Official launch at groundbreaking event of October 5th

Việt Nam in recent years has been an attractive destination for foreign investment, thanks to its competitive labour force and the increasingly open market.

However, other advantages of the economy such as its strategic location near the sea and world markets, infrastructure improvements, favourable investment policies and modern facilities are often overlooked by investors. Finding a location where all these elements converge is a difficult task. Though, the northern port city of Hải Phòng is the answer to this search.

It’s in Hải Phòng that DEEP C Industrial Zones opened officially the third and new zone of 520ha, near the deep sea port Lạch Huyện (-14m). The economic tax zone will welcome automotive suppliers, logistics companies and general/light industries, as the location (nearby a port) is crucial for their import-export activities.

DEEP C Industrial Zones, formerly known as Đình Vũ Industrial Zone, are known for their reliable utilities provision for international clients and efficient supporting services for project investigations, setup and operations. The heavily invested utility network, including underground power distribution and ISO-certified waste water treatment, has been able to satisfy, among others, the most demanding and high-precision projects of world-renowned manufacturers. These services will of course also be available in the new zone. Reliability is key for tenants and that is what DEEP C’s General Director, Frank Wouters promised to all attendees of the groundbreaking event of the 5th October.

The existing DEEP C Industrial Zones attracted to date nearly US$3 billion from more than 70 international companies and created jobs for 10,000 workers. The new zone will add some extra figures to these facts, surely as this new zone is located in the centre of mega infrastructure (port, highways, airports, which enable manufacturers to import and export easily to Asian countries) and will include an inland waterway port.

Hans Kerstens, Head of business development of DEEP C states: “Our new zone is the ideal location for automotive suppliers, logistics companies and general/light industries”. 

The logistics sector cannot bypass this spot, where major modes of transport are most conveniently linked. The opening of Tân Vũ Bridge, the longest sea bridge in Southeast Asia, last month, officially connects Cát Hải Island and Lạch Huyện, the largest deep sea port (100,000 DWT) with the mainland within 15 minutes, further linked with highways to Hà Nội, Hạ Long, China and the coastal provinces.

In addition to this, the International Cát Bi Airport is close by for people and cargo. Once the significance of this is not only the huge cost reduction, thanks to direct routes, but also more reliable delivery of orders.”

Frank Wouters, CEO of DEEP C adds: “We will also welcome automotive suppliers, as the Vietnamese car market is expanding rapidly.” Indeed, the forecast is that 220,000 cars will be sold in Việt Nam annually, and by 2030 it will soar to 1.5 million annually. However, opportunities go much further than the supply from the local market. DEEP C will attract automotive suppliers who are eyeing Việt Nam to supply ASEAN and find an alternative for the increasing costs in China. “We believe Việt Nam is the next automotive hub for both OEM and Tier 1, Tier 2 suppliers — not only in Southeast Asia, but also in Europe and North America,” DEEP C Industrial Zones CEO Frank Wouters stated.

Next to the ideal location, DEEP C Industrial Zones will strengthen their ambition to become a real ECO (ecological) park: offering eco solutions to his tenants to be in line with the governmental and sustainable developments. It is strong ambition of the Belgian and Vietnamese shareholders of DEEP C to join this program. “We are the first pioneer in Hải Phòng City to participate in the project. Implementation of eco – park initiative for sustainable industrial zones in Việt Nam is for us a major goal.” states Frank Wouters, General Director of DEEP C Industrial Zones.

On the same day, GELEX and DEEP C signed a Principal Agreement on land lease of 50ha for the first power equipment complex that will be built in the new zone.

GELEX is one of the leading successful private company in Việt Nam. Incorporated in 1995, Việt Nam Electrical Equipment Joint Stock Corporation (GELEX) has been striving to rally the strength of production and business units involving the electrical engineering industry. This new factory will create some 3000 jobs for workers at full operation.

With 50ha complex of $ 200,000 - $300,000, GELEX expects to firstly launch its power cable workshop of $40,000 by the end of 2018, followed by the power transformer workshop and other related equipment of $170,000. The product will be shipped out to customers in the Asian region and the local market.

“We are happy to welcome GELEX as the first Vietnamese company in our new zone and are sure we will do some ‘powerful’ business with GELEX to assure the best services to all new tenants. It’s a pure win-win operations for all new-comers in the zone”, affirms Hans Kerstens.

All these new developments of DEEP C will strengthen the competitive edges of Hải Phòng City in the eyes of foreign and local investors. The municipal People’s Committee, also shareholder in DEEP C will therefore with the international management pave the path for sustainable industrialization. Sustainability is key by giving work to local people, improving import and export goods by attracting national and international companies for long term investments and aiming for an ECO-park label. Frank ends up by mentioning “It’s quite an ambitious plan but with our great team and our entrepreneurial customers the sky is the limit”.

For more information and/or interested to invest in Hải Phòng and/or join that ambitious team: