Garment, textile export growth sees ten year low

Vietnam’s garment and textile export in the first nine months this year posted the lowest growth rate for the last ten years, reported Vietnam Textile and Apparel Association (Vitas).

The down growth rate has been caused by import reduction from some major markets of Vietnam where have met with economic difficulties and the Britain’s exit from the EU.

Other reasons comprise unstable exchange rate, high loan interest rate and minimum wage increase. These all have highly increased prices in the market, affecting the competitiveness of Vietnamese goods.

Many businesses have met with order scarcity with the number of orders accounting for only 70 percent of that during the same period in previous years.

Therefore, the association forecast that the country’s garment and textile export turnover will grow as low as 5 percent to approximate US$28-29 billion this year.

Some companies have got only few orders from regular customers in preparations for 2017.

Saigon plans US$250 million metro link to Tan Son Nhat airport

Ho Chi Minh City will seek the central government’s approval to build a US$250 million underground metro line which will link Ton San Nhat International Airport to the city’s planned metro system.

A two-kilometer line, named 4b-1, would link Vietnam’s biggest airport to Metro Line No.5 in Tan Binh District, the Giao Thong (Transport) news site reported on November 13, quoting a pre-feasibility study that has recently been compiled by Korean consultants.

The municipal government plans to borrow about US$224 million for the project, while the remainder would be covered by the state budget.

City authorities aim to submit the feasibility study to the prime minister in the first quarter of 2018. They expect to kick off construction in the first quarter of 2019 and finish in 2024, the news site said.

Ho Chi Minh City is also seeking parliamentary approval to implement the first phase of Metro Line No.5 with total investment capital of VND41 trillion (US$1.84 billion).

The municipal administration recently submitted a proposal to the government for Phase 1 of the urban rail project, according to the city's Management Authority for Urban Railways.

As one out of three urban railways that have been given top priority for 2016-2021, Metro Line No.5 would run for nine kilometers and connect Metro Line No.2 at Tan Binh District's Bay Hien Interchange with Metro Line No.1 at the Saigon Bridge Station.

The European Investment Bank alongside the German Reconstruction Bank have offered a combined US$381 million loan, while the Spanish government has pledged US$299.38 million, which would cover nearly 40% of the total investment.

The remainder will be provided by the Asian Development Bank (US$517.11 million) and Vietnam’s state budget (US$504 million).

Metro Line No.5 is scheduled to open by 2025, and will be able to withstand level-7 magnitude earthquakes.

Most of the line will be underground but 1.43 km will be along an elevated rail with six trains traveling at maximum speeds of 90km per hour.

Vietnam lottery firms raise prizes to compete with American-style jackpot

Traditional lottery companies across southern Vietnam have decided to increase their top prizes by a third to compete with a new American-style jackpot that has quickly gained popularity in the region.

From the start of next year, the firms will raise their top prizes to VND2 billion (nearly US$88,000), up 33.3% from the current VND1.5 billion (US$65,980), Tuoi Tre (Youth) news site reported on November 13, quoting the Southern Lottery Council.

In a letter, the council also asked the Ministry of Finance to review ticket sales of Vietlott, or the Vietnam Computerized Lottery One Member Limited Liability Company. The council said Vietlott has violated regulations by printing its computerized lottery tickets and selling them as normal ones.

Vietlott announced in October and November two winners of its Mega 6/45 American-style jackpot worth US$4 million and US$3 million, respectively. The prizes, much higher than those offered by traditional lottery firms, have caused a media fanfare around the lucky families and their winnings.

Vietnam's annual average income was around US$2,100 last year, according to the World Bank.

A leader from a lottery company in the Mekong Delta admitted that the traditional lottery has taken a hit since the launch of Vietlott due to unlicensed ticket sales. Traditional lottery tickets in Vietnam have predetermined numbers printed on them, whereas Vietlott players get to select their numbers online.

