Korean-Style Industrial Complex to Be Exported to Vietnam

Minister of Land, Infrastructure and Transport Park Sang-woo is speaking at the ceremony commemorating the establishment of the Hong Yen Clean Industrial Complex held in Vietnam on the 23rd. Provided by the Ministry of Land, Infrastructure and Transport

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South Korea is establishing an industrial complex in Vietnam for the first time. This industrial complex is expected to host Korean companies, becoming a future export hub for South Korea in Vietnam.

The Ministry of Land, Infrastructure and Transport announced on the 24th that a contract support team led by Minister Park Sang-woo will visit Vietnam for three days from the 23rd to the 25th to attend the groundbreaking ceremony of the Hung Yen Province 'Clean Industrial Complex.' During this period, a preliminary agreement with private companies will also be signed to promote the Bac Ninh Province 'Southeast New City' project.

The Hung Yen Clean Industrial Complex is being developed by a joint venture (VTK) established by a Korean consortium (75%) including Korea Land and Housing Corporation (LH) and Korea Infrastructure & Urban Development Corporation (KIND), and Vietnam's TDH Ecoland (25%). It will be supplied on a scale of 140,000 square meters for Korean companies entering the Vietnamese market.

This industrial complex project began in April 2017 when LH and Hung Yen Province signed a Memorandum of Understanding (MOU) for industrial city development cooperation. Currently, over 20 Korean companies have signed contracts to move in.

On the afternoon of the 23rd, a ceremony was held to commemorate the establishment of the industrial complex. Minister Park delivered a congratulatory speech and awards were presented to contributors. The event was attended by high-ranking Vietnamese officials including the Governor of Hung Yen Province and the Deputy Minister of Planning and Investment, as well as heads of LH and KIND, and Korean business representatives.

On the same day, the Ministry of Land, Infrastructure and Transport and LH decided to pursue additional industrial complex development. Based on the MOU signed between LH and Hung Yen in 2017, four candidate sites proposed by Hung Yen were reviewed.

On the 24th, Minister Park will visit the Hanoi Metro construction site, built by Hyundai Engineering & Construction, and the Starlake development site constructed by Daewoo Engineering & Construction to listen to the difficulties faced by domestic companies and discuss support measures.

On the 25th, LH and over 20 public and private companies will sign a preliminary agreement to promote the Southeast New City project in Vietnam, which is comparable in scale to the Pangyo New Town. Southeast New City is the first project under the Urban Development Cooperation Program (UGPP) agreed upon by the government and Vietnam in June last year. It is being promoted in Bac Ninh Province, a key economic area near Hanoi.

The government and LH are conducting market research and feasibility studies for this project, and through this agreement, they will enter into detailed consultations with private companies. The goal is to form a strategic 'public-private consortium' to be selected as investors for large-scale projects like Southeast New City.

Minister Park said, "I highly appreciate the Clean Industrial Complex created by Korea’s public and private sectors as 'One Team Korea.' We plan to use this as a stepping stone to secure orders for the Southeast New City project and expand the export of K-New Towns."

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