INDUSTRIAL ZONEDEVELOPMENT
Key Issues from the Experiences of JapaneseIndustrial Zone Developers in Vietnam & Thailand

Izumi & Kenichi Ohno
GRIPS Development Forum
Addis Ababa, January 2015

Key Ingredients for Success
1. Ownership and management
2. Facilities and services
3. Additional support for Japanese SMEs
4. Industrial zone marketing
5. Costs, fees and lease terms

Case Studies
1. Amata Nakorn & OTA Techno Park (Thailand)
2. Long Duc (Vietnam)
3. Dong Van II (Vietnam)
4. Vie-Pan Techno Park (Vietnam)

1. Ownership and Management• There are many ownership options—public (central or

local govt.), private (local, foreign, JV), and PPP.
• Typical Japanese industrial zone developers form JVs
consisting of• A Japanese trading company (often majority)• A construction firm (zone builder) and/or a manufacturer• Sometimes, host government may also participate in ownership• An IZ developer may provide marketing and management

services to tenant firms directly, or outsource suchservices to specialized firms/consultants.

Thailand• Industrial Estate Authority of Thailand (IEAT), under MOI,

centrally manages and monitors all industrial estates inThailand.
• IEAT service quality is moderate.
• As of 2012, there are a total of 62 industrial estates inThailand, of which:- 11 operated and owned by IEAT.
- 37 privately developed and built, and jointly operated by a
private developer and IEAT.
- 14 privately built, operated and owned.

Vietnam• Industrial zone management is decentralized. Provincial &municipal governments are mainly responsible for FDI
attraction and IZ regulation.
• Central authority (Ministry of Planning and Investment) ischarged with general policy making and property
management of IZs. Policy quality, however, is low.
• There are about 180 IZs (+100 IZs under construction orplanning). Government once tried to stop creating more
IZs but the policy remains ineffective.
• Five IZs developed and managed by foreign firm/agency (Japan 3,

Thailand 1, Singapore 1), often with local partners.
• There are also older IZ/EPZs developed by Taiwan and Malaysia.
• A few high-tech parks & economic zones are directly managed bycentral ministries.
• The rest are developed and managed by provincial/municipal
governments and/or Vietnamese private developers.

2. Facilities and Services
Hard infrastructure & facilities• Everything must be perfect—transport, power, water, waste water &solid treatment, internet, etc.
• Guarantee of no power failure by local government, or IZ having
multiple power supply options• Amenities—housing (apartments for foreigners), clinic, school,bank, shops, Japanese restaurant (or canteen offering Japanesefood), sometimes even a golf course.
• Location & geology• Proximity to a large city (Japanese prefer to live in a large cityand commute for one hour at maximum)• Logistic advantage—easy access to port & airport• Bearing power of soil (ground firmness for heavy equipment)• Elevation & flooding risk

(Cont.)Business service & support• Factory construction & initial operation• Operational support—logistics, customs, recruiting, banking,courier service, security guards, fire brigade…
• Quick & effective trouble-shooting (24 hours, 365 days)• Information exchange and dissemination on new laws, wage levels
and other common issues for tenant firms (monthly meetingsorganized by the developer)• All these services must be provided by Japanese staff (or someone
who clearly understands Japanese business mindset and speaks
fluent Japanese)

High Quality Infrastructure Service
Case A (Long Duc Industrial Park, Vietnam)
 Vietnamese engineers on duty 24 hours/day (any problem inpower, water, waste treatment, etc. will be attended immediately); Special arrangement with EVN (state-owned power company).
EVN supplies 110 MVA to the park via 2 exclusive lines. The
developer have contracts with tenants for power supply.

Case B (Amata Nakorn Industrial Estate, Thailand) Amata Corporation has group companies which provide power,

water, natural gas, logistics, transportation services, etc.

