Long Hau Industrial Park - A Driving Force of “Toward the East Sea” Strategy

 

Based on comparative advantages, role & position of Ho Chi Minh City to the Southern key economic zone, Southeast Vietnam, the Mekong Delta, Central Highland and of the whole country, Ho Chi Minh City’s socio-economic development is closely associated to the master strategy of socio-economic development of the Southern key economic region and of the whole country. To remain its role as a motive force of the region, it is urgent and necessary for HCMC to focus on investing in synchronous infrastructure; transferring economic structure to the direction of intensifying proportion of services; export based economic development; modernization of services, especially those serving economic structure transferring & industrialization, make it keep pace with demands of socio-economic development of the Southern key economic region and of the whole country.

 

The above situations require HCM City to concentrate on solving all barriers that cause bad effects to the process of urbanization, to prepare for long-term progress of a young but dynamic city in the future. The strategy of “moving forward to East Sea” is estimated as an economical and effective solution at this moment. This move helps HCMC expand its space of urban development, create new urban premise for the city to build Industrial Parks and new urban areas. At the same time, it helps HCMC to open a new port area that is much closer to the sea, allows receiving bigger ships, reducing the burden of traffic-jam at Saigon Port. More important, based on this strategy, HCM City will have more favorable conditions for building a series of bridges crossing Saigon River, strengthening trade activities and exploiting key economic fields from port and logistics services.

 

The reality is that developed countries and fastest developing countries in the world have strongly focused on development of coastal areas. Most big cities of countries in the world are located by a sea port.

 

With a strategy of moving forward to sea, apart from building sea ports, HCM City intends to open a sea port urban area including urban area, industrial park and Hiep Phuoc sea port with total area of 4.000 hectares. Together with Hiep Phuoc Port Urban area, Tan Thuan export processing zone, South Saigon new urban area, etc, Long Hau Industrial Park – a model Industrial Park invested by IPC- will create a population of most dynamic economic areas in HCM City. In addition, Long Hau Industrial Park will play an important role in the whole process of development of HCM City, especially in the strategy of moving forward to East Sea.

 

Long Hau Industrial Park is established by a economic development cooperation program between HCM City and Long An Province on purpose of urbanizing Can Giuoc District (Long An), making it a modernly industrial urban area right next to the city; and IPC is an important linking bridge undertaking this mission.

 

Long Hau Industrial Park (IP)is in the master plan of Hiep Phuoc Port Urban Area with an area of 3.900 hectares, under the prioritized industrial development strategy of “toward the East Sea” of Long An Province and HCM City. There are now 19 industrial Parks (operating) in Long An province. In term of products, compared to other 18 industrial parks, Long Hau has modern infrastructure with essential conditions for investors to uphold their capability and to strengthen their production activities. However, in term of geographical position, Long Hau has a strategic position and competitive advantages compared to other 18 Ips. Long Hau IP is 12km from Phu My Hung, 25 km from Tan Son Nhat International Airport and 3 km from SPCT & Saigon Hiep Phuoc Port. With this, Long Hau IP is an optimal solution, a strategic destination for investors in fields of logistics and import-export businesses. It is very favorable for investors to import material and export finished products at the sea ports. Besides, it helps enterprises in Long Hau Ip take advantage of technical infrastructure, services and of HCM City’s consumption market.

 

Adjacent to Phu My Hung Urban Area – a place of foreign experts, high quality work force- allows investors in Long Hau Ip easier to attract talents than any other Ip. In term of distance, it is only 20 km from existing areas of HCMC Center where located big markets with abundant work force. A strategic position right next to material resource and highly skilled work force will create favorable conditions for investors to consume their products and to attract high quality human resource.

 

In order to excellently complete its assigned mission, IPC and Viet Au Joint-Stock Company found Long Hau Joint Stock Company (stock code: LHG) to use advantages of perfect and modern infrastructure connection of HCM City, aiming at turning the salinity land of Can Giuoc District (Long An) into a complex of modern urban area and industrial parks.

 

With ceaseless efforts of LHG’s staffs and workers, more than 80% of industrial park area and 30% of the expansion area are ffilled up. The IP has attracted 58 enterprises with a total capital of 3.000 billion Dong and US$ 79 million. After over 3 years of operation, LHG has been turning Can Giuoc- a land of rich potential- into a homeland of logistics companies. Long Hau Ip attracted 16 logistics companies (Lotte Sea Logistics, Swire Cold storage, Anfa AG, etc) – largest number of logistics companies at an industrial park in the South.

 

Mr. Doan Hong Dung, General Director of Long Hau Corporation affirmed that Long Hau Ip and Hiep Phuoc Saigon Port, together with Phu My Hung new urban area will create a driven force axis for industrial development strategy “toward the East Sea” of HCM City and Long An Province. At the same time, it will attract a big number of high quality human resource, create a firm foundation for future’s breakthroughs. Mr. Dung added that Vietnamese economy is showing good signs of recovery in 2010; investors are leasing land for production development to grasp their opportunities. For the reason, LHG will continue to carry out its strategy of diversifying products, developing new products and new markets. Specifically, LHG continues to implement the project of Long Hau 3 Ip, investing in new Ip in the area bordered by HCM City, striving for expansion of more 1.650 hectares in Can Giuoc District in 2012.

 

At the moment, Long Hau Ip is continuously implementing Long Hau 3 Industrial Urban Area with total area of 1.650 hectares at Can Giuoc District.

 

“Towardthe East Sea” strategyis aspired by HCM City’s people and those of Southwestern area in a journey of conquering nature; widening space of living and production;moving toward a better living. And Long Hau Ip – a key driven force of the strategy “toward the East Sea” will affirm its role and its position in the future’s journeys.