Mar. 15, 2024
Sumitomo Corporation
Renewal of Agreement with Osaka Prefecture and Osaka Business Development Agency for Thang Long Industrial Parks II and III- Acceleration on support for companies in Osaka looking to expand their business into Vietnam -
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo), along with the Osaka Prefectural Government and the Osaka Business Development Agency, have renewed their agreement (the "Agreement") to provide dedicated support for companies in Osaka Prefecture looking to move into two sites in Vietnam that are operated by Sumitomo Corporation, namely: Thang Long Industrial Park II (Hung Yen Province, hereinafter "TLIP II") and Thang Long Industrial Park III (Vinh Phuc Province, hereinafter "TLIP III"). Osaka Prefecture and Sumitomo Corporation first signed an agreement on TLIP II in 2018. Under the terms of the Agreement, TLIP III was added as a new destination for inbound companies in response to the growing need for rental plants with low initial investment mainly among Small and Medium Enterprises. The Osaka Business Development Agency, which provides international business support to companies in Osaka Prefecture, also joined into the agreement to strengthen its support for business development in Vietnam.
Vietnam's economy is continuing to grow, exhibiting a GDP growth rate of 6.7 percent in the fourth quarter of FY 2024 (ending March 31, 2024). As well as a stable political situation and a large, skilled labor force derived from a population set to exceed 100 million by 2023, Vietnam’s social and transportation infrastructure has recently received high praise from companies that have already expanded into the country, thanks to the construction of the Hanoi Metro Line 3, alongside other improvements. As of July 2023, there are 1,990 Japanese companies operating in Vietnam, double the number of 867 that were there in 2010. Moving forward, even more Japanese companies are expected to expand into the region.
Sumitomo Corporation and Osaka Prefecture have jointly supported companies in Osaka prefecture seeking to expand overseas through the agreements on First Philippine Industrial Park in Philippines and TLIP II in Vietnam. Further, 13 companies from Osaka Prefecture have already moved into TLIP II and TLIP III. Since the opening of the Thang Long Industrial Park in 1997, Sumitomo Corporation has been providing support for local administrative procedures, including applications for permits and licenses, as well assisting with subsequent operation of the park. In addition, many companies have expressed interest in the Osaka Industrial Park, which is home to rental plants for companies in Osaka Prefecture. As part of the Agreement, Sumitomo Corporation, Osaka Prefecture and the Osaka Business Development Agency held the "Osaka-Kansai Vietnam Business Seminar" in February 2024. This seminar aimed to offer valuable insights to businesses exploring opportunities in Vietnam and across Southeast Asia.
Sumitomo Corporation will make a major contribution to the growing economy and industrial sector of Vietnam by encouraging more companies from Osaka Prefecture to expand their business operations into Vietnam.
References
(Agreement signatories)
| （1） | ： | Osaka Prefectural Government, Osaka Business Development Agency |
| （2） | ： | Sumitomo Corporation |
| （3） | ： | Thang Long Industrial Park II Corporation (Operator of Thang Long Industrial Park II, in which the Sumitomo Corporation Group has a 92 percent stake) Thang Long Industrial Park (Vinh Phuc) Corporation (Operator of the Thang Long Industrial Park III, wholly owned by Sumitomo Corporation) |
(Summary of this Agreement)
| （1） | ： | Details of Cooperation The signatories will: |
| ○ Jointly conduct seminars, to be held in Japan and overseas, on promoting investment in foreign countries | ||
| ○ Support inspection visits to rental plants of companies, etc., in the prefecture | ||
| ○ Share information on construction plans and occupancy status of plants available for rent | ||
| ○ Share information on companies in the prefecture that wish to lease plants | ||
| ○ Conduct other projects that are deemed mutually beneficial, fostering support and collaboration between parties |
| （2） | ： | Preferential treatment |
| ○ Target sites Rental plants in "Thang Long Industrial Park II" and "Thang Long Industrial Park III" near Hanoi, Vietnam |
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| ○ Target company Corporations with their head office or manufacturing facilities in Osaka Prefecture |
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| ○ Details of measures to be taken ・ One-year waiver of management fees upon occupancy of the industrial park ・ Exemption from the fees payable to establish a local company in Vietnam (excluding translation and other miscellaneous costs) |
(Outline of Thang Long Industrial Park II)
| （1） Business entity | ： | Thang Long Industrial Park II Corporation (also known as TLIP II) |
| （2） Investment ratio | ： | Sumitomo Corporation Group: 92 percent stake |
| （3） Location | ： | Hung Yen Province, Vietnam (33 km southeast of Hanoi city center) |
| （4） Geographical area of the site | ： | 526 hectares (total of Phase I, II and III) |
| （5） Number of tenants | ： | 80 companies (78 of which are Japanese) *As of March 2024 |
| （6） Establishment date | ： | November 2006 |
(Outline of the Thang Long Industrial Park III)
| （1） Business entity | ： | Thang Long Industrial Park (Vinh Phuc) Corporation (also known as TLIP III) |
| （2） Investment Ratio | ： | Sumitomo Corporation: 100 percent stake |
| （3） Location | ： | Binh Phuoc Province, Vietnam (55 km north of Hanoi city center) |
| （4） Geographical area of the site | ： | 213 hectares (total of Phase I and Phase II) |
| （5） Number of tenants | ： | 59 companies (of which 35 are Japanese) *As of March 2024 |
| （6） Establishment date | ： | November 2015 |
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