Case C (Dong Van II Industrial Park, Vietnam)
 Strong commitment by provincial governor to ensure sufficient andstable power supply around the clock exclusively for Japanese
investors.
 Good off-park infrastructure including direct access to highway,
TVET, engineering university, hospital, etc.

Services Provided by Japanese Staff
It is important to assign Japanese and/or Japanese-speaking staff at theservice center of IZ to quickly respond to inquires and requests fromJapanese tenant firms (especially SMEs).
Before moving in

After moving in• Prepare documents for corporate• Professional management byregistration on its behalf• Obtain company seal and tax
codes• Assist conducting Environmental
Impact Assessment• Advise on obtaining visas, work
permits for Japanese• Introduce real estate agent• Introduce accounting firms, lawfirms, etc.
• Assist local staff recruitment• Provide support to any issues
whenever possible

Japanese staff always on site
• Stable supply of power/water andoperating wastewater treatment
system around the clock• Staff recruitment center (locatedwithin IZ)• Provide and coordinate various
services (IT, logistics, lunch box
delivery & catering, etc.)• Exchange and share latest
information on new laws &regulations, staff wage, copingwith labor disputes, tax issues(personal income tax, etc.)• Organize social gathering, parties,
golf competition, etc.

(Source) Elaborated by the author, based on the brochure of Long Duc Industrial Park.

Investor Support Services: The Case of TLIP
Thang Long Industrial Park (Vietnam, near Hanoi)• JV of Sumitomo Corporation (Japan: 58%) and Dong Anh
Mechanical Company (Vietnam: 42%)
• 98 tenant companies (80 factories+18 offices) of which 78
factories are Japanese. The anchor firm is Canon.
The Tenant Relation Division of TLIP (Japanese staff) ischarged with:• Organizing monthly meetings for tenants Sharing information on new or revised laws/regulations, or
any other issues affecting business environment
 Announcing & coordinating the schedule for infrastructure
maintenance• Conducting annual surveys on planned salary level of national
staff at major tenant firms, following announcement of minimum
wages by the Vietnamese government for next year.
 Sharing survey results (anonymous) Coordinating meetings for major tenants on the salary issue

3. Additional Support for SMEs
• Japanese investors are more risk-averse than others (Chinese,

Korean, Indian, Turkish, etc.) Japanese SMEs are even more riskaverse than large ones.
• Although Japanese manufacturing SMEs excel in technology, theyusually have little overseas experience and are constrained by thelack of managerial, administrative and marketing capabilities.
• To promote their overseas investment, various means must be
employed to (i) minimize initial investment (especially building &equipment); (ii) minimize failure risk; and (iii) positively increase thechance of business success.
• Many industrial zones operated by Japanese developers offer smallsize rental factories and other renting options for SMEs.
• They also offer special (more intense) support to SMEs to relieveadministrative burden and let them concentrate on production.

Many Ways to Minimize Initial Cost & Risk
• OEM—contracting out manufacturing of products bearing your brandname to a local company (no need to invest or build a factory).
• Line Gari (Rent a Line)—creating a production line in a local partner’s
factory space with Japanese firm providing expertise, technology,
equipment, quality control, etc. (very small investment)• License manufacturing (contract risk exists)• Rental factories—small size to start with (250m2, 500m2, 1,000m2etc.), move out and build own factory if successful.
• Collective FDI—a number of Japanese SMEs invest in group in one
area sharing space, cost, information, services, etc. (coordination
may be difficult but there are groups that overcome this problem.)• Nokisaki—renting small area from another Japanese FDI firm which
has unused factory space (note: this is possible only when local laws
permit FDI firms to sublease unused space; some authorities consider
it as “service” provision not permitted under a manufacturing license).
• Joint venture with a local company (partner risk exists)• M&A—purchasing existing local firm and factory

What is Nokisaki?
• Nokisaki literally means the protruding part of a house roof. The

house owner may choose to let a merchant rent small space underNokisaki to do business for a small fee.
• In manufacturing, nokisaki means letting another manufacturer use
unused factory space for trial production before proceeding to serious
investment and expansion.
Nokisaki

The case of V.I.T. in Thailand: factory
space is subdivided for multiple renters

A Step-by-Step Approach
Start with a low-cost, low-risk option and gradually move up to morecostly options for expansion.
Example:1.
2.

