Investment Vietnam
Vietnam Industrial Parks and Export Processing Zones
TAN TAO INDUSTRIAL PARK
Tan Tao Industrial Park is a project of Corporation for Investment Construction Business Exploitation of Tan Tao Focal Industrial Park and operates under the management of the HCM City Export Processing Zone and Industrial Park Authority (HEPZA).
CORPORATION FOR INVESTMENT CONSTRUCTION BUSINESS EXPLOITATION OF TAN TAO FOCAL INDUSTRIAL PARK
Add: Tan Tao Industrial Park , Binh Chanh District, HCM City Tel: (08) 75051 71 - 7505172 - 7508235 Fax:(08) 7508237
Email: itaco@hcm.vnn.vn ; General director: Mr. Dang_Thanh Tarn
HCM CITY EXPORT PROCESSING ZONE AND INDUSTRIAL PARK AUTHORITY (HEPZA)
Add: 35 Nguyen Binh Khiem St. , District `1, HCM City Tel: (08) 8290405 - 8290414 Fax: (08) 8294271 Email: office@hcpza.gov.vn
Manager: Mr. Nguyen Chon Trung
1. LOCATION
Area: 442ha
Address: Hamlet 1, Tan Tao Commune, Binh Chanh District. HCM City
- 12km from downtown HCM City
- 8km from Tan Son Nhat Airport
- 15km from Saigon Port
- Village Road 5 at one end of Tan Tao Industrial Park links National Highway 1A with the Saigon South Parkway leading to Tan Thuan Port.
2. INFRASTRUCTURE a) Transport
Internal transport: a road system of international standards can receive heavy trucks. The main roads are 40m wide and secondary roads 20m wide.
External transport:
There are four main routes including Hung Vuong Street. Provincial Road 10, National Highway 1 A and Village Road 5.
b) Communication
Telecom services of international standards are provided by HCM City Post Office.
c) Utilities
Power supply:
- Electricity comes from the I 10/15KV Cho lon and Phu Lam transformer stations and an independent power system for industrial parks.
- The industrial park operator has cooperated with a foreign partner to build an independent power plant in the industrial park to serve investors.
Water supply: Water comes from the municipal water supply system.
Rain and waste water is released via different drainage systems.
A waste water treatment plant with a capacity of 6.000 m 3 day and a system of sewers of international standards are under construction. These facilities are likely to be put into operation late this year.
There are a bonded warehouse and a customs office.
HCM City Bank for Investment and Development and HCM City Industrial and Commercial Bank have opened branches at Tan Tao Industrial Park, providing a full range of banking and credit services.
Tan Tao Industrial Park has a fire brigade with two professional fire engines and a team of security guards trained by HCM City Police.
Tan Tao Corp. is cooperating with HRPZA and Binh Chanh District People's Committee to build a vocational school in the industrial park to provide skilled laborers for investors.
3. BUSINESS FORMS
Selling or leasing standard premises; Leasing already - cleared space for building premises
Tan tao office and premise trading Services Co. (Taserco) which has come operation leases and buys standard mises, warehouses and yards, and prov services such as labor supply, goods trad repair and maintenance for premises and ficcs, and supplies ornamenlal plants.
The international warehousing comlex project of Tan Tao Warehousing Opera and Development Joint Stock Compt which specialics in forwarding and international transport, is under construction, project is capitalized at VNDI00 billion developed on a plot of 64.000 square met The first phase of the project has come into operation, helping investors conduct export and import procedures quickly and conveniently at reasonable expenses.
A software production section with area of 40 ha serves companies which prod and export software.
Rents are collected monthly, quartet or annually.
- An independent and stable source power for 24 hours a day.
- A perfect modern infrastructure syste for the infotech industry.
- A full range of utilities (offices, toilets, garages, security services, etc.).
4. LAND RENT (EXCLUSIVE OF VAT)
The rent ranges between USS57 - 75/m2 for 48 years, depending on the location.
Prices of premises are from USS2-2.7 m 2 /month.
5. BUSINESS RESULTS
Tan Tao Industrial Park has attracted more than 160 projects. 80% of which are local inveted.These project are involed in the fields, of garments , textiles, packages, aquapoducts, and so forrth.
