First Korean cluster investment in Deep C II Industrial Zone

The People’s Committee of the northern Hải Phòng Port City and its Economic Zone Authority granted the Investment Registration Certificate to South Korean Pyeong Hwa Automotive Company Limited on Thursday (21/6/2018).

Pyeong Hwa Automotive Company Limited (PHA) was founded in 1985 and is headquartered in Daegu, South Korea. It is listed on the Korean stock exchange and is a leading manufacturer of automotive moving parts. With 18 plants and five laboratories worldwide, PHA is a trusted supplier to top-tier car manufacturers, such as BMW, Audi, Ford, General Motors, Hyundai, Kia, Volkswagen and Volvo.

PHA has decided to base its first plant in an ASEAN country in DEEP C II Industrial Zones, specifically the Đình Vũ – Cát Hải Economic Zone in Hải Phòng City, one of the most dynamic cities with the highest growth rate in Việt Nam. The project of PHA’s automotive part manufacturing plant covers an area of 7ha, with a total investment capital of US$16.7 million. Upon its operation in September 2019, the company will be supplying 7.5 million products to the Vietnamese market every year, creating nearly 300 jobs for local labourers.

Speaking at the handover ceremony, PHA president Lee Jae Jesung said the company took one year to implement surveys in Thailand, Indonesia, Malaysia, Cambodia, India, Mexico and Việt Nam. Việt Nam was the most suitable country for their project. The company also has many factories in the United States, Europe and China.

“We plan to make Việt Nam our largest production base in the world. We expect to build a strong distribution network of automotive parts in ASEAN,” he said.

Having seen numerous automotive investors seeking investment opportunities in Việt Nam, Jesung expects to see the domestic industry soon gain great momentum.

In the first phase, PHA will source from its long-term partners to ensure the demanding safety requirements of the industry. In the long-term  the company is open to increase the rate of local suppliers as the sector gradually develops.

“PHA was different from any other project in Hải Phòng or Việt Nam” said Frank Wouters, general director of DEEP C Industrial Zones. “It is our first and largest customer in DEEP C II; it has made the first cluster investment in DEEP C II; it is the first automotive customer in DEEP C II.” he added. DEEP C Industrial Zones commit to provide best support to the projects of PHA and its partners.

PHA has already started planning its second project and has included other investors in its supply chain. This will increase the local sourcing rate of its products. PHA and its partners have effectively laid the foundation to materialise our dream of an automotive village in Hải Phòng in line with the government’s and city’s policies, Wouters said.

DEEP C Industrial Zones is the ideal location for automotive, logistics, general, heavy and light industries, thanks to its strategic location next to deep sea ports, highways and international airports. Investors in DEEP C are supported by a reliable utilities network of international standards, best tax incentives and a dedicated team with 20 years of experience in assisting start-ups in Hải Phòng.