Mike King, Special Correspondent | Feb 06, 2012 9:19AM EST
Bridgestone plans to open a $575 million factory in 2014 near the Vietnamese city of Hai Phong, as the coastal city becomes a major export gateway for multinational corporations.
The Japanese manufacturers said the factory near Hai Phong, about 80 miles east of the capital Hanoi, will be its largest and most modern worldwide. The factory will produce about 24,700 tires daily for export.
Bridgestone said the city’s port access and lucrative tax incentives were deciding factors in its choice to set up shop in Hai Phong. “Once the products are launched, they all will be exported to Japan, Europe and the U.S. with a made-in-Vietnam label,” a spokesman said.
Hai Phong harbor is currently being dredged to enable the reception of larger vessels. U.S.-based port operator SSA Marine also plans to open a new terminal at the nearby port of Cai Lan, linked by river to Hai Phong, later this year. SSA Marine’s facility is due to start operations in March, and by September, annualized capacity of 525,000 TEUs is scheduled to be available.
Other major corporations to recently pledge to set up factories in Hai Phong’s industrial zones include Shin-Etsu, SIC, RK Engineering, and Nakashima.
Last year, Vietnam’s third most populous city attracted $910 million in foreign direct investment, a sixfold increase on 2010. Investment from Japan accounted for more than 60 percent of the total.
-- Contact Mike King at michael@borderline.eu.com