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Sep. 21, 2017
Sumitomo Corporation

Construction of Thang Long Industrial Park III in Vietnam

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Kuniharu Nakamura) has commenced construction and sale of Thang Long Industrial Park III (hereinafter, “TLIP III”) currently under development in Vinh Phuc Province (north of Hanoi), Vietnam. Ground-Breaking Ceremony was held at TLIP III today.
 
Vietnam offers a stable political climate and a wealth of high-quality labor resources, and improvements to its social and transport infrastructure, as exemplified by upgrades to Noi Bai International Airport and National Route No. 5, have garnered high praise from companies that have made inroads into the country. With a gross domestic product (GDP) growth rate of 6.2% (source: International Monetary Fund, April 2017) and a population of approximately 93 million in 2016, Vietnam is ranked high among ASEAN countries. On the back of sustainable economic growth and rising population, its number of middle-income earners is expected to continue on an upward trajectory. In addition, with the launch of the ASEAN Economic Community (AEC) and the conclusion of negotiations with the EU for a free trade agreement (FTA), the country is also deemed to be an excellent hub for export to the world. Japan’s direct investment in Vietnam reached US$2.16 billion in 2016, ranking third in the world, and more Japanese firms are expected to advance into the country in the coming years.
 
Sumitomo Corporation commenced its industrial park business in Vietnam in 1997 with the establishment of Thang Long Industrial Park Corporation (hereinafter, “TLIP”). In 2006, the Company launched Thang Long Industrial Park II Corporation (hereinafter, “TLIP II”) for business in Hung Yen Province, with Phase I already sold out. With a total development area of approximately 620 hectares, TLIP and TLIP II together now host some 173 tenant companies. In response to the needs of small- and medium-sized firms, Sumitomo Corporation increased the rental plant space to a total of 110,000 m2, allowing incoming companies to keep their initial costs down.
 
TLIP III, which was established in 2015 as the third industrial park in Vietnam, is located in Vinh Phuc Province, 44 km from central Hanoi, a 50-minute drive to the north. The development of infrastructure surrounding the park is progressing, with the opening in September 2017 of an access road and bridge to the Lach Huyen International Gateway Port, a key port to be launched in northern Vietnam in 2018. Leveraging the operational know-how obtained through the business operations of TLIP and TLIP II, Sumitomo Corporation will provide incoming companies with high-quality support at every step of the way, from administrative procedures including applications for local licenses and approvals, to commencement of operations. The total development area is planned to be up to around 213 hectares, the total project cost is expected to exceed 10 billion yen, and operation is slated to commence in 2018.
 
Sumitomo Corporation will continue working on its industrial park business in Vietnam to help Japanese manufacturers make forays into the market with the hope of contributing to job creation and economic development in the country.

<Reference material>
■Location of TLIP III
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■Overview of TLIPIII
(1) Business entity : Thang Long Industrial Park (Vinh Phuc) Corporation
(2) Investment ratio : Sumitomo Corporation: 100%
(3) Location : Vinh Phuc Province, Vietnam
(44 km north of central Hanoi)
(4) Development area : 213 hectares (current plan)
(5) Date established : November 17, 2015


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■Sumitomo Corporation’s  Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “the Development of Local Communities and Industries”, “Establishing a Foundation for Comfortable and Enriching Lifestyles” and “Providing Diverse Accessibility”.

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Inquiries

Corporate Communications Department,
Sumitomo Corporation

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