Minh Hung Sikico Industrial Park Welcomes US$500 Mil Project

Shandong HaoHua Tire invested US$500 million to build a rubber tire factory project on 43 ha in Minh Hung Sikico Industrial Park, Binh Phuoc province.

World-leading tire brand officially enters Vietnam

Shandong HaoHua Tire is a member of HAOHUA Group, with more than 20 years of developing and manufacturing tires. It ranks 32nd among the 75 leading tire brands in the world. Currently, the company produces 20 million semi-steel tires and 4.8 million all-steel tires, earning total revenue of about US$1 billion. The company has 150 first-tier distributors and 6,500 second-tier distributors in nearly 100 countries and territories around the world.

In late 2022, Shandong HaoHua Tire conducted surveys to explore new overseas investment locations in Malaysia, Thailand, Cambodia, Indonesia and Vietnam. After surveying, assessing risks and analyzing the investment environment and locations in detail, HaoHua decided to choose Vietnam and finally Binh Phuoc province which has a stable political background, rapid economic development, outstanding incentive policies and a good business environment as the destination for its first overseas auto tire manufacturing project.

According to the plan, construction on the HaoHua (Vietnam) tire factory project is expected to start in the first quarter of 2024 and finish and test-run in the first quarter of 2025. Official production is set to start from the second quarter of 2025. The facility is expected to produce 14.4 million tires a year and earn an annual output value of US$770 million. The project not only creates jobs for more than 1,600 local people but also boosts up the socioeconomic and business environment in surrounding areas of the industrial park.

What are the reasons for Minh Hung Sikico to attract such a huge FDI firm?

Besides the companionship and strong support of authorities at all levels in Binh Phuoc province for investment attraction, Minh Hung Sikico Industrial Park has outstanding advantages to entice this large investor to locate its US$500 million factory on a total area of 43 ha.

First, an advantage that makes HAOHUA feel confident in Minh Hung Sikico is the complete legal guarantee of the industrial park. This is the foundation for the investor to conveniently and quickly carry out investment procedures to bring the project into operation soon. In addition, it is a prerequisite to ensure that the investor’s investment is not at risk.

The second is the guarantee of comprehensive companionship of our investment consultants on legal procedures. HaoHua highly appreciated the working performance and support capacity of Minh Hung Sikico’s team. With their profound knowledge of local regulations and related legal procedures, the team supported HaoHua in understanding investment procedures, tax regulations and other matters clearly and meticulously. They acted as a bridge between the investor and authorities to thoroughly resolve all questions from the investor quickly and effectively, not only providing guidance on procedural regulations but also delivering practical advice based on real-life experience.

The third is the guarantee of complete infrastructure for the production needs of the investor. Minh Hung Sikico Industrial Park has a total area of 1,400 ha, with 655 ha in the first phase already completed, becoming one of the largest industrial parks in southern Vietnam, featuring a synchronous infrastructure system. We cooperated with GS E&C, a multinational corporation with more than 50 years of experience in managing and operating environmental projects, to operate the wastewater treatment plant.

Owing to these outstanding advantages, after its research and evaluation as well as meetings with Binh Phuoc leaders, HaoHua decided to raise its total investment from US$300 million to US$500 million.

The signing ceremony of the land sublease agreement between HaoHua (Vietnam) Co., Ltd and Minh Hung Sikico Industrial Park was successfully held on September 8

To mark an important starting step for the project, the Binh Phuoc Provincial People’s Committee held an official ceremony to grant the Investment Registration Certificate to the  HaoHua (Vietnam) Tire Manufacturing Factory Project on September 11. This is also the largest-ever FDI project in Binh Phuoc province.

Chairman of Binh Phuoc Provincial People's Committee Tran Tue Hien hands the investment certificate to the investor of HaoHua (Vietnam) Tire Manufacturing Plant.  

The chairman of the Minh Hung Sikico Industrial Park and HaoHua at the Investment registration certificate granting ceremony on September 11th

Besides the HaoHua project, Minh Hung Sikico has attracted many multinational investors active in various industries. The industrial park can accommodate high-tech industries such as electronics and microelectronics to industries that generate a lot of wastewater and emissions (like plating, textile, dyeing, slaughtering, furniture, fiber, textile and garment components, food processing and animal feed). Since opening to investors in 2019, the park has attracted 39 investors and filled nearly 50% of its capacity.

Minh Hung Sikico - Vietnam's outstanding industrial park in 2022, voted by VCCI

D.A (Vietnam Business Forum)