Saigon VRG: Prestigious Brand Builds on Success

3:34:12 PM | 31/5/2023

Saigon VRG has continuously increased its revenue and profit in the past years. Determined to become a leading industrial real estate developer in Vietnam, Saigon VRG is striving to create a sustainable business foothold as a reliable partner for customers. Vietnam Business Forum’s reporter has an interview with Mr. Lu Thanh Nha, General Director of Saigon VRG, to learn about the values the company is creating.

Could you please introduce some milestones of Saigon VRG on the way to becoming one of the largest and most prestigious multinational corporations today?

After 16 years of development (since 2007), Saigon VRG Joint Stock Company has gradually grown up with prominent milestones. In 2007, the company established the first industrial park - 342.53-ha Dong Nam Industrial Park in Cu Chi. In 2008, Phuoc Dong - Boi Loi Industrial - Urban - Service Complex was established in Tay Ninh province, covering 2,838 ha. As of 2012, Dong Nam and Phuoc Dong industrial parks attracted a total investment capital of US$2 billion. In 2013, Saigon VRG pooled its capital with VRG Long Thanh Investment & Development Joint Stock Company to establish 498-ha Loc An - Binh Son Industrial Park in Long Thanh (Dong Nai). Also in 2013, the company had the honor of welcoming President Truong Tan Sang to visit factories in Phuoc Dong Industrial Park. In 2014, Saigon VRG continued to develop 311-ha Le Minh Xuan 3 Industrial Park in Binh Chanh, Ho Chi Minh City.

While operating and managing the four industrial parks, Saigon VRG encountered numerous difficulties. However, with its sustainable development strategy, the mission of creating modern and quality production infrastructure and the business principle "Always be your reliable partner", the company has constantly improved its services day by day. In 2022, its industrial zones attracted more than US$8 billion of domestic and foreign investment fund and created jobs for hundreds of thousands of workers.

What competitive advantages does Phuoc Dong Industrial Park hold to create a safe and sustainable investment environment?

Phuoc Dong Industrial Park is blessed with extremely favorable conditions for industrial park development, with four basic advantages: location, geological feature, infrastructure and investment support.

Phuoc Dong Industrial Park lies near the road connected to Ho Chi Minh - Moc Bai Expressway, Trans-Asia Road System, Thanh Phuoc Transit Port, and Moc Bai International Border Gate. From the industrial park, goods can be transported by road or water to Ho Chi Minh City as well as ASEAN markets, thus enabling tenants to transport materials and goods with the lowest cost and shortest time.

Geologically, Phuoc Dong Industrial Park is located entirely on a flat terrain with hard soil and very strong bearing load, up to 17 tons. Therefore, when building a production facility, businesses do not need to drive piles into the ground, which will save up to 30% of construction cost. In addition, the park is 12 -17m above sea level, so it is well drained and not subject to flooding.

On infrastructure, the park developed a comprehensive infrastructure system for tenants, including industrial infrastructure like electricity, water, wastewater treatment, rooftop solar power system and roads with 2 - 6 lanes and 29 - 60m width.

On urban infrastructure, the industrial park has dormitories, townhouses, sporting and entertainment complex, commercial center -hotel, medical facilities, and schools. These are existing infrastructures and there is now room for developing many other infrastructures in the future.

Especially regarding investment support, the company always tries to create a close connection between the management board and tenants to promptly grasp and closely support the latter. Besides, in order for tenants to quickly start production operations, the company also provides free support for preparing applications for investment registration certificate, business registration certificate and land use rights certificate, and at the same time assists them to connect with local agencies/sectors. This is considered a key difference that Phuoc Dong Industrial Park brings to investors.

Not only that, since its establishment, Phuoc Dong Industrial Park has aimed for sustainable development with an ecological industrial park model with a high-class industrial - commercial - residential complex where environmental issues are seriously addressed. The industrial park focuses on developing green trees and urban landscapes, always complies with regulations and standards on factory wastewater, and prioritizes investors with sustainable development, environmental protection and labor safety commitments. We encourage tenants to use more renewable energy and impose their own improvement standards such as clean production in addition to the general environmental standards of the industrial park so as to make Phuoc Dong the best industrial zone in Tay Ninh in the future.

What is Saigon VRG doing to achieve sustainable development?

One of the prerequisites that we always focus on is "Human resources are the most valuable asset of the company". Saigon VRG is committed to providing employees with the best working environment and welfare policy, as well as having special policies on training, salary, bonus and insurance to attract and retain employees.

In addition, the infrastructure system is effectively used. In Phuoc Dong Industrial Park, the company opts for a multiple phase development strategy. Currently, the first phase has been almost completed and the infrastructure has been put into operation and used. During the implementation process, the company always closely works with partners to conduct strict and independent inspection and evaluation to ensure quality and regulatory compliance.

In addition, the company consulted and researched the factory model and the most suitable infrastructure for targeted production lines in the industrial park. In the first phase, we have attracted a total of about US$6 billion of investment capital from 43 domestic and foreign companies which are hiring more than 60,000 workers. The occupancy rate has reached 78%. In the coming time, the company will focus on executing the second phase of the industrial park.

Would you mind sharing the development orientation of the industrial park development in the coming time?

Currently, Tay Ninh is applying many policies to woo investors. Saigon VRG also hopes that the local government will be more active to figure out outstanding advantages as well as obstacles to have specific action plans to develop and improve the Provincial Competitiveness Index (PCI).

We always believe and accompany the provincial government to carry out guidelines, policies and efforts to strengthen the attraction to investment flows, create more jobs for workers and contribute to socioeconomic development of Tay Ninh province.

Thank you very much!

By Cong Luan, Vietnam Business Forum