SDN Exclusively Designed for Investors

4:41:17 PM | 4/20/2015

By meeting investors’ expectations for prime locations, complete infrastructure systems, low rent rates, diverse and quality utilities, stable security and environmental friendliness, the expanded Hoa Khanh and Lien Chieu industrial zones developed by Saigon - Da Nang Investment Corporation (SDN) have been chosen by many investors.

Potential and advantages

The top advantage of the expanded Hoa Khanh Industrial Zone and Lien Chieu Industrial Zone is their favourable positions, between the country’s two largest economic centres of Hanoi and Ho Chi Minh City along National Road 1A. They are close to Tien Sa Port where goods are conveniently transported to and from Japan and South Korea and the East-West Corridor linking Vietnam, Laos, Thailand and other nations. Both IZs are near to the downtown of Da Nang City where the work force is abundant, the transport system is convenient, and security is very good. As part of Da Nang City’s industrial zone development plan, the two IZs receive the special care and support of the municipal government, particularly for infrastructure development investment.

In addition, Expanded Hoa Khanh IZ and Lien Chieu IZ have complete infrastructure systems (traffic, communications, verdure, power supply, water supply, wastewater treatment, fire protection and other facilities) and diverse services to meet investors’ demands. Defining that the protection of living environment and production environment is associated with the survival of enterprises and the sustainable and effective development of IZs, SDN thus always focuses on integrating investment attraction with environmental protection. For that reason, each industrial park has its own standard wastewater treatment system (Expanded Hoa Khanh Industrial Park has a wastewater treatment plant with a daily capacity of 5,000 cubic metres and Lien Chieu Industrial Park has a facility with a daily capacity of 2,000 cubic metres). Everyday each facility treats 500-600 cubic metres of wastewater, meeting B quality standards specified in the QCVN 40”2011/BTNMT.

In addition, time-saving administrative procedures and open investment environment are also important pluses in the eyes of investors. Da Nang has been known as city of administrative reform of the country and SDN is an extended arm of Da Nang Industrial and Export Processing Zones Authority (DIEPZA) and the Da Nang City People’s Committee in an effort to create the most convenient and fastest conditions for investors to collect information. SDN actively support investors in carry out administrative procedures, represents them to deal with investment registration procedures, thus making them feel assured when they locate their projects in the two IZs.

So far, although the infrastructure systems in the two IZs are relatively completed, land rental rates are rather low relative to other IZs in the city and the region. This is also a point for the choice of investors. SDN General Director Tran Ngoc Diep said “Land rental is an important factor for investors to go to our industrial zones but it is not the deciding factor because they also look at other factors like geographical locations, natural conditions, transport costs, customs and investment incentive policies, and reputations of developers. Before making any investment decisions, all investors carefully search for information through media, communications, industrial park management units, and current tenants. Therefore, we always take care of infrastructure systems in our industrial parks as well as keep good relations with old tenants. We are committed to serving with the highest quality and the lowest costs for existing tenants in Expanded Hoa Khanh IZ and Lien Chieu IZ to make them feel assured with production and investment expansion. The investment expansion of investors is the most objective assessment for the quality of our industrial zones.

Grasping opportunities to develop supporting industries

By meeting investors’ expectations for prime locations, complete infrastructure systems, low rental rates, diverse and quality utilities, quick administrative procedures, stable security and environmental friendliness, Expanded Hoa Khanh IZ and Lien Chieu IZ have been chosen by many companies like TCIE Vietnam Co., Ltd (TCIEV) with a Nissan automobile assembly plant in Expanded Hoa Khanh IZ, Da Nang Crown Beverage Package Co., Ltd, Seto Vietnam Co., Ltd, Da Nang Liwayway Food Industry Co., Ltd. The application of standard requirements not only affirms the prestige of SDN and Saigon Invest Group (SGI) but also contributes to building the dynamic picture of Da Nang City and the attractiveness of investment and business environment.

“After surveying many industrial zones in the city, we see the potential in economic development at Expanded Hoa Khanh IZ, where investment support policies are investor-friendly, labour force is abundant and cheaper than neighbouring areas, and social security and political stability is good. More importantly, technical and social infrastructure in the IZ has high quality that meets strict Nissan requirements. Therefore, we’ve decided to build our factory here. In addition, we also receive the support from Da Nang City authorities and SDN for our investment”, said Mr Loh Chun Ying, Chairman of TCIEV.

As a member of Saigon Invest Group (SGI), SDN has two industrial zones, four urban zones, one luxury resort, one trade, entertainment and hotel complex, and others. Industrial park infrastructure business is the main operation of the company.

Expanded Hoa Khanh Industrial Zone, covering an area of 132.6 ha and having occupancy rate of 63 percent, is housing 20 projects invested by 16 companies, including 14 FDI projects. The 289.35ha Lien Chieu Industrial Zone, with an occupancy rate of 55.6 percent, has attracted 25 investment projects from 25 companies, including three FDI projects.

Although Lien Chieu and Expanded Hoa Khanh IZs target at high-tech, FDI projects as the tradition of its mother company SGI, SDN is not strict with this criterion. In both industrial zones, SDN provides consultancies for investors when they invest there, sets requirement standards of technology, wastewater treatment system and environment. Hence, no tenants have been fined for breach of environmental regulations. In addition to synchronous infrastructure systems and rich utilities, SDN also has good investment strategies and excellent service for tenants. This really is a big plus in attracting investors.

According to SDN General Director Tran Ngoc Diep, Da Nang City has an advantage in infrastructure, material zones and low labour costs, however, supporting industries are yet to be developed, which makes it difficult for attracting and retaining big companies from Japan or South Korea. Therefore, the need for development of supporting industries is more urgent than ever. “We want the government of Da Nang City to propose the establishment of industrial zones exclusive for supporting industries in Da Nang City. SDN can offer land (20-30 ha) for such zones to attract big investors. SDN is ready to accompany and support all investors in Da Nang City, particularly Expanded Hoa Khanh and Lien Chieu IZs,” said Mr Tran Ngoc Diep.