Last updated: Wednesday, May 15, 2019


Big Dream Comes True

Posted: Monday, January 29, 2018

As a top industrial zone developer, DEEP C Industrial Zones (DEEP C) has made great contributions to socio-economic growth of the region and Vietnam in general. On the occasion of the New Year 2018, Vietnam Business Forum has an interview with Mr Frank Wouters, General Director of DEEP C. Le Sang reports.

On this occasion, can you note the significant achievements of DEEP C after two decades in Vietnam?

Some 20 years ago we started Dinh Vu Industrial Zone (Deep C I) on the isolated Dinh Vu Peninsula with no land, no water, no power, and no access roads. Step by step we overcome the difficulties, making our dream of developing a 540-ha world class industrial zone come true. We have now put in place a utility network being as reliable as in the most developed countries, including underground power distribution, ISO-certified waste water treatment by Belgian expert, liquids jetty with full automatic fire-fighting system. The industrial zone, to date, has attracted over 70 projects of more than $3 billion FDI to Haiphong, created more than 10,000 direct jobs and is a reliable reference for foreign investors when choosing Vietnam and Haiphong to expand business. We are also a strong symbol of the economic cooperation between Vietnamese and Belgian governments.

Our industrial zone is located in the centre of the mega infrastructure developments (Red River Delta highway network, Lach Huyen Deep Sea Port, International Airports) in North Vietnam, where the majority of FDI is flowing into. Seeing the opportunity and with a long-term vision in Vietnam, we have decided to expand enormously. Our second project – Deep C II industrial zone was kicked off in 2014 while the third phase of Hai Phong International Gateway Port Industrial Zone (DEEP C III) next to Lach Huyen Port just had its ground breaking ceremony this October. With other developments in Quang Ninh, the total scale of DEEP C project is now at more than 3000 ha industrial land, equipped with the best-in-class utilities and location advantages for investors.

How do you assess the role of FDI enterprises in 30 year development of Vietnam since the 1986 Economic Reforms?
The participation of FDI companies in Vietnam’s economy in the last 30 years has given the country strong incentives to open its economy to world markets, reform its administrative and legal procedures as well as lower market entry barriers. Vietnam understands its strategic location in the region as well as its competitive edges such as the huge young market and operating costs. The government also understands the significant contribution of FDI companies in terms of creating additional value and thus resources to help the economy’s infrastructure development, boosting production for both the domestic market and exporting sectors, raising local technology and knowledge, and creating millions of jobs. In the future, FDI sector will continue to act as a strong and sustainable fundamental of Vietnam’s industrialization and modernization, and in the same time dedicate more beneficial effects on the society, for example employment and education.

In your opinion, what institutional optimizations does Vietnam need to have to continue to be the destination of FDI regarding current situation?
The necessary reforms to attract more FDI would be to increase transparency and efficiency in the administrative and legal system, shorten the time taken to start business and maintain investors’ rights along with law updates, giving them peace of mind in their long-term investments. In addition, a firm push to make sure the key infrastructures are completed in time is essential to enhance FDI enterprises’ confidence in the government’s commitments to investors.

In light of the Industry 4.0, what is the key for Vietnamese companies to participate more into the global value chain?
Human resources is the key for Vietnam’s businesses to not only join the global value chain, but to catch opportunities and eliminate threats from the Industry 4.0. First of all, having a team being able to work and communicate in foreign languages is fundamental. Then, local businesses need to update their employees with the latest technologies, skills, and international standards. Vietnam needs to focus on its strengths and the more upstream processes that bear higher added value and ensure reliable input resources for end-producers.

Could you share some of the most successful achievements of DEEP C in 2017?

2017 has been a year with significant developments for DEEP C, with the development of a new gateway port industrial zone, and the advancement of our green energy initiatives.

The Hai Phong International Gateway Port Industrial Zone, namely DEEP C III, is being constructed next to the new Lach Huyen Deep Sea Port on Cat Hai Island. The zone will be ready soon, welcoming investors from all industries, especially logistics and automotive sectors because of its proximity to the international port.

In this year, we also have setup a group of solar-panels and weather data collection system to collect meteorological data for the future development of a large renewable energy project in our zones.
In the meantime, we continue to attract more projects in general industries and petrochemical area.

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