New industrial park in Dong Nai welcomes first project

The Long Thanh hi-tech industrial park, an Amata project, welcomed its first project Monday with the Anh Duong Irradiation Technology JSC receiving an investment certificate.

Dong Nai province’s first hi-tech industrial park was built by Amata City Longthanh JSC, the Vietnamese subsidiary of Thailand’s leading industrial real estate developer Amata Corporation.

Construction on Anh Duong Irradiation Technology’s two-hectare project with an investment of VND650 billion ($27.5 million) is set to commence later this month and the facility is scheduled to begin operations in the third quarter of 2024.

The project’s services will include sterilization of farm produce, food and fruit; medical sanitation; and production of new materials.

The 410-hectare industrial park, with an investment of $282 million, is connected to the Ho Chi Minh City-Long Thanh-Dau Giay Expressway, about 10 kilometers away from the Long Thanh International Airport under construction. It aims to attract high-tech investments towards promoting green industries and sustainable development.

Dong Nai currently has 31 industrial parks in operation and eight others on the anvil. Officials have said earlier that the province missed out on some major FDI projects because of a lack of available industrial areas. Industrial parks in the province have an occupation rate of 85% at present.

Vietnam’s index of industrial production (IIP) showed signs of recovery with a year-on-year growth of 2.8% in June, but fell 1.2% year-on-year in the first six months of this year, the General Statistics Office (GSO) reported.

Bucking the national trend, Dong Nai’s IIP grew 3.01% year-on-year in the first six months. This growth was driven by a 4.02% increase in mining, 3.3% hike in manufacturing and processing, and 3% rise in water supply and treatment of waste and wastewater. The power production and distribution sector, meanwhile, recorded a negative growth of 2.6% in the first half of the year.

Amata VN Public Company Limited, under Thailand’s biggest industrial developer Amata, earned an after-tax profit of 1.17 billion baht ($33.88 million) in 2022, up 57.09% year-on-year, according to the firm’s financial statement.

Amata is set to expand in fast-growing Vietnam as part of its modified plans for 2023. Amata VN, founded in 1994 as the first foreign industrial real estate developer in the Southeast Asian country, is building its fourth industrial park in Vietnam to expand its total industrial land to 2,347 hectares. The 714-hectare Amata Song Khoai IP in the northern province of Quang Ninh will cost about $150 million to build. It is scheduled to start operations in 2026.

The three operational IPs are Amata City Bien Hoa (513 hectares) and Amata City Long Thanh (410 hectares), both in Dong Nai province near Ho Chi Minh City, and Amata City Halong (710 hectares) in Quang Ninh. The three parks house more than 200 factories.

Most recent approved projects in Amata industrial parks in Vietnam are in the Song Khoai IP. Castem Vietnam, part of Japanese precision casting manufacturer Castem, would invest $19 million to build a factory in Vietnam’s northern coastal province of Quang Ninh, per an agreement signed in June. Last month, Quang Ninh province granted investment certificates to two projects proposed by Apple supplier Foxconn with total registered capital of $246 million, both in Song Khoai IP.