Vietnam's First 'K-Sandan'... LH Breaks Ground on Hung Yen Province Clean Industrial Complex

Commemorating the 30th Anniversary of Korea-Vietnam Diplomatic Relations
Groundbreaking Ceremony on November 25th Locally

Aerial View of Heungyenseong Clean Industrial Complex

The first 'Korean-style Clean Industrial Complex' providing one-stop services including administration, finance, and taxation from the initial move-in stage to operation is breaking ground in Vietnam.

Korea Land & Housing Corporation (LH) announced on the 17th that it will hold a groundbreaking ceremony for the 'Hung Yen Clean Industrial Complex,' Vietnam's first Korean-style industrial complex, on the 25th. The complex, covering 1,431,000㎡ (approximately 430,000 pyeong), is located in Hung Yen Province, which connects Hanoi, the capital of Vietnam, and Hai Phong, the country's largest port city. Adjacent to the Hanoi-Hai Phong expressway, it offers excellent accessibility for Korean companies such as Samsung, LG, and Hyundai Motor located in the industrial complex's hinterland, and is within one hour's travel to Noi Bai International Airport and Hai Phong Port.

Since 2017, LH has been conducting site surveys and designated the Hung Yen Clean Industrial Complex as the first Korean-style industrial complex project. In June 2020, the development plan was approved, and in July last year, investment policy approval was obtained from the Vietnamese Prime Minister's Office. In September of the same year, a local joint venture, VTK (Vietnam together Korea), was established to implement the project. Land compensation began at the end of last year, and various construction permits were obtained in the first half of this year. The complex construction will continue until September 2024.

The companies eligible to move in are limited to domestic companies headquartered in Korea; however, foreign-based companies may exceptionally move in if Korean companies or Koreans hold shares. Convenience facilities for companies and workers will be provided, and advanced communication and network facilities will be introduced to create a pleasant complex environment and convenient workspaces.

In addition to the Hung Yen Industrial Complex, LH is considering the additional development of Korean-style industrial complexes. In October, a feasibility study was launched for the 'Zone 1 Industrial Complex (2,638,000㎡),' located about 2 km north of the Clean Industrial Complex. Currently, LH is negotiating the business structure and shareholding ratio with local Vietnamese partners and will make a final investment decision next year after government consultations. Furthermore, LH is reviewing various projects such as economic zone projects, smart city projects, and social housing projects.

An LH official stated, "We will expand cooperative projects between the two countries in various fields based on the Hung Yen Clean Industrial Complex project," adding, "We will create an environment where Korean companies can conveniently operate in Vietnam through not only infrastructure development but also one-stop administrative, financial, and taxation services via local subsidiaries."

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