SZL Pursues Sustainability Strategy with Customers

10:24:23 AM | 11/7/2019

Sonadezi Long Thanh Shareholding Company (SZL) is a State-owned enterprise pioneering in industrial and urban zone development. It is also the first creator and developer of the workshop model in industrial parks based in Dong Nai for different customers. Successes in recent years have affirmed the company’s vision and position in the industrial property market.

To date, SZL has successfully attracted 112 projects with a total investment capital of US$1.2 billion to lease its industrial land and ready-built factories. Currently, SZL is accelerating the leasing of workshops in Long Thanh Industrial Park (Dong Nai province) and Chau Duc Industrial Park (Ba Ria Vung Tau province).

Attracting nearly US$1.2 billion

Sonadezi Long Thanh was established in 2003 by a joint venture comprising Sonadezi Corporation (the largest shareholder, a very experienced investor and developer of industrial parks), Dong Nai Investment and Development Fund, Dong Nai Power Co., Ltd, Sonadezi Construction Shareholding Company, Vietnam Posts and Telecommunications Group (VNPT), and Dong Nai Construction and Water Supply Co., Ltd.

In the past 16 years, SZL has worked hard and adhered to its business philosophy of taking customer and social service value ​​as a measure of company value. That effort has made SZL a successful infrastructure developer in Dong Nai province, with the 448-ha Long Thanh Industrial Park as its key project.

With a prime location, modern planning, synchronous infrastructure, convenient transport connectivity and professional staff, right after being put into operation, Long Thanh Industrial Park attracted many domestic and foreign investors from South Korea, Japan, the United States, Australia, Taiwan, France, Denmark and Switzerland. Like other popular tenants as Bosch, Olympus, Ajinomoto and Acrowel Vietnam, 40 South Korean businesses have selected Long Thanh Industrial Park for their project locations such as Samil Vina Co., Ltd, Daewon Chemical Vina Co., Ltd, Suheung Vietnam Co., Ltd, KCC (Vietnam) Co., Ltd, Daemyung Chemical Vina Co., Ltd and Global Dyeing Ltd.

Currently, although the land fund for lease in Long Thanh Industrial Park is not much because the occupancy rate has already reached 91.3%, SZL continues to support customers by investing in infrastructure upgrading, improving utilities and services, and increasing wastewater treatment capacity to 20,000 cubic meters a day. Particularly, as for the ​​service area of ​​27.63 ha, SZL will develop various infrastructure services and support services such as offices for lease, showrooms, e-commerce and data storage to meet investor needs. These are also SZL’s efforts to express its responsibility to projects and to customers.

Sharing about its experience in industrial park development, an SZL leader said, “Industrial park investment requires a long-term strategic mindset to have a good investment orientation right from the beginning to effectively support customers 50 years or maybe longer. We must calculate completely and accurately in choosing the location, geological properties, subdivision planning or more detailed things like choosing the place for the wastewater treatment plant, selecting wastewater treatment technology suitable for priority industries, customer care policy and utility service development. In particular, allocating a part of land for new product development for investor needs and investment trends over time as well as reserving funds for upgrading infrastructure and service quality are defined by SZL from the outset.”

Creating modern and sustainable factories

Besides traditional products like industrial land for lease, since 2008, SZL has planned to invest in factories for lease in Long Thanh Industrial Park to diversify products, flexibly attract investors and meet demands of small and medium-sized enterprises (SMEs). In 2016, SZL continued to develop its ready-built factory products on a total area of ​​50 ha in Chau Duc Industrial Park.

Understanding diverse needs of investors, SZL designs its factory products in many forms, including factories with or without offices, and customizes factories with areas ranging from 1,500 square meters. Customers can rent a single workshop, double workshops or multiple workshops at the same time to form a continuous production area.

With a strategic and convenient location easily accessed by road, waterway and airway, having reasonable rental costs and outstanding tax incentive policies, ready-built factories in both Long Thanh and Chau Duc industrial parks have quickly become an optimal choice for investors.

To date, SZL has leased 47 factories with a total land area of ​​over 23.6 ha in Long Thanh and Chau Duc industrial parks. Currently, the fourth stage of the factory cluster in Long Thanh Industrial Park has been mostly leased out to customers. The company is deploying the fifth and sixth stages of the factory cluster and building the factory cluster for rent in Chau Duc Industrial Park in order to promptly serve investor needs in the coming time.

According to statistics, factories in five key southern industrial provinces have high average occupancy rates in recent years, reaching approximately 81% in the second quarter of 2019. Dong Nai and Ba Ria Vung Tau continue to be preferred by newly established businesses thanks to the availability of platforms for business development, including synchronized infrastructure systems and well-established administrative procedures.

Besides, the availability of ready built factories helps investors save time and costs to better capture business opportunities, as they can start operation quickly after getting licensed. SZL and factory builders as well have many advantages in attracting investors into this type of product.

However, in addition to above advantages, factory quality is a highlight of SZL’s products. According to SZL leaders, SZL adheres to three important criteria when building a factory: Sustainability, flexibility and multipurpose, and energy conservation and environmental friendliness. To do so, SZL carefully selects quality construction materials, designs and modern construction technologies while flexibly designing products to help customers quickly change business strategies or rearrange their hired factories when needed. Specially, SZL focuses on reducing costs for customers and limiting environmental impacts in order to meet smart and sustainable investment trends for customers.

In addition to product and service quality, SZL's industrial products attract investors because of the company’s development strategies for residential areas and utility services for core projects, that is, industrial parks. Accordingly, with the model of Industrial - Urban Area, lying adjacent to Long Thanh and Chau Duc industrial parks is residential, utility and service areas. Especially in Chau Duc Industrial Park, there are also a golf course, a trade center and schools. This model helps customers do business and enjoy a good life at the same time.

By promoting this strategy, in the coming time, SZL will continue to deploy new projects in convenient locations near Long Thanh Industrial Park in order to facilitate existing tenants to expand their projects, develop new industrial chains such as Long Phuoc 1 Industrial Complex (75 ha). At the same time, SZL will invest in other projects such as a 3-ha residential area in An Phuoc commune, Long Thanh district or a residential and tourism area along the Dong Nai River.