A manager of a traditional lottery firm in Ho Chi Minh City told VnExpress earlier this month that the number of tickets sold in recent months have declined by about 10%-30% due to competition from Vietlott.

Vietlott signed an exclusive 18-year contract with Malaysian conglomerate Berjaya in January to launch computerized lottery games.

The Mega 6/45 is the company's first foray into the market and will be followed by other services.

Players select six numbers from 1 to 45 and win the jackpot, starting at VND12 billion (US$538,000), by matching all six winning numbers from the draw. Each ticket costs VND10,000 (40 cents).

The jackpot prize rolls over until there is a winner. The odds of winning are extremely low, believed to be around one in 8.14 million.

Steel pulls out of slump, but cannot shake stigma

Vietnamese steel firms have recovered from their product’s price slump, but investors remain concerned about environmental issues surrounding the industry.

For the first nine months of 2016, the Vietnamese steel industry has shown signs of recovery from the ongoing price slump that plagues steel companies worldwide.

According to Dang Tran Hai Dang, deputy head of VietinBank Securities’ Research Centre, Vietnamese steel stocks have performed better than the main gauge VN-Index this year, with an appealing price-to-earnings ratio (PER).

“Vietnamese steel firms have adjusted their inventory level to match with the sluggish market, and the profit margin has improved since the first quarter of 2016. For the second quarter, improved steel prices and new safeguard duties on imported products have greatly benefited domestic companies,” said Dang.

Steel stocks traded at 6.38 times earnings in the second quarter of the year, while the VN-Index averaged a PER of 16. Leading companies like Hoa Phat Group and Hoa Sen Group achieved a 32% and 24% rise in gross profit margins.

Meanwhile, SMC Investment and Trading JSC reached a staggering 481% increase in after-tax profits, as it recorded VND288.5 billion (US$12.9 million) of profits for the first nine months of 2016, compared to a VND200 billion (US$8.9 million) loss in 2015.

“Last year, SMC made the mistake of piling up inventory to await a price hike, resulting in a huge loss. This year we’ve capped our inventory of 120,000 tons for all steel products and improved our efficiency,” noted Nguyen Ngoc Anh, chairman of SMC.

Earlier this year, SMC scrapped its foreign ownership limit and offered a 15% private placement for Hanwa, a strategic investor with the company that has long held 5% of its stakes.

Prospects for the steel industry look bright, as statistics from the Vietnam Steel Association (VSA) predict that steel consumption in Vietnam will climb from 18.25 million tons in 2015 to 20.5 million tons this year.

Due to high demands for infrastructure and housing projects, Vietnam has become the world’s sixth largest importer of this commodity.

“To reduce the amount of imported steel and improve their competitiveness, Vietnamese firms must manufacture nine million tons of hot rolled coil steel and enhance the domestic steel supply chain,” said Nguyen Van Sua, deputy head of VSA.

However, most investors remain concerned about the environmental effects of steel projects in Vietnam. In June, the Taiwanese steel firm Formosa was fined US$500 million for dumping toxic waste in central Vietnam, creating a nationwide backlash against the steel industry.

Later on, the Vietnamese giant Hoa Sen Group also made headlines for planning a US$10.6 million manufacturing plant in the central province of Ninh Thuan. Although the new complex is promised to transform the local economy and create 45,000 new jobs, it still sparked controversy due to concerns over environmental protection and industrial waste treatment.

“We’re awaiting more information from Hoa Sen Group on this project’s sustainability. As an investor, we’re supposed to approve a project if it brings profits to the company. However, environmental protection is of utmost importance and we won’t voice our support for Hoa Sen Group until the firm has shown its commitment to preserving the local environment. This is the same as we do for projects from other companies,” said Nguyen Hoai Thu, managing director of VinaCapital, at the fund’s recent investor conference.

VinaCapital currently holds 0.5% of shares in Hoa Sen Group via its open-ended fund Forum One-VCG Partners Vietnam.

It also formerly held board positions in Hoa Phat Group, another domestic leading steel company. 