TAN TAO INDUSTRIAL PARK : AN IDEAL SPOT FOR LOCAL INVESTORS
Tan Tao Industrial Park currently ranks first among the country's industrial parks in attraction of local investment, first in HCM City in attraction of investment capital and services for investors, and first in social activities. In January, it becomes the first industrial park in the country to gain an ISO 9001: 2000 certificate.
1. UNDERSTANDING INVESTORS' NEEDS.
Over the past five years, Tan Tao IP has become the best of HCM City's industrial parks, accommodating 130 local and foreign-invested projects worth US$ 100 mitllion and VND2 trillion (approximately US$132.4 million) and provided jobs for some 15,000 people. Tan Tao Industrial Park Infrastructure Construction 'Investment and Trading Company (Itaco), the operator of Tan Tao IP, has faced many difficulties in gaining this achievement.
Tan Tao IP was put into operation in 1997, the time of the regional economic crisis, the decrease of foreign investment and the appearance of many new industrial parks. In this unfavorable situation, itaco chose the easiest way of approaching and retaining investors: developing auxiliary services. Accordingly, it helped investors prepare procedures for setting up a company, apply for a business license, build investment projects, prepare procedures for enjoying investment incentives, design premises sketchily, etc. Many investors came with projects but could not build sites for various reasons.
For example, some could not obtain a construction permit and some local investors lacked capital. The industrial park was left unused while investors waited for approvals and capital..
Itaco was anxious to fill up the park, so it thought of building sites to rent or finance to investors. In this program, clients wishing to operate in Tan Tao IP didn't have to do anything except state their ideas for building. The proprietor was in charge of all the steps including applying for construction permits, designs and construction. The premises would be designed in accordance with the investors' ideas; they would pay no extra charges except monthly rent and would eventually take ownership after 10 years. Both the proprietor and tenants could also choose another form of service.
That is, clients spent 30% of the investment expenses and Itaco spent the remaining 70% in the form of a bank loan. Itaco would help the clients prepare procedures for mortgaging the premises and they would have to pay Itaco's debt in installments at a preferential interest rate to the bank. This method was ideal since investors faced fewer procedures and could concentrate on installing machinery for production; in addition, it also helped them use capital for building offices to invest in equipment and technology.
From 10,000 square meters in 1999, Itaco has increased the area to over 150,000 square meters, which is still insufficient in meeting clicnts'demand. The method proved successful, as it helped investors avoid the hardest time after the licensing process. Itaco rapidly filled up 90% of the 181 hectares of its industrial park because of this. All projects were developed in a record time of only three months after they had been licensed. Itaco's creative idea has been applied to other industrial parks by the HCM City Export Processing Zones and Industrial Parks Authority (HEPZA).
2. COMPETING ON SERVICE QUALITY
These days, Itaco is striving to make Tan Tao an industrial park with the most modern services and infrastructure facilities in Vietnam . To remove export-import procedural troubles for businesses, in 2001, Itaco put into operation a bonded warehouse with an area of 64,000 square meters and established an international forwarding company. The company supplies complete export-import services to businesses, with customs formalities conducted on the spot, saving time and energy.
Tan Tao is also the first industrial park in the city to furnish itself with professional fire-fighting vehicles and an official security team trained by the HCM City Police. This year, Tan Tao IP will have a station to treat industrial waste, a housing section for workers and a vocational school to provide workers for the industrial park. A 40-hectare software industrial park project is also being developed in parallel with the expanded Tan Tao IP project (started on January 13, 2002).
In addition, in cooperation with a large Vietnamese informatics company, Itaco will invest US$6 million worth of equipment in building an infrastructure for modern information technology with highspeed transmission iines. This will enable businesses in the industrial park to access the Internet much faster, provide virtual internetworking applications, conferences and supervision via the Net, with cheaper service fees than other places. These are indispensable services in the age of E-business.
To know what investors need and how to promptly meet their demands is one of the measures Itaco uses to attract investors. This has also allowed Tan Tao IP to take the lead among industrial parks nationwide. In January this year, the customs sector will install an 1CD (inland container depot) station at Tan Tao IP to serve businesses in Binh Chanh District. Itaco executives call this event "a favorable opportunity." With this advantage, they are making efforts to fill up the expanded Tan Tao IP as soon as possible.
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