phong IZ is jointly developed by DEEP C Industrial Zones, a Belgian industrial zone developer, and Hateco Group, a Vietnamese conglomerate in real estate, logistics, seaports, and more. As part of DEEP C Quang Ninh’s industrial complex located in Quang Yen Coastal Economic Zone, the project aims to become a seamless ecosystem connected to seaports.
Founded in 1997, DEEP C Industrial Zones has established itself as one of the biggest industrial developer groups in Vietnam. DEEP C consists of five subprojects with over 3,386ha of industrial land upstream of Lach Huyen Port in Haiphong and Quang Ninh. It has on offer a variety of options for investment consideration, including industrial land for lease, ready-built factories, logistics warehouses, and built-to-suit solutions.
DEEP C is now home to 142 projects, equivalent to 120 companies, with the total investment of $4 billion.