Trading house Sumitomo invests 14 bil. Yen in Thang Long Industrial Park II expansion near Hanoi
HANOI, NNA - Japanese trading house Sumitomo Corp. will embark on the third-phase expansion of Vietnam’s Thang Long Industrial Park II, which it has been developing and operating in the suburbs of Hanoi, capitalizing on the country’s steady economic growth.
Sumitomo has reached an agreement with Hung Yen Province on the expansion project, which will cost more than 14 billion yen ($130 million), the company said in a statement on Friday. The construction work will start in 2021 with completion for sales beginning in 2022.
The industrial park, established in 2006 and located about 30 kilometers east of Hanoi, has grown into an area of 346 hectares through two phases of expansion. The third phase will be undertaken on an adjacent 180-hectare plot, bringing the park’s total area to 526 hectares, the statement said.
“We expect about 50 companies to locate their operations in the third phase,” a Sumitomo spokesman told NNA, adding that a total of 77 companies are occupying the first- and second-phase blocks. Many of these companies are engaged in the automotive, motorcycle, electronics, electric machinery, metal product, and machining sectors, he said.
In Vietnam, Sumitomo has operated industrial parks for more than 20 years since building and opening Thang Long Industrial Park (274 hectares) in Hanoi in 1997. It started developing Thang Long Industrial Park III (213 hectares) in Vinh Phuc Province in 2015. Preparations for the first-phase at the site of the third industrial park were completed last year.
In addition to Vietnam, Sumitomo has been developing, selling and operating special economic zones and industrial parks in Bangladesh, India, Indonesia, Myanmar and the Philippines, the statement said.