Kien Giang: Industrial parks attract 33 projects

Industrial parks and clusters in the Mekong Delta province of Kien Giang attracted 33 projects by early November. 

The projects mainly focus on agriproducts, seafood, wood panels, footwear, garment and textiles, animal feed, and construction materials. 

Thanh Loc Industrial Park in Chau Thanh district has 19 projects, of which four are under operation and eight projects still being implemented. The projects have a total investment of 2.4 trillion VND (111 million USD). 

Thuan Yen Industrial Park in Ha Tien town attracted four projects. Two projects have been granted with investment certificates, with a combined capital of 3.3 trillion VND (151 million USD) and one project under implementation has capital of 160 billion VND (7.2 million USD). 

The Xeo Ro industrial park in An Bien district is housing two Vietnam Oil and Gas Group- invested factories using gas. The park is also calling for investment in shipbuilding and seafood processing. 

Industrial clusters, namely Giang Thanh district’s Ha Giang, Linh Huynh in Hon Dat district, and Vinh Hoa Hung Nam in Go Quao district attracted five projects with a combined capital of 170 billion VND (7.6 million USD). 

Vice Chairman of the Kien Giang People’s Committee Le Thi Minh Phung said the province will continue creating favourable conditions to attract more investment. 

The infrastructure projects in industrial parks and clusters will be accelerated and investment procedures will be simplified to help investors implement projects. 

The province will also work with enterprises to train labourers and provide capital incentives for agriproduct and seafood processing enterprises who invest in new projects, reform technology and increase export production.

Conference links up Vietnamese, Chinese traders

A conference connecting Vietnamese and Chinese exporters of agro-forestry-fishery products was held in the northern mountainous province of Lang Son on November 12. 

Hosted by the ministries of Industry and Trade, Agriculture and Rural Development, and provincial authorities, the event attracted leaders and businesses from the northern provinces of Lang Son and Hai Duong, and the Chinese province of Guangxi and Chongzuo city. 

As part of the Ministry of Industry and Trade’s trade promotion programme in remote, mountainous and island areas, the event allowed participants to seek new partners. 

Speaking at the conference, Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said China makes up a large share of Vietnam’s food produce exports, including rubber latex (70-75 percent), cassava (100 percent) and dragon fruit (67 percent). 

To clear existing difficulties, Nam said the ministry has asked the government, ministries and agencies to support domestic and foreign firms in border trade activities and issue special mechanisms for individuals and organisations to build infrastructure near border gates. 

The ministry also suggested the government conclude negotiations for the Vietnam-China border trade agreement, which will replace the deal signed in 1998. 

In the past nine months, imports and exports of farm produce via Lang Son province hit over 1.1 billion USD.

Sao Mai Group finds Japanese partner for An Giang solar mega-project

Japanese Koyo Corporation and Sao Mai Group signed an agreement to develop a 208 MW solar power plant worth VND6 trillion ($268.3 million) in Tien Binh district of the southern province of An Giang.

Once the project comes into operation, it will later on serve as a base for the two parties to construct an additional solar panel production plant in the province’s Sao Mai Industrial Park.

However, before implementing the solar power plant, Koyo will install a 1MW solar power generator system with the  total investment capital of $1.5 million for International Development and Investment Corporation (IDI), Sao Mai’s subsidiary in Vam Cong Industrial Cluster in the southern province of Dong Thap’s Lap Vo district. Following this, Sao Mai’s remaining factories in Vam Cong Industrial Cluster will be equipped with 1MW solar power generators.

Co-operating to build the solar power plant marks the deepening relationship between the two parties. Since December 2015, Koyo and Sao Mai have been actively implementing cooperation programmes. Notably, Koyo has provided a number of products for Sao Mai to use, including LED lighting systems saving energy in the group’s manufacturing plants, and an outdoor intelligent lighting system using solar energy for advanced urban residential areas and resorts.

