Investment in Vietnam
Vietnam Industrial Parks and Export Processing Zones

NGHE AN PROVINCE - BAC VINH INDUSTRIAL PARK

Bac Vinh Industrial Zone is a project of Bac Vinh IZ Development Investment Company (under Vietnam Machinery Installation Corporation-Lilama) and operates under the management of Nghe An Industrial Zones Management Board.

BAC VINH IZ DEVELOP­MENT INVESTMENT COMPANY

NGHE AN INDUSTRIAL ZONES MANAGEMENT BOARD

1. LOCATION

Location: Hung Dong Commune, Vinh City , Nghe An Province

• 4km from downtown Vinh City.
• 1.2km from National Highway 1A.
• 2.5krn from Vinh Airport + 2km from Vinh Railway Station on the trans Vietnam rail route.
• 13km from Cua Lo Seaport + 310 km from Hanoi.
• Total area: 143.17ha (first phase: 60.16ha).

2. INFRASTRUCTURE

a) Transport

Internal transport: The asphalted road system for the first phase has been completed. The main roads are 24m wide and auxiliary roads 18m wide.

External transport:

• Roadway: the asphalted road linking the industrial park with National Highway 1A is 1,880m long and 30m wide.
• Seaway: Cua Lo Seaport can receive 15,000 DWT ships.
• Airway: From Vinh Air­port , there are direct flights to HCM City , Hanoi and vice versa. In the near future, international flights from this airport to regional countries will be opened.

b) Communication

The telephone exchange of Vinh City Post Office has 70,000 numbers, meeting the demands for local and overseas telecom services.

c) Utilities

• Power supply: electricity comes from the national power grid.
• Water supply: water is from Nghe An Water Plant with a capacity of 14,000 cubic meters per day. Water price is VND 2,500/cu. meter (VAT excluded).
• Drainage: a water drainage system for the first phase has been completed.

3. LAND RENT

• Minimum leasing area: 3,000 square meters.
• Rent for land with infrastructure to be leased again (VAT excluded):

  Annual payment	US$0.248/sq.meter/year.
  Full payment for the whole term (40 years	US$16.8/sq. meter/year.

4. INVESTMENT INCENTIVE

Apart from government incentives, projects in Bac Vinh Industrial Zone are entitled to incentives from Nghe An authorities as regulated in Decision 76/2000/QDUB of the People's Committee of Nghe An Province.

Corporate income tax

The provincial budget refunds 100% of the corporate income tax actually paid (to the provincial government) within five years since businesses are subject to tax.

Production businesses exporting at least 50% of their products continue to be refunded 50% of the actually paid corporate income tax in the next three years.

Value-added tax (VAT)

The provincial budget refunds 100% of the VAT actually paid (to the provincial government) within three years since businesses are subject to tax.

Businesses are offered 50% of the expenses for training employees for their licensed projects if they do that by themselves.

5. BUSINESS RESULTS

Nine projects, including one foreign invested, have leased 17.5 hectares of land in the industrial park. Three of them have come into operation and the others are under construction. The total registered investment capital reaches VND243.7billion and USD 61 million, and the realized capital is VND10 billion. The above projects specialize in garment production, food processing, production of construction materials, processing wooden products for export, and animal feed production.

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