Japanese trading group Sumitomo Corporation have indicated that they plan to expand their industrial parks throughout Vietnam.
The group currently operate three complexes across the country, which host approximately 190 companies, 90 per cent of which are Japanese manufacturers.
In order to meet increasing demand, Sumitomo have decided to spend a total of JPY14 billion or US$130 million, to add roughly 181 hectares of land to the Thang Long Industrial Park II in Hung Yen province, increasing the total scale of the area to 525 hectares. This expansion will make the site one of the biggest Japanese industrial parks across the nation.
The scheduled time for the expansion work is two years, with the project being completed in 2021 before opening to enterprises in 2022.
Sumitomo is also poised to expand the Thang Long Industrial Park III, which was just completed in Vinh Phuc province last November. Once completing the first phase of the expansion plan in 2021, the industrial park’s overall size will be up by 104 hectares.
Sumitomo had originally planned to accomplish the Thang Long Industrial Park III's first phase in 2022. However, due to increased demand, the group decided to initiate the plan one year ahead of schedule. The group will break the ground to start construction in the first half of 2020.
According to The Japan External Trade Organisation (JETRO), the total investment by Japanese companies in Vietnam rose by 7 per cent last year to 643 projects.
Vietnam represents a good choice for foreign enterprises to disperse risks in their business activities thanks to enjoying a close proximity to China along with cheap labour costs.