Korean Corporation Builds Aircraft Engine Spare Part Factory in Vietnam

Hanwha Techwin is seeking opportunity to expand capacity through opening factory abroad and they chose to set up factory in Vietnam.

Hanwha Techwin Corporation from Korea has selected a 10 hectares site on the suburb of Hanoi to build a factory manufacturing aircraft engine spare parts.

The Corporation is now waiting for the Vietnamese Government to approve the project. If licensed, Hanwha Techwin will start construction of the factory in August 2017 and begin operation in the second quarter of 2018. This factory covers an area of 6ha, 8 times more than a regular football field.

In order to implement the plan to raise revenue from aircraft engine spare parts to 900 million USD, Hanwha Techwin is seeking to expand capacity through opening factory abroad. In which, among many areas targeted by Hanwha Techwin, Vietnam was selected for having a suitable logistics environment and high competitive advantage in terms of production costs.

This technology corporation is expanding its engine parts businessby winning large contracts from leading global aircraft engine manufacturers such as GE, Pratt & Whitney (P&W) and Rolls-Royce.

Earlier in April 2017, Hanwha Techwin Corporation started construction of Hanwha Techwin Security factory in Que Vo Industrial Park, Bac Ninh province. Phase 1 of this 100-million-USD project will manufacture CCTV camera, storage devices, high technology security surveillance devices.

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Canadian Investors Invest in Binh Dinh Province

Seldat Vietnam Co., Ltd (coming from Canada) went to Vietnam to set up business by implementing the garment factory project.

Department of Planning and Investment of Binh Dinh province has just granted certificate of investment registration for Seldat Vietnam Co., Ltd (investors from Canada) to invest in Seldat Vietnam garment factory project in An Hoa village, Nhon Khanh commune, An Nhon town, with a total investment of nearly 1.2 million USD.

Accordingly, the project will invest 5 production lines with designed capacity of 2 million products/year, products are mainly exported to the US market. The project is built on an area of 2,440m2 and is expected to be completed and put into operation in quarter II/2017.

The project is licensed within the first days of the year so that it can be considered a meaningful gift for the efforts of the Binh Dinh province in attracting investment. BinhDinh province has consistently implemented reforms, simplification of administrative procedures, thereby contributing to create an open investment environment, attracting investors to come to the province. Up to date, Binh Dinh has 69 FDI projects, total registered capital of 783 million USD, mainly are investors coming from potential economies in the world like the US, China, Japan, France, Korea, Singapore, Malaysia, Thailand….

In 2017, in order to continue to be an attractive destination for investors, besides the administrative reform, leaders of Binh Dinh province will strengthen dialogue with businesses in order to listen to their desire, disassemble any difficulties and obstacles to improve the investment and business environment, promoting economic development of the locality.

Currently, the Department of Planning and Investment of Binh Dinh is finalizing the draft scheme for implementation of the model “one door, one door interconnection”, preparing to submit to the leaders of Binh Dinh province for consideration and promulgation. At the same time, the E-Regulations project (electronic regulation system). The website has been completed, fully published the procedures relating to foreign investment so that investors can access and search for information about the investment procedures when investing in Binh Dinh.

According to Director of Investment Promotion Centre (IPC) of Binh Dinh, Binh Dinh province’s goal is to continue to invest in development of Nhon Hoi Economic Zone and industrial zones as planned for these places to become seeds of the province’s growth in the sectors such as industry, tourism services, urban; create motivation and basis so that until 2020, Binh Dinh province can basically become developed province of the central region.

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Many Foreign Brands Are Coming to Vietnam

Realizing that Vietnam is a promising market, foreign enterprises want to do business in Vietnam through the form of franchising. Recently, many consumer goods, fashion and cosmetics brands from Japan and Thailand are promoting the franchise with Vietnamese partners and enterprises.

In the framework of the program “Vietnam – Thailand Enterprises Interaction in The Field of Franchising” which was held in Ho Chi Minh City (HCMC) recently, there were 40 Thailand enterprises operating in the food, beverage, restaurant, supermarket, health care, cosmetic sectors joined to find partners in Vietnam.

According Mr Nupartpat Sutthitham, Director of the MP Mart convenience store chain (Thailand), currently in Thailand there are 3 MP Mart stores, in which the model is not the same as Family Mart or Circle K. While Family Mart sells mainly food (80%), MP Mart sells mainly fast moving consumer goods, which are produced in Thailand (70%).

