Green iP-1 Industrial Park Opening the Pathway to Thai Binh Economic Zone

Green iP-1 Industrial Park (Lien Ha Thai) was selected as a pioneering and key project in Thai Binh Economic Zone. Currently, the Industrial Park is accelerating site clearance, implementing synchronous infrastructure construction and focusing on attracting investment, aiming to become a multi-sector, green, clean and eco-friendly general industrial park. Vietnam Business Forum had an interview with Mr. Bui The Long, General Director of Green i-Park Corporation (GiP) regarding the project implementation and investment attraction.

Can you briefly introduce Green iP-1 (Lien Ha Thai)?

GiP was one of the pioneering companions of Thai Binh province from the very beginning of formulating the Economic Zone Master Plan (2018). With its experience in industrial park infrastructure development, GiP actively advised the province on planning a large-scale economic zone, including 8,020 ha for industrial parks.

GiP leadership believed that, to the boost strong development of Thai Binh Economic Zone, a firm resolution to any emerging difficulty is a prerequisite to set up the economic zone. Thus, GiP actively advised the province to build an industrial zone of nearly 600ha in Thai Thuy district. Seeing its determination and highly appreciating its methodical and effective approach, the provincial government trusted and chose GiP to invest in a pioneering industrial park, Green iP-1 (Lien Thai Ha), in Thai Binh Economic Zone.

Green iP-1 was selected as a pioneering and key project in Thai Binh Economic Zone; What do you think about the potential and advantages of Green iP-1 Industrial Park?

First of all, Green iP-1 is well-connected to big cities, international airports and Hai Phong deep-water seaport. It is adjacent to many trunk roads like coastal roads, National Highway 39, National Highway 37 and Provincial Road 456.

The industrial park also has the advantage of abundant human resources. Thai Binh province has a population of about two million, and the proportion in working age of about 57%. This is an abundant source of labor.

Green iP-1 lies in Thai Binh Economic Zone where secondary investors are granted great incentive policies for industrial zones by the Government and the province, specifically the corporate income tax of just 10% in the first 15 years, corporate income tax exemption in the first 4 years, and a 50% reduction in the next 9 years.

Green iP-1 has a large area of nearly 600 ha, flexibly designed for all tenants, including lots of 70-80 ha, large enough for big investors to locate their projects.

Notably, Green iP-1 dedicates 90 ha for housing and entertainment facilities. It makes everything ready for employees of tenants to stay and work at the same time in case of complicated COVID-19 pandemic development.

Would you be kind enough to describe the approach for Green iP-1 construction and its investment attraction results?

Like the meaning of our name Green i-Park, we wanted to build an environmentally friendly green industrial park with a synchronous infrastructure to meet the most demanding requirements of large corporations in the world.

GiP also planned to build Green iP-1 into a multi-industry destination where priority is given to high-tech and green and clean industries such as electronics, refrigeration, home appliances, automobiles, electric vehicles, precision engineering and supporting industries.

During eight months of implementation (GiP received investment policy from the Government and Thai Binh Economic Zone Authority on February 19, 2021), many investors came to survey Green iP-1. To date, the company has successfully attracted a US$120 million computer parts manufacturing project of Lotes Thai Thuy Vietnam (Taiwan); a US$200 million agricultural machine manufacturing plant of Greenworks Thai Binh Vietnam (USA) and a US$80 million memorandum of understanding with Nam Tai Group (Singapore).

With these three secondary projects, Green iP-1 has attracted US$400 million, equal to 75% of the province’s FDI fund, making Thai Binh province the 17th out of 62 leading provinces in attracting foreign investment in the first 10 months of 2021. In addition, GiP is still actively negotiating with some Japanese and South Korean investors and we believe that investment value in 2021 will be higher than this figure.

Does the COVID-19 pandemic have any impact on the progress of Green iP-1?

In the past times, many provinces and cities across the country were severely impacted by the COVID-19 pandemic. Fortunately, Thai Binh province controlled it well and all work was carried out normally and achieved good results.

Regarding site clearance, as of today, Green iP -1 has already cleared 400 ha and is expected to complete all 588 ha in December 2021. This outcome came from strong determination and close engagement of the government of Thai Thuy district, which helped facilitate site clearance. Besides, provincial authorities also paid working visits to help deal with emerging problems. This reconfirms the commitment of provincial leaders: Thai Binh province is actively reforming and creating the most open and attractive investment environment.

Infrastructure construction has also been accelerated. The company has constructed many internal roads, leveled off over 500,000 cubic meters of earth; and started building wastewater treatment plants and synchronous infrastructure works. GiP and contractors are determined to complete their high-quality work so as to quickly build the image of a model industrial park.

With your personal experience, what do you think about the potential and development space of industrial property in Vietnam in the coming years?

Given the strong shift of global investment flows and supply chains, the stronger wave into Southeast Asian countries will be a great opportunity for Vietnam. FDI value reached US$38 billion in 2019, expected to slide to US$29 billion in 2020 due to the COVID-19 pandemic, and already attracted US$22 billion in the first nine months. In 2022 and 2023, when the COVID-19 pandemic is controlled, pent-up demand may push FDI value to US$40-50 billion a year.

That is a great prospect for the industrial real estate sector. Therefore, there will be a "race" among many provinces and cities to build the infrastructure of industrial parks for investors. When large investment flows in, projects themselves will be channeled into localities, and open to previously unnoticed localities such as Thai Binh province. Most importantly, seizing opportunities to accommodate investment flows and preparing premises, investing in modern and synchronous infrastructure will demonstrate the professionalism and success of industrial park infrastructure developers and investors across the country.

Thank you very much!

Source: Vietnam Business Forum