Sumitomo seeks to clear hurdles for industrial park expansion in northern Vietnam

Japanese conglomerate Sumitomo has called on authorities in Hung Yen province to resolve several pressing issues affecting the expansion of Thang Long Industrial Park II (TLIP II), one of the largest industrial parks in northern Vietnam.

At a meeting with the provincial government on Thursday, Yohei Kurisu, executive board member of Sumitomo, outlined some challenges impeding the development of phase 4 of the park.

These include inadequate electricity infrastructure, delays in land utilization by certain licensed portfolios, skilled labor shortage, and limited supply of sand for land leveling.

In reply, Nguyen Huu Nghia, Party chief of the province, acknowledged the concerns and pledged coordinated efforts to address them.

Regarding electricity supply, Nghia stated that if demand increases during the expansion phase, the province will seek central government approval to build a new 110kV substation to ensure stable power.

To address the labor shortage, the province will ask the IP watchdog to regularly survey tenant companies’ hiring needs and coordinate with local career fairs and employment service centers to better match labor demand and supply.

On the issue of construction materials, particularly sand, Nghia said Hung Yen will expedite licensing procedures for additional sand mines and collaborate with neighboring provinces to secure a sufficient supply for the expansion.

For delayed investments, the province committed to a legal review of licensed projects that have yet to begin site development. Authorities pledged to enforce penalties for any violations of land or investment laws, aiming to ensure transparency and efficient land use within the industrial park, he stressed.

TLIP II has been developed by Sumitomo since 2005 and is home to major Japanese manufacturers including Canon, Panasonic, Daikin, and Toto. Initially spanning 346 hectares, the park was expanded by 181 hectares in 2019, bringing its total area to 525 hectares, with total investment reaching $221.4 million.

TLIP II currently hosts the largest number of Japanese enterprises of any industrial park in Vietnam. In addition to TLIP II, Sumitomo also operates the Thang Long Industrial Park in Hanoi and Thang Long Vinh Phuc Industrial Park in neighboring Vinh Phuc province, now Phu Tho province.

Hung Yen and Thai Binh provinces were recently merged to form the new Hung Yen province. Meanwhile, Vinh Phuc, Hoa Binh and Phu Tho were merged to establish the new Phu Tho province.