Trang Due Industrial Park: Asserting Position as Attractive Investment Destination

4:45:09 PM | 11/3/2022

After 15 years of construction and development, Saigon - Hai Phong Industrial Park Joint Stock Company (SHP) has left remarkable impressions in the industry, with the biggest success being the transformation of Trang Due Industrial Park into the most powerful of its kind in the port city of Hai Phong.

LG Complex in Trang Due Industrial Park has US$7.24 billion of investment capital

Development marks

Trang Due Industrial Park is located on National Highway 10, the northern arterial traffic route for freight transportation, especially in the key economic triangle of Hanoi - Hai Phong - Quang Ninh. Thus, the park is well positioned for industrial development.

In 2007, after being assigned by Hai Phong City People's Committee to invest in infrastructure construction in Trang Due Industrial Park, SHP Company embarked on infrastructure construction and attracted secondary investors.

The difficulty for SHP Company to carry out projects during the economic crisis was that large corporations hardly expanded their investment. Therefore, to have a firm standing and solid development, SHP Company focused on attracting small investors to lease factories. By the end of 2012, Trang Due Industrial Park attracted nearly 20 domestic and foreign investors, with five renting/purchasing eight factories. This demonstrated the right vision and direction of the investor.

Since 2013, Vietnam has lived through crisis to stabilize economic growth. Grasping this opportunity, SHP Company successfully attracted LG Group of South Korea, a really amazing achievement. The US$1.5 billion project not only elevated the position of Trang Due Industrial Park, but also created a major breakthrough in foreign direct investment (FDI) attraction of Hai Phong City.

Later, in August 2013, Trang Due Industrial Park was approved by the Prime Minister as a part of the expanded Dinh Vu - Cat Hai Economic Zone. This move brought a lot of benefits to secondary investors, especially preferential policies. Hence, in a short time, SHP has attracted over 20 satellite companies of LG Group, enabling the park to quickly fill up the first-phase space.

In September 2014, SHP Company continued to be assigned by Hai Phong City People's Committee to launch the second phase of Trang Due Industrial Park with 214ha of land. In 2016, the company successfully enticed two LG investment projects, LG Display and LG Innotek.

All the rentable area of the two phases (389.77ha) has to date been fully leased to 113 projects which registered to invest more than US$8.5 billion, including 90 FDI projects and 23 DDI projects). Tenants are mainly involved in high-tech manufacturing such as electronics and electric home appliances.

In 2021, tenants in Trang Due Industrial Park registered to invest nearly US$2.2 billion (accounting for more than 41% of the city's total FDI value). The LG Complex alone reported to invest US$7.24 billion (accounting for 37.13% of the city's total FDI value in 2021).

Towards sustainable development

Right from the planning stage, SHP Company spares 67.9ha of land for green space land and landscaping in Trang Due Industrial Park. In particular, the industrial park has a synchronous wastewater treatment system with a daily capacity of 12,000 cubic meters to ensure wastewater treatment under Wastewater Standard A, 40:2011 of the Ministry of Natural Resources and Environment. Moreover, SHP Company carefully picks up low-emission projects and prioritizes environment-friendly high-tech projects with modern production lines.

On March 25, 2021, the Prime Minister officially approved the proposal of Hai Phong City People's Committee on giving 687 ha of land in An Lao district to Dinh Vu - Cat Hai Economic Zone. At the same time, the committee licensed SHP Company to research, plan and propose the third phase investment project of Trang Due Industrial Park, covering 687ha.

SHP Company is focusing on completing legal documents and procedures to embark on the project, and preparing all resources to ensure the highest efficiency. In particular, the company is speeding up site clearance and building synchronous technical infrastructure to create the best conditions to attract new investors.

With its important achievements in industrial zone development, SHP Company was awarded many certificates of appreciation in recognition of its efforts by the Prime Minister, central agencies and Hai Phong City. In particular, the Company was bestowed the Third-class Labor Order (in 2017) and Second-class Labor Order (in 2021) by the Vietnamese President.

Furthermore, to have a sustainable industrial park ecosystem, SHP Company invested to build Trang Due Service - Commercial Urban Area and Worker Housing Area, covering 42.08ha of land (Seoul Eco Homes Hai Phong Urban Area). The project is located on National Highway 10, opposite Trang Due Industrial Park. It has social houses, schools, hospitals and commercial centers to provide the essential housing and security needs of workers. The project is preparing to build ten 15-story social housing buildings to provide housing for about 10,000 workers inside and outside Trang Due Industrial Park.

The above activities and plans will reinforce sustainable development efforts of SHP Company as well as Trang Due Industrial Park. At the same time, it is an important foundation and motivation for the company to further upgrade its position and become an ideal investment destination in Hai Phong City. It will further help investment attraction and economic growth of Hai Phong City and Vietnam as a whole.

Ngoc Tung (Vietnam Business Forum)