Three South Korean investors recently put down the deposit to lease a 70,000-square metre space at Dong Van 4 Industrial Park (IP) in the northern province of Ha Nam. 

 

The IP developer is Viglacera, the largest state-owned construction materials producer who received the investment certificate to invest in Ha Nam province less than a month ago. 

 

It is significant to note that Viglacera will only commence construction of the IP later this month or early next month, meaning that the Korean investors’ decision to lease the vast land area in the prospective IP shows great trust. 

 

“The three Korean investors leasing land to build production plants at the unfinished Dong Van 4 IP has surpassed our expectations. The investors’ trust has inspired us to soon finalise the investment and construction to hand over cleared land to our investors,” said Tran Ngoc Anh, director of Viglacera Land. 

 

The director also unveiled that two of the three Korean investors produce electronic components for use in cars, fridges, washing machines, and ovens, and are reliable partners of global brands like Samsung, LG, Rinnai, Hyundai, Kia, Ford or Toshiba. 

 

According to developer Viglacera, with the favourable location and attractive rental charges, the IP is expected to attract tens of businesses by the end of this year. 

 

Since early this year, businesses leasing land at IPs adjoining Hanoi are mostly electronics and apparel producers. 

 

Besides the advantage in low-cost workforce, the investors’ renown for professionalism in IP development is a significant factor helping to lure foreign investors to these IPs. 

 

For instance, Yen Phong IP expansion project in the northern province of Bac Ninh kicked off construction this March over a 314-hectare area.

 

Now, two kilometres of internal road has been completed, together with sufficient power and water supply systems, plus a 20 ha cleared land area ready to serve investors. 

 

When the first cleared plot at the expanded Yen Phong IP became available, it was quickly snatched up by a Korean electronics firm who is a first-tier Samsung supplier. 

 

Yen Phong IP expanded project aims to attract $2.6 billion investment into a range of sectors, such as agricultural items and food processing, light industries, as well as mechanical and electronic industries. 

 

Yen Phong IP, after more than 10 years in existence, has become the stopping-point of a number of big South Korean electronic firms, such as Samsung, Orion, Flexcom, Dongsin, and Hansol, helping the province to score $8 billion in total committed FDI. 

 

This contributed to generating the province about $28 billion in the total export revenue last year.