The announcement of a cluster of automobile plants, which took place at a groundbreaking ceremony in the DEEPC II Industrial Zone in Haiphong last week, will perfectly match the policies of both the northern port city and the Vietnamese government to boost the added value as well as competitiveness of made-in-Vietnam products.
Led by PHA Vietnam Co. Ltd., the part manufacturing plant cluster is to be built on a total 11.4 hectares, with an additional capital of $32.3 million being poured into DEEP C Industrial Zones (IZs).
The automobile cluster will consist of PHA Vietnam along with YMP Plus Co. Ltd., Dong Yang Vina Industry Co. Ltd., and MiChang Vietnam Co. Ltd.
Once in operation from September 2019, products from the plants will serve top-tier car manufacturers such as BMW, Audi, Ford, General Motors, Hyundai, and KIA, among others.
PHA Vietnam is part of Pyeong Hwa Automotive Ltd (PHA), a leading automotive moving parts manufacturer in South Korea. The cluster is the first step in PHA realising its ambition for global market expansion.
With a view to establishing a new and competitive manufacturing base serving global export, PHA chose the prime location of DEEP C which is located next to the biggest deep-sea port in the north.
“We intend to develop Vietnam’s plant as our major production base worldwide. We selected DEEP C II by virtue of its optimised business environment, reliable utilities system, and supporting services,” said PHA president Lee Jae-Seung.
General director of Haiphong Industrial Park JSC and the developer of DEEP C IZs, Bruno Jaspaert said, “We highly appreciate the trust PHA, MiChang, YMP and Dong Yang has put into DEEP C, to choose us as their new base for global expansion. Thank you very much for sharing our vision of developing DEEP C II into the focal point of production and logistics not only for northern Vietnam but also for the whole country and region.”
“In the development of DEEP C IZs, we intend to develop various industrial clusters, including the automotive, petrochemical, logistics and supporting industries. We hope that with this plan, we can help diversify the industries of Haiphong, creating supply chains that improve domestic sourcing rate of locally produced goods,” he continued. “We hope that Haiphong will not only become a green city but also a sustainable and diversified industrial hub of Vietnam. The participation of PHA and its partners will for sure help making this vision come true a lot sooner.”
Along with supporting clients with reliable utilities and investment procedure instructions, DEEP C IZs is also launching new initiatives to ease the operation of its tenants. The initiatives cover general warehouse and chemical warehouse services provision, telecom services rendering more choices and flexibility at a lower cost, utility trenches that better protect utility provision and limit interruption, provision of recycled industrial waste water helping to reduce tenants’ operation cost, and renewable energy supply from wind and sun power.
Upon completion of these facilities, investors in DEEP C will be enjoying one of the most comprehensive and competitive service packages in Vietnam, besides the best tax incentives package, and a dedicated team with 20 years of experience in assisting project startup in Haiphong.
This is part of a new South Korean investment wave into DEEP C II, with a total of 12 projects worth more than $97 million in committed capital.