Home Real Estate The FECON Member: Forging a $3.7 Billion Industrial Park Vision in Bac...

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The FECON Member: Forging a $3.7 Billion Industrial Park Vision in Bac Giang’s Hoa Yen

26 November, 2024

Specifically, the Deputy Prime Minister approved the investment policy and accepted the investor of the project, which is FECON Hoa Yen JSC.

The project has a planned area of nearly 256.7 ha and a total investment of over VND 3,745 billion, including nearly VND 562 billion of capital contribution from the investor. The project is located in Dong Lo commune, Hiep Hoa district and Tien Son, Trung Son, and Huong Mai communes, Viet Yen town, Bac Giang province. The duration of the project is 50 years from the date of approval of the investment policy.

The Deputy Prime Minister requested that the Ministry of Planning and Investment be responsible for the contents assigned to appraise the investment policy of the project and perform the state management of industrial parks in accordance with the Law on Investment and relevant legal documents.

The relevant ministries and branches are responsible for appraising the investment policy of the project within the scope of their functions and tasks according to the Law on Investment and relevant legal documents.

Space organization diagram of architectural landscape of Hoa Yen Industrial Park, Bac Giang province – Photo: Website of Viet Yen Town, Bac Giang province.

Inspect and supervise the implementation of investors’ commitments

The People’s Committee of Bac Giang province is responsible for the truthfulness and accuracy of information, data, and appraisal contents according to legal regulations; absorb the opinions of the Ministries in the project’s investment policy approval dossier within the scope of authority; guide, manage, and supervise to ensure that investors comply with legal regulations and implement contents and conditions in the process of implementing the project.

Ensure that the project is allocated enough industrial land indicators to implement according to the approved schedule; at the same time, it is within the plan for land allocation and zoning in the Bac Giang provincial planning and the annual land use plan of Hiep Hoa district and Viet Yen town approved by the competent authority in accordance with the Law on Land, ensuring the socio-economic efficiency and environment of industrial infrastructure projects, avoiding spreading indicators.

Organize the implementation of tasks for compensation, site clearance, and compensation, support, and resettlement plans when the State recovers land in accordance with the law; carry out land recovery in accordance with the project implementation progress; ensure the legitimate rights and consensus of organizations and individuals who are subject to land recovery; note that housing for resettlement must have a full technical infrastructure and social infrastructure and meet the requirements for housing development in accordance with the Law on Housing.

Inspect and determine the ability of investors to meet the conditions for land lease and land use purpose conversion according to the Law on Investment, Land Law, and Law on Real Estate Business at the time the investor is granted or leased land to implement the project; supervise investors borrowing capital from credit institutions and issuing corporate bonds to implement the project in accordance with the Law on Real Estate Business; inspect and supervise the implementation of investors’ commitments to ensure investment conditions for industrial infrastructure in accordance with Clause 4, Article 9 of Decree No. 35/2022/ND-CP; in case of failure to implement the commitment, perform appropriate procedures in accordance with the Law on Investment and relevant legal documents to revoke the investment policy in case the investor lacks capacity, slow progress to use industrial land effectively to create a healthy investment environment at Resolution No. 499/NQ-UBTVQH15 dated March 18, 2022 of the National Assembly Standing Committee.

Supervise the investor’s compliance with the provisions of environmental law in the process of implementing the project; prioritize attracting investment projects with modern, environmentally friendly, labor-saving, and resource-saving technologies; ensure a safe distance between the industrial park and the surrounding area, and build monitoring plans to monitor the discharge activities in the industrial park.

The investor must ensure sufficient equity as committed

FECON Hoa Yen JSC is responsible before the law for the legality, accuracy, and truthfulness of the project dossier and documents sent to the competent state agency; absorb the opinions of the Ministries and the People’s Committee of Bac Giang province in the project’s investment policy approval dossier; bear all risks, costs, and take full responsibility according to the provisions of Articles 47 and 48 of the Law on Investment in case of violation of the provisions of the Law on Investment and the Land Law.

Fully implement environmental procedures, including environmental impact assessment in accordance with the Law on Environmental Protection; comply with the provisions of the Law on Irrigation and the Law on Water Resources in the process of implementing the project; report to the competent state agency if high-value minerals are discovered to handle them in accordance with the Law on Minerals.

Ensure sufficient equity as committed to implement the project on schedule; ensure that it meets the conditions prescribed at Point c, Clause 2, Article 9 of the Law on Real Estate Business; concretize the loan agreement by credit contract; make a deposit or must have a bank guarantee for the obligation to make a deposit to implement the project; borrowing capital from credit institutions, issuing corporate bonds (if necessary) to implement the project must meet the conditions prescribed by the Law on Real Estate Business.

Invest in the construction of infrastructure systems according to the construction planning of Hoa Yen Industrial Park approved by the competent authority; arrange land funds for enterprises and subjects eligible for investment incentives to lease land in accordance with Clause 4, Article 9 of Decree No. 35/2022/ND-CP dated May 28, 2022 of the Government on the management of industrial parks and economic zones.

Invest in the construction and attract investment projects into the industrial park in accordance with the orientation of focusing on the development of industrial production industries of the midland and mountainous regions of the North as prescribed…

FECON Hoa Yen JSC was established on September 13, 2022, mainly operating in the field of real estate business, ownership or leased land use rights. The company’s head office is located in Dinh Ke ward, Bac Giang city, Bac Giang province.

At the time of establishment, FECON Hoa Yen had a charter capital of VND 600 billion, with 3 founding shareholders, including one organizational shareholder, FECON Investment JSC, holding 55%, and two individuals, Mr. Phung Tien Trung (Chairman of the Board of Directors and legal representative) holding 30%, and Mr. Muon Van Chien holding 15%.

On December 26, 2022, FECON Hoa Yen unexpectedly reduced its charter capital to VND 50 billion, in which Chairman Phung Tien Trung became the largest shareholder, holding 49% of the capital, while FECON Investment JSC held 36% and Mr. Muon Van Chien held 15%. But on April 4, 2023, the Company again increased its capital to VND 600 billion, and the ownership structure was not announced.

On June 13, 2023, the company’s head office changed to Luong Phong commune, Hiep Hoa district, Bac Giang province.

According to the reviewed semi-annual financial statements for 2024 of FECON JSC (HOSE: FCN), FECON Investment is recognized as a direct subsidiary of FCN with an ownership rate of 90.52%, while FECON Hoa Yen is an indirectly related company with a voting rate of 36% and a beneficial interest rate of 32.59%.

Huy Khai