Within 9 months after receiving investment license from Dong Nai Industrial Zone Authority (DIZA), Meguro Vietnam Co., Ltd entered into operation in Amata Industrial Park.
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Chairman of the Provincial People’s Committee Vo Van Mot (right) granting the prize to winner of the Saigon Times Top 40 Award, Vedan Vietnam
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Within 9 months after receiving investment license from Dong Nai Industrial Zone Authority (DIZA), Meguro Vietnam Co., Ltd entered into operation in Amata Industrial Park. Japan Meguro’s chairman of the board, Uchino Yoshiro unveiled that the company will launch first made-in Vietnam fire-escape ladders into the market in October 2005. The company brings new products in time to the market that can help safe exit in the event of a fire or other emergency in the existing situation of increasing urbanization and booming in high-rise construction. A week ago, SANYO Home Appliances Vietnam Corporation (Sanyo Vietnam) launched a US$13 million digital camera plant in the Bien Hoa 2 Industrial Park. Sanyo Vietnam was established about 9 years ago by Japans Sanyo Group. The company produces washing machine, refrigerator, air conditioner and other home appliances that serve both the domestic and export markets. Increasingly, Sanyo Vietnam’s products dominate Vietnamese household appliances market. According to Sanyo Group’s executive board, the group intends to set the goal to reach 15 million digital cameras in production per year at its manufacturing plants in 5 countries such as Japan, Korea, Indonesia, China and Vietnam.
16 years ago, the Vedan Group sent Mr. Vuong Trieu Thu to ASEAN countries such as Indonesia, Thailand, Malaysia, Philippines and Vietnam for seeking investment opportunities. It took 2 years for market research, the group, finally, made investment decision at Phuoc Thai commune, Long Thanh district, Dong Nai province. Vedan Vietnam and mushrooming factories in Go Dau- Phuoc Thai industrial park has helped create more employment for local workforce and brought prosperity to this poor agricultural area where used to grow cashew, cassava and eucalyptus. Accordingly, this poor area has been turned into huge industrial zone. Vedan Vietnam is one of Dong Nai’s three largest investors with total investment of US$ 422 million. The company has developed its business rapidly in such fields as textile, chemical, foodstuff, pharmaceutical products …. through setting up many factories in Phuoc Thai industrial park. In addition, the company expands its operation elsewhere in provinces of Southeast and Centralnorth area and Highland of Vietnam. Vedan Vietnam’s products sell in both domestic and foreign markets. About 30-40 per cent of the company’s total turnover comes from exports. Vedan Vietnam wants to reach its long-term business goal in Vietnam. The company has been awarded many certificates of merit by Prime Minister and Dong Nai Provincial People’s Committee.
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| Rostaing’s factory producing garden gloves for export |
In the other hand, many foreign-based companies i.e. Fujitsu, Mabuchi, Taekwang Vina, CP group, Pouchen, Fengtay, ChangChin, Cargill… has increased their investments for expanding the production. Nestlé
Vietnam is preparing to expand its production in Dong Nai in order to meet growing demands. Besides, Vietnam Suzuki Corporation is going to launch a US$ 20 million Auto-Motorbike manufacturing factory in Loteco Industrial Park. The new factory will enable the company to raise the capacity from 76,000 motorbikes and 4,000 automobiles to higher level. During the past 9 years, the company achieved its turnover of US$ 492 million and contributed US$ 74 million to the State Budget. Until now, production capacity of the company increased by 10 times compared with 1996. More 500 people were employed by Vietnam Suzuki. Up to June, 2005, Vietnam Suzuki has become the second largest motorcycle and auto manufacturer in Vietnam.
Not only the manufacturers of motor, automobile, electronic products, household electronic appliances, processed food, cattle feed, sodium glutamate, leather shoes, and garment etc. but also all other investors are also gaining success in doing business in Dong Nai. Formosa is a typical example; although the company has just invested in Dong Nai in a short time, it has won the Award of “ Saigon Times Top 40” for two consecutive years because of its fast pace of capital disbursement. In the past two years, Formosa has invested in Dong Nai about US$ 280 million out of US$482 million of registered capital. Presently, its polyester spinning plant hits export value of about US$25 million per month. Furthermore, the Formosa’s BOPP production factory is also concentrating to stabilize its capacity at this time. Besides, Nike Corporation has 7 subcontractors in Dong Nai that create jobs for 70000 people. In the next time, Nike’s subcontractors will continue to expand the production.
Dong Nai boasts an abundant supply of vacant land available for investors, plentiful workforce and favorable conditions for attracting foreign investments. Thus, Dong Nai is an attractive, safe, and, most importantly, promising and profitable destination for foreign investors. Furthermore, the local government is implementing administrative reform with a high determination. In addition to favorable investment environment as offered by local government, foreign investors will enjoy the preferential policies when they invest in mountainous and remote areas of Dong Nai province. To present, it is necessary to attract more foreign direct investment in high-tech industries, particularly auxiliary industries into Dong Nai and make use of advanced foreign technologies for developing the provincial economy.
Kim Loan
