A plan for a 645.2-hectare industrial park, to be developed by Japanese conglomerate Sumitomo Corporation in Thanh Hoa, has been approved by the local authorities. Construction is planned to begin sometime between 2024 and 2025.
Thanh Hoa has become a popular destination for Japanese firms looking to do business in Vietnam. A total of 17 projects have been developed in the province with capital from Japan worth US$6.6 billion since 1988. This accounts for about 45.7 percent of the total foreign direct investment received by Thanh Hoa over the same period.
Notably, Thanh Hoa is located in northern central Vietnam, close to major economic hubs like Hanoi, Hai Phong, and Hung Yen. This proximity provides easy access to key markets and transportation networks.
The province also has a well-developed infrastructure network, including highways, railways, deep-sea ports, and airports. Nghi Son port, a deep-water port located about 65 kilometres south of Thanh Hoa City, is capable of handling more than 100 million tons of cargo per year and accommodating ships of 100,000 deadweight tonnage. Moreover, Tho Xuan International Airport offers flights to many key regional economic hubs.
Furthermore, Thanh Hoa has several government policies aimed at supporting foreign direct investment, including tax incentives and land-use rights. For example, there are exemptions from land and water surface rent during the initial construction period, for three years from the lease decision, and rent exemptions for seven to fifteen years after the project comes into operation, this will, however, depend on the specifics of the project.
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