Socialist Republic of Vietnam

Vietnam is one of the investment success stories of the last decade, with a wide variety of industries locating facilities in one of the 76 industrial parks (IP) and export processing zones (EPZ). Some investors produce for the domestic market, but many use Vietnam as a base for exports into the East Asian region or North America, especially since the implementation of the Bilateral Trade Agreement between Washington and Hanoi in 2001.

What makes Vietnam competitive with and for many superior to other regional locations? One of the success stories among the IPs is AMATA, a Thai company that is betting big on Vietnam. Overall, AMATA plans on building up more than 700 hectares, quite sizeable by IP standards.

AMATA Vietnam’s President Lou Sims is bullish on Vietnam for a variety of reasons. First and foremost, he has chosen a province where the regional government – all-important for cutting through red tape and creating the requisite infrastructure – is extremely business-friendly. Sims says the Dong Nai authorities routinely provide investment licenses in hours rather than days.

Moreover, the close proximity to Ho Chi Minh City, the bustling, modern economic center of Vietnam and one of Southeast Asia’s business hubs, is only 20 miles away. AMATA also built the park right alongside National Highway 1, the 1,000-mile-long north-south artery running all the way through Vietnam. And in the near future, if the government follows through with plans to build a new airport for Ho Chi Minh City, the former Saigon, AMATA will be only eight miles from an airport.

Competition creates quality

While the good infrastructure and government support are helpful in providing a first-class IP, the different parks must work hard to distinguish themselves from the competition. Thanks to widespread exuberance about Vietnam’s economic outlook, a building boom has created such a high acreage of IPs that only half of the designated land is under contract. The competition that stems from that large supply forces management of successful parks to work overtime to provide the top-quality facilities that make Vietnam shine in international comparison.

AMATA’s Sims can list a number of extras that AMATA tenants can enjoy: a power plant to assure stable electricity supplies, a bonded warehouse and a wastewater treatment facility. And for the future, he plans more. A nine-story bank will be located in the IP, apartment buildings and villas for executives who prefer to live nearby rather than commuting to work, a hotel and a VIP club with top international cuisine and nearby golfing will soon be part of AMATA’s offerings. In fact, Sims foresees turning the IP into AMATA city.

Location in the fastest-growing region in the world, improving government services and fierce competition for foreign investment are responsible for Vietnam’s excellent position in attracting foreign investment. Sims is optimistic about the future, with multiple expansion phases planned for his company. His motto is unambiguously positive: "Build a first-class facility and the investors will come."

Washington Times Vietnam Report 204, published September 28, 2004