On July 15, the People’s Committee of Hau Giang province sent a document to the Ministry of Planning and Investment to request feedback on the appraisal of the project dossier for investing in the construction and business of technical infrastructure of Dong Phu 2 Industrial Park (IP), Hau Giang province.
Master plan for construction subdivision of Dong Phu 2 IP
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Dong Phu 2 IP covers an area of 234 hectares in Dong Phu commune, Chau Thanh district, Hau Giang province. The land use composition includes 163.6 hectares of paddy fields, 4.2 hectares of rural residential land, 55.1 hectares of land for perennial crops, and 11.2 hectares of other land.
According to the Provincial People’s Committee, the Dong Phu 2 IP project is suitable in terms of location and area with the provincial planning of Hau Giang. It also aligns with the approved construction subdivision planning for Dong Phu 2 IP and other relevant plans.
Additionally, the project is consistent with the industrial development orientation of the Mekong Delta region and complies with the national land use plan for the period of 2021-2030 and the national land use plan for the period of 2021-2025 allocated for Hau Giang province.
Regarding the current land status, for the over 163.5 hectares of paddy fields, the actual production is fruit trees. As rice cultivation was not effective and did not yield high productivity, the local people have switched from growing paddy to cultivating fruit trees. The fruit yield reaches 10-16 tons/hectare, and the area’s vegetable and aquatic production is small-scale, resulting in low yield.
Therefore, converting the land use purpose from paddy fields to implementing the project will not significantly impact the agricultural production and output of the district and the province. Moreover, the operation of the IP will help provide jobs for local people and those in neighboring areas, contributing significantly to the local economic development and growth.
Currently, there have been no received dossiers regarding complaints or disputes related to land issues in the project area.
As per the Provincial People’s Committee, the project for investing in the business of Dong Phu 2 IP infrastructure is eligible for land rent exemption. Consequently, the project is not subject to land use right auctions or investor selection through bidding.
As of June 26, there is only one investor interested in the project, Dong Phu Industrial Park Joint Stock Company. According to the investor’s proposal, the project has a total investment of more than VND 3,997 billion, of which the investor has contributed VND 616 billion, equivalent to 15.4% as of June 14, 2024, as confirmed by BIDV Trang An Branch.
Furthermore, the investor committed to contribute an additional VND 600 billion in alignment with the project progress. In phase 1, they will contribute VND 369.5 billion within one month from the date of issuance of the investment policy decision, and in phase 2, they will contribute the remaining VND 230.5 billion right after the completion of phase 1.
For the remaining amount of approximately VND 2,782 billion, equivalent to 69.63% of the total investment capital, the investor has been granted a commitment credit certificate from VietinBank – Le Chan Branch (Hai Phong) dated May 10, 2024.
According to regulations, the financial capacity condition to ensure land use in accordance with the project progress requires a minimum of 15% of the total investment capital to belong to the investor’s equity for projects with a land scale of 20 hectares or more. Additionally, there should be an ability to mobilize capital for project implementation from credit institutions, foreign bank branches, and other organizations or individuals.
Based on the project dossier, the investor has contributed 15.37% of the total investment and has obtained a credit commitment from VietinBank, fulfilling the conditions for land lease and allowing land-use purpose conversion as per regulations.
Dong Phu 2 IP is planned with the goal of an eco-industrial park model, intending to allocate industries such as processing, mechanics, electronics, renewable energy, and supporting industries. Priority will be given to projects that employ “advanced, new, clean, and energy-efficient” technologies, technology transfer, and local workforce training. Additionally, the investor has committed to allocating a minimum of 5 hectares of land for supporting industries and innovative enterprises.
Who is the investor?
Dong Phu Industrial Park Joint Stock Company is a newly established enterprise on May 4, 2024, with a charter capital of VND 616 billion (equal to the amount the company contributed to the project). It comprises three founding shareholders: Shinec Joint Stock Company, holding 51%, and the remaining 49% equally divided between Mr. Nguyen Tien Duc and Mrs. Nguyen Thuy Linh. Mr. Tran Trung Nghia serves as the General Director and legal representative of the company.
Regarding the parent company of Dong Phu IP, Shinec, established in December 2001, is headquartered in Nam Cau Kien IP, Hai Phong city. As of June 19, 2024, it has a charter capital of over VND 689 billion, with Mr. Pham Hong Diep as the Chairman.
Notably, in April 2022, the Dong Phu IP project was introduced on Shinec’s website with a total investment of VND 2,250 billion, which has now increased to nearly VND 4,000 billion, representing a surge of almost 78%.
Shinec is recognized as the investor in Nam Cau Kien IP (over 263 hectares) in Hai Phong. Additionally, the company has invested in Ninh Son IP (620 hectares) and Xuan Son IP (300 hectares), both located in Khanh Hoa province.
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Currently, there are two IPs established and operating in Hau Giang province: Song Hau IP (291 hectares) and Tan Phu Thanh IP (201 hectares), with an occupancy rate of approximately 93%. According to the Provincial People’s Committee, the remaining land area of about 23 hectares has already been proposed by an enterprise for investment, leaving no land fund for industrial park development in the coming time.
Therefore, the project for investing in the construction and business of technical infrastructure of Dong Phu 2 IP possesses a significant competitive advantage in attracting large-scale investment projects, contributing high budget revenues, and incorporating advanced and modern technologies with spillover effects, meeting the criteria for investment attraction.
According to the Dong Phu urban planning, Chau Thanh district, Hau Giang province, by 2040, adjacent to the Dong Phu 2 IP project, there is a detailed plan for a new urban area and resettlement project for Dong Phu IP – Phase 2, covering an area of 135 hectares. This includes over 9 hectares of social housing for workers, more than 10 hectares of public works and services, and other utilities.
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