Thang Long Industrial Park - 'the goose that lays the golden egg' for Dong Anh Licogi

Thang Long Industrial Park Corporation, the investor of the industrial park of the same name, has regularly paid Dong Anh Licogi Mechanical JSC a dividend of nearly VND100 billion ($4.15 million) per year.

Thang Long Industrial Park Corporation, established in 1997, is a joint venture between Japan's Sumitomo Corporation, holding a 58% stake, and Vietnam's Dong Anh Licogi Mechanical JSC, with a 42% stake.

The operation term of the joint venture is 50 years from the date of licensing. When that expires, all fixed assets of the joint venture will be transferred without compensation to the Vietnamese party.

Its financial statement dated June 30, 2023 shows that Dong Anh Licogi's investment capital in Thang Long Industrial Park was VND164.4 billion ($6.8 million), while the figure for Sumitomo was VND227.1 billion ($9.4 million).

According to its investment license issued by the Ministry of Planning and Investment in 2005, Thang Long Industrial Park will cover an area of more than 1.2 million square meters in phase 1; 731,691 m2 in phase 2, and 810,000 m2 in phase 3 across Kim Chung, Vong La, Hai Boi and Dai Mach communes, Dong Anh district, Hanoi.

With a relatively high annual occupancy rate, Thang Long Industrial Park can be considered "the goose that laid the golden egg" as it has paid nearly VND100 billion ($4.15 million) per year to Dong Anh Licogi since 2018.

In the first six months of 2023, Dong Anh Licogi reported revenue of VND390.6 billion ($16.2 million), down more than 6% year-on-year. However, the company's net profit was still impressive at nearly VND83 billion ($3.4 million), roughly the same as the first six months of 2022, mainly thanks to the dividend of VND81.5 billion ($3.37 million) paid by Thang Long Industrial Park Corporation.

Dong Anh Licogi was established on July 1, 1963, and was originally called Dong Anh Architectural Mechanical Factory. The company mainly operates in the field of casting alloy products, space trusses and steel structures, and high quality aluminum alloy profiles.

It has charter capital of VND310 billion ($12.8 million), the largest shareholder being Licogi Corporation - JSC with 89.06% ownership.

Sumitomo is considering building a 300-hectare industrial park in Nam Dinh province, said Akito Shiraishi, general manager of the corporation's overseas industrial park department in a meeting with Pham Gia Tuc, Secretary of the Nam Dinh Party Committee, on August 25.

The Japanese corporation has so far established three industrial parks in northern Vietnam: Thang Long in Hanoi; Thang Long II in Hung Yen province; and Thang Long Vinh Phuc in Vinh Phuc province. Those three facilities, with a total investment of $404.1 million, cover 1,012 hectares.