Sumitomo plans $500 mln expansion of northern Vietnam industrial park

Japanese conglomerate Sumitomo will invest $500 million in expanding its Thang Long II Industrial Park in the northern province of Hung Yen.

Hung Yen authorities and Sumitomo representatives signed a memorandum of understanding (MoU) for the expansion under the auspices of the Vietnam-Japan Economic Forum held in Tokyo last Saturday.

Among senior dignitaries attending the event was Prime Minister Pham Minh Chinh, who is on a four-day (December 15-18) visit to Japan to attend the ASEAN-Japan commemorative summit and conduct bilateral activities.

The investment, also phase 4 of the industrial park, will cover 391.7 hectares, focusing on the commercial and housing areas.

Sumitomo received approval to survey and build the Thang Long II Industrial Park in 2005. After the completion of three phases, the facility has expanded to 545.6 hectares and attracted investments of over $3 billion, with major Japanese investors including Kyocera, Hoya, Nippon, Daikin, Toto and Panasonic.

The industrial park boasts a prime location, just 30 kilometers from Hanoi, 70 kilometers from the Hai Phong seaport, and 110 kilometers from the Quang Ninh deep-water seaport.

So far, Hung Yen has attracted foreign direct investments (FDI) of $6.7 billion in 534 valid projects. Japanese investments have accounted for the biggest portion at over $4 billion in 173 projects. So far, 170 Japanese FDI projects with the total registered capital of $3.2 billion have begun operating, employing 45,000 people.