The model of Dinh Vu Industrial Zone 2 (Deep C II) in the northern Hai Phong port city. — File Photo

HAI PHONG (Biz Hub) — The Rent-A-Port Group, Belgian experts in marine infrastructure and industrial zone development, yesterday started construction of South Dinh Vu Industrial Zone 2 (Deep C II) in this northern port city.

Speaking at the groundbreaking ceremony, Jehanne Roccass, Belgian Ambassador to Viet Nam, said Dinh Vu Industrial Zone is one of her country's most important investment projects in this zone in Viet Nam as well as in the field of logistics in general.

"Belgium and Viet Nam share a long history of co-operation. We have supported Viet Nam with development assistance amounting to 500 million euros. Now, even our economic co-operation is expanding fast. More and more Belgian companies are attracted to investing in Viet Nam, especially after the conclusion of the EU-Viet Nam FTA and the TPP," she said.

Le Thanh Son, Vice Chairman of Hai Phong People's Committee, said Rent-A-Port's expansion in Hai Phong would surely contribute to its FDI attractiveness. The city's authority was committed to creating the most favourable conditions for the development of Deep C II and its investors.

On the same day, CDC International Corporation (Cayman Islands) also kicked off its construction of the Gateway Commercial and Logistics Business Centre (CDC Hai Phong).

Deep C II has welcomed the corporation as the first FDI client to set foot in the industrial zone. Covering more than 1 ha in the zone, the US$2.2 million CDC Hai Phong project aims to develop office buildings and open storage for lease. After being granted the investment certificate on June 11, the project's construction started four months earlier than planned to ensure successful operation from January 2017.

Having investigated several investment locations in the region, Khali Boutros Al Sholy, the corporation's director, chose Deep C II for establishing his first business in Viet Nam. He believed in the potential of this project due to its premium and unique location and potential business opportunities in the dynamic city, where several mega infrastructure projects will soon be in place.

CDC Hai Phong lies in the heart of the 2,000-ha industrial cluster, with a direct connection to Tan Vu–Lach Huyen Bridge, which in turn connects with Lach Huyen Port and Ha Noi–Hai Phong Expressway. As industries burgeon in this area, the demand for commercial offices and open storage for lease is expected to rise drastically, and CDC hopes to be a pioneer in this promising market. CDC has a long-term vision for Viet Nam. Following the success of this initial project, the company is also interested in investing in another logistics centre in the Gateway Industrial Zone on Cat Hai Island, right next to Lach Huyen Port, once the land and infrastructure are ready. With its strong financial background, the company is confident in investing and exploring the real estate market of Viet Nam.

Rent-A-Port is also the major shareholder of the existing Dinh Vu Industrial Zone (DVIZ), co-owned by Hai Phong People's Committee, which has been operating successfully for over two decades, with more than 55 multinational projects, attracting almost 30 per cent of the total FDI in the city. The $117 million Deep C II project has a total area of 513ha, lying closest to Lach Huyen Deep Sea Port (7km) and Cat Bi International Airport (6km), directly connected to Ha Noi–Hai Phong New Highway and Tan Vu–Lach Huyen Bridge. With this strategic location, Deep C II expects to rapidly complete its infrastructure development and hand over 40ha to committed clients in 2017.

As part of the infrastructure development plan for the existing DVIZ and this new Deep C II project, Rent-A-Port has co-operated with Induss, a Belgian company with expertise in industrial water supply and wastewater treatment. Induss has more than 150 years of experience in water-related utilities delivered to the port of Antwerp and its petrochemical area – the largest in Europe. The two companies have formed a joint venture called Infra Induss Viet Nam, which will manage and operate an industrial water supply and central wastewater treatment plant in DVIZ and Deep C II. Infra Induss will increase the reliability of providing water utilities, bring in new products such as demineralised water and potable water and treat highly polluted wastewater. The company has received ISO 9001&14001 certifications as one of the first steps towards achieving its aim. Deep C II will develop a special wastewater treatment plant that can serve a dedicated area of some 100ha for a textile village. This is also in line with government policy, and investors will enjoy the benefits of the TPP agreement.

Putting all these elements together, clients in the 2,000ha Deep C Industrial Zones will be in the best location in Viet Nam. The site offers the shortest distance to the national intermodal network, high-quality infrastructure and utilities that meet international standards. Deep C Industrial Zones offer investors a reliable, solid manufacturing base with an unconditional Economic Zone Tax Package. — VNS