A big future awaits

CA - Developers behind the Dinh Vu Industrial Zone (DVIZ) are set to release their detailed master plan for the zone this week. Doan Duc Luyen, first deputy general director of Dinh Vu Industrial Zone Joint Stock Company, tells Dau Tu’s Song Ngoc about the company’s confidence in the DVIZ as the economy recovers.

There were rumours the DVIZ had had trouble in attracting investors in the aftermath of the economic crisis. Is this true?

The fact is that we are very optimistic and confident with what we are doing. The fundamentals are excellent: the DVIZ offers a prime location and infrastructure for factory and business development location in northern Vietnam, with direct port and liquid jetty access. Vietnam has weathered the effects of the world economic crisis, and has temporarily seen a reduction in foreign investment in the country. However, in the DVIZ case, the situation is that recorded investment capital has not declined, but increased. In 2009, we attracted $340.9 million, which is substantially higher than the recorded investment capital for 2008.

To date, the zone has signed up 27 projects. Is this really enough to warrant such optimism?

The opportunities offered to the DVIZ today are tremendous, especially now that we have obtained the investment certificate for phase 2 (377,5ha), and the detailed master plan has been approved. We are proud of our success. Today, phase 1 is almost complete. Since 1997, the start of the DVIZ, most of the revenue and all of the profits have been re-injected into new assets for the company.

All necessary utilities are in place, and they are a guarantee for future growth; they only need to, and will be extended, to serve the second phase. The value of the DVIZ assets and the inventory today is far in excess of $100 million, and the company has almost no debt. On the marketing side, we are now strengthening the collaboration of two teams: the local marketing efforts of the DVIZ and its experienced marketing team are now directly connected with the international marketing network of the mother-shareholder, Rent-A-Port NV.

The attention of foreign clients to the DVIZ is actively sought through specific marketing contracts with the Rent-A-Port partnerships and representatives in India, China, Hong Kong, South Korea, Taiwan, Japan and Europe. It is expected that these efforts will allow the diversification and intensification of foreign investment in the DVIZ and its extensions.

What are the major targets of the DVIZ’s phase 2 and when will these be achieved?

At the DVIZ level, we plan to complete infrastructure and utilities development within five to seven years and lease out the whole area. In addition, InfraAsia and Rent-A-Port aim to obtain additional projects for 1,500ha before the end of 2010.

Is it the company’s strategy to announce the DVIZ’s detailed master plan ahead of the economic recovery to ensure it can make the most of upcoming opportunities?

We are affirming Rent-A-Port’s and the DVIZ’s efforts more in the context of our continued belief in Haiphong and its enormous potential for economic and industrial development and growth, especially through port, transportation and industrial park infrastructure development. Of course we are very satisfied with the detailed master plan, which is a part in the normal process of going about our core business.

There are more than a dozen industrial parks in place and under construction in Haiphong. Does the company fear this level of competition?

Competition is good and healthy. All companies want Haiphong to grow. We know there is a lot of demand for manufacturing bases in Haiphong and in Hanoi. The government is aware of this, and, in an effort to unleash the full economic potential of the Hanoi-Haiphong axis, is developing the Hanoi-Haiphong Expressway and the Hai Phong- Lach Huyen International Gateway Port, a major new deep-sea port. Unlike other industrial zones, the DVIZ is the only location in the north of Vietnam with a focus on multi-modal transportation as demonstrated, for example, by our direct access to Dinh Vu general port and liquid jetties.

Our marine and land reclamation expertise, in DVIZ’s case, is also a unique in-house advantage. With DVIZ’s special location, and the benefits and tax incentives available to investors, as well as our professional and experienced working team, we are confident we can handle the competition.

Preparations are underway for the start of work on the Haiphong - Lach Huyen International Gateway Port, which is very near the DVIZ. Is the company interested in taking part in this strategic project?

Elsewhere on this page, Rent-A-Port’s and the DVIZ’s objectives and actions in developing projects in the Lach Huyen are explained. We strongly believe in the development of these projects, as we believe in the Lach Huyen deep-sea port project. Lach Huyen will bring the development of the ports in Haiphong and the port-related industries to a totally new level.

Volumes of traffic will increase tremendously in comparison with existing volumes. A whole series of new industries, especially petrochemical, will be created. A whole series of business connections between existing and future businesses in the DVIZ, and future industries in Lach Huyen, will come into being.