LH Establishes Korea-Vietnam Economic Cooperation Industrial Complex Joint Venture

Issuance of Business Registration Certificate in Hung Yen Province, Vietnam... Commencement of Land Compensation and Site Supply This Year
Submission of Industrial Complex Occupancy Intent and Commitment Letters by September 30

Location map of the Korea-Vietnam Economic Cooperation Industrial Complex / Provided by LH.

[Asia Economy Reporter Kangwook Cho] Korea Land and Housing Corporation (LH) announced on the 8th that it has received the Enterprise Registration Certificate (ERC) for a local joint venture from Hung Yen Province, Vietnam, to promote the ‘Korea-Vietnam Economic Cooperation Industrial Complex’ project.

With the issuance of this enterprise registration certificate and the establishment of the joint venture, LH plans to pay the joint venture’s capital within this month and proceed with land compensation and industrial complex land supply within the year. The joint venture is named ‘VTK Hung Yen Industrial Park Investment and Development Limited Liability Company.’

VTK stands for ‘Vietnam Together Korea,’ symbolizing a space where Vietnam and Korea create value together and build a new culture. It is planned to be used for industrial complexes and smart city projects promoted by LH in Vietnam in the future.

So far, more than 9,000 domestic companies that have entered Vietnam have mostly sought industrial complex land independently and have faced many difficulties in the licensing and financing processes. The ‘Korea-Vietnam Economic Cooperation Industrial Complex’ is a Korean-style industrial complex designed for Korean companies that find it difficult to enter Vietnam on their own. Resident companies will be provided with convenient one-stop services such as local licensing, administrative processing related to residency, and financing consulting.

The Korea-Vietnam Economic Cooperation Industrial Complex will be constructed on a scale of 1,431,000㎡ (approximately 430,000 pyeong) in Khoai Chau and An Thi districts of Hung Yen Province, about 30 km from Hanoi, the capital of Vietnam. Hung Yen Province is a city with an area 1.5 times that of Seoul and a population of about 1.2 million. It is located in the northern economic belt connecting Hanoi and Haiphong and maintains stable growth due to continuous increases in foreign investment. It is also adjacent to the Hanoi-Haiphong Expressway, providing easy access to Korean companies such as Samsung, LG, and Hyundai Motor located in the industrial complex’s hinterland, and has excellent geographical advantages within one hour of Noi Bai International Airport and Haiphong Port.

Land Use Plan of Korea-Vietnam Economic Cooperation Industrial Complex / Provided by LH.

Since LH held a business briefing session for companies wishing to move in October 2019, it has been receiving letters of commitment from interested companies, showing very high interest from Korean companies. LH plans to close the submission of letters of intent and letters of commitment by the end of this month to prepare for the industrial complex supply. Companies submitting letters of intent by the 30th of this month will receive sales guidance information, and companies submitting letters of commitment will receive sales guidance information along with priority supply benefits for industrial complex land. In the future, general supply of industrial complex land will be prioritized for companies that submit letters of commitment, and remaining plots will be supplied thereafter.

The industrial complex development will be carried out through the joint venture. On the Korean side, the consortium includes LH, Korea Infrastructure & Urban Development Corporation (KIND), KBI Construction, and Shinhan Bank, while on the Vietnamese side, the local developer TDH Ecoland plans to invest. In January this year, five companies including LH completed the signing of a Joint Venture Agreement (JVA) that defines the business structure, shareholding ratio, and roles of the parties involved.

Once the Korea-Vietnam Economic Cooperation Industrial Complex is developed, about 50 Korean companies are expected to move in, with an estimated investment of approximately 400 million USD by Korean companies. In addition, the joint venture will provide one-stop services such as administrative, financial, and tax support from the early stages of residency to operation, and plans to create a pleasant complex environment and workspaces by establishing convenience facilities for companies and workers, as well as advanced communication and network facilities.

LH plans to gradually promote the second and third phase projects to provide more overseas expansion opportunities for Korean companies. Based on the development of the first phase industrial complex, the goal is to develop a second phase industrial complex of 2,638,000㎡ (approximately 800,000 pyeong) and a third phase urban area of 3,779,000㎡ (approximately 1,140,000 pyeong). Besides Vietnam, LH is also promoting economic cooperation industrial complex development projects in Myanmar and Russia, expecting to expand overseas expansion opportunities for Korean companies through these efforts.

An LH official said, "We hope that the Korea-Vietnam Economic Cooperation Industrial Complex development project will serve as an opportunity to expand cooperation projects between the two countries in various fields such as social housing and smart cities in Vietnam, thereby enhancing exchanges and cooperative relationships."

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