Phu My 3 Specialized Industrial Park Attractive Destination for Industrial Development

Ba Ria-Vung Tau province has always been one of the biggest recipients of foreign direct investment (FDI) with many large projects and corporations from developed countries. This success comes from industrial parks, particularly Phu My 3 Specialized Industrial Park, one of the most favored investment destinations in the province.

Dormitory Project capable of accommodating 10,000 labors in Phu My 3 Specialized Industrial Park

Phu My 3 Specialized Industrial Park is one of the key projects of Ba Ria-Vung Tau province and an exemplary industrial park under the Province-based Economic Growth Program (PBEG) proposed by the Japan International Cooperation Agency (JICA). In addition, as the only industrial park in Vietnam under the cooperation agreement between the Vietnamese Government and the Japanese Government, Phu My 3 Specialized Industrial Park receives great support and special incentives from the Government such as land lease terms extended up to 70 years and annual land use fee exempted up to 20 years.

Phu My 3 Specialized Industrial Park also completed the investment in synchronous technical infrastructure, including roads, rainwater and wastewater drainage systems, lighting system, communication networks, power grids, water and gas supply networks that cater to all factories.

Phu My 3 Specialized Industrial Park is located in the center of the seaport-industrial ecosystem and the industrial symbiosis. It is only 2 km from the Cai Mep-Thi Vai deep-water port cluster and the chemical, LNG, LPG liquid cargo terminal. It is adjacent to factory complexes providing basic upstream raw materials such as steel factories, Long Son petrochemical complex and Hyosung. Therefore, Phu My 3 Specialized Industrial Park is an attractive base for industrial development of upstream supplying basic materials for the Southern Key economic Region and downstream of post-petrochemical industries, contributing to promoting industrial and economic symbiosis and circular economy.

Not only investing in "hard" infrastructure, Phu My 3 Specialized Industrial Park has also paid due attention to developing "soft" infrastructure which is a one-stop service, acting as a focal point connecting investors and local and central governments. With strong, dedicated and thoughtful professional skills, its employees always accompany and support investors to solve problems related to documents, legal procedures, recruitment, logistics services and on-site customs services, to actively deal with difficulties and obstacles in project implementation, thus building up the confidence of investors and receiving good appreciation from by corporations and international organizations.

Corner of street D2-N2 Nitori - Yoshino

“When we carried out our project at Phu My 3 Specialized Industrial Park, we received very precious support from the investor, Thanh Binh Phu My Joint Stock Company. They always readily assisted us to deal with all difficulties and obstacles and supported us to execute our projects and develop and expand business operations,” said a tenant at Phu My 3 Specialized Industrial Park.

At present, the park is housing 38 investment projects with a total registered capital of about VND72,000 billion (more than US$2.65 billion), including giant firms from Japan, South Korea and Europe, and the US helping diversify and improve the quality of investment capital flows into Ba Ria-Vung Tau province. The park has effectively carried out the investment strategy of the province, attracted high-quality FDI inflows, and created a driving force to accelerate socioeconomic development of the province in particular and the Southern Key Economic Zone as a whole.

In 2023, Phu My 3 Specialized Industrial Park will aim to attract an additional US$1.7 billion to bring the total investment capital to about US$4.3 billion (VND110,000 billion). In addition to the effort to complete the second-phase infrastructure of Phu My 3 Specialized Industrial Park as soon as possible to lease land to investors, Thanh Binh Phu My Joint Stock Company also plans to build and develop warehousing and factory services for rent to meet diverse needs from customers. It will also deploy projects of chemical tank warehouses, industrial utility centers; a 10,000-worker accommodation and other facilities such as an 18-hole golf course project, an accommodation for experts, a commercial center, etc. to serve customers and investors.

Currently, inter-regional road traffic infrastructure in Ba Ria-Vung Tau is still limited. Enterprises have to spend lots of time transporting materials and products to neighboring provinces, resulting in additional costs. On the other hand, although Cai Mep-Thi Vai port cluster is a deep-water port that can handle ships of over 200,000DWT, it mainly has direct lines to the US and Europe and only a few lines to Asia. This is because Cat Lai port accommodates most of the feeder ships. Therefore, Phu My 3 Specialized Industrial Park has chaired and organized many seminars with shipping lines and seaports to find the best solution, but so far Inland Container Depot (ICD) in Phu My 3 Specialized Industrial Park is the best solution.

Phu My ICD, the first of its kind in Ba Ria-Vung Tau province fully furnished with piers, warehouses, empty container depots, and modern equipment to provide inclusive, package and multimodal logistics solutions. Import and export goods to and from Asian countries will be transported directly to Phu My ICD for on-site customs clearance and transshipment and distribution and businesses take advantage of the preferential policy of long-term parking. This not only supports the quick release of goods and minimizes logistics costs and production costs for customers, but also contributes to improving the performance of deep-water ports and developing the industrial-seaport value chain.

Moreover, Phu My ICD is capable of connecting waterways to seaports, other ICDs in the region, as well as material supply sources and consumer markets across the country to Phu My 3 Specialized Industrial Park, thus helping investors and shippers to transport inputs and outputs conveniently, reduce time and logistics costs, as well as optimize production costs for customers and investors. Given that logistics costs in Vietnam are still high relative to other countries in the region and the world, the operation of Phu My ICD will significantly increase the competitiveness of "made in Vietnam" goods on the international market.

Affirming the right direction

Ms. Nguyen Thi Thao Nhi, President and General Director of Thanh Binh Phu My Joint Stock Company, said: Developing a specialized industrial zone is the right way to fully unlock its potential and advantages through production cost optimization, easy operation, effective management and effective satisfaction of FDI investors’ needs. By creating an efficient, high value-added supply chain from a combination of a synchronous modern infrastructure, a geographical location and abundant natural resources, Phu My 3 Specialized Industrial Park helps customers optimize production costs, increase profits and open up opportunities for sustainable development. Looking to the future, Phu My 3 is still making an ongoing effort to realize its vision of becoming a modern, large-scale industrial park and the most optimal investment location in Vietnam for investors around the world and meet the expectations of the Government of Vietnam.

She said that in the context of globalization, FDI firms have high requirements for traffic, infrastructure, human resources, and institutions to improve workers' lives. These requirements all stem from the need for sustainable investment and long-term commitment to the locality. That is the reason why FDI firms always want to look for industrial zones with specific characteristics for their projects and Ba Ria-Vung Tau province is one of the localities very suitable for the development of specialized industrial parks.

“Thanh Binh Phu My Joint Stock Company and Phu My 3 Specialized Industrial Park has chosen Ba Ria-Vung Tau province as a business base and made a long-term commitment to local economic development as it has huge potential to attract investors and still has much room for development, especially development of new-style industrial parks in line with the province's investment attraction policy that aims to woo giant investors. With its efforts to invest in infrastructure and improve utility services, Phu My 3 Specialized Industrial Park has helped create sustainable values, with a focus placed on environmental protection, production cost optimization and added values for partners and customers. More importantly, Phu My 3 will also meet the expectations of the Government of Vietnam and the Government of Japan that the specialized industrial park will become a magnet to attract high-quality, large-scale FDI flows, creating driving force to boost industrial park development and foster socioeconomic growth of Ba Ria-Vung Tau province in particular and Vietnam in general. This is also the mission of Phu My 3 Specialized Industrial Park that we have been, are and will continue to strive to carry out," she said.

Cong Luan (Vietnam Business Forum)