Jun. 01, 2015
Development of Thang Long Industrial Park III in Vinh Phuc, Vietnam
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President: Kuniharu Nakamura) has reached an agreement with Vinh Phuc, a province in Vietnam located to the north of Hanoi City, to develop Thang Long Industrial Park (TLIP) III.
Vietnam is highly rated for its political stability, an abundant, competent workforce, a constantly improving social and transportation infrastructure, and other features. In addition, the launch of the ASEAN Economic Community (AEC) has also helped the country to garner attention as an ideal location for production sites within the ASEAN region. Moreover, Vietnam’s participation in the Trans-Pacific Partnership (TPP) is expected to encourage even more manufacturers and other firms to make inroads into or expand existing sites in the country as a global export base. With a population of over 90 million, the third largest in ASEAN, Vietnam is regarded as a highly promising consumer market in view of its abundance of youth and expanding middle-income demographic.
Following TLIP I launched in Hanoi City in 1997 and TLIP II in Hung Yen province in 2006, TLIP III is the third industrial park to be developed by Sumitomo Corporation in Vietnam. TLIP I and II combined span an area of 620 hectares, housing approximately 150 firms. The Company has already sold one third of the area offered under phase 2 of TLIP II (development area: 126 hectares), where construction of a number of factories have commenced. Increasingly popular rental factories with sizes ranging from 500 to 2,000 square meters are also being expanded sequentially. Thus, Sumitomo Corporation supports customers’ advancement into Vietnam, thereby responding to their diverse needs.
TLIP III is located 44 kilometers north of the center of Hanoi City and 20 kilometers northwest of Noi Bai International Airport, offering convenient access from highways leading to Hai Phong and Cai Lan Ports. With a planned total development area (initial plan) of 200 hectares and total business expenses of 15 billion yen, TLIP III is scheduled to open in 2018 to address growing demand from Japanese manufacturers and other firms.
In 1995, Sumitomo Corporation established an Overseas Industrial Park Dept. that specializes in the development, sale and management of industrial parks. As the only Japanese trading company equipped with such a department, the Company has developed, sold and managed industrial parks in Indonesia, the Philippines, Vietnam and Myanmar, while serving as a sales agent in Indonesia, Thailand and Cambodia. Its industrial parks have housed a total of approximately 360 tenant companies occupying 1,800 hectares. Sumitomo Corporation will continue to develop new industrial parks and expand existing ones in support of Japanese companies’ expansion overseas.
|-Reference material 1: Outline of Thang Long Industrial Park III (tentative name)|
|1. Operating body||:||Thang Long Industrial Park (Vinh Phuc) Corporation
(commonly referred to as TLIP III)
|2. Shareholder composition||:||Sumitomo Corporation 100%
(of which 20% is planned to be held by Sumitomo Corporation Vietnam LLC)
|3. Location||:||Vinh Phuc province, Vietnam
(44 km from the center of Hanoi City; 55 minute drive)
|4. Development area||:||More than 200 hectares (initial plan)|
|5. Scheduled commencement of operations||:||2018|