3.

Find a reliable local trading or production partner (through visits, trade
exhibition, etc.)
Rent a production line in partner’s factory providing expertise &equipment (or even try OEM)If everything is satisfactory and business climate is acceptable, proceed
to form a JV with a local partner or build one’s own factory inside anindustrial zone (or even outside it)

Other scaling-up paths are also possible.
Note: for IZ operators, provision of small rental space and intensive
support for SMEs is not commercially viable (too much trouble, little
revenue). But they still do it because (i) existence of skilled SMEs adds
to the attractiveness of IZ; (ii) they want to support national policy; and(iii) they just want to help others; no monetary gain is expected.

Specialized Support for Japanese SMEs
 Obtaining work permit for Japanese staff

 Recruiting Vietnamese staff (managers, interpreters, engineers,

workers, etc.) and providing training Undertaking all kinds of administrative work and procedures (labor
management, general affairs, accounting, salary calculation, social
welfare and benefits, etc.)
 Providing common office space for administrative work and meetings
 Undertaking import and export procedures
 Purchasing raw materials
 Transporting manufactured products and raw materials
 Delivering lunch for Vietnamese and Japanese staff
 Transporting Japanese staff
 Introducing rental apartments, etc.
Source: based on information provided by Vie-Pan Techno Park and The Support.

Specialized support for SMEs is broader in scope and more pampering than forlarger firms—anything from business matters to personal problems such as
health, cable TV setup and house repair. Sometimes even marketing support isprovided to find Japanese, local, or non-Japanese customers in a new land.

Phased Approaches to Overseas
Investment by Japanese SMEs
Case A (Nambu: Thailand）• 2002: Renting production space from an existing Japanese company(Nokisaki, 300m2) in Amata Nakorn IE
2006: Renting three units at OTA Techno Park (960m2)
2012: Building own factory at Amata Nakorn IE (2,500m2）
Case B (V.I.T.: Thailand)• Joint investment by SMEs, operating in a rental factory(825㎡）sharing production space, marketing,administrative services, etc.
• Started with 10 firms (Mar. 2011)  19 firms (Sept. 2013)
Case C (Nakano: Vietnam）• Identifying good manufacturing partner (via exhibitions, etc.)
 OEM with technical cooperation
 Plan to start production at rental factory

4. Industrial Zone Marketing• Active marketing to attract Japanese investors is conducted by• The developer itself (Long Duc IP -- Sojitz), or• Japanese trading company (AMATA Nakorn IE – Itochu, Sumitomo, etc.), or• Japanese business consultant (Dong Van II IP -- BTD Japan, with Ha Nam
Province).
• Japanese developers, trading companies & consultants often jointly

organize promotional seminars in Japan, by inviting governments and
IZ authorities of partner countries.
• It is important to strategicallyattract an anchor firm (large
manufacturer) to create
industrial agglomeration
via supply chain
Anchor Firm and its Suppliers（“Canon Effect” in Vietnam)
Source: Akifumi Kuchiki (2009), “Lessons from AsianExperiences of Industrial Agglomeration and Trade”
presented at the IPD Task Force Meeting on Africa, held in
July 2009, Pretoria, co-sponsored by IPD and JICA RI.