Chairman Koi-chi-Kawa-ji said that Koyo will provide technical support for Sao Mai to develop large-scale solar power projects in the central provinces of Binh Thuan and Ninh Thuan. In addition, Koyo will co-operate with Sao Mai to develop projects in Africa.

Established in 1996, Koyo specialises in manufacturing energy-saving products and providing a range of products and services that support the continued operation of businesses and government agencies during emergencies, such as natural disasters including earthquakes, tsunamis, and floods or a breakout of infectious diseases. In addition, it constructs and operates solar power plants in Japan and Africa. 

Meanwhile, Sao Mai is a conglomerate operating in the real estate, seafood processing, and cooking oil manufacturing sectors. It currently has 15 member companies with a total chartered capital of VND6 trillion ($264.8 million).
 
Mekong Delta calls for agricultural investments

The Mekong Delta region is calling for investments to boost mechanisation in agriculture and improve its competitiveness.
  
The call for a total of USD1.38bn investments for 50 agriculture projects was made during an annual conference to encourage investment into the region. The conference also held activities to help tighten the relationship between technology manufacturing enterprises and manufacturing and processing factories.
Truong Hoai Nam, vice chairman of Can Tho City said they had over 115,000 hectares of cultivated land and 64% are rice fields. However, productivity was low and the company lacked technology to produce better quality products.
"Mechanisation is very important to boost productivity and limit pre-and post-harvest losses," he said.
The Mekong Delta is vital to Vietnam's economy. Rice output in the region alone accounted for 56% of the country’s entire output. About 6 million tonnes of rice and 3.62 million tonnes of aqua products are exported each year.
Despite the potential, management, science and technology limitations have prevented the region from attracting large investment. Post-harvest losses reach an estimated VND3.2trn (USD143m) to VND3.6trn each year.
As of October, about 50 projects worth USD2.9.64m had invested, showing that the Mekong Delta still has huge potential for more growth.
Kenta Noguchi from Japan's Business Innovation Company said agricultural machinery was the huge opportunities for investors and they hoped to follow up on opportunities presented in Vietnam.

Bac Ninh Industrial Park attracts 455 million USD in FDI

Northern Bac Ninh province licensed 149 foreign direct investment (FDI) businesses with a total registered capital of 454 million USD in the first ten months of 2016, doubling last year’s figure.

To date the province is home to 920 valid FDI project worth over 12 billion USD, according the provincial Department of Planning and Investment.

Most of them focus on manufacturing and support industries, which are compatible with the locality’s development plan.

A number of meetings have been held between local authorities and firms’ representatives to discuss removing obstacles, boosting production and effectiveness of industrial areas in attracting investment.

The province has also offered incentives and continued to simplify and reform administrative procedures in some areas such as lands, constructions, labours and customs to support businesses.

Data of the provincial Department of Statistics shows that the province’s export revenues increased by 1.7 percent in the first ten months of this year to nearly 18 billion USD.

Nine South begins final phase in City

Construction began last week of the final phase of VinaCapital’s Nine South estates project in HCM City.

The final addition of the project, to be built by Ricons, a subsidiary of Coteccons, will include 26 riverfront villas, a recreation club and the final 127 of the total 355 garden homes.

The riverfront homes will be detached four-bedroom villas with private swimming pools, while the garden homes will have three or four bedrooms each. Within the community, residents will enjoy sport fields, two swimming pools, two gymnasiums, landscaped pathways and parklands throughout, a private library and multiple children’s areas.

General Director of Nine South Estates Mike Gammel said: “As families move out of the city centre in search of a tranquil, family-focused environment to raise their children, Nine South Estates Riverfront Homes will provide just that and more.”

“We wanted to pioneer in HCM City the more global trend of living a lifestyle in balance with nature without sacrificing modern amenities or conveniences,” Gammel said.

Located on a 400-metre stretch of the Tôm River on 12.9 hectares of land with 13,000 square metres, the project is in the suburbs of District 7 with ease of access to a number of international schools, including the American School, Saigon South International School and RMIT, as well as retail shops, FV Hospital and such amusement facilities as SC VivoCity and Crescent Mall.

