Hanoi’s industrial properties in hot demand

Hanoi’s industrial properties in hot demand

Amid severe economic hardship, the Hanoi Southern Supporting Industrial Park continues to attract attention from investors who are looking for locations for their plants.

Hanoi Southern Supporting Industrial Park (HANSSIP) in an area of 640 hectares at Dai Xuyen Commune, Phu Xuyen District, is fast becoming an attractive investment option for investors to form value chains in the supporting industries.

HANSSIP covers an area of 640 hectares at Dai Xuyen Commune, Phu Xuyen District.

In late September, TOMECO Mechanic-Electrical Company signed a land rental agreement with N&G Corporation, HANSSIP project owner, for the construction of an original equipment manufacturer (OEM) factory.

The deal is evident to the attraction of the HANSSIP in the eyes of investors amid severe economic hardship as a result of the Covid-19 pandemic.

Once completed in 2022, the plant would focus on manufacturing mechanical precision parts and accessories of industrial fans for both domestic and international markets.

HANSSIP covers an area of 640 hectares and is located in Hanoi's Phu Xuyen industrial satellite service urban area to the south of the downtown, adjacent to National Highway 1A and National Highway 1B - Phap Van Cau Gie.

At full capacity, the industrial park could accommodate up to 2,000 enterprises and create 150,000 – 200,000 direct jobs.

Signing ceremony between TOMECO and N&G.

To date, major global firms have landed at HANSSIP, including the Association of Japanese manufacturers of aircraft components in Kobe prefecture and Onaga, producers of aircraft components for Boeing and Airbus; South Korea – based MBI, which is specialized in manufacturing products using renewable energies; Japan Die and Mold Industry Association, among others.

More importantly, the establishment of HANSSIP helped form Hanoi’s Association of Firms in Supporting Industries, which consists of 200 members being suppliers for multinationals such as Honda, Canon, among others.

With an investment capital of up to US$5 billion, HANSSIP is the first specialized supporting industrial park in Vietnam, while the government expects that it will become a successful example in creating an impetus to drive up the country's supporting industries.

In addition, enterprises participating in manufacturing supporting industrial products in HANSSIP according to the regulations of the Vietnamese government will receive special incentives regarding corporate income tax, import tax, VAT, personal income tax, among others.

Hanoi Times