5. Costs, Fees and Lease Terms
Name
Amata Nakorn Industrial
Estate(Thailnad, Chonburi, Eastern
Seaboard)

Long Duc Industrial Park
(Vietnam, Don Nai Province
near HCMC)

Dong Van Industrial Park II(Vietnam, Ha Nam Province
near Hanoi)

Vie-Pan Techno Park
(Vietnam, HCMC)
Hiep Phuoc Industrial Park

Space

Fees and Terms

64,000 baht/month (about
OTA Techno Park:
1,920 USD) per unit＝Unit: 320㎡ (apartment type) 6 USD/㎡/month
3 years (renewable)
General Industrial Zone

7 million baht/rai＝131.25USD/㎡

Rental factory for J-SMEs
Unit: 512㎡, 768㎡, 960㎡,
1,042㎡ (apartment type)5.5-5.9 USD/㎡/month
5 years (renewable)

General Industrial Zone

Land lease fees:
90 USD/㎡ (～2057)

Rental factory for J-SMEs
Unit: 250-500㎡ (apartment 4 USD/㎡/monthtype); 1,000-2,000㎡
10 years (renewable)(separate type)Land lease fees:
General Industrial Zone
58-75 USD/㎡（～2056）
Rental factory for J-SMEs
5 USD/㎡/month
Unit: 250㎡, 500㎡, 1,000㎡(5 years)(apartment type)
General Industrial Zone

Land lease fees:
90-95 USD/㎡/month (～2058）

Management Fees
33,600 baht/month (about
1,120 USD) per unit＝
3.5 USD/㎡/month(including various mgt.
support)900 baht/rai/month＝0.017 USD/㎡/month0.15 USD/㎡/month
Additional mgt. support canbe provided by The Support(fee-based).
N.A.
0.5 USD/㎡/year
Additional mgt. support canbe provided (fee-based).
0.25 USD/㎡/year
3-5 USD/㎡/month(including various mgt.
support)Infrastructure O&M
0.64 USD/㎡/year(Source) Elaborated by the author, based on the information provided by IZs during 2012-2014. Fees and terms are subject to change.

Occupancy Situation of Selected Industrial Parks
Name

Area

Date of Operations

Occupancy

Nomura-Haiphong IP(Northern Vietnam, Haiphong)

153ha

1997

Sold out (Oct. 2010)

Thang Long Industrial Park I(Vietnam, Hanoi)

274 haphase 1) 121 haphase 2) 74 haphase 3) 79 ha

1) June 2000
2) Jan. 2005
3) Sept. 2007

Sold out (early 2009)

Dong Van Industrial Park II(Vietnam, Ha Nam Province
near Hanoi)

300 ha (phase 1)

2006

70% occupancy (as of July 2013)

OTA Techno Park
(Rental factory area for JSMEs in Amata Nakorn IE,
Thailand)

320㎡/unit x 25
phase 1) 8 units
phase 2) 9 units
phase 3) 8 units

1) June. 2006
2) Nov. 2007
3) Feb. 2013

Phase 1 fully occupied (Aug. 2007)
13/17 units occupied (as of July 2010)
Fully occupied (March 2013)

Long Duc Industrial Park
(Vietnam, Don Nai Province
near HCMC)

270 haSept. 2013

60% occupancy (as of Sept. 2014)

Rental factory for J-SMEs
area (in Long Duc IP)

9,664㎡ (phase 1)
for 13 units

Sept. 20138/13 units occupied (as of Sept. 2014)

Vie-Pan Techno Park
(Rental factory area for JSMEs in Hiep Phuoc IP,
Vietnam, HCMC)

3 ha (phase 1),out of 13 ha

Dec. 2014

1 unit (as of Sept. 2014)(Source) Elaborated by the author, based on the information available from HP and interviews.
 Nomura Haiphong IP: First industrial park (supported by foreign investors) in Northern Vietnam, approved in 1994 and became
operational in 1997. Initially slow occupancy due to investors’ preference of Southern Vietnam (better business conditions, locational
and infrastructure advantages), and Asian financial crises (1997).
 Vie-Pan Techno Park: Met with 700 Japanese SMEs (seminars, individual meetings) 150 companies shown interests (received
inquiries) 55 companies visited the site 7-8 companies strongly interested 1 company signed contract (as of Sept. 2014).

