Sep. 27, 2019
Phase 3 Development to Expand Thang Long Industrial Park II in Vietnam
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) has reached an agreement with Vietnam’s Hung Yen Province on the third phase development (180.5 hectares) to expand Thang Long Industrial Park II (Hung Yen) (hereinafter, “TLIP II”) being operated by Sumitomo Corporation in Vietnam.
According to the General Statistics Office of Vietnam, Vietnam’s economy is rapidly growing, with ten-year high GDP growth of 7.1% in 2018. The Trans-Pacific Partnership Agreement (TPP11) entering into force for Vietnam in January 2019 and the Free Trade Agreement (FTA) signed with the EU in June are expected to lead to further industrial growth. Thanks to industrial diversification and vigorous domestic demand associated with the population increase, further entry of foreign companies, primarily manufacturers, as well as expansion of foreign companies that already have operations in the country, are anticipated in Vietnam.
Under these circumstances and in light of the healthy operation of Thang Long Industrial Park III (TLIP III) that it has developed and operated in Vietnam’s Vinh Phuc Province, Sumitomo Corporation will develop the land adjacent to TLIP II in the southeast. TLIP II is located about 30 km, 60 minutes by car, east of Hanoi City. When the new site of 180.5 hectares is developed and combined with the Phase 1 site of 220 hectares and the Phase 2 site of 125.6 hectares, the total land area of TLIP II will be 526.1 hectares, making TLIP II one of the largest Japanese industrial parks in Vietnam. The project will cost over 14 billion yen in total and construction work will start in 2021 and sales in 2022.
Sumitomo Corporation has been developing, selling and operating special economic zones and industrial parks in Indonesia, the Philippines, Vietnam, Myanmar, India and Bangladesh, and has a wealth of knowledge in this business area. In Vietnam, Sumitomo Corporation has operated industrial parks for over 20 years since opening Thang Long Industrial Park (TLIP I) in 1997. The company provides services from assisting with local registration and permit application procedures to supporting subsequent facility operation and will support further expansion by Japanese companies into Vietnam.
■Sumitomo Corporation Industrial Parks HP
(TLIP II Phases 1 and 2）
■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles” and “Providing Diverse Accessibility”.