New industrial zone with automotive suppliers park, logistics and general industry zones next to Lach Huyen Port
Haiphong, October 5, 2017, today, the Ground Breaking Ceremony of the Hai Phong International Gateway Port Industrial Zone (DEEP C III) was organized in Cat Hai Island, Dinh Vu – Cat Hai Economic Zone, Hai Phong city. This new DEEP C zone is located at the best place in the north of Vietnam with prime intermodal connections: it is close to seaports – new Lach Huyen port, airports, highway networks and to China. This new zone will welcome automotive suppliers, companies from the logistics business and general/light industry as the location is key for doing business in ASEAN.
The groundbreaking ceremony of this new 520 ha took place with the witness of Mr. Pieter De Crem, Secretary of the State for Foreign Trade of the Kingdom of Belgium, Mrs. Jehanne Roccas, Ambassador of Belgium to Vietnam, representatives from the Ministry of Planning and Investment, Haiphong People’s Committee, competent local authority, investment promotion agencies, and the media.
Different focus industries
The new zone will welcome different businesses: logistics, the suppliers for the automobile industry and light & general industries. Why those three?
1/ Automotive supplier industry
The Vietnamese car market is expanding rapidly: while by 2020 the forecast is that 220,000 cars will be sold in Vietnam annually – by 2030 it will soar to 1.5 million annually. But opportunities go much further than the supply of the local market. DEEP C will attract automotive suppliers who are eying Vietnam to supply ASEAN and find an alternative for the increasing costs in China. As Bridgestone did already some years ago by building his manufacture in Haiphong, DEEP C.
In this unique integration of the world’s economies, an automotive supplier can reach manufacturers in the FTA countries that produce 33 million vehicles annually, while benefitting from the lowest possible tariffs.
Then there is Vietnam’s supply chain: over 2.5 billion potential customers within a range of just 3,000 km. Modern seaports that are fewer than five days shipping from many major markets. Air links within four hours of those markets.
“We believe Vietnam is the next automotive hub for both OEM and Tier 1/Tier 2 suppliers – not only in Southeast Asia, but also in Europe and North America,” states Hans Kerstens, Head of Business Development of DEEP C Industrial Zones.
With a first deep water port for the north of Vietnam, the country allows cost efficient imports and exports due to direct connections avoiding transshipment in Hong Kong or Singapore. Add to that the vast expansion of the airport of Haiphong and new highway network linking the port city to China and Vietnam’s capital Hanoi in less than one hour.
In one word: the ideal location for containers, dry and liquid bulk, exceptional cargo, distribution center for spare parts, air freight… prime land with water connection.
3/ General/light industry
Light industry is per definition an industry that is usually more consumer-oriented. In principle these goods will be exported to other Asian countries or produced as intermediates for use by other industries. So foods, beverages, personal care and home care products, cosmetics, pharma, furniture, consumer electronics, industrial and home appliances manufacturers and many more are welcome in our new zone. Conversely, heavy industries and other supporting industry are welcome in the other zones.
Ideal ‘eco’ location
DEEP C III covers 520 ha including an Inland waterway port in the zone managed by the Belgian share holding company Rent-A-Port and Haiphong people committee, who are currently operating the Dinh Vu Industrial Zone, under the brand name DEEP C. DEEP C III is well connected to Lach Huyen international deep seaport 100,000 DWT, Tan Vu – Lach Huyen Bridge, Hanoi-Haiphong Express way and Haiphong – Ha Long – China Expressway. In addition, the International Cat Bi airport is 40 minutes by car in distance, with direct flights to several Asian countries and a lot of cargo possibilities.
Haiphong is one of the three biggest cities in Vietnam with 100 year industrial history and taking initiatives in investment environment upgrade and improvement. This new zone is one of the finest examples of the progress Haiphong wants to make to attract foreigners and do more trade with the whole world.
In line with the development trend in Vietnam, DEEP C III Industrial Zones strengthen his ambition to become a real eco park: offering eco solutions to his tenants to be more than in line the Government and sustainable development trend and global integration. It is strong ambition of the shareholders to join this program. ”We are the first pioneer in Haiphong city to participate in the project. Implementation of eco – park initiative for sustainable industrial zones in Vietnam is for us a major goal.” states Frank Wouters, CEO of DEEP C Industrial Zones.
First tenant of the new zone: a power equipment complex of GELEX
On the same day, a Principal Agreement on land lease of 50 ha for a power equipment complex between GELEX and DEEP C III industrial was inked.
GELEX is one of the leading successful private company in Vietnam. Incorporated in 1995, Vietnam Electrical Equipment Joint Stock Corporation (GELEX) has been striving to rally the strength of production and business units involving in the electrical engineering industry.
With 50 ha complex of USD 200,000 – USD 300,000, GELEX expects to firstly launch its power cable workshop of USD 40,000 by the end of 2018 with German technology, it will be operated by Cadivi, GELEX’s subsidiary, followed by power transformer workshop of USD 160,000. The product will be shipped out to customers in Asian region and local market. Upon operation, it shall create job for 200 workers. The vacancies will be opened as from quarter 3/2018.
“We are happy to welcome GELEX as the first Vietnamese company in our new zone and are sure we will do some ‘electrical’ business with GELEX to assure the best services to all new tenants. It’s a pure win-win operations for all new-comers in the zone”, affirms Hans Kerstens.
Customers in DEEP C III Industrial Zone can enjoy the same Economic zone tax package, as well as the same quality of stable power, quality water and other services as in the others DEEP C zones.
DEEP C Industrial Zones will have more than 2,000-hectare industrial complex in Haiphong city and attracted to date nearly 3 Billion USD from more than 70 international companies and created job for 10,000 workers. This thanks to a strong cooperation between a foreign consortium and Haiphong People’s committee.