Saigon-Bac Giang Industrial Park Corporation has been approved to expand Quang Chau Industrial Park, home to a factory of the world's biggest electronics contractor Foxconn, in Bac Giang province.
The company (SBG) is a subsidiary of Kinh Bac City Development Holding Corporation (KBC), one of Vietnam's leading industrial real estate developers.
The 90-hectare expansion project, located in Viet Yen district, Bac Giang province, northern Vietnam, will have investment capital of VND996 billion ($40 million). The operation period of the project runs from November 4, 2022 to the end of February 5, 2057.
This expansion phase has many large investors interested in surveying and renting with an expected occupancy rate exceeding 90%.
After surveying the site, Apple supplier Foxconn had signed a memorandum of understanding with SBG in August 2022 on leasing 50.5 hectares of land to implement an investment project focusing on manufacturing Apple products worth more than $300 million.
Quang Chau, one of the typical IPs in Bac Giang, is planned to become a modern IP including industrial park, urban area, and utilities and service area segments.
The expansion project will boost the total area of the whole industrial park from 426 hectares to 516 hectares.
The existing IP of 426 hectares has been fully occupied, attracting 41 investment projects, including 37 FDI projects and four domestic investment projects with a total investment capital of up to $2.8 billion, creating jobs for about 67,000 workers.
Typical investment projects include large-scale investments by famous corporations like Foxconn (with projects of member companies like Fuhong, Fuyu, and Fukang), Luxshare- ICT, JA Solar, Siflex, Samkwang, Crystal Martin, and Lens.
According to a report in August 2022 by Bao Viet Securities (BVSC), revenues from Quang Chau IP contributed to the majority of KBC's revenues in 2021.
BVSC also predicted that the commercial land of the expanded Quang Chau Industrial Park, apart from the 50 hectares leased to Foxconn, will be occupied by tenants within the next two years at an expected rental price of $110 per square meter.