Unveiling the Excellence of Deep C Industrial Zone: Where Western Production Standards and Sustainability Converge
The next chapter of Vietnam’s development might not be what you think.
For a project, GetAhead has visited an industry park: Deep C Industrial Zone, just 13km away from Vinfast, the trailblazing Vietnamese automotive manufacturer. Establishing VinFast’s automotive suppliers in the Deep C Industrial Park highlights two crucial points. First, the presence of major global Tier 1 suppliers like ZF Group, Lear Corporation, and AAPICO underscores the attractiveness and credibility of the supplier park. This selection of well-established suppliers demonstrates the park’s capability to draw renowned industry players, enhancing its reputation as a preferred location for automotive manufacturing and supply chain activities. Second, the Deep C Industrial Park’s role as a nurturing environment for VinFast’s suppliers points to its significance in shaping Vietnam’s potential as a burgeoning sourcing hub for the future. By closely aligning themselves with VinFast’s operations, these suppliers contribute to the automaker’s achievements and gain access to a diverse customer base. As they establish a foothold within the park, their capacity to cater to other automotive firms and industries expands, indicating the park’s broader economic impact beyond VinFast’s operations. This dual impact of attracting prominent suppliers and fostering a dynamic supplier ecosystem underscores the park’s pivotal role in Vietnam’s automotive and industrial landscape.
GetAhead spent the day on the border between Haiphong and Quang Ninh province, an emerging industrial base close to the Chinese border that is now making a name as an alternative to Vietnam’s increasingly crowded South. One of the hallmarks of the Deep C Industrial Zone is its unwavering commitment to setting new benchmarks in industrial development. The park’s infrastructure is meticulously designed to adhere to the highest global standards, providing a seamless environment for businesses to flourish. With state-of-the-art utilities, modern logistics facilities, and a comprehensive support system, Deep C offers a conducive ecosystem for various industries, from manufacturing to logistics.
Why the North of Vietnam is Booming
One of the main reasons driving North Vietnam’s growth is the extension of the port of Haiphong, which has been deepened by 14 meters for international container shipping. Two terminals are finished, and another 4 are to come by the end of this year. This port extension, the region’s competitive labor costs, strategic location, few barriers to import, and preferential tax and investment policies are all driving the growth of North Vietnam.
Vietnam’s Move to More Sustainability
As an emerging industrial economy with high economic growth, Vietnam has recognized the need for a circular economy. Take Deep C as an example; from recycling solutions to renewable energy projects, they are making sustainability their core value. With direct access to the sea and 3,400 hectares of available land bank, the industrial park harnesses renewable energy sources, mainly from offshore wind power, but also biomass and solar. Deep C’s goal is to be 30% to 50% carbon-free by 2030 (50% if energy storage laws are passed). The entire renewable strategy is embedded in Quang Ninh local government’s plans to use their 250 km long coastline for extensive offshore wind parks, e.g. recent proposals by BP and SOVICO foreseeing 2.5 GW capacity until 2035. With this backwind, Deep C aims to be the first in Vietnam to fulfill the United Nations UNIDO framework for eco-friendly industrial parks.
Supplier Insights
When entering the park, one massive industrial estate is immediately visible – the Taiwanese supplier Pegatron. During Covid, the Apple supplier has expanded its factories outside of China to produce iPad, Apple Watch, MacBook, and AirPods.
Another company is glue solutions company Tesa from Germany, which plans to open in October this year. A range of automotive suppliers exist in the park, often Korean, focusing on electronics, textiles, seats and roof interiors.
Here are some examples:
- PHA Peong Hwa Automotive: car door systems
- You-Tech: electromechanics and precision-machined parts
- INZI Controls: Coolant Control Valves, Electric Thermostats
- Shin-Etsu: Rare-earth magnets for applications in hybrid cars and energy-saving air conditioners
Further examples of suppliers in the region, mostly delivering to Samsung and LG: https://lnkd.in/efE2_i2D
