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Construction begins at four automotive parts plants in Hai Phong

Released at: 13:59, 26/11/2018

Construction begins at four automotive parts plants in Hai Phong

Photo: Deep C Industrial Zones

Breaking ground ceremonies held at plants at DEEP C Industrial Zone.

by Minh Do

The PHA Vietnam Company Limited, the YMP Plus Company Limited, the Dong Yang Vina Industry Company Limited, and the MiChang Vietnam Company Limited began construction of their plants at the DEEP C Industrial Zone in the northern port city of Hai Phong on November 23.

The group, led by PHA Vietnam, which is invested by South Korea’s Pyeong Hwa Automotive Company Ltd, are building four automotive parts manufacturing plants on a total area of 11.4 ha, with capital of $32.3 million.

Pyeong Hwa Automotive will produce hood latches, door checkers, hood hinges and fuel filler openers with a capacity of more than 7.5 million products per year, equivalent to 1,115 tons. The $16.7 million project covers an area of 7 ha.

YMP Plus will produce door latch parts, hood latch parts, and trunk lid parts, with an annual capacity of 24.6 million products. The project has total investment of $8.2 million and covers an area of 1.7 ha.

Dong Yang Vina Industry will produce 24.6 million door latch springs and door latch rods per year. The $3.3 million project will be built on an area of 1 ha.

The $4.1 million plant of MiChang Vietnam, covering an area of 1.7 ha, will produce 480 tons of door latches, seat cables, and hood cables a year.

PHA was the pioneer in the group’s expansion to Vietnam. With a view to establishing a new and competitive manufacturing base serving worldwide exports, PHA decided to choose the DEEP C’s prime location next to the largest deep-sea port in northern Vietnam.

Once in operation in September 2019, end-products will serve major motor car manufacturers such as Volkswagen, BMW, Audi, GM, Ford and Hyundai.

Speaking at the breaking ground ceremony, Mr. Lee Jae Seung, PHA’s CEO, said its plants in Vietnam will use the accumulated experience of PHA’s factories worldwide. They therefore will provide the best products and services to the market thanks to the wonderful infrastructure in Vietnam, an abundant workforce, and experience from PHA. This will also help Vietnam become a key country in the automotive industry in Asia in the future, he said.

Mr. Nguyen Xuan Binh, Deputy Chairman of the Hai Phong City People’s Committee, said it is committed to facilitating operations at the DEEP C IZ. “Hai Phong continues to be one of the most attractive destinations for FDI in the country,” he said. “In the first ten months of the year, it attracted $2.4 billion in FDI; double the target set earlier in the year.”

This is part of a new South Korean investment wave into DEEP C IZ, with 12 projects and over $97 million in capital.

Mr. Bruno Jaspaert, DEEP C Industrial Zone’s General Director, said its vision is to develop into a production and logistics center not only for the northern region but also the country, with an experienced workforce and high-quality infrastructure. “We plan to divide DEEP C IZ into different IZ clusters, including automotive, petrochemicals, logistics and support industries,” he said. “We expect the plan will help diversify industrial sectors in Hai Phong, creating supply chains and increasing the localization rate.”

He added this could also help workers in the city in particular and in the north in general have opportunities to access new technologies through training courses at foreign-invested enterprises. “We hope Hai Phong will not only become a green city but also a sustainable and diversified technology center in Vietnam,” he said “The participation of PHA and its partners will certainly help this vision come true sooner.”

Apart from supporting customers with reliable utilities and guidance of investment procedure, DEEP C IZ is also adopting new initiatives to ease the operations of its tenants, such as general warehouse and chemical warehouse services, telecom services that provide more choice and flexibility at a lower cost, utility trenches that better protect utility provision and limit interruption, provision of recycled industrial waste water to reduce operation costs but ensure quality, and renewable energy from wind and solar power.

Upon completion of these facilities, investors in the zone will enjoy one of the most comprehensive and competitive service packages in Vietnam.

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