A subsidiary of Thailand’s Land and Development Public Company and Vietnamese builder Cienco 4 have formed a joint venture to develop a $1-billion industrial and township zone in Vietnam, which has emerged as a foreign investment magnet in the region.
will hold 80% of the joint venture and the rest will be taken by the Vietnamese partner, formally known as the Civil Engineering Construction Corporation No. 4.
The venture will build the industrial zone, which includes two industrial parks, on an area of 3,200 hectares in the Northern-central province of Nghe An.
The construction will be carried out in seven phases scheduled for completion in 2038, with the first phase to be rolled out as soon as early next year on an area of 500 hectares.
Vietnam is the first foreign country that Hemaraj will invest in the form of developing an industrial estate for rent, Jareeporn Jarukornsakul, chief executive officer of WHA Corp, a major shareholder of Hemaraj, told Reuters.
With the project, Hemaraj will be the second foreign industrial real estate developer to invest in Nghe An province, after an industrial-township complex invested by Vietnam-Singapore Industrial Park Company (VSIP).
Hemaraj will also be Thailand’s second firm to develop industrial property in Vietnam, after Amata Plc, which has been in Vietnam for two decades and is seeking to expand its operations to northern Vietnam.
Possessing low labor cost and deepening its global integration with several landmark free trade agreements, Vietnam has become one of the most appealing investment destinations in Southeast Asian.
Foreign direct investment (FDI
) pledges in Vietnam reached $16.43 billion in the first nine months of this year, according to the Ministry of Planning and Investment.
Manufacturing industries are Vietnam’s top source for attracting foreign funds when attracting $12.15 billion in the period, accounting for 73.9% of total FDI commitments.