Sun Life Financial acquires PVI Sun Life

Sun Life Financial Inc (Sun Life) late last week announced the completion of the acquisition of the remaining 25 per cent of charter capital of PVI Sun Life Insurance Company Limited (PVI Sun Life) from PVI Holdings following regulatory approval.

The transaction was previously announced on August 29, 2016.

In addition, Sun Life announced the renaming of PVI Sun Life to Sun Life Vietnam Insurance Company Limited (Sun Life Vietnam) to reflect its new status as a wholly owned subsidiary of Sun Life. 

The company said this transaction would help them boost Sun Life’s momentum in Việt Nam.

Since it was launched in 2013, Sun Life Vietnam has become the country’s sixth largest life insurance provider and a market leader and industry pioneer in pensions. “Việt Nam is one of the fastest growing economies for life insurance and pensions in Asia and this transaction will enable us to strengthen our platform in this market,” said Kevin Strain, President, Sun Life Financial Asia. 

“It also forms part of a series of recent investments we have made across the region as Sun Life continues to increase its presence in Asia,” Strain added.

The company said the terms and conditions of all current insurance contracts would not be changed due to the transaction or the rebranding.

Monetary policy supports economic growth
     
A flexible monetary policy supported stability in Viet Nam’s financial market and fostered economic growth this year, a National Financial Supervisory Commission (NFSC) official said in Ha Noi last week.
NFSC Vice Chairman Truong Van Phuoc said M2, which is broadly known as a measure of the nation’s money supply, including cash, checking deposits, savings deposits, money market securities, mutual funds and other time deposits, increased some 13 per cent this year.
This was a “necessary increase” compared to a 10 per cent rise last year, he said.
Lending interest rates in the country averaged 8.5 per cent and tended to decline in the final months of 2016 following Government directives and efforts of the banking sector, although deposit rates remained high in the context of rising inflation.
Phuoc said the country also succeeded in operating the foreign exchange market, as it controlled hikes in the dollar/dong exchange rate within a 1 per cent band, while reaching some US$40 billion in the national foreign reserve this year.
In 2016, the banks returned 78 per cent of their capital resources to the economy, compared to 73 per cent in 2015. Capital mobilising from enterprises and citizens grew by 3 per cent this year.
Phuoc said overall credit growth, expected at 18-19 per cent this year, would be significant, but capital distribution should be more suitable.
Although property credit increased only 12 per cent this year against last year’s 28 per cent, consumer credit expanded by up to 40 per cent in 2016, with half of the consumer lending involved in the purchases of homes.
“Generally, capital distribution for production and business activities is positive, but we must spend capital on real estate in a careful manner to avoid repeating the ‘realty bubbles’ that occurred several years ago,” Phuoc said.
Phuoc noted that the country will handle some VND100 trillion ($4.44 billion) in bad debts in the banking system this year. The Viet Nam Asset Management Company will process 20 per cent of the amount and let banks settle the remaining amounts themselves. 
Banks were expected to retain about VND40 trillion in combined after-tax profits after establishing provisional funds worth VND70 trillion to cover the risks of bad debts this year, he said.
An NFSC report added that slowing global economic growth, especially lower trade growth and declining oil and farm produce prices, negatively affected Viet Nam this year.
Natural calamities and climate change also hit the domestic economy in 2016.
Progress in the national finance system assisted economic growth, while keeping inflation stable. This also supported business development and consolidated investors’ confidence in the local market.
The stock market posted growth of nearly 20 per cent, with a capitalisation value reaching 38 per cent of the country’s gross domestic product (GDP) in 2016, compared to 32.4 per cent in 2015.
The report forecast that Viet Nam’s economic growth would improve next year, as institutional reforms were likely to better the investment climate and stimulate the private sector, allowing energy and farm produce prices to recover.
However, the domestic economy would also face significant challenges in 2017 as global economic conditions remained uncertain, with prices of major commodities fluctuating unexpectedly.
Additionally, non-traditional monetary policies of large economies might lead to unpredictable moves in foreign investment flows, the report said. 