Case Studies

Features of Selected Industrial Zones
Name

Developer

Amata Nakorn Industrial
EstatePublic (IEAT) and local private(Thailnad, Chonburi,(Amata Corporation) JV
Eastern Seaboard)

Long Duc Industrial
Park(Vietnam, Don Nai
Province near HCMC)

Dong Van Industrial
Park II(Vietnam, Ha Nam
Province near Hanoi)

Vie-Pan Techno Park
(Vietnam, HCMC)
Exclusively for small
rental factories forJapanese SMEs

Management Service
Marketing
One stop services provided
The developer, with thejointly by the developer andsupport of Japanese trading
IEAT
companies (Itochu, Sumitomo,-Specialized services for SMEetc.) and Ota-city, actively(rental factories) also available,
engaged in marketing andsupported by Japanese local
sales.
govt. (Ota-city/Tokyo)

Foreign private JV:Long Duc Investment Co. Ltd.
(Japan 88%, VN 12%)
-Sojitz, Daiwa House,
KOBELCOOne stop services provided by
the developer-Specialized services for SME(rental factories), provided byexperienced Japanese SME

The developer (esp. Sojitz)
actively engaged in marketingand sales.
Kansai METI's pilot for SME
investors

Local private (VID Group)

One stop services provided
jointly by the developer andJapanese consultant-Specialized services for SME(JASMEC) also available

Japanese consultant (BTD
Japan) actively engaged inmarketing and sales, working
closely with Ha Nam province.

Japan (private)-Vietnam(public) JV:
Vie-Pan Techno Park Co. Ltd.
(Japan 55%, VN 45%).
-Hiep Phuoc IZ (HCMCowned)-Unika, Seibu shinkin (withJBIC co-financing), etc.

One stop services specialized
for SMEs, provided by thedeveloper

The developer (esp. Unika
Holdings) actively engaged inmarketing and sales, working
closely with HCMC.

(Source) Elaborated by the author, based on the information provided by IZs.

Distances:- Bangkok: 57km, 45min. (Bangna-Trad
Expressway or Bangkok-Chonburi Motorway)- Suvarnabhumi International Airport: 42km
- Laem Chabang Deep Seaport : 46km

Amata Nakorn Industrial Estate(Thailand)

Amata Nakorn Industrial Estate(Chonburi Province, Eastern Seaboard)• One of the largest industrial estates in Thailand. Largest

agglomeration of Japanese companies.
• 600 tenants, of which more than 60% are Japanese companies. Nearly

40% are automotive-related.
• Developed by Thai private (AMATA Corp.), jointly managed byIndustrial Estate Authority of Thailand (IEAT); one stop service
operated by IEAT.
• Japanese trading companies (Itochu, Sumitomo, etc.) acting as
sales agent; Japanese staff placed for marketing and investor
services.
• Total area: 4,120 ha (huge). Phase 1-9 completed (1989- ); phase
10 under development.
• Different types of rental factories• OTA Techno Park: designated area for Japanese SMEs (1 unit: 320㎡),

with specialized services by Japanese-speaking staff (supported by Otacity, Japanese local govt.)• Amata Summit Ready Built: 1,000～2,000㎡• TICON (private rental factory company): 1,500～5,000㎡

Amata Nakorn Industrial Estate
OTA Techno Park (for SMEs)
HINO

Siam Kubota Tractor

Siam Toyota Mfg.

Denso

Siam Denso

DaikinAGC Glass

Bridgestone (tire)

OTA Techno Park
Phase 2Phase 3 Plan

Phase 1

Ph.1: 8 units (4 companies)
Ph.2: 9 units (5 companies)
Ph.3: 8 units (3 companies)
Total: 25 units (leased by
12 companies)

