A corner of Thang Long Industrial Park III in Vinh Phuc (Photo: VNA) Tokyo (VNA) – Japan’s Sumitomo Corporation will spend 19 billion JPY (177 million USD) to expand two industrial parks in Vietnam in order to serve businesses shifting production away from China to avoid the trade war.
Sumitomo will add about 290 hectares to two of its three complexes outside Hanoi. The three industrial parks host roughly 190 companies, 90 percent of which are Japanese manufacturers.
The tit-for-tat tariffs imposed by the US and China have forced companies to revise production strategies to avoid the duties. Many Japanese companies interested in moving into Sumitomo's industrial parks are seeking to diversify manufacturing risks.
Sumitomo will spend over 14 billion JPY adding about 181 hectares to the southeast portion of Thang Long Industrial Park II in northern Hung Yen province. The site already spans 346 hectares. Groundbreaking is scheduled for 2021, with lots going on sale in 2022. The expanded location will be one of the biggest Japanese industrial parks in Vietnam.
A 109-hectare expansion at Thang Long Industrial Park III will cost about 5 billion JPY. Though the work was already planned, it has been accelerated by a year to the first half of 2020 at the earliest.
Investments by Japanese companies in Vietnam rose 7 percent last year to 643 targets, according to the Japan External Trade Organization (JETRO). Spending has increased for three consecutive years to a new record. Vietnam's proximity to China and its cheap labor costs have made it a draw for relocating production capacity./.