HN Exchange honours transparency
     
The Ha Noi Stock Exchange has honoured the top 30 listed companies recognised as being most transparent in the 2015-16 period.

This is one activity in the wide-ranging programme on corporate governance which is aimed at upgrading the status of the local securities market.

This is the fourth consecutive year the exchange has evaluated the quality of corporate governance of listed companies on the Ha Noi bourse, with the aim of raising the enforcement of good practices on corporate governance and enhancing investor confidence in companies and markets.

A total of 344 enterprises have been evaluated using five criteria, including the rights of shareholders, equal treatment for shareholders, the roles stakeholders play, the disclosure of transparent information and the responsibilities shouldered by managing boards.

The result has shown that the quality of disclosure by listed enterprises slightly improved over the previous year, with the average weighted score of 51.3 per cent, a 0.5-per-cent higher score than last year, though the number of companies that need improving remains large.

Only 2.1 per cent of companies were awarded the “excellent” score; 17.7 per cent rated “good”; 41.3 per cent rated “average” and 39 per cent needed “improving”.

Results indicated that large companies had better disclosure compliance, while half of the 30 most transparent enterprises belonged to the top 30 largest companies by market capitalisation on Ha Noi’s exchange. Companies having State capital and foreign investment also had better scores.

Three business sectors were found to have the best corporate governance, including finance, transportation and warehousing, and healthcare. On the other end of the spectrum, information and communication, real estate and construction scored the lowest. — VNS

HNX’s top 30 listed transparent companies:

