Arriving in Vietnam on a hot summer’s day, Takashi, the director of a Japanese company producing electronic circuit boards, contacted consultants Ecobuy Business and Service Co., Ltd. in Hanoi for support in finding industrial land for lease, and implementing investment procedures.
Ecobuy suggested the director industrial zones (IZs) which meet his requirements from the 30 with which it has agreements with. These include a suitable location within budget and near the partner’s factory, with cheap labour force and access to raw materials, public transportation, and ports. Also required are stable electric power and water, decent tax incentives, and relevant government support.
After exchanging information on price, location, and other factors, Ecobuy and the Japanese firm visited WHA IZ in the central province of Nghe An for a decision and were surprised to learn of a sudden increase in price from $38 per square metre in the offering to $42, for 50 years of leasing.
“In Japan, businesses have to explain and apologise multiple times to customers if they want to increase prices, even a little. But in this IZ, they increase costs whenever they want, without informing partners like the consultancy firm,” said Takashi.
