Recently, Saigon - Da Nang Investment Corporation (SDN) has made efforts to enhance its brand strength, reputation, and operational expertise, establishing itself as a trusted partner for both domestic and international investors. Mr. Nguyen Tuong Huy, Deputy General Director of SDN, remarked that the company's success is the result of forging its own path and making a significant contribution to the economic prosperity of Da Nang City and the central region.
For many years, SDN has been considered a pioneer in bringing new solutions for customers to achieve truly worthy values?
SDN is a member of Saigon Invest Group (SGI) - the country's leading developer of industrial parks, urban areas and real estate in Vietnam. Inheriting experience and capacity from the parent company, SDN has also successfully developed a number of industrial park and urban area projects in Da Nang City, thus playing an active part in the city’s industrialization, modernization and integration. In many years, SDN has pioneered in bringing new solutions for customers to achieve truly worthy values of their investment and aspired to contribute to the prosperous economic development of Da Nang City.
SDN has successfully executed several industrial park and urban development projects in Da Nang City
The investment attraction into Lien Chieu Industrial Park (289ha) and expanded Hoa Khanh Industrial Park (132ha) in Da Nang City is encouraging. They are two of six existing industrial parks in the city. SDN has promoted its advantages of synchronous infrastructure and clean land for investors to start their projects immediately; ensured environmental protection and operated centralized wastewater treatment facilities. To date, SDN has paid nearly VND1,000 billion to the State Budget and attracted 64 tenants which are hiring 8,228 workers.
What incentives will investors receive when they invest in Lien Chieu Industrial Park and expanded Hoa Khanh Industrial Park in particular and all industrial parks in general?
The advantages of Lien Chieu Industrial Park are a synchronous infrastructure system and active support for investors during project implementation. Besides, it lies on National Highway 1A, 500m from Hai Van Tunnel and has easy traffic connectivity to the domestic market (to Hanoi, Hue, Central Highlands provinces, Binh Dinh, Nha Trang and other localities). Lien Chieu Port, which is under construction, is only 1km from Lien Chieu IP, very convenient for investors to transport, import and export products and inputs. Moreover, the hard ground of Lien Chieu IP helps investors cut construction costs.
Specially, SDN is also proud to be the only industrial park infrastructure developer and operator to have established two firefighting teams in the two industrial parks which also actively join local firefighting efforts. In 2023, the company coordinated to handle two fires on Road No. 6 in Hoa Khanh IP and Road No. 14B in expanded Hoa Khanh IP.
Lien Chieu IP currently has 82 hectares of commercial land for lease to qualified investors to locate their projects. SDN is shifting to attract logistics businesses. This approach is not only good for Lien Chieu IP but also makes an important contribution to making it a logistics hub for the future Lien Chieu Port.
Could tell you us more about SDN's real estate project development goals in the coming time?
SDN-invested residential and urban area projects in Da Nang City have been carried out quickly and efficiently. To date. SDN has invested and completed infrastructure construction in Bau Tram Lakeside Urban Area and Dragon City Park Urban Area (the first phase). Accordingly, dwellers in Bau Tram Lakeside Urban Area have reached about 50% of the capacity. Specially, The Ori Garden social housing project in Bau Tram Lakeside Urban Area invested by SDN has provided accommodation for nearly 4,000 low-income households.
Notably, despite playing a complementary role, SDN's residential and urban area projects are invested with synchronous and classy infrastructure as that in upmarket residential areas. Projects increase utility value for residents, featured by a high density of trees, combined with townhouses, self-contained public services and utilities to ensure the living standards of a modern urban area. For example, the social housing project in Lot B4-1 in Bau Tram Lakeside sold out all 274 commercial units and 990 social housing units. The second phase of the project in Lot B4-2 has also sold 80% of social housing units (950/1165 units) and 50% of commercial units.
Along with its achieved results, what advantages and difficulties is SDN also facing? What message do you want to send to investors?
Da Nang City has made efforts to improve the business environment and actively supported existing investors in a bid to invite new and strategic investors. The city has boosted investment promotion, especially in key markets such as Japan, South Korea and the United States. Many businesses are looking to invest in many fields in Da Nang like high technology, information technology, finance, tourism, seaports and logistics.
During its 7th meeting session, the National Assembly heard the report on a draft resolution on piloting the metropolitan administration model, a number of specific mechanisms and policies on Da Nang City development and proposals on pilot establishment of Da Nang Free Trade Zone. This can be considered a boost to the increased appeal of SDN's industrial parks in Da Nang now and in the future.
Besides those advantages, Da Nang is building an environmental city, a smart city with a developed high-tech industry. Therefore, challenges to SDN today are how to carefully select technology, scale, environmental impact and other conditions of projects in its industrial parks. At the same time, as the area and scale of Da Nang's premises remain limited, the current available land fund of 82 hectares in Lien Chieu Industrial Park is finding it hard to attract investors because it is not on the same land plot while big investors need a large seamless area.
In addition, the remaining term of new projects is less than 30 years and there is no precedent for extending the land lease term in the industrial park and there is no legal guidance for this issue nor incentives for tenants in Lien Chieu IP. As a result, it will lose competitive advantages to rivals in other provinces and cities. Moreover, changes in land policies from time to time leave a number of problems unresolved, thus affecting the issuance of land use rights certificates to businesses and factory and storehouse leasing. Many such reasons lead investors, especially foreigners, to abandon their initial preference.
In the coming time, SDN will apply for investing in two more industrial parks, Hoa Ninh (400ha) and Hoa Nhon (over 300ha) in Hoa Vang district. Currently, Da Nang City only allows Hoa Cam 2 Industrial Park to be deployed while others are “on hold”. For this matter, in the coming time, the city will have practical measures to eradicate difficulties and speed up progress so that SDN can embark on implementing these projects.
Regarding the development of other supporting real estate business, SDN has also kept working to invest in new social housing projects and cooperating with schools to train human resources for its industrial parks.
Hardships are forecast to linger in 2024. Whether a city's development is sustainable or not depends on its steps, preparations and long-term visions. And what pressingly needs to be done more quickly and strongly is building industrial parks, converting and developing sustainable industrial parks, and promoting green growth to not be left behind.
Thank you so much!
Han Luong (Vietnam Business Forum)
Vietnamese
October 2024
Hanoi