1. Asia Commercial Bank (ACB)

2. Bao Viet Securities Company (BVS)

3. C.E.O Group Joint Stock Company (CEO)

4. Ben Tre Pharmaceutical JSC (DBT)

5. Hai Ha Confectionery JSC (HHC)

6. Hudland Real Estate Investment and Development JSC (HLD)

7. Hoc Mon Trade JSC (HTC)

8. Tasco JSC (HUT)

9. Lam Thao Fertilisers and Chemicals JSC (LAS)

10. Lam Dong Investment & Hydraulic Construction JSC (LHC)

11. Da Nang Airports Services JSC (MAS)

12. Vinacomin – Nui Beo Coal JSC (NBC)

13. Tien Phong Plastic JSC (NTP)

14. PetroVietnam Southern Gas JSC (PGS)

15. Petrolimex Petrochemical (PLC)

16. Post – Telecommunication Joint – Stock Insurance Corporation (PTI)

17. PetroViet Nam Coating JSC (PVB)

18. PVI Holding (PVI)

19. Drilling Mud Corporation (PVC)

20. Petrovietnam Technical Services (PVS)

21. Cho Lon Real Estate JSC (RCL)

22. Safoco Foodstuff JSC (SAF)

23. Sai Gon-Ha Noi Bank (SHB)

24. TNG Investment And Trading JSC (TNG)

25. Power Engineering Consulting JSC 4 (TV4)

26. VCS Advanced Quartz Stone JSC (VCS)

27. Viet Dragon Securities Corporation (VDS)

28. Vinacontrol Group Corporation (VNC)

29. VNDirect Securities Corporation (VND)

30. Viet Nam National Reinsurance Corporation (VNR)

2017 budget deficit set at 3.5% of GDP

The budget deficit ceiling has been set at 3.5 per cent of GDP for 2017, equal to VND178.3 billion ($8 billion), with a majority of National Assembly (NA) delegates voting in favor of the associated resolution on November 11.
Total budget collections are to be VND1,212 trillion ($54.2 billion) and total budget expenditure VND1,390 trillion ($62.2 billion), for a budget deficit of VND178.3 trillion ($8 billion), or 3.5 per cent of GDP.
The deficit target is quite low, as in recent years the 5 per cent GDP ceiling has been retained but the actual results in 2014 and 2015 were 6.33 per cent and 6.11 per cent, respectively.
In July the first session of NA XIV retained the budget deficit target for this year at 5 per cent GDP. The deficit in the first ten months of this year was estimated at VND159.5 trillion ($7.14 billion), the latest Ministry of Finance figures reveal, representing 113.3 per cent of the newly-set target for 2017.
Next year the State budget deficit is to be VND172.3 trillion ($7.7 billion), or 3.38 per cent of GDP, and the local government budget deficit is to be VND6 trillion ($268.4 million), equal to 0.12 per cent of GDP, under the newly-passed resolution.
Total State budget loans, including loans to cover the budget deficit and loan repayments, are to be VND340 trillion ($15.2 billion) next year.
The NA also approved a government proposal to increase the minimum wage in the public sector from the current VND1.21 million ($54) per month to VND1.3 million ($58), from July 2017.
This is the second annual increase in a row for the sector, which has around 2.8 million employees. In May this year the minimum wage increased 5 per cent; the first rise in three years.
The minimum monthly salary for public employees is calculated by multiplying the basic level with a coefficient determined by qualifications and experience. The coefficient for a new sub district-level public servant with a Bachelor’s degree, for example, is 2.34.
Mr. Nguyen Duc Hai, Chairman of the NA’s Finance and Budgetary Committee, has said the new pay raise is reasonable considering the higher cost of living, but the government needs to scale down the public sector workforce to reduce pressure on the State budget.
At a conference in October, economists blamed low wages in the public sector for the increasing occurrence of corruption. Last year Vietnam ranked 112th out of 168 countries in Transparency International’s Corruption Perceptions Index.

Viglacera breaks ground at Dong Van IV IP

The Viglacera Corporation held a breaking ground ceremony for its Dong Van IV Industrial Park (Dong Van IV IP) in northern Ha Nam province on November 11, three months after obtaining an investment license.
The IP covers 600 ha in Kim Bang district and will be built in two phases, the first of which will be on 300 ha. Completion is expected sometime next year.
Dong Van IV is strategically positioned on National Highway No. 38 and has easy links with National Highway No. 1 and the Hanoi - Hai Phong Highway to Hai Phong Port, according to Mr. Tran Xuan Hung, Director of the Viglacera Infrastructure Development Investment Company under the Viglacera Corporation. It takes just 40 minutes from the IP to Hanoi and one hour and 40 minutes to Hai Phong Port. 
“Its strategic location is very convenient for enterprises importing and exporting goods by air and sea and for attracting high-quality human resources from the capital,” Mr. Hung said.
The province has an abundant workforce of nearly 500,000 people with more than 4 million available from neighboring areas. “Viglacera will also build a housing area for experts, staff and workers,” Mr. Hung added.
At the ceremony, Viglacera also granted licenses and land ownership certificates to three South Korean investors, who will be the first to build factories at the IP. Investing in Dong Van IV IP has various advantages compared to other IPs in the country, according to Mr. Park Ji Hong, Chairman of the James Tech Co., Ltd, one of the three and specializing in manufacturing electronic components for LG.
These advantages include its prime location, broad support from Ha Nam authorities, an abundant workforce, and the experience of the developer, Viglacera, in building IPs. “These factors are very important for foreign investors like us,” Mr. Hong said. “This is why we decided to choose Dong Van IV for our project after researching many other IPs.”
With 18 years of experience in IP investment and development in Vietnam, Viglacera has developed ten IPs nationwide on a total area of 3,580 ha, including the Tien Son IP, the Yen Phong IP, and the Thuan Thanh IP in northern Bac Ninh province, the Hai Yen IP and the Dong Mai IP in northern Quang Ninh province, and the Phong Dien IP in central Thua Thien Hue province. It has attracted more than 200 investors worldwide, including Samsung, Orion, Canon, and Sumitomo.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR