Sojitz, Daiwa House Industry and Kobelco Eco-Solutions to Develop Industrial Park in Outskirts of Ho Chi Minh City
Park Will Offer Outstanding Land, Marine, and Air Transport Access
Aug. 27, 2011
Daiwa House Industry Co., Ltd.
Kobelco Eco-Solutions Co., Ltd.
Sojitz Corporation(Sojitz), Daiwa House Industry Co., Ltd.(Daiwa), and Kobelco Eco-Solutions Co., Ltd.(Kobelco Eco) have agreed to establish the Long Duc Industrial Park in Dong Nai Province in the south of Vietnam.
The three companies will acquire 88% of the shares of Long Duc Investment Joint Stock Company (LDIC), an industrial park business company, from Dong Nai Import Export Processing Agricultural Products and Foods Company(DONAFOODS) and other shareholders. After the acquisition, the holdings of the four companies will be as follows: Sojitz 57.3%; Daiwa 22%; Kobelco Eco 8.7%; and DONAFOODS 12%. The first phase of site preparation of the industrial park will start in January 2012, and plant construction can start as soon as the summer of that year. Infrastructure is scheduled to be completed in about the summer of 2013.
The Long Duc Industrial Park is located in the Long Thanh District of Dong Nai Province, approximately 40 km east of Ho Chi Minh City. Total area is 270 hectares (a little less than six times the area of Tokyo Disneyland), and total working expenses are approximately US$100 million. The industrial park is ideal for a manufacturing site or logistics base as it is located just 33 km from Cai Mep-Thi Vai Port, a key port in Vietnam where large ships can dock, and at a halfway point between the central Ho Chi Minh City and the port. In addition, the site is only about five minutes by car from an interchange of the North-South Expressway which is scheduled to open in 2014, and only 8 km from the Long Thanh International Airport, which is scheduled to open in 2020, providing extremely convenient domestic and overseas transport access.
The Long Duc Industrial Park will be equipped with optical fiber and provide access via communications line to firms setting up operations in the park, and there are plans to offer cloud computing services that enable software to be used inexpensively. The park operator will act on behalf of companies in applying for services including telephone and internet and will provide hardware such as telephones and PCs and software such as office applications.
Vietnam has maintained approximately 6% GDP growth in recent years supported by strong demand, and it has a young workforce, with 75% of the population aged 40 years and under. Economic growth in the West and Japan is stagnant, and many businesses are considering setting up operations in Vietnam to take advantage of the rapid growth in Asia and other regions. The Long Duc Industrial Park has already received inquiries from more than 50 firms including many Japanese manufacturers.
[Map of the Long Duc Industrial Park Area]
Sojitz has extensive experience in and knowledge concerning Vietnam gained over many years. In 1996, Sojitz developed and sold out the Loteco Industrial Park, also in Dong Nai Province, and has operated and managed the park to the present day. Sojitz was also involved in the development of industrial parks in the outskirts of Jakarta, Indonesia and the outskirts of Chennai, India and will use the experience and expertise gained from those projects to meet the diverse needs of companies that establish operations at the Long Duc Industrial Park.
Daiwa’s overseas activities include real estate development such as condominiums, town houses, and commercial facilities in Dalian, Suzhou, Wuxi, and Changzhou, China. In Japan, the company has extensive industrial park development experience through facility construction as well as comprehensive consulting from creation of business schemes to post-completion support. Daiwa will leverage its domestic and foreign expertise for this project, its first overseas industrial park venture.
Kobelco Eco established Kobelco Eco-Solutions Vietnam Co., Ltd. in 2010 and is utilizing the water processing and environmental facility know-how that it gained in Japan to engage in comprehensive business development in Vietnam including after-sales services. For the Long Duc Industrial Park too, Kobelco Eco will offer total solutions such as facilities that minimize environmental impact and after-sales services that comply with local environmental standards.
[The Loteco Industrial Park, operated by Sojitz, is located near the Long Duc Industrial Park]
The three companies will each bring their unique expertise to this project to provide high added-value services at the Long Duc Industrial Park.
Overview of the Long Duc Industrial Park
|Name||Long Duc Industrial Park|
|Operator||Long Duc Investment Joint Stock Company|
|Location||Long Thanh District of Dong Nai Province, Vietnam
(approximately 40 km east of Ho Chi Minh City)
|Development area||270 ha (sale area: 202.5 ha)|
|Start of occupancy||Scheduled for summer 2012|