November 19, 2015.
Most foreign companies looking to establish in Vietnam today, in manufacturing, food processing or logistics, are encouraged to set up in Industrial parks. There is a boom in the establishment of these parks that offer better infrastructure, management, licensing assistance and also on site customs clearance.
Hiep Phuoc Industrial Park JS Co., (HIPC) in Ho Chi Minh City is one of many but they have seized the initiative and pledged a slew of incentives for enterprises in mechanical engineering, electricity-electronics, plastic-rubber; and food processing sectors when they set up shop in the park.
HIPC said it has set aside many land plots with 1,500 square meters each at Hiep Phuoc Industrial Park (IP) in HCMC’s Nha Be District for small and medium enterprises (SMEs) which make products for supporting industries.
Tenants will be supported to complete procedures for their projects at Hiep Phuoc IP. Vietnam Bank for Industry and Trade (Vietinbank) and Bank for investment and Development Vietnam (BIDV) have signed agreements with HIPC to finance 70% of the total investment cost of a project with a lending term of ten years.
HIPC said 97% of 310 hectares developed in phase one of Hiep Phuoc IP have been leased to 97 operational projects with total registered capital of over VND 12 trillion (US$534 million). These projects have employed nearly 9,000 workers.
The company is developing the second phase covering 600 hectares at Hiep Phuoc IP with 200 hectares reserved for enterprises in supporting industries. Of the 200 hectares, Vietnam-Japan Tech Park occupies 13 hectares including 14,200 square meters of workshops for Japan SMEs, and the remaining 190 hectares are in the preparation process for infrastructure development.
In Mid-September, HIPC clinched a contract to borrow VND 1 trillion from Vietinbank to expand Hiep Phuoc IP. The expansion will help spur the development of the outlying district, especially Hiep Phuoc port-urban area, into an industrial zone with port services, multi-storey and ready-to-use workshops for Japanese investors and firms in supporting industries and logistics.
Source: Saigon Times Daily