SDN Joins Hands with Da Nang to Draw Investment

10:25:38 AM | 23/12/2019

Saigon - Da Nang Investment Corporation (SDN) is a member of Saigon Investment Group (SGI), one of the leading private corporations in Vietnam with stunning successes in investing and developing hi-tech industrial parks and top-class achievements in FDI attraction in Vietnam. With a long-term vision and perspective on sustainable development, SDN has successfully developed some industrial and urban area projects in Da Nang City and positively contributed to local socioeconomic development.

Mr. Tran Ngoc Diep, General Director of SDN, said that, in recent years, despite economic fluctuations, SDN still achieved important business results.

To meet investment attraction requirements in the coming time and create a long-term production environment for businesses, what are the company's solutions?

Currently, Expanded Hoa Khanh Industrial Park and Lien Chieu Industrial Park still have a part of area to be filled. In order to attract good investors to the city, we always determine and endeavor to prepare a complete and synchronized ground for them. When they come to Da Nang, after being granted investment certificates and signing contracts with SDN, they will immediately be handed over the land for business.

We hope to have more investors to Da Nang City in the coming time and our industrial parks will be their choice. But for a sustainable industrial environment, we always consider choosing competent investors with environmentally friendly projects that use modern technologies.

These efforts not only help us and the city have good investors, but also form a sustainable industrial environment. This approach also benefits tenants in our industrial parks.

SDN’s core business is industrial park infrastructure development. The company has attracted many domestic and foreign investors. Expanded Hoa Khanh Industrial Park has now filled up 90% of the area and only a small area is left for building factories for long-term lease. And, Lien Chieu Industrial Park has leased 70% of the rentable area although this is far from the center of the city.

Notably, SDN has attracted some FDI projects from South Korea, Japan, Taiwan, the United States and other countries. Typical tenants include TCIE Vietnam Co., Ltd (manufacturing and assembling Nissan vehicles), TC Vietnam Motor Co., Ltd, Crown Packaging Co., Ltd, Yusen Logistics Vietnam Co., Ltd in Da Nang City, Logitem Vietnam Co., Ltd, Vina Foods Kyoei Co., Ltd, Lovepop Vietnam Co., Ltd (U.S. startup), Key Tronic Vietnam Co., Ltd, Liwayway Food Industry Co., Ltd, Haohsing Investment Co., Ltd, Nippon Konpo Vietnam Real Estate Co., Ltd, and Indotran Logistics and Forwarding Joint Stock Company, with registered capital value of hundreds of millions USD.

Reportedly, some tenants in SDN’s industrial parks are still using obsolete technology. So, what measures does SDN take to avoid environmental risks?

Previously, Lien Chieu Industrial Park advocated attracting heavy industry projects. We took over companies with the risk of polluting the environment when they used outdated technology. After the takeover, we have not accepted any company with pollution risks.

Some previously polluting companies have their technologies upgraded and achieved good business outcomes. To minimize environmental pollution risks, we will continue to coordinate with authorities to encourage businesses to upgrade technology and administration to ensure environmental safety.

In addition to investing and developing industrial park infrastructure, SDN is investing in residential areas around its industrial parks to serve the housing demand of experts and workers there. Could you please tell us some results?

As I have said, our residential and urban projects are built quickly and effectively. This is not a core business but it plays a very important role in complementing the core. Without this activity, it will be more difficult to draw investment capital because, as you know, human resources will be the first criteria to be considered by any investor. Workers not only must have good skills to do their jobs but they also need to have long term, convenient and stable accommodation. Therefore, residential areas and urban areas are developed quickly and effectively by us.

In spite of playing a supporting role, our residential and urban projects are invested with synchronous infrastructure. The infrastructure quality is not inferior to that in high-end residences. These facilities increase added utilities for residents, such as green spaces, townhouses and public services and utilities, which are needed for a standard life in a modern residence.

How will low-income earners in industrial parks access settlement when the real estate market in Da Nang City has witnessed continuous price growth?

This is what we pay special attention to. In order to create the opportunity for workers and low-income earners to have residence, all our residential projects have affordable apartments for low-income people. For example, Bau Tram Township has 20% of the area for projects for low-income people and SDN is now asking the city’s approval for these items to be implemented.

This is what we pay special attention to. In order to create the opportunity for workers and low-income earners to have residence, all our residential projects have affordable apartments for low-income people. For example, Bau Tram Township has 20% of the area for projects for low-income people and SDN is now asking the city’s approval for these items to be implemented.

As for residential land, with our main goal of serving workers in industrial parks, the price we offer is reasonable. In fact, our land price is always lower than others in the market and a lot of workers in industrial zones can buy their houses.

SDN’s business results are still very good even in the time of economic fluctuations. Why does the company have this success?

As a member of Saigon Investment Group (SGI), SDN develops on SGI’s traditional foundation, culture and common goals. And, our first goal is determined by the community. Therefore, we have constantly made efforts to develop industrial parks, attract investors, create jobs and pay the State Budget. We have high appreciation of the Party and the State.

We are always proud of our tradition and corporate culture as well as our goals passed on to all our employees to make them know their roles. Our income and profit may not be as high as many other real estate businesses, but our values for the community always make us proud and inspire all of us to strive for that ideal. This will also help raise productivity.

Our motto is “Customer success is SDN’s success” and “SDN creates the foundation for development". So, to customers, we provide accurate information, bring true products of real value. Since then, they feel assured when they come here to cooperate with us for long-term stability and will always have us on their side.

In addition, another characteristic culture of SDN is the close cohesion of the company with the locality and mass organizations to facilitate development. Although SDN is a private joint stock company, we also have a Party cell with many members and a self-defense force, and we always cooperate with local authorities to execute Party guidelines and State laws.

Although it is a potential land, it seems that investment flow into the industrial sector in Da Nang has weakened. Why does this reality happen, sir?

Da Nang City is a land of great potential as it has a favorable location and a good name on the international arena. This creates the opportunity for development, especially attracting large economic corporations in the world. The industrial environment of Da Nang City is still small as compared to that in Bac Ninh, Hai Phong, Dong Nai and Binh Duong where there are a lot of vast industrial zones. Da Nang City currently has six small industrial parks and it is very difficult to allocate land for large projects and their satellites. For example, in our Trang Due Industrial Park in Hai Phong City, LG Group and its support producers hire up to 300 ha. Indeed, Da Nang City cannot meet this requirement for the time being. Without an effective solution to this, the city will miss the opportunity.

Will SDN side with Da Nang City to overcome the above weakness, sir?

We will always try our best to join with the city to attract investment, especially large-scale and high-tech projects. Therefore, we proposed the city to ask the Government for permit to invest in a larger-scale economic/industrial zone for investors. With our experience, capacity and brand built from our projects, I believe that if we are trusted by the city and the Government, we will develop successfully.

Urban development has also achieved positive results even though it is just a complementary business to SDN’s industrial park development. Its residential projects such as Expanded Hoa Khanh Industrial Park (11.8 ha), Bau Tram Lakeside Green Residence (46 ha) and Dragon City Park Green Town (78.3 ha) are quickly carried out to provide accommodations for buyers, especially experts and workers working for tenants in its industrial parks.

Quoc Hung (Vietnam Business Forum Magazine)