This is shared by Mr Tran Ngoc Diep, General Director of Saigon - Da Nang Investment Joint Stock Company (SDN), investor of two large industrial parks (Lien Chieu and Hoa Khanh IPs) and many projects at residential areas, other important urban areas, actively contributing to the investment attraction strategy of Da Nang city. According to Mr Diep, as Vietnam’s status in the international arena has been raised and Da Nang is getting more dynamic, the new wave of investment is likely to happen in the near future. Quoc Hung reports.
Creating a strong long term investment environment
Could you please share more about SDN’s investment and business activities, especially the investment attraction in IP projects invested by SDN?
Along with the development of socio-economy of the country in general and Da Nang city in particular, by taking the right steps and promoting the trademark advantages and experiences of Saigon Investment Group (SGI), we have achieved success in business, investment and investment attraction.
In the area of attracting investment in industrial zones, we have joined with SGI Group to carry out many promotion programs, together with the successful organization the APEC Leaders’ Week 2017 of Da Nang, the investment in industrial zones has achieved good results, attracting a large number of FDI projects from countries and regions such as Korea, Japan, Taiwan (China), USA, etc.
Two years ago, the average occupancy rate of our Hoa Khanh Industrial Zone was just over 60 per cent, but it is now more than 90 per cent. The activities of enterprises in Lien Chieu and Hoa Khanh industrial zones have created jobs for tens of thousands of workers, contributing positively to the development of the city.
In the central region in general and Da Nang in particular, there are many industrial parks and economic zones, creating competitiveness in investment attraction. What are the main reasons SDN's industrial parks can create such attraction?
As Da Nang is the centrally-run city, there is almost no investment preferences. Despite that, with favorable geological position and active authority which always strive to build and promote the image of a living Da Nang city, Da Nang is creating huge investment attraction for foreign investors. We, as an IP developer, have taken advantage of that to promote our products and images.
As a member of SGI, we are aware of maintaining the prestige of the Group so we always strive to improve ourselves and the quality of our products and services, fulfill our commitment to our customers as well as to the authorities and people of the city, creating a long-term, sustainable investment environment.
Due to the lack of projects, many IP investors in the first period are relatively easy to attract investment, leading to attracting low quality projects, causing environmental pollution. To ensure an ecofriendly IP, what is the selection of SDN?
The consistent and long-term vision of SGI Group and SDN is sustainable development and the strategic investors we target at are large-scale, high-tech FDI enterprises. The IPs invested by SGI in many provinces and cities such as Bac Giang, Bac Ninh, Hai Phong and Ho Chi Minh City are not only pure ones, they are high-tech ones that are very modern. Investors in these zones are mostly high-tech enterprises with ecofriendly production.
For our IPs in Da Nang, we are always looking for talented, reputable, high technology partners in many fields, especially the investors who wish to invest in development with long-term commitment and the desire to contribute to the development of the locals. Whatever the circumstances may be, we always have the choice of attracting investment, never attracting investment at all costs.
For Lien Chieu IP, before the city transferred the IP to us, there were some existing factories. These factories have caused environmental problems but we have coordinated with businesses as well as relevant agencies to seek thorough solution.
Ready for the new investment wave
Could you share how SDN is prepared to anticipate the world's investment shift?
As I have said before, we will continue to be consistent with the strategic goals that we have set out to attract FDI flows. In the face of world investment shift, more than ten years ago, we have been very successful in anticipation of the wave of investment moving from developed countries and the relocation of factories of large multinational corporations located in China to Southeast Asian countries such as Thailand, Indonesia, Malaysia and Vietnam. At that time, we took advantage of the opportunity to promote the image and then with the support from the business associations of Taiwan, Japan ... we have reaped the positive results, succeed in calling for many big investors.
At present, in addition to the investment shift of multinational enterprises, with Vietnam's increasing status and the dynamics of Da Nang, there may be new waves of investment and we will continue to invest, improve ourselves, and further promote the image to welcome new investors, especially big and high-tech ones.
Attracting large-scale, high-tech projects is what the investors of IPs and provinces wish for. In your opinion, what is the biggest difficulty in attracting high-tech projects for SDN in particular and Da Nang in general?
Da Nang's advantage is geographic location but it has the limit of lacking of preferential policies. To attract high-tech projects, it is necessary to have an effective mechanism, an active working environment with modern and synchronous infrastructure inside and outside the industrial park. It also requires to build satellite services, supporting industries and logistics. Recently, Da Nang city has submitted to the Prime Minister for application of investment policy of deep water port project and coastal economic zone planning. I think that these new plans of Da Nang city play a very important role for the development of the local and the Central region, which, if approved by the Government and successfully invested, will create a huge momentum for attracting investment of the city.
Ideal living environment for experts and workers
It is said that beside IPs investment and attracting IPs investment activities, SDN has also invested in a number of projects in urban and residential areas. What are the results and strategies that SDN determines for this field?
Investment in developing industrial zones is the main and core activity of SDN while other investment fields that are complementary to investors, specialists and labors in the industrial zones are invested by us. Over the past three years, we have invested, at the same time, in the development of three residential and urban projects. Those are the residential area of Hoa Khanh industrial zone with the area of 11.8ha; Bau Tram Lakeside green area project with the area of 46.0 ha and Dragon City Park green area project with the total area of 78.3 ha.
Although playing a complementary role, our residential projects are invested with synchronous infrastructure, built with quality which is not inferior to high-end residential areas. The projects are built in the direction of increasing utility value for residents with high percentage of trees, creating green space; combined with many items such as townhouses, closed public services and facilities, ensuring the standard of living of a modern city but the price is much lower than other projects.
So how can you have high quality products with low cost as you have just shared?
This is because we do not put too much emphasis on the profitability, the development of these residential projects primarily aims at creating a working environment for professionals, workers, ensuring social welfare, and sustainable development strategies for investors in the industrial park and the city.
Thank you very much!
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