SGC Brand Built on Strong Foundation

With sufficient conditions for a modern industrial park, Cai Mep Industrial Park, invested by SGC, is rated as one of the ideal addresses for domestic and foreign enterprises seeking investment opportunities in Ba Ria - Vung Tau province. Founded in 2002, the 670-ha industrial park is situated in the southern key economic zone, specifically in Tan Phuoc and Phuoc Hoa communes, Tan Thanh district, Ba Ria - Vung Tau province. Situated 70 km from Ho Chi Minh City and 40 km from Vung Tau City, and well-connected with national traffic arteries and gateways to coastal provinces nationwide, Cai Mep Industrial Park exerts a strong pull on investors. Particularly, with the advantage of lying in close proximity to deepwater ports capable of serving ships of 80,000 DWT and being about 2 km from many ports like Tan Cang Cai Mep Port, Interflour Port, New Saigon Port (a joint venture with Denmark), New Saigon Port (a joint venture with the United States), Gemadept Port and Japan ODA-funded Port, Cai Mep Industrial Park has favourable conditions to shorten the time and expense for transportation, exportation and importation of goods. This is considered a unique strength making Cai Mep Industrial Park superior to other industrial zones inside and outside the province. The investment for construction and arrangement of specialised seaports like Interflour Flour Port, LPG Petroleum Port, Petec Petroleum Port and Cai Mep Petroleum Port capable of handling vessels of 110,000 DWT inside the industrial park also plays an important role in supporting freight transportation.

 

Besides, the internal traffic system is built according to traffic standards with 31-metre, 24-metre and 19.5-metre breadth. This traffic system is directly connected to Cai Mep - Thi Vai International Port and National Road 51 (running from Ho Chi Minh City to Vung Tau City). The southwest section faces the Cai Mep and Thi Vai rivers running into the sea. The industrial park also has railway connection on the Ho Chi Minh City - Bien Hoa - Vung Tau rail, together with other utilities like telecommunications, electricity, water and gas systems; banking, postal, customs, and security services to ensure the highest utility for investors. Water supply and environmental remediation systems are subject to strict standards and regulations.

 

Furthermore, to provide the most support for investors, Cai Mep Industrial Park Authority also offers many attractive incentives. Accordingly, in addition to supporting administrative procedures like single-window mechanism for investment certification, tax and customs declaration, investment projects in Cai Mep Industrial Park are entitled to preferential corporate income tax of 20 percent in the first 10 years of operation and 25 percent for following years. Investment projects are also granted two years of tax exemption from the first taxable income, and four additional years of 50 percent discount. Companies are exempted from import duties on machinery and equipment that form fixed assets on the condition that such machinery and equipment have not been made by any local manufacturers or otherwise disqualified.

 

With its prime location, complete infrastructure and professional support service network, Cai Mep Industrial Park can house many investment projects of different industries, especially heavy industries, like oil, gas, chemical, metallurgy, light industry, mechanical engineering, ship repairing, agro-processing and food. To date, the industrial park is now housing 10 investors with about 150 ha leased. Notable projects include Interflour Vietnam wheat flour grinding plant, LPG plant and condensate production plant. And most recently, on June 5, 2013 in Cai Mep Industrial Park, Tan Thanh district, Ba Ria - Vung Tau province, Vietnam Rare Chemical Company (VRec) held a groundbreaking ceremony to begin construction of the zirconium compound production plant. This was the first foreign-invested project in Cai Mep Industrial Park and the first rare earth production plant in Vietnam. The zirconium plant will be built on over 4 ha with a total investment capital of VND1.03 billion (US$49 million) to process zircon ore to produce metasilicate and zirconium compounds. Needless to say, the investment of a Japanese company like VRec in Cai Mep Industrial Park is seen as firm evidence to its attractiveness to foreign and domestic enterprises.

 

Speaking of current difficulties, Mr Nguyen Van Khoi, General Director of SGC, stressed: "Before current economic difficulties and challenges, companies need to make changes to survive and develop. Promoting their core competencies and sustainable business strategies will be solid steps for them in the future. As for SGC, the corporation will continue with its corporate restructuring process and place emphasis on improving personnel quality, applying science and technology to business and business activities to enhance productivity and quality and reduce production costs. It will also focus on approaching and expanding domestic and foreign markets, especially new potential ones. It will build and establish joint business systems, and review expenses to monitor and reduce unnecessary ones.”

Remarking on cooperation with foreign partners, he added: "SGC always respectfully welcomes and facilitates foreign investors in Vietnam seeking investment cooperation in the construction industry. In the past year, SGC’s business results have evidenced its strong dynamism and rapid adaptability.

 

Specifically, given the complicated domestic and international economic development, SGC’s business operations in 2012 and early 2013 still exceeded targets. In the coming time, SGC will boost investment in its strong businesses like general construction contractor for civil, industrial, traffic, watering, hydropower, aviation, post, trade, urbanisation and industrial zone infrastructure projects. It will also diversify business fields and strive to make cooperation with capable foreign partners. In addition, SGC always sticks with its partners, ensures long-term cooperation, sustainable development in production and business activities, and strictly complies with the provisions of Vietnamese and international laws, as it specifies in the cooperation and investment principle “For sustainable development and joint benefits.”