The Long Binh Industrial Zone Development Company (Loteco) is a joint venture between Japan’s Sojitz trading and investment firm, a merger of Nissho Iwai and Nichimen Group, and Vietnamese partner, Thai Son Garment Company (Thasimex) under the Ministry of Defense, operating in the investment and development of industrial and export processing zone infrastructure.
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| Workers are working at Dongjin Vietnam Co., Ltd in Loteco IZ |
The Long Binh Industrial Zone Development Company (Loteco) is a joint venture between
Located in Long Binh Ward,
When starting operation in 1996, Loteco encountered many difficulties caused by the Asian Economic Crisis. This resulted no foreign investors coming to Dong Nai province’s Lecteco industrial zone (IZ) at that time. However, Loteco has been active in the business until by the end of 1990s and the beginning of the 21st century. After 10 years’ growth, the zone has turned into a modern export-oriented industrial place and a hot spot for domestic and overseas investors. Infrastructure costs for building and equipment that Loteco invested in its industrial park during the past ten years were approximately US$ 23.5 million. At present, the company has built an advanced wastewater treatment plant to handle 2,500 m3 per day. In addition, Unitank ® technology is also deployed in other wastewater treatment facility with a capacity of 4,000 m3 per day. The company is planning to double the capacity at the second wastewater treatment facility in order to meet growing demands of enterprises located in Loteco IZ.
In the first phase, Loteco has built a power plant with a capacity of 3,2 megawatts and set up a transformer station with installed capacity of 40 megawatts. The company in coordination with Dong Nai Electricity Company is currently installing additional power line in order to bring total power supply in line with demand. Now, Loteco is preparing to enter the next phase of extending its IZ.
Dong Nai’s Loteco IZ is becoming increasingly attractive destination for foreign investors. In the first quarter of 2006, Loteco lured 3 new projects capitalized at roughly US$ 5 million, bringing the total number of licensed projects in the zone to 50 with a total registered capital exceeding US$ 240 million while generating new jobs for more than 15,000 laborers. Presently, a total of 100 hectare of Loteco’s industrial space (the first phase) is fully leased. High-tech projects with less pollution on the environment are encouraged to invest in Loteco IZ. Investment projects in such diverse fields as mechanical and electrical engineering, electronics, textile and garment are owned by foreign investors from Japan, Republic of Korea, US, Malaysia, Hong Kong and Taiwan. Large corporations like Yupoong, Muto, Suzuki, Nec Tokin and Harada etc. are operating effectively in the zone.
Aiming to create favorable conditions for investors, a representative office of DIZA and Long Binh export processing zone customs office were located in Loteco Industrial Zone. With the desire of becoming a modern industrial park, Loteco has made efforts to improve management quality. Accordingly, Loteco has successfully applied the quality management system according to ISO 9001:2000 and the environment management system according to ISO 14001.
Kim Loan
