Last week at an investment promotion conference themed on the northeastern province of Quang Ninh’s convergence and divergence, two big investors signed an MoU and a land reservation contract to commit their investment in Bac Tien Phong Industrial Zone (IZ), developed by DEEP C.

Representatives of Vietnam Investment Q Company and DEEP C Industrial Zones signed the land reservation contractPhoto: Thu Le

Stavian Quang Yen Petrochemical JSC committed to investing $1.5 billion in Bac Tien Phong IZ for its polypropylene particle production project.

The other investor is Vietnam Investment Q, part of Indochina Kajima Development Co., Ltd., a joint venture between Indochina Capital and Kajima Group from Japan. A land reservation agreement was signed with DEEP C for an area of 7.6 hectares in Bac Tien Phong IZ to construct and develop a high-quality and modern ready-built workshop and warehouse system, with a tentative investment of $23.9 million.

The required procedures and investment registration certification granting are expected to be fulfilled in the next month.

Stavian Quang Yen Petrochemical committed $1.5 billion in DEEP C’s Bac Tien Phong Industrial Zone Photo: Thu Le

Also at the event, an investment registration certificate for the BW Industrial Development Bac Tien Phong project was awarded to BW Industrial Development Bac Tien Phong Co., Ltd. The capital involved is $20.5 million in total for the construction and development of a high-quality and modern ready-built workshop and warehouse system in Bac Tien Phong IZ.

Assessing the potential of developing industrial real estate in Quang Ninh, BW general director Lance Li said, “As we’ve seen tenants move from Bac Ninh to Bac Giang province with Haiphong’s IZs reaching full occupancy, we expect a similar trend among investors to seek space in Quang Ninh. Vietnam has emerged as the biggest beneficiary of pandemic-induced supply chain relocations. We see ample room for growth in industrial real estate and will continue to invest heavily in international-grade factories and warehouses across the country, including Quang Ninh.”

In Nam Tien Phong IZ, also developed by DEEP C, there are three other projects with a registered land use area of 36.8ha and investment capital of around $170 million. Currently, the developer is working with sub-investors to complete the dossiers for two projects – the Sputnik V vaccine production factory from Russian investors, and a marine cable manufacturing plant through a South Korean group.

The proactiveness of Quang Ninh in promoting investment with groups from 21 economies in Asia-Pacific at various meetings has opened up many opportunities for DEEP C IZs in Quang Ninh. World-leading groups such as NEC Corporation, BAE Systems, and leading incorporations in energy such as PNG have been present at investment promotion events.

DEEP C is a cluster of IZs in Haiphong and Quang Ninh developed and operated by Infra Asia Investment Hong Kong, mainly owned by the Belgian investor of Ackermans & van Haaren.

Bac Tien Phong IZ is jointly developed by DEEP C and Hateco Group – a Vietnamese conglomerate of real estate, logistics, seaports, and more. Together, Bac Tien Phong and Nam Tien Phong IZs have formed the DEEP C Quang Ninh cluster, aiming to become a seamless ecosystem connected to seaports. While Bac Tien Phong IZ covers an area of 1,192ha, that of Nam Tien Phong IZ is just under 490ha. After more than two years of disruption due to the pandemic, DEEP C is now ramping up the land reclamation, and construction of internal roads, utility trenches, substations, and wastewater treatment plants.

Bruno Jaspaert, general director of DEEP C Industrial Zones, said, “Following the orientation to develop Bac Tien Phong and Nam Tien Phong into seaport IZs, DEEP C is focusing on attracting 4-5 investors in port infrastructure and services. We are negotiating with the sub-investors to reach partnership agreements and it is expected that, by the end of this year, our two IZs in Quang Ninh will attract more projects.”

Jaspaert is optimistic about the investment attraction scenario in the upcoming time. “So far this year, we have witnessed many investors entering into land reservation agreements with us. Those investors, after surveying our site, all appreciate the direct connection to the Haiphong-Quang Ninh and China border expressway, the close proximity to Haiphong through Bach Dang Bridge, and the economic zone tax incentives,” he added.

Both Quang Ninh Economic Zones Management Authority (QEZA) and Quang Ninh Investment Promotion Agency are supporting the investors to attract 13 additional sub-investment projects in Bac Tien Phong and Nam Tien Phong IZs in 2022 and the years ahead, as shared by QEZA director Hoang Trung Kien.