LH Approves Development Plans for Two Korea-Vietnam Economic Cooperation Industrial Complex Zones

[Asia Economy Reporter Yoo In-ho] Korea Land and Housing Corporation (LH) announced on the 2nd that it received initial approval from the Vietnamese government on the 29th of last month for the development plan of the 4.07 million㎡ Korea-Vietnam Economic Cooperation Industrial Complex project.

The approved sites include two projects among three locations within the Hung Yen Province Industrial City where LH is scheduled to participate: the Clean Industrial Complex of 1.43 million㎡, Industrial Complex Zone 1 of 2.64 million㎡, and the Urban Zone of 3.78 million㎡. The approval covers the Clean Industrial Complex and Industrial Complex Zone 1 projects.

Accordingly, LH plans to establish a local joint venture corporation within this year and begin construction in the first half of next year. Additionally, LH will set up a ‘Korea Desk’ with related organizations to support companies entering the local market. This will provide one-stop support services including assistance with complex local permits and administrative procedures related to settlement, as well as financing consulting utilizing financial institutions.

LH will continuously accept letters of intent and commitment for settlement from companies interested in entering the Economic Cooperation Industrial Complex.

This approval of permits is regarded as an achievement overcoming risks such as entry restrictions caused by the global spread of the novel coronavirus infection (COVID-19).

In particular, the Korea-Vietnam Economic Cooperation Industrial Complex project is a core part of the government’s ‘New Southern Policy’ and a national economic cooperation project agreed upon by the heads of both countries during the Korea-ASEAN Special Summit held last November.

The Korea-Vietnam Economic Cooperation Industrial Complex is being developed within the 26.45 million㎡ Hung Yen Province Industrial City, located about 30 km southeast from the center of Hanoi. With production facilities of Korean companies such as Samsung and LG located in the hinterland, the investment environment is excellent due to synergy creation with existing factories.

Since 2017, LH has actively pursued overseas expansion, starting with a comprehensive Memorandum of Understanding (MOU) on development cooperation with Hung Yen Province and private companies in Vietnam, and last year signing a ‘Preliminary Business Implementation Agreement’ with the local Vietnamese developer Ecoland.

Byun Chang-hoom, President of LH, said, “The Korea-Vietnam Economic Cooperation Industrial Complex is a key project of the New Southern Policy preparing for the post-COVID era,” and added, “It is expected to open new opportunities for Korean companies facing limitations and serve as a milestone in the economic cooperation relationship between the two countries.”

This content was produced with the assistance of AI translation services.