Giza Group: Starting New Industrial Ecosystem in Phu Tho

2:54:07 PM | 11/9/2023

Developing closed eco-industrial zones is a top priority of Phu Tho province today. Bac Lam Thao Industrial Complex will have an available land fund, synchronous and modern infrastructure and suitable investors with symbiotic capabilities and green criteria in operations. With the desire to bring good values to society, Giza is making every effort to launch a new closed, green industrial ecosystem as directed by the locality.

The Thuringen state Business delegation of Germany and GIZA Group sign an MOU at the Bac Lam Thao Industrial Complex in Phu Tho province

This is the statement made by Mr. Duong Nguyen Thanh, Vice Chairman of the Board of Directors of Giza Group - the investor of Bac Lam Thao Industrial Complex, to Vietnam Business Forum.

Giza recently celebrated its 10th founding anniversary (September 5, 2013 - September 5, 2023). Do you have anything to share about this meaningful milestone?

10 years is a special milestone for any organization or business and for Giza, it is a decade of pride in its efforts for growth and its desire to conquer new highs.

In 2013, Giza Vietnam was established by young, enthusiastic and aspirational people. Since the early days, we have positioned ourselves as an industrial construction contractor for FDI projects in Vietnam. In the past decade, Giza has persistently strived to bring more perfect solutions and services to customers and continuously improved working processes to better interact with partners. After 10 years of construction and development, Giza is proud to be one of leading industrial construction contractors in Vietnam.

Currently, Giza Vietnam has expanded its business on three pillars: Industrial construction, industrial real estate and industrial production; and gradually realized its desire of becoming a strong industrial corporation in the country.

With this achievement, in addition to the internal strength of the business, Giza also receives the trust, companionship and support of investors, partners and agencies, departments and branches from central to local levels. We are always well aware of this and would like to express our deep gratitude.

A panoramic view of the Bac Lam Thao Industrial Complex (Phase I) in Phu Tho province

In 10 years as a general construction contractor, Giza Vietnam has undertaken hundreds of projects with many foreign partners. How has Giza resolved and endeavored to get the above impressive results?

Since starting this business, our biggest asset has been experienced, skilled human resources in industrial design and construction along with a youthful spirit and enthusiasm. The important factor that determines the success or failure of a business is choosing a customer segment that matches its capabilities and the field we choose has caught up with the market's development trends - FDI projects in industrial parks and export processing zones.

With our understanding of the specifics of industrial projects and our experience in optimal project implementation, Giza has brought a total solution to customers and FDI companies which are still unsure about investing in Vietnam.

We have provided enthusiastic support and free consultation, introduced investment locations suitable for their business lines and clearly pointed out regulations, attractive policies and incentives in each locality.

Specially, with comprehensive design and construction solutions, Giza has successfully carried out a series of industrial projects across the country. Some customers have assigned Giza to carry out their 7th and 8th factories in Vietnam. Dedicated service, with certain added values for customers, is the working motto and brings success to Giza.

As far as we are concerned, Giza Vietnam is investing in the Bac Lam Thao Industrial Complex in Phu Tho province. Could you please share about this direction and project? What are the reasons for investment, potential, advantages, target industries, remarkable general incentive policies and infrastructure support for tenants?

Directed to form and develop a mutually supportive industrial ecosystem: Industrial EPC contract - industrial real estate - industrial production, Giza invested in Bac Lam Thao Industrial Complex and planned to build more in the coming time.

Phu Tho province developed industry very early, since the 1960s with Bai Bang paper factory and Lam Thao chemical factory. However, it lagged behind other major industrial provinces. Therefore, when Vinh Phuc, Bac Ninh, Hung Yen and other provinces do not have much available industrial land, Phu Tho still has a lot of room. In addition, the development of transportation infrastructure in recent years has more closely linked Phu Tho to airports, seaports, border gates and major economic centers. Bac Lam Thao Industrial Complex - Giza's first industrial real estate project - is located in Tien Kien commune, Lam Thao district, Phu Tho province, 65km from Noi Bai International Airport and next to Noi Bai - Lao Cai Expressway. Thus, it has a very convenient and smooth trade exchange and connection with Hanoi, Vinh Phuc, Tuyen Quang, Thai Nguyen and other localities.

Since its inception, Giza determined that Bac Lam Thao Industrial Complex will attract sustainable investment like labor-extensive and land-extensive industries; high-tech, capital-intensive and high-performance industrial projects, with priority given to the ones that shape and connect production and supply chains like electricity, electronics, mechanical engineering, light industrial production and consumer goods.

In addition to the available land fund with synchronous and modern infrastructure, Bac Lam Thao Industrial Complex is developed towards a green industrial complex model to attract low-carbon projects and well-invested wastewater treatment systems and its green space is designed close to nature. Tenants in Bac Lam Thao Industrial Complex will receive active support from Giza Group. We are ready to support them with legal procedures, design, licensing and factory construction. Even, they just need to bring their machinery and equipment for installation and start production.

Can you tell us how Bac Lam Thao Industrial Complex is being implemented? What are its advantages, its disadvantages and government support for it?

As of October 2023, Bac Lam Thao Industrial Complex has completed 100% of infrastructure construction and stands ready to welcome secondary investors.

When we carried out the project, we received enthusiastic support from provincial authorities and the absolute consensus of local people in the project area. On this occasion, Giza would like to send our deep and sincere thanks to the people and the provincial authorities.

However, we also faced some difficulties in this process. Currently, industrial complexes do not receive tax incentives as larger industrial parks, leading to weaker competitiveness of the former. Green infrastructure construction is more expensive while incentives for capital and interest rates are absent. Furthermore, the source of customers for the industrial complex is also limited due to its strict green environment criteria.

Thank you very much!

Ngo Khuyen, Vietnam Business Forum