Vinh Phat Bac Giang JSC: Partnering with Localities to Drive Investment Growth

By investing in a large-scale, modern agricultural and forest product processing factory, Thao Lam TL Development and Business Company Limited has enhanced the value of agricultural and forest products, created many jobs for local workers, boosted industrial production and significantly contributed to local budget revenue.

Upon completion, Huong Son 2 Industrial Complex will drive local economic growth 

Thao Lam TL, headquartered in Bac Giang City, Bac Giang Province, processes forest products, with the main output including pressed wood and plywood. Since its inception in 2021, the company swiftly developed an investment plan for a project focused on processing local wood, agricultural and forest products for export. The plan prioritized proximity to raw material sources, convenient transportation networks, abundant labor resources and easy access to border gates with China.

After completing investment procedures, in late 2022, the company started to carry out the "Agricultural and Forest Product Processing Factory" project in Lai village, Dai Lam commune, Lang Giang district. The project is located in the center of the province's commercial forest areas such as Luc Ngan, Son Dong, Luc Nam and Yen The districts. At the same time, it is convenient for the company to transport raw materials from neighboring provinces like Thai Nguyen, Lang Son, Yen Bai and Phu Tho.

The factory is also conveniently connected to the border gates with China in Lang Son, via National Highway 1A and Bac Giang-Lang Son Expressway, thus facilitating the import of machinery and equipment for the project and exporting products to partners.

To date, the project has completed construction and put seven factories into operation to manufacture and process wooden bars, pressed wood, plywood and foams. The project employs about 200 workers, each of whom is paid VND8 million a month on average.

As its products are flammable, Thao Lam TL pays special attention to fire prevention and fighting standards. Not only building an automatic fire prevention and fighting system, the company also meets the highest criteria for this work and always propagates and trains its employees on fire prevention and fighting.

In addition, aiming for sustainable development, Thao Lam TL always focuses on improving the working environment, arranging the spacious campus and easy internal traffic and planting trees. In particular, its factories use boilers (for wood drying) powered by biomass energy to reduce electricity bills. At the same time, the company is investing about VND18 billion in a rooftop solar power system to meet 80% of factories' daytime power needs.

A representative of Thao Lam TL said: To complete the construction of the company's "Agricultural and Forest Product Processing Factory" project ahead of schedule, competent authorities of Bac Giang province have accompanied and guided related administrative procedures and accelerated their settlement time. In addition, authorities at all levels, especially the Lang Giang District People's Committee and the Dai Lam Commune People's Committee, have provided maximum support in site clearance and early handover of the site for investment implementation.

The company hopes to receive more support from all levels and sectors to further promote project performance to help raise the value of agricultural and forest products and promote local industrial production. At the same time, the company will create more jobs for workers and actively contribute to the development of Lang Giang district and Bac Giang province.

Thanh Lam In recent years, to realize its industrial development goals, Lang Giang district (Bac Giang province) has prioritized attracting investment and developing industrial infrastructure, particularly eco-friendly industrial zones with integrated, modern facilities. The Huong Son 2 Industrial Complex, invested and developed by Vinh Phat Bac Giang Joint Stock Company, is a prime example of this approach.

With a convenient transportation system, Lang Giang district, the “gateway” in the north of Bac Giang province, is defined as a key point for socioeconomic development, especially services and industry of the province. Located along the Nanning (China)-Lang Son-Hanoi-Hai Phong Economic Corridor, the district has played an important role in boosting commodity production and facilitating economic exchange, benefiting Bac Giang province and Lang Giang district.

In recent years, the district has focused on industrial development, especially modern and synchronous infrastructure in industrial zones to attract investors. The locality has striven to have industrial and construction production value to account for 60% of the economic structure by 2025.

Located in Huong Son commune, Lang Giang district, Huong Son 2 Industrial Complex, invested by Vinh Phat Bac Giang Joint Stock Company, has an area of 65 ha and a total investment of VND688.015 billion. The strategically located industrial complex is adjacent to National Highway 37 to the north, the Hanoi-Lang Son Expressway to the east, and planned roads to the west, providing favorable conditions to attract investors.

Once completed and operated, Huong Son Industrial Complex will create a driving force to promote the economic development of Lang Giang district and Bac Giang province. At the same time, it will increase the industrial share and foster the development of an environmentally sustainable green ecosystem with advanced technological integration.

Decision 1027/QD-UBND dated November 28, 2024, by the Bac Giang Provincial People's Committee revising the construction timeline for the Huong Son 2 Industrial Complex, outlines the project as follows: From the second quarter of 2023 to the second quarter of 2025, the investment project will cover approximately 50 ha of land (excluding 15 ha for soil leveling), with activities including legal procedures, detailed planning, feasibility studies, construction drawings, and environmental impact assessments. From the third quarter of 2025 to the end of the fourth quarter of 2026, the focus will be on site clearance and compensation, completing technical infrastructure, and attracting secondary investors to lease at least 60% of the industrial land area.

In the second phase (from January 2026 to the end of November 2027): Carrying out investment, environmental, construction and other related procedures for 15 ha (the above overlapped area), completing land compensation and site clearance, technical infrastructure and attracting secondary investors to fill 100% of the rentable industrial land area.

Huong Son 2 Industrial Complex aims to become a green industrial hub, attracting industries such as agricultural and forest product processing, food manufacturing, electrical, electronic and mechanical components production, garment manufacturing, medical and pharmaceutical equipment production, packaging manufacturing and other supporting industries. Notably, forest product processors will advantageously source local raw materials in Luc Ngan, Yen The, Son Dong and Luc Nam districts (Bac Giang) and neighboring provinces such as Thai Nguyen, Lang Son and Yen Bai. At the same time, it is convenient to export products to the Chinese market through border gates in Lang Son province.

To achieve sustainable development goals, in addition to investing in synchronous modern infrastructure with wastewater treatment systems and planting trees, the complex will entice investors supporting environmental protection, green economy, circular economy, new energy and renewable energy, thus contributing to fostering the development of a new industrial ecosystem in the district.

In addition to industrial infrastructure development, Vinh Phat Bac Giang Joint Stock Company takes care of the life of its employees. Currently, the company is carrying out the Nham Bien Social Housing Project in Yen Dung district (now Bac Giang City). Covering 5.1 ha and costing nearly VND1,800 billion, the project consists of high-rise social housing, low-rise commercial housing, technical infrastructure, yards, roads, landscape trees and kindergartens and medical services for the resident community.

Currently, the project has started construction and is set to deliver apartment units to the market in 2025, addressing the housing needs of workers in industrial zones and low-income individuals, thus enabling the successful implementation of the Bac Giang Housing Development Program till 2030 and the Bac Giang Social Housing Development Project for workers.

Remarking on the investment environment in Lang Giang district, Ms. Tran Thi Phuong, Chairwoman of the Board of Directors of Vinh Phat Bac Giang Company, said: In the past time, the company has received strong support and facilitation from all relevant authorities, particularly the Lang Giang People's Committee, in handling related procedures, with a focus on accelerating the site clearance process.

To complete and put the project into service on schedule and achieve high performance, the company hoped that the Party, authorities and people in the project area will continue to support site clearance in the coming time, assist the company in executing relevant legal procedures and boost investment promotion.

“The company is committed to ensuring the progress and quality of the project, hence contributing to the sustainable development of Lang Giang in particular and increasing the appeal of Bac Giang investment environment in general,” she emphasized.

By Duy Anh, Vietnam Business Forum