Investment Vietnam
Vietnam Industrial Parks and Export Processing Zones

THUY VAN INDUSTRIAL ZONE

Phu Tho Province is in the Northeast-Western subregion of Vietnam, surrounded by Da, Than and Lo rivers which meet one another in Viet Tri, the provincial township. The provincial authorities have planned Thuy Van Industrial Zone to take advantage of a central location of the motorway, railway and waterway transport system to attract investment.

Thuy Van Industrial Zoneis a project of Industrial Zone Infrastructure Development Company

Add: Tran Phu St. , Tan Dan Ward, Viet Tri City , Phu Tho Province. Tel: (0210) 840919 Fax: (0210) 844997
Email: mailto:bglkcnpt@hn.vnn.vn - Director: Phan Van Hong

The project is under the management of Phu Tho Industrial Zone Management Board Add: Tran Phu St. , Tan Dan Ward, Viet Tri City , Phu Tho Province. Tel: (0210) 843023 Fax: (11210) 844997 Email: bglkcnpt@hn.vnn.vn - Manager: Ngo Duc Vuong.

1. LOCATION

a) Thuy Van Industrial Zone has many advantages of location.

It is:

• 5km north of central Viet Tri, on the Kunming ( China )- Haiphong expressway (180km from Haiphong City )
• 1km from Hanoi -Lao Cai Station, 0.3km from Phu Due Station on the East- West rail route of Vietnam linking China , Haiphong and Quang Ninh (Cat Lan).
• 6km from Viet Tri Seaport
• 55km from Noi Ban International Airport
• 70km from Hanoi
• 250km from Cat Lan Port

b) Thuy Van Industrial Zone has a planned area of 323 hectares, of which 71 hectares for the first phase has been completed and 216 hectares for the second phase is under construction.

2. INFRASTRUCTURE

a) Transport

Internal transport: Roads built with concrete, pebbles and steel frames can receive trucks with a capacity of more than 40 tons. The mainroad is 38m wide and auxiliary roads, 12-15m wide. There is a container port with customs services.

External transport: Rail routes, National Highway 2, and the river way which pass by theThuy Van Industrial Zone serve the trans­port of materials and goods from there.

b) Communication:

Telecom services ensure smooth communication.

c) Utilities

Power supply: The Hoa Binh hydropower line is connected with the 110/35/ 22KV transformer station with a capacity of 40MVA. By the end of 2002, two more dynamos will increase the current capacity to 80MVA, ensuring power supply to each plot of land. The power price is VND850/kWh (VAT included).

Water supply: The water supply system of Viet Tri City ensures the supply of clean water to each plot of land at VND3,000/m3 for production and VND 1,500/m3 for everyday life (VAT included). A water plant with a capacity of 20,000m3/day will be built to serve production in the industrial park.

Waste water treatment and drainage: By the end of 2003, a waste water treatment plant and a drainage system with a capacity of 10,000m3/day will be put into operation. This project was founded by the Finnish Government, ensuring the collection and release of waste water into the Red River in the shortest time.

Treatment of organic waste: Organic waste is treated at a garbage treatment plant 3km from the industrial park; solid waste is brought to the dumpsite 20km away.

Hotels fully meet investors' demand for services such as accommodation, travel and immigration. The room rent is USD 5/person/month.

A housing complex for 3,000 workers (first phase) is under construction.

3. LAND RENTS (VAT included)

The land with well-built infrastructure is leased at USD 0.15/m2/year

4. INCENTIVES AND SUPPORT

a) Reduction of and exemption from land rents

Those projects with at least 1,000 workers or projects worth USD 10 miIlion or more are offered a reduction of rents to under USD 0.15/m2/year. Specially encouraged projects will be offered a reduction or exemption for a number of years.

b) Support for the investment

The provincial government gives investors a sum equivalent to the corporate income tax they pay for three years, reduces 50% of the tax for the next four years and allows businesses to pay tax late for the next five years from the year they are required to pay taxes.

Phu Tho Industrial Zone Management Board helps deal with investment procedures within three days.

The provincial government provides businesses with training expenses once at VND 500,000 per worker (applied to workers with no fixed duration). Businesses employing more than 300 workers are offered an additional VND 500,000 per worker. If they export 80% of the products, they are offered an additional VND 300,000 per worker.

5. INVESTMENT ATTRACTION

After four years in operation, Thuy Van Industrial Zone has leased 88% of the area of the first phase to 16 investment projects with a total registered capital of VND 454 billion. These projects specialize in producing construction materials, agroproducts, textiles, garments, and consumer goods.