Investment Vietnam
Vietnam Industrial Parks and Export Processing Zones
THAI NGUYEN PROVINCE
Thai Nguyen Province is considered to be a cultural and social center in northern Vietnam, with plenty of potential and advantages in infrastructure, labor, industrial production and minerals. To develop its economy, the provincial authorities have planned three industrial parks, one of which is Song Cong Industrial Park. The project, which belongs to Thai Nguyen Traffic Works Company No. l, and operates under the management of Thai Nguyen Industrial Zones Authority, was approved by the Prime Minister.
THAI NGUYEN TRAFFIC WORKS COMPANY
NO. 1 Add: Tan Thinh Ward, Thai Nguyen City , Thai Nguyen Province
Tel: (0280) 845507- Fax: (0280) 855464
Director: To Hun Nghi.
THAI NGUYEN INDUSTRIAL ZONES AUTHORITY
Add: Tan Quang Commune, Song Cong Town, Thai Nguyen Province
Tel: (0280) 845224-Fax: (0280) 845434 Manager: During Van Hao ; Assistant manager: Le Huy Hung.
1. LOCATION
a) Song Cong Industrial Park enjoys many advantages from being in Thai Nguyen Province :
- 40km from Noi Bid ( Hanoi ) International Airport
- 15km from Da Phuc Riverport (in the system of riverports in the northern region). Travel by water from Song Cong Industrial Park to Haiphong and Cai Lan ports is convenient.
- 500m from Luong Son Railway Station (in the system of train routes in the northern region) which is 40km from Dong Anh Railway Station in Hanoi and links with Lao Cut Railway Station where vehicles can continue to leave for Yunnan in China .
b) Thai Nguyen Industrial Park has a planned area of 320 hectares.
The first phase of the project requires 69.37 hectares, including 47.71 hectares for industrial production, 1 hectare for warehouses and yards, 4.26 hectares for trees, and 10.72 hectares for communication. 2. INFRASTRUCTURE
a) Transport
Internal transport: The asphalted road runs along the industrial park. It is 42m wide and has four lanes.
External transport:
- National Highway 3 leads to Noi Bai Airport
- The Hanoi-Quan Trieu rail route traverses the industrial park, making it convenient for the transport of materials and goods and the export of products.
b) Communication
The communication system of Thai Nguyen Town is modern and can well serve demand in the first phase.
c) Utilities
Power supply: The industrial park has a 110kV-25MVA transformer station. The Hanoi-Dong Anh power line passes the industrial park. The 22kV and 35kV power networks reach the fence of each plot of leased land.
Water supply: Song Cong Water Plant with a capacity of 15,000 cu. meters per day is currently in operation, supplying 7,000 cu. meters of water per day. The system of water pipelines having a diameter of 250 nim supplies water to each plot of land.
Waste water treatment: The system for draining rain and waste water is synchronical, with the main sewers with a diameter of 600-1,000 mm and B300-131,400 channels ensuring fast drainage. The two waste water treatment stations each have a capacity of nearly 2,000 cu. meters per day.
3. LAND RENT AND OTHER FEES (VAT included)
a) Land rent
Three different prices for three categories of land are as follows:
Undeveloped land
|
VND60/sq. meter/ year
|
Land without infrastructure |
US$0.07/ sq. meter/year |
Land with infrastructure |
US$0.27/sq. meter/year. |
b) Power costs (based on stipulations of the provincial government)
There are three prices for power in the industrial park:
From 5 a.m.-4 p.m. (ordinary hours)
|
VND 841/kWh
|
From 4 p.m.-10 p.m. (rush hours) |
VND 1,477/kWh |
From 10 p.m.-5 a.m. (slow hours) |
VND 429/kWh. |
c) Water costs The rate is VND2,573/cu. meter.
4. INVESTMENT INCENTIVES
Thai Nguyen Province encourages investors to come to Song Cong Industrial Park by providing them with exceptional incentives as stipulated by the Government. They are:
- Projects that fulfill the first 30 hectares of industrial land of the industrial park
- Projects that export at least 50% of their products
- Projects that produce goods from local materials
- Projects that prepay more than 90% of the land rent and infrastructure fee
- Projects that use more than 100 local workers.
Investors who meet the above five requirements will be offered a 50% land rent reduction in the first four years and infrastructure fee exemption in the first seven years.
- Investors are given financial support for training workers if they employ locals
- Investors that move their premises to the industrial park are offered financial support for the relocation and allowed tax deferments.
5. FIELDS OF ENCOURAGED INVESTMENT
Processing agroproducts; foods; construction materials; mechanical manufacturing, assembly, packaging; garments and electronics.
6. INVESTMENT ATTRACTION
In 2001, the owner of Song Cong Industrial Park leased 17 hectares of industrial land to five investment projects with a total registered capital of VND 309 billion and US$ 3 million (including one Chinese-owned project). These projects operate in metallurgy, mechanical manufacturing, and production of consumer goods.
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