Service Center,
Management OfficeOTA Techno Park (more…)• Designated area for Japanese SMEs in Amata Nakorn IE,

equipped with small-sized rental factories and specialized
management support services.
• Established in 2006, with the cooperation btw. Amata
Corporation and Japan’s Ota-city Industrial Promotion
Organization (PIO).
• Unit size: 320㎡ (apartment type), 3-year contract (renewable)• Total of 25 units (phase 1: 8 units, phase 2: 9 units, phase 3: 8

units)• Currently, 12 tenants (fully occupied by SMEs in Ota city (8), Osaka
pref. (2), Hiroshima and Aichi pref. (1 each)• Management support provided by Ota-city: 1) providing common
facilities, 2) organizing monthly meetings for tenants, 3) supporting
corporate registration, 4) introducing accounting and recruitment
firms, 5) assigning Japanese-speaking staff for inquiries andconsultation.

• PIO (Ota-city) staff visit OTP 2 to 3 times per year,

meeting with tenants (e.g., conveying their problems to
Amata Nakorn IE and urging solutions, as necessary).

Long Duc Industrial Park
(Dong Nai Province, Southern Vietnam)

Distances:- Ho Chi Minh: 40km (40min.)- Tansonnat Int’l Airport: 60min.
- Cat Lai Port: 40min.
- Long Than Int’l Airport : 20min.

Long Duc Industrial Park
(Southern Vietnam, near HCMC)• Developed and managed by Japanese private JV (Sojitz,

Daiwa House, KOBELCO), with a Vietnamese SOE (minority
share).
• Total area: 270 ha, operating from Sept. 2013.
• One stop service center operated by the developer. Sojitz(Japanese trading company) staff placed for marketing andinvestor support.
• Designated area for Japanese SMEs (small-sized rental
factories)• Area 9,664㎡ (phase 1) subdivided into small units: 512㎡, 768㎡, 960㎡,1,042㎡ (apartment type); separate, tailor-made type will be built forphase 2.
• One of the tenants providing specialized service for SMEs.

• METI Kansai has concluded MOU with Dong Nai Province, andset up Kansai Business Desk in Dong Nai Industrial Zones
Authority (DIZA).

Electricity

Layout:Long Duc Industrial Park

Water Supply
Facility

TERUMO

LIXIL

Service Center,
Management
OfficeWastewater
Treatment Plant
Standard Rental
Factory(for J. SMEs)

Long Duc IP:
Rental Factory Area for Japanese SMEs

THE
SUPPORT

The Support (run byJapanese SME and a tenantof the rental factory)
provides all kinds ofmanagement support to theother tenants.
They also make for space forincubation (by subleasing).

Common space for meetings
and administrative workDong Van II Industrial Park
(Ha Nam Province, Northern Vietnam)
Mr. Ryoichi Nakagawa,an experienced industrial
zone promoter, of BTD
assists Japanese SMEs

Mr. Nguyen Quang
Khang, a personalsecretary to theGovernor Dung andfluent in Japanese,runs the Japan Desk

Locational advantage- Close to Hanoi (easy daily commuting)- Access to port & airport is good andimproving with new highways- Relatively rural; labor supply is cheaper& more ample than in Hanoi

Distances- Hanoi: 30-40min.
- Haiphong Port: 80km
- Along the National Hwy No.1
connecting the North to the SouthDong Van II Industrial Park
(Ha Nam Province, near Hanoi)• Developed and managed by local private firm (VID Group)• Total area: 300 ha (phase1), operating from 2006.
• BTD Japan, a Japanese business consultant firm, acts assales agent, providing marketing and investor support.
• One stop service center provided, jointly by the developer
and BTD Japan.
• Strong support from local government (Ha Nam Province) toattract Japanese investors (special incentives).
• Japan Desk, and 24-hour hot line to Governor Mai Tien Dung

• Designated area for Japanese SMEs (JASMEC), 11ha,

providing various options.
• Rental factories: apartment type (250～500㎡); separate type (1,000～2,000㎡）• Standard factory (1,000～2,000㎡）. In this option, tenants are allowed
to sublease extra space for other SME (Nokisaki).

