Bac Tien Phong Industrial Zone hails $165 million vehicle parts venture
Bac Tien Phong Industrial Zone hails $165 million vehicle parts venture
An investment registration certificate granted to Boltun Vietnam marks an inspiring sign for a new investment wave into the north-eastern province of Quang Ninh.
On February 12, witnessed by Vietnamese Prime Minister Pham Minh Chinh, Boltun’s fastener and stamping manufacturing project was awarded a fresh investment certificate worth $165 million.
Funded by auto fastener and metal parts group Boltun Corporation and QST International, the project aims to produce components for US and European electric car manufacturers.
The Taiwanese investors envisage building a 35.27 hectare facility in Bac Tien Phong Industrial Zone (IZ), developed by DEEP C IZ in Quang Yen Coastal Economic Zone, northeast of Quang Ninh. The project will be executed in two phases, with a total capacity reaching 60,000 tonnes per year. Construction of the first phase is set to start in the next few months.
To date, Boltun Corporation and QST International have been operating four factories in Taiwan, seven in China, and one in Germany. With this new factory in Vietnam, the two partners seek to expand their global supply chain network and support their long-term growth strategy in Southeast Asia.
The fresh project is also expected to drive forward the development of e-vehicle wave in Quang Ninh and give way to the formation of a new auto hub within Bac Tien Phong IZ.
“The swift and efficient licensing process by Quang Ninh Economic Zone Authority has helped us achieve our tight project timeline driven by the growing demand of our clients,” said Kevin Hsu, vice president and CFO of Boltun Corporation. “This is among the major factors behind our decision to invest here, together with abundant land supply for industrial development and state-of-the-art infrastructure.”
Quang Ninh has topped the national rankings as the most business-friendly province for five consecutive years. Despite that success, the province is continuing to ramp up efforts to smooth out admin procedures further to provide investors with timely response and support.
The fresh project is also expected to drive forward the development of e-vehicle wave in Quang Ninh and give way to the formation of a new auto hub within Bac Tien Phong IZ.
From a developer’s perspective, Koen Soenens, general sales and marketing director of DEEP C IZ, noted that the rapid growth in demand has stimulated auto manufacturers and their supply chain to jump into Vietnam.
“This year, DEEP C will focus on building Bac Tien Phong IZ infrastructure to become ready for large high-tech projects. Having high-quality infrastructure in place is one of the important factors for DEEP C to contribute to Quang Ninh’s 2023 target of attracting $1.2 billion in foreign investment into its IZs,” he said.
In 2022, more than one-fifth of land lease requests at DEEP C related to vehicles, making it the third-largest industry in DEEP C after electronics and petrochemicals.
DEEP C is currently the only European-managed industrial zone developer in Vietnam, covering a scale of 3,400ha near Lach Huyen international deep-sea port in northern Vietnam. Bac Tien Phong IZ is also jointly developed by DEEP C and Hateco Group in Quang Yen Coastal Economic Zone of Quang Ninh. It aims to become an all-in-one IZ, including a dedicated petrochemical park and a built-in seaport complex with general cargo terminals and liquid jetties.
