SDN-Trailblazer in Exploiting New Lands

Saigon - Danang Investment Joint Stock Company (SDN) is a member of Saigon Invest Group (SGI), a leading developer of industrial parks and urban areas in Vietnam. Inherited the brand name and experience of SGI, SDN with its ongoing creativity has brought a new gust of vitality to the development of industrial parks and urban areas. SDN has pioneered new solutions to help its customers to get worthy rewards from their investment and contribute to the economic prosperity of Da Nang.

Constructing industrial parks on waste lands
Vietnam has many industrial parks, urban areas and residential areas and many of them are situated on prime locations; downtowns or fertile agricultural lands. Meanwhile, barren, deserted and infertile farming areas are disregarded by investors. Seeking a new way in this trend, Saigon Invest Group (SGI) pioneered to find new barren lands, far from urban areas to build dozens of industrial parks and urban areas throughout the country, including its projects in Da Nang City.

In the early 2000s, Hoa Khanh and Hoa Hiep wards in Lien Chieu district were sparsely populated and deserted, with almost no agricultural value. For that reason, Da Nang City advocated developing industries there. Capturing the city’s policies, in 2005, Saigon Invest Group led by Mr Dang Thanh Tam established Saigon - Danang Investment Joint Stock Company (SDN) and asked for permit from the Da Nang People’s Committee to invest in 400 ha of land to develop two industrial parks, namely expanded Hoa Khanh Industrial Park (132.6 ha) and Lien Chieu Industrial Park (289.35 ha).

Inheriting the well-established brand strength and decades-long experience of industrial development investment, strong financial capacity of Saigon Invest Group plus its dynamism, creativity and aspiration, SDN actively commenced construction of infrastructure such as electricity, water, sewage system, traffic, inland clearance depot (ICD) and green areas, Lien Chieu Industrial Park and expanded Hoa Khanh Industrial Park have become first choices for many domestic and foreign investors. After more than 10 years of development, both industrial parks have leased 70 per cent of rentable area to domestic and foreign investors, which have employed tens of thousands of local labourers.

Lien Chieu and Hoa Khanh industrial parks are the leading lights in attracting foreign direct investment (FDI) in Da Nang City. Their remarkable tenants include TCIE Vietnam Co., Ltd (manufacture of Nissan automobiles), TC Motor Vietnam, Crown Packaging Cans Ltd, Yusen Logistics Vietnam Co., Ltd and Vietnam Post Corporation with a combined registered investment capital of hundreds of millions of US dollars.

Mr Tran Ngoc Diep, General Director of Saigon - Danang Investment Joint Stock Company (SDN), modestly said SDN’s success is inherited from the experience and brand prestige of SGI Group. He also stressed the strategic positions of Lien Chieu and Hoa Khanh industrial parks. Investors can feel completely assured in investing in expanded Hoa Khanh Industrial Park and Lien Chieu Industrial Park because of their favourable positions for business production and development, he said. Both industrial parks are adjacent to National Highway 1A - the most important traffic route that runs across Vietnam, and near Tien Sa Port - the largest seaport in central Vietnam where investors can easily access international shipping routes and the eastern terminus of the East - West Economic Corridor which links Laos, Myanmar and Thailand and Vietnam.

“With these advantages, SDN is trying to call more investors of various industries, especially hi-tech, that meet expectations of Da Nang City on high-level industrial development. And, SDN will endeavour to be a trailblazer that bring new solutions to provide maximum capital supports for tenants,” Mr Diep noted.

Model urban areas
Not only leading industrial park development, Saigon Invest Group is well-known for its rich experience and prestige in urban zone development.

To catch the general development of Da Nang City and promote its strengths, SDN also did not hesitate to invest in real estate. The first arrow that SDN shot into the Da Nang real estate market is industrial park property. An arrow hit double targets - going ahead to lead the market development and meet people’s needs on the one hand and serving professionals and workers in industrial parks on the other. This forte step also represented SDN's vision and responsibility for harmonious development of a complete industrial park and an urban area.

Accordingly, SDN invested in infrastructure development for the 11.8-ha residential zone in expanded Hoa Khanh Industrial Park. This project increased utilities for dwellers in a highly green living space, combined many items such as townhouses, services and public facilities, and ensured high living standards of a modern residency. Hoa Khanh Residential Area is considered an ideal residence for a majority of people, evidenced by the selling out of all 520 land plots that SDN marketed in just three months in 2016.

Following the success of the residential area project besides expanded Hoa Khanh Industrial Park, SDN invested in and developed the 46-ha Bau Tram Lakeside Green Urban Area, scheduled to be marketed in 2017 and early 2018. In 2018, the 78.3-ha Dragon City Park, a green urban area inspired by the legendary tale of King Lac Long Quan and Mother Au Co and by the image of Vietnamese-purebred dragon in the Ly Dynasty, is expected to become a “European city in the heart of Da Nang” with many modern facilities such as townhouses, villas, apartments, green spaces, high-class public utilities and closed services of European city standards.

Embracing APEC opportunities
With the aim of making Da Nang a modern industrialised city, the municipal government has adopted policies and guidelines to attract investors and investment resources, including special incentives for enterprises. A favourable geographical location, a transparent government that always leads the Provincial Competitiveness Index (PCI) in the country, a highly qualified young workforce and a complete and synchronous infrastructure system will be a solid basis for Da Nang City to accelerate its development in the coming years.

As the destination for the APEC Summit Week 2017, Da Nang City will have a strategic opportunity. The summit is scheduled to take place in November 2017 and the most important event is the APEC Economic Leaders Meeting attended by leaders of 21 APEC member economies and thousands of official delegates, business leaders and media agencies. This event marks a milestone in socioeconomic development history and contributes to shaping the future of Da Nang City. During the APEC Summit Week, the APEC CEO Summit, the ABAC Dialogue with Leaders and the APEC Ministerial Meeting will be opened.

From the perspective of an investor, Mr Diep is very optimistic about this special event. As the host of the APEC Summit Week 2017, Da Nang City will be at the centre of international attention as leaders, ministers and CEOs from 21 APEC economies will gather in the city in November 2017, he said. “This will be a great opportunity for Da Nang to present its potential to the world as an important destination for tourism and investment. Opportunities of the city will also be opportunities of the businesses,” Mr Diep stressed.

Recognising opportunities from the APEC Summit Week 2017 and catching the new wave of global investors, SDN has upgraded infrastructure systems for its estates like planting more trees, paving sidewalks, upgrading lighting systems and wastewater treatment systems to better meet requirements of big investors and corporations in the world. Mr Diep said, “We have invested in building infrastructure, prepared vacant land and standard workshops for investors. With our efforts combined with open investment procedures of Da Nang City, we believe that we will satisfy investors. Coming to Da Nang, investors can feel completely assured in cooperating with SDN as the best choice and the most reliable partner. That is the message I want to send to investors.”

In addition to business, SDN actively takes part in social and community development activities and gratitude programmes, assists the poor and finances investment promotion programmes of Da Nang City. Especially, in spite of being a private enterprise, SDN is very keen on developing the Party organisation. SDN has a Party Committee affiliated to the Party Committee of Da Nang Industrial Parks Authority. It has 17 Party members.

Quoc Hung