Japan’s HT Capital will spend $17 million taking over northern Nam Dinh province’s My Trung Industrial Park from a Vietnamese firm.
Vietnam-Japan Industrial Park Management, a joint venture in which HT Capital is a major stakeholder and two Vietnamese partners – PetroVietnam Securities Incorporated (PSI) and PetroVietnam Service Trading (PVCR), has inked a deal with Hoang Anh Shipbuilding Industry, a member company of state-run Vinashin, to acquire My Trung.
Nguyen Viet Thang, head of Nam Dinh Industrial Zones Management Authority’s (NDIZA) Investment and Planning Division, said: “The official deal will mainly cover the rest of 80 hectares in My Trung, valued at $16.8 million plus VND2 billion ($96,000) worth of Hoang Anh’s operating building in the IP.”
My Trung will be developed along the lines of the Thang Long IP model in Hanoi, a project developed by a joint venture between Japan’s Sumitomo Group and Vietnam’s Dong Anh Engineering.
The new developer aims to fill up My Trung within two years, while existing projects that have been licenced would operate as normal, Thanh added.
My Trung was put into the list of IPs given developmental priority till 2015, towards 2020 by the prime minister. In 2006, Nam Dinh Provincial People’s Committee allowed Hoang Anh Shipbuilding Industry to develop the park’s infrastructure with a total investment of VND274.3 billion ($13.2 million).
My Trung hopes to attract investment projects with modern and environmentally-friendly technologies, but recent economic difficulties have hindered investment, causing difficulties in attracting investors to My Trung.
In addition, as the government restructures Vinashin, Hoang Anh wants to focus on shipbuilding.
According to NDIZA, My Trung has attracted two foreign-invested projects with total registered capital of $13.55 million and 11 domestic projects capitalised at VND1.7 trillion ($80.24 million), leasing 26.65ha. Currently, 80ha is available for lease.
According to the Ministry of Planning and Investment’s Foreign Investment Agency, in the first half of this year, Japan was the biggest foreign investor in Vietnam with total registered capital of $4.16 billion, accounting for 65 per cent of the country’s total foreign direct investment commitment in the period.
“Vietnam remains an attractive investment destination for Japanese businesses,” said Hideo Okubo, chairman of Japan’s Forval Group.
Meanwhile, deputy minister of Planning and Investment Dang Huy Dong said: “We pledge to provide favourable conditions and continue to simplify administrative procedures so as to facilitate Japanese businesses seeking opportunities and conducting investment and business activities in Vietnam.”