Service Center,
Management OfficeLayout:Dong Van II Industrial Park

Highway to
Hanoi, lessthan 1 hour

Sumitomo
Denso
Showa
Denko

HONDA

Eidai

Japan SME Center (JASMEC)

10 Pledges to Japanese investors by Ha Nam
Province Governor Mai Tien DungWE GUARANTEE:
1.
Sufficient and stable power supply (24 hours)
2.
Good basic infrastructure (water, sewerage, internet, banks, etc. ）3.
Free provision of land to be used for dormitories for workers(outside the industrial park)
4.
Efficient administrative procedures (investment license to beapproved in a few days）
5.
Sufficient labor supply, developing a university town（1,000 hasecured for universities relocating from Hanoi）
6.
Facilitating procedures for setting up and operating companies, tax
incentives, and subsidies for training expenditures for Vietnamese
staff
7.
Public security and safety for companies
8.
Flexible administrative response, to accommodate unanticipatedchanges in investors’ business plans
9.
Prevention of strikes (local and foreign companies)
10. 24-hour hotline to the governor’s desk (by assigning Japanesespeaking management staff: Japan Desk)Vie-Pan Techno Park: Exclusively for JapaneseSMEs (Ho Chi Minh City, Vietnam)• Developed and managed by JV of Japanese private firm andVietnamese municipal government (Ho Chi Minh City)• Japan (55%): Unica Holdings & Japanese SMEs, Seibu Shinkin; also JBIC

loan mobilized• Vietnam (45%): Hiep Phuoc IP (under HCMC EPZ Authority (HEPZA))• Providing rental factories for Japanese SMEs (13ha) within

Hiep Phuoc Industrial Park (2,000ha planned)• 3ha subdivided into small units: 250㎡, 500㎡, 1,000㎡ (phase 1)• Tenants can conclude rental contracts or contracting manufacturingagreements with Vie-Pan Techno Park -- no need to set up company• One stop service center operated by the developer (based on

17-year experience of SME support by Unika Vietnam)• Strong support by HCMC Peoples Committee and
HCMC EPZ Authority.
Mr. Jinjiro Kimura of Unika, originallyfrom Vietnam, now a naturalized
Japanese citizen, will support youVie-Pan Techno Park
(Phase 1 Master Plan)
Power Station
Service Center andManagement Office

Housing Area (1)Housing Area (2)Public Service Area

Saigon-Hiep Phuoc Port

Service Center andManagement Office
dedicated to J. SMEs

Hiep Phuoc Industrial Park (HEPZA)- Easy access to city center- Access improving with new highways- A commercial port within IZ- HCMC: 15 km- Tansonnat Int’l Airport : 21 km- Long Thangh new Int’l Airport: 42 km (2020)- Hiep Phuoc Port :1km

Vie-Pan Model to Minimize Cost and Risk forJapanese Manufacturing SMEs
Japanese SMEs with nooverseas experience

Special support &subleasing company(UNIKA + local authority)
Vie-PanTechno Park

Ho Chi Minh City
government
Hiep Phuoc
Industrial Park

Other tenant
Sublease or
manufacturingcontract with Vie-Pan;no need to formallyestablish a company inVietnam

Vie-Pan underconstruction(Sep.2014)

Other tenant

Land lease
contractImplications for Ethiopia• There are many ownership options for IZ development (local

public/local private JV, local public/foreign private JV, 100%
local private, etc.)• To attract Japanese investors, special consideration is neededto accommodate their business & manufacturing styles(location, layout, infrastructure, service quality…).
• Japanese staff (trading company experts, qualified businessconsultants, etc.) are needed for• Marketing and promotional activities (including in Japan)• Providing management support to tenants• Offering advice on legal procedure and business environment• Consider establishing a Japanese area within one of theplanned IZs (e.g., Bole Lemi II, Kilinto) with the provision of
specialized services for Japanese investors.
• Double-subleasing and “nokisaki” possibilities further facilitate
Japanese manufacturing FDI.