THÁI NGUYÊN — Huali Group, a company specialising in the production of building materials, has decided to expand its investment in the northern province of Thái Nguyên.

Huali Group Vietnam has signed a land sublease contract with Viglacera Thái Nguyên JSC, which covers 130,000sq.m in a new area of the Sông Công II Industrial Park – known as the phase 2 construction.

The company plans to build a factory to produce environmental-friendly building materials, with a total investment of nearly US$100 million.

Huali Group’s first project in the province is a flooring production plant at the Điểm Thụy Industrial Park – Zone A in Phổ Yên City, which has a capacity of 135,000 tonnes per year and cost approximately $40 million to build.

Deputy General Director of Huali Vietnam Group Co., Ltd. Henry Xu, said that the group had surveyed several industrial parks in Việt Nam before selecting Thái Nguyên and the Sông Công II Industrial Park.

“The appeal for the business lies not only the modern infrastructure and transportation connections, but also the professionalism of Viglacera and the effective support from local authorities,” he said.

In addition to Huali, many investors in the high-tech and supporting industries from South Korea, Japan, mainland China, and Taiwan (China) have also expressed their interest in establishing their presence in the park.

This is thanks to favourable policies that the Vietnamese Government provides such as a two-year corporate income tax exemption, a preferential tax rate of 10 per cent for the next four years, and various support policies on import taxes and human resources.

The new area, with a total investment of over $163 million and Viglacera as the investor, is expected to be completed within 36 months from the date of land handover. — VNS