The industrial cluster, located in Nhon Tan hamlet, will be developed as a multi-sector production hub with an emphasis on an eco-industrial model and environmental, social and governance, or ESG, standards.
Planned industries include agro-forestry processing, building materials, mechanical engineering, garments and apparel, footwear, wood processing, packaging, organic and bio-fertilizers made from agricultural by-products, and high-tech industries.
The project will include comprehensive infrastructure such as land leveling, roads, water supply and drainage systems, wastewater treatment facilities, electricity infrastructure and green spaces.
Located along National Highway 19, the cluster is positioned to connect with the future Quy Nhon-Pleiku expressway and the ports of Quy Nhon and Phu My. The project is expected to serve as a link supporting exports of agricultural products from Vietnam, Laos and Cambodia to international markets.
Hoang Anh Gia Lai said its long-term development strategy for the cluster would follow ESG standards, with a focus on the circular economy, the use of agricultural by-products, renewable energy and waste-quality control.
The company also plans to provide vocational training, ensure occupational safety and maintain transparency in management.
Speaking at the groundbreaking ceremony, Gia Lai Provincial People's Committee Vice Chairman Nguyen Huu Que called on provincial departments, agencies and Hra commune authorities to continue supporting the investor and help accelerate implementation.
He urged relevant authorities to regularly monitor and inspect the project and provide timely assistance in resolving difficulties that could arise during construction.
Mr. Nguyen Huu Que also asked Hoang Anh Gia Lai to fulfill its commitments, prioritize construction and completion of the industrial cluster, and ensure its management and operations comply with ESG standards. He called on the company to actively attract secondary investors and establish a production ecosystem to bring the cluster into operation as soon as possible.
He said he hoped the investor's capacity and commitment, together with support from local Party committees, authorities and residents, would enable the project to be completed on schedule and contribute to socio-economic development in Hra commune and Gia Lai province.
At the ceremony, Hoang Anh Gia Lai signed memoranda of understanding with several secondary investors.
Among the planned investments is the Ham Rong silk spinning plant, with projected capital of VND 80 billion (about $3.1 million). The plant is expected to produce 550 tonnes of silk annually and employ about 550 to 600 workers.
The Hoang Tam packaging and carton paper plant is expected to receive VND 140 billion (about $5.3 million) in investment, with annual capacity of 15 million to 20 million products. It is projected to provide stable jobs for 100 to 150 local workers.
Hoang Anh Gia Lai also presented VND 1 billion (about $38,000) in social welfare funding to Hra commune, underscoring its commitment to combining business development with social responsibility.