Investors eye Eco-Industrial Parks in Hai Duong

12/04/2021

Recently, a number of million-dollar Industrial Park get green light for construction such as: An Phat 1 Industrial Park, Gia Loc Industrial Park … have shown the agility to seize opportunities of investors before the wave of shifting production to Vietnam.

Ranked as one of the five main industrial cities and provinces in the North, Hai Duong is emerging as a province with a lot of potentials to develop industrial real estate. Experts attributed that Hai Duong will be the spot to develop industrial parks to meet the market demand in the near future when the bank land in the northern market of Hanoi and Hai Phong is running out.

Mr. Le Trong Hieu, Director of ofice and industrial leasing division of CBRE Vietnam, said that in the fourth quarter of 2020, the average occupancy rate in industrial parks in Hai Duong reached 89.7%; average rental price increased by 20-30% compared to the same period in 2019. Although industrial land’s rental price is on the rise, in general, Hai Duong still has a competitive rental rate compared to many other northern provinces such as Hanoi, Bac Ninh, Hung Yen etc.

Another factor that attracts investment to Hai Duong is that it is located on the main road freight traffic Lao Cai – Hanoi – Hai Phong – Quang Ninh. At the same time, Hai Duong combined with Hai Phong and Quang Ninh forming a key economic triangle in the eastern region of the northern key economic region. This is a great advantage for the development of supporting industries, shipbuilding engineering, logistics, coastal services such as inland ports, import and export of goods etc.

The fact that global corporations such as Samsung, Foxconn… set up their production headquarters in neighboring provinces, and supporting industries is identified as a key industry has helped Hai Duong become a province with great growth potential and attracting many domestic and foreign investors.

Furthermore, Hai Duong actively ahead in the race to lure foreign investors recently. Only in the first three months of 2021, the Prime Minister approved investment policies for a number of major projects in Hai Duong such as: Quoc Tuan – An Binh IP – now being known as An Phat 1 (180 ha, total capital of VND 1,947 billion, ~$ 83 million); Kim Thanh Industrial Park (164,98 ha, total capital VND 1,160 billion, ~$ 49 million); Gia Loc Industrial Park (197.94 ha, total capital 2.062 billion VND, ~$ 88 million) etc.

Among industrial parks in Hai Duong, An Phat 1 Industrial Park (180 ha) is one of the outstanding project that have considerable investment capital and cover large area in Hai Duong. The project is invested by An Phat Hi-Tech Industrial Park No 1 Joint Stock Company, a member company of An Phat Bioplastics JSC (Ticker Symbol: AAA).

AAA is not only known as a large enterprise in Hai Duong province with member companies operating in many areas such as packaging, green products, logistics, additives and plastic resins … but also an industrial real estate developer with 2 large industrial parks: An Phat 1 IP, which will start commercial exploitation in the end 2021 and An Phat Complex IP is operating stably with occupancy rate of 90%.

Development of eco-friendly industrial park in Hai Duong

An Phat 1 IP is projected to become a key high-tech, environmentally friendly industrial park of Hai Duong province, focusing on attracting investors from many sectors that do not cause environmental pollution such as processing, manufacturing industries, supporting industries … It is expected that when the Industrial Park come into operation it will create jobs for 12,000 – 15,000 workers in Hai Duong.

With An Phat 1 IP, AAA aim to develop a green industrial park by applying a system to control environmental risks following strict standards, and encourages measures to save energy and resources such as using electromagnetic solar energy, installation of water supply systems, standard industrial waste treatment etc.

In addition, An Phat 1 will promote the development of one-stop services, providing services from legal procedures. management, logistics, commerce to the dormitory, industrial catering in order to provide comprehensive support for investors in the Industrial Park.

Sản xuất linh kiện nhựa kỹ thuật cao tại nhà máy An Trung Industries, thuộc KCN An Phát Complex
Manufacturing plastic components at An Trung Industries, at An Phat Complex Industrial Park

Especially, with An Phat Bioplastics’ multidisciplinary ecosystems operating in many fields such as packaging, green products, trade, logistics, molds… these projects are expected to bring great value ​to investors ​in trade promotion activities in the same industry.

Investing in Industrial Real Estate is a strategic move

Since 2017, AAA has expanded its investment in industrial real estate and achieved great success.

For example, after only two years of operation, An Phat Complex Industrial Park has reached a rental rate of 90%, aiming to fill 100% in early 2021. Total AAA revenue recorded from industrial real estate as of February 2021 reached nearly 800 billion (~$ 34 million).

KCN An Phát Complex cung cấp dịch vụ một cửa hỗ trợ doanh nghiệp toàn diện
An Phat Complex Industrial Park provides one-stop services to support investors comprehensively

An Phat 1 IP is expected to continue to bring great success to AAA in this area. It is estimated that An Phat 1 Industrial Park will bring about VND 2,560 billion (~$ 108 million) in revenue and VND 795 billion (~$34 million) in profit in the next 5 years.

Regarding the industrial real estate development strategy, AAA’s leaders shared: “In the next 5 years, we aim to develop a huge land bank in Hai Duong, where has a favorable geopolitical position for attracting foreign investment into Vietnam.”

Promoting investment in industrial zones is a strategic plan not only to help the company increase profits, but also contribute to promoting the improvement of the business ecosystem, bringing more values ​​to the Province”.

Thus, the investment in industrial real estate of An Phat Bioplastics will not stop with the two current industrial parks, but also show the great ambitions of the business in this field.

(Source: Vietnambiz)