Thang Long IP: Looking forward to Sustainable Investments

In 1997, Sumitomo Corporation started operation of industrial park in Vietnam. The move has amazed international investors. After making surveys on regional markets, Sumitomo has decided to choose Hanoi to build 300-hectare Thang Long Industrial Park (IP). The group joined hands with Dong Anh Mechanical Company (DAMCO) to build the park. Thang Long IP   after 11 years of operations has become the most modern IP in Vietnam and in the region as well. VIB Forum had an interview with Akito Shiraishi- General Director of Thang Long Industrial Park Corporation. 

 

Can you make an overview of Thang Long IP establishment and operation? 

Thang Long IP is the joint venture of Sumitomo and Dong Anh Mechanical Company. The park was set up in 1997. When we chose Hanoi to build Thang Long IP, foreign investors were very amazed, as at the time Vietnam was still a new country for them. Foreign investors only paid attention to regional nations such as Malaysia, the Philippines and Thailand at the time. After the work on the first phase of the park covering 121 hectares finished, we carried out the marketing promotion to advertise the park. However, few investors took interest in the park. I visited Canon’s office in Tokyo. At the time, Canon was a big investor in Thailand and China. Realising demand of Canon, we introduced Vietnam potential to the group and then Canon sent a delegation to Vietnam to study the country’s investment environment and labour force. We hoped that the move of Canon would lure more investors to Vietnam. As expected, lots of Japanese businesses namely Panasonic, Toto, and Denso had poured investments into the park.

 

In 2005, Vietnam welcomed a wave of investment from Japanese firms who decided to move their investments from China to Vietnam due to Vietnam’s stable investment environment and cheap labour cost. To date, Thang Long IP is home to 83 firms, mostly from Japan with more than 40,000 workers. The park reports total investment of US$1.5 billion.  

 

What special attention have you paid to the Thang Long IP? 

Thang Long IP has been one of the first IPs in Hanoi and its operations have been highlighted. We have built a perfect investment environment, and good infrastructure for the park, including waste treatment system, water treatment network, and transformer stations and other services for labourers such as houses, hospital, and schools… We have poured big investments into not only sustainable development of the park but also development of human resources. 

 

After the successful establishment of Thang Long IP, we have studied many places in Vietnam and at last we chose northern Hung Yen province to build the Thang Long IP II. The park will be mainly invested by Holding Sumitomo Company and Thang Long Industrial Park Corporation holds 20 per cent of the total investment. With experience in operation of Thang Long IP I, we hoped Thang Long IP II would strongly develop and lure more investors. The new park is expected to be put into operation in 2009. 

In the past years, Vietnam has offered big favour to investors. However, this favour has been fewer in recent years, causing difficulties for investors. In addition, inflation and increasing input costs have also put high pressures on their production operations.