DEEP C Industrial Zones - Strong Magnetism to Foreign Investors

10:04:25 AM | 5/11/2020

As among the most advantageous industrial zones in Hai Phong city, DEEP C industrial zones are located adjacent to the Hanoi-Hai Phong-Quang Ninh Expressway and to Lach Huyen International Port (capable of accommodating ships of up to 40,000 DWT). DEEP C industrial zones have synchronous infrastructure, attractive investment incentives, a friendly investment environment and reliable and conscientious support which has produced a strong appeal to investors, especially foreigners.

Focused investment

Mr. Bruno Jaspaert, General Director of DEEP C, said, DEEP C was formerly known as Dinh Vu Industrial Zone (DVIZ). Over 23 years of development, DEEP C has turned Dinh Vu - Cat Hai Peninsula from a deserted swamp into a modern industrial zone with more than 100 FDI investors from many countries like Japan, South Korea, the United States and Germany. Currently, the industrial zone has now expanded, from an original area of ​​161 ha to more than 3,000 ha to form DEEP C Industrial Zones. Therefore, Dinh Vu Industrial Zone today is also known as “DEEP C Hai Phong I”.

With a well-prepared plan, DEEP C has experienced a significant change. Previously, more than 50% of investors in DEEP C Hai Phong I were Vietnamese, but most tenants are now foreign investors. So, what matters is how to attract FDI projects. In addition to land, they need support services for sustainable development. Therefore, what convinces FDI investors is the current infrastructure system and services that DEEP C can put in place to meet development needs in 20-30 years. Apart from the land fund to attract industrial investors, DEEP C also reserves land for green spaces, plans to grow mangrove forests in that region and plans to use renewable electricity for manufacturing in the industrial zones.

Positive effects

As soon as DEEP C Hai Phong I, covering 541 ha, was planned and its infrastructure invested, many investors came to study the location. To date, DEEP C Hai Phong I has almost leased out its rentable land to more than 100 projects. The remaining area of 10-12 hectares was also registered by investors. In DEEP C Hai Phong I, the petrochemical section has attracted 30 projects engaged in different fields like chemical, lubricant and LPG storage facilities to form a fuel supply center for resident projects. With a system of liquid cargo jetties designed to receive vessels of 10,000 - 20,000 DWT, tenants in the petrochemical section can directly use this facility and pipe racks for chemical and petrochemical trading. This is an attractive feature of DEEP C Hai Phong I. The unique idea of ​​a shared liquid cargo jetty system not only makes DEEP C different from other industrial zones, but also helps tenants save costs and resources as they do not need to invest in building their own facilities.

Mr. Bruno Jaspaert added that DEEP C is focusing on developing DEEP C Hai Phong II (645 ha) in Nam Dinh Vu Peninsula, directly connected to Lach Huyen deep-water port and located in the center of Dinh Vu-Cat Hai Economic Zone. This is a general economic zone - a multi-sector marine economic center that meets social and economic development needs of Hai Phong City, the northern coastal region and the whole country. As a result, DEEP C Hai Phong II is attracting a new FDI wave, particularly automobile and electronic equipment manufacturing projects and different production complexes. In fact, Hai Phong has a lot of potential to become a "high-tech electronics center" as it lies near the south of China and easily imports materials from Guangdong and Shenzhen of China for product assembling in Hai Phong and exports to other countries in the world through Lach Huyen deep-water port. In the next three years, there will be a strong FDI inflow in electronics here.

DEEP C Hai Phong III, covering 520 ha in the Lach Huyen Port area, is likely to become an international logistics center for cargo import and export. Therefore, DEEP C is planning to invest in constructing a bulk terminal to connect with Cat Ba area. That development may take many years but a potential FDI investor is studying the site and may start investing early next year. In addition, DEEP C pays attention to investing in infrastructure for industrial zone development in Kien Thuy district, a component of Hai Phong industrial zone development plan.

Mr. Bruno Jaspaert frankly said, “Despite the great support of Hai Phong City in the past time, I hope that the city will have more reforms and innovation in the coming time, including investing in bonded warehouses, simplifying customs procedures, developing and attracting high-quality human resources, attracting international universities to invest in the city, improving education and training quality, and increasing power supply for manufacturing in industrial parks to make Hai Phong a modern industrial and logistics center of the region and the country, as per Resolution 45/NQ-TW of the Politburo.”

23 years of continuous innovation and development is a testament to DEEP C’s outstanding efforts to generate a friendly investment environment, provide reliable and dedicated support for partners to do business here and actively contribute to local socioeconomic development.

By Hoai Nam, Vietnam Bushiness Forum