According to representatives of MP Mart, the cost to open a store in Thailand with an average area of 150 m2 is approximately 50,000 USD. Realizing the Vietnam market has many opportunities, MP Mart wants to explore and this is the first time this brand comes to Vietnam. The criteria for selection of investors, partners of MP Mart are having financial resources to be able to scaling this model in large numbers in Vietnam.

Meanwhile, according to representatives of Kokekokko – a well-known chicken fast food brand in Thailand with 5 stores, using Japanese spices to marinate chicken. Representatives of this brand also did not hide their intention to find partners with business understanding and financial resources to open stores in Vietnam.

Also in late November of 2016, there were 9 Japan enterprises with 14 fashion brands came to Vietnam to find partners to open franchise stores or distribute products in the domestic market.

According to Mr Akira Kaise, representatives of I Am Company Limited, this fashion brand has been presented in many markets around the world such as Hong Kong, Shanghai, Korea, Taiwan, Spain, UK, Netherlands… and this is the first time he comes to Vietnam to study the market.

Representative of I Am Co., Ltd commented that young population, good economic development, increasing people’s incomes… are factors to make Vietnam becoming a potential market for fashion items. In addition to the market penetration, the Company is also interested in outsourcing or investing in Vietnam to take advantage of low labor costs and highly skilled labors.

At the Vietnam market, Japanese businesses are often mentioned in the culinary field, meanwhile, the fashion, cosmetics or beauty brands are not widely known by consumers. Thus, recently, many Japanese cosmetic brands have decided to enter the market of Vietnam and looking for official distributors.

In an activity operated by the Esuhai Company of Vietnam recently in HCMC, there were nearly 10 cosmetic brands of Japan participated. Among them, the brand Kose is well known by many consumers.

According to the representative of Kose, this enterprise has been established since 1946, global sales reached 2.1 billion USD a year and has been presented in 18 countries. However, so far, this brand does not have official distribution channel in Vietnam market. Therefore, along with the promotion of market presence and product introduction, on this occasion, Kose desires to find agents and official partner in Vietnam.

Meanwhile, according to representatives of Nippon Menard Cosmetic Company, owner of the brand Menard, the Company is fully confident to introduce their products to consumers in Vietnam and wanted to find good partners to be able to access to more consumers.

According to the representatives of the Japan External Trade Organization (JETRO) in HCMC, Vietnam currently has more than 93 million populations, of which half are women who want to become more beautiful as earnings are improving and willing to spend the budget for beauty and body care. Therefore, this is a favorable time and good opportunity for the Japanese cosmetics brand to penetrate the market of Vietnam.

However, there is the fact that the Japanese cosmetic and fashion products are priced relatively high compared to the average income of local consumers. In addition, the Japanese fashion is not common in Vietnam market. Therefore, this is seen as the first step for the fashion and cosmetic brands of Japan to explore the market and find partners.

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US Investors Have Poured 1.1 Billion USD into Ho Tram Strip Project

Asian Coast Development Ltd is one of the large US investor who come and set up company in Vietnam.

Ho Tram Project Company (HTP) is a wholly foreign-owned subsidiary of Asian Coast Development Ltd, with more than 1 billion USD of committed capital deployed, which is the largest US private company investing in Vietnam. Moreover, they are also the first company to register for Vietnamese to play casino.

According to HTP – the investor of the 4-billion-dollar-super-project named “Ho Tram Strip”, the Company has poured 1.1 billion USD in this project and they has just announced to continue to fund the phase 3 includes apartment tower, condotel and villa.

Located on the north side of The Grand Ho Tram Strip resort, the 12-story Kahuna Ho Tram Strip project has a total of 244 rooms. It consists of 164 one or two-bedroom apartments, 9 penthouse apartments and 44 luxury villas located on the beach with area of 218 to 223 square meters.

According to the developer, this project when completed will contribute to the diversification of facilities and realize the goal of turning Ho Tram into the entertainment capital of Vietnam. In addition, HTP has developed the Gallery Villa apartment project at the nearby The Bluffs golf course. The 2nd hotel tower with 559 rooms named “The Beach Club” is now rushing to complete to welcome its first guests in early 2018. Furthermore, other service facilities such as water park, outdoor theater and private international airport are also underway.

It is known that the price of condotel apartment in Ho Tram is from 2 billion VND (equivalent to about 88,800 USD), villa is priced from 8 billion VND (about 350,000 USD). The project was designed by leading architectural firm Korn Architects and is due to commence in quarter 4 of 2017.

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