Song Than 2 Industrial Park- Ho Chi Minh City

Occupying a crucial role in fostering economic development in Ho Chi Minh City, Song Than II Industrial Park is increasingly appealing to both domestic and foreign investors. Moreover, the industrial park is steadily expanding its scale to enhance production efficiency and service-related businesses within its premises.

I. Overview of Song Than II Industrial Park

General Information about the Industrial Park Song Than II Industrial Park was established based on a decision issued by the Prime Minister on October 26, 1996. This decision, numbered 796/TTg, pertains to the investment and operation of Song Than II’s infrastructure system. The industrial park was originally located in Song Be province but is now situated in Ho Chi Minh City. Additionally, Song Than II Industrial Park’s establishment is rooted in the legal framework of detailed industrial park planning:

• Decision No. 1199/QD-BXD, dated September 14, 2002, issued by the Ministry of Construction, which adjusts the planning of Song Than I and II industrial parks.
• Decision No. 958/QD-UBND, which concerns the adjustment of the planning of Song Than II Industrial Park.

The scale of the Industrial Park Song Than II Industrial Park encompasses a total area of 179.3 hectares, with specific land allocations as detailed below:

Song Than II Industrial Park boasts a highly strategic location within the vital economic region of the southern area. Moreover, the industrial park’s scale is regarded as one of the largest in Ho Chi Minh City, particularly in the Southeast region as a whole.

As a result, Song Than II Industrial Park is currently attracting significant direct investment from foreign countries. This influx of investment is rapidly increasing the development speed and promising even greater potential in the future. This growth contributes to the overall economic development of Ho Chi Minh City. Given its strong development, Song Than II Industrial Park is attracting experienced experts and workers to reside and work in the area. The meticulously planned and synchronized infrastructure system further positions Song Than II Industrial Park to promote rapid and sustainable economic growth within the province and the country.

Investors

The project investor for Song Than II Industrial Park is Dai Nam Joint Stock Company. Dai Nam Joint Stock Company, formerly known as Thanh Le Industrial Park Development Joint Stock Company, is a prominent entity in industrial park construction. Over the years, they have launched multiple high-class and high-potential industrial park projects alongside Song Than II Industrial Park, such as Song Than III Industrial Park, Binh Duong Industrial Park, and Song Than I Industrial Park.

II. Geographical Location

When discussing industrial parks with ideal geographical locations and favorable conditions for development, Song Than II Industrial Park stands out. Situated in Tan Dong Hiep Ward, Ho Chi Minh City, Vietnam, it is right next to Ho Chi Minh City, the nation’s leading economic, cultural, and social center. This strategic location makes it an excellent choice for establishing production and business headquarters and facilitating trade, goods exchange, and import-export activities. The park shares its borders with:

• To the East: Dong Nai province
• To the West: Tay Ninh province
• To the West and Southwest: Ho Chi Minh city center
• To the North: Binh Phuoc province

Regional Connectivity

This advantageous location enables Song Than II Industrial Park to have convenient access to key areas such as:

• Approximately 19.5 km from Ho Chi Minh City
• Around 18.8 km from Thu Dau Mot City
• Just 18.3 km from Tan Son Nhat International Airport
• Convenient waterway trade access, being only 25.2 km from Tan Cang – Cat Lai Port and approximately 66.8 km from Tan Cang – Cai Mep Port
• Only about 3 km from the main National Highway 1A

This regional connectivity facilitates trade, goods transportation, and cost optimization for businesses operating within Song Than II Industrial Park.

III. Infrastructure

Song Than II Industrial Park is dedicated to testing new, green, clean, and safe industrial approaches following global trends. Investors of industrial parks emphasize the need for a complete and synchronous infrastructure, including:

Internal Transportation System

The internal road system meets the standards required for smooth circulation within the industrial park. With durable asphalt concrete main roads capable of supporting loads exceeding 30 tons, the transportation of goods within the park proceeds conveniently and smoothly.

Electricity Distribution System

Song Than II Industrial Park receives power from the national grid with a capacity of 110/22KV. This ensures that all businesses within the park and the surrounding community have sufficient power for their operations and daily activities. The power network is highly stable, with transformer stations efficiently arranged.

Water Supply System

The water supply system in Song Than II Industrial Park receives special attention to ensure uninterrupted production activities. It provides clean water to businesses in the park with a maximum capacity of 50,000 m3/day and night, meeting WHO standards.

Wastewater Treatment System

The wastewater treatment system in Song Than II Industrial Park is comprehensively designed with a maximum capacity of 4,000 m3/day and night. Extensive investment in this system ensures that discharged water does not pollute or harm the surrounding environment.

Fire Protection System

Fire protection systems are a significant focus in any industrial park, including Song Than II Industrial Park. Water columns are strategically placed along main and branch roads to enable quick responses to emergencies. Additionally, a highly trained firefighting team with years of experience is ready to respond and resolve any incidents promptly.

Postal and Telecommunications System

Song Than II Industrial Park invests in a reliable and professional postal and telecommunications system, providing IDD, ADSL, 6000 lines, and a maximum bandwidth of 2GB, ensuring businesses can stay well-connected. The park also offers services such as banking, administrative offices, and housing to support the convenience of production and business operations.

IV. Industries Attracting Investment

With its exceptional infrastructure and well-planned land categories, Song Than II Industrial Park is gaining significant attention from domestic and foreign investors. The industrial park offers a range of development opportunities in sectors such as:

• Fashion, textile, and footwear industries.
• Manufacturing and assembling electronics, electronic components, and household appliances.
• Production of various construction materials for projects across the country.
• Processing of metal products, plastic items, mechanics, ceramics, and glass industries.
• Production of handicraft items, including rattan, bamboo, and wood products.
• Packaging and processing in the agricultural and food product industries.

V. Investment Costs

Song Than II Industrial Park presents enormous development potential, making it a prime destination for many businesses in the near future. TTTFIC will provide detailed information about investment costs in the following sections.

VI. Investment Incentives in Song Than II Industrial Park

Song Than II Industrial Park offers a range of investment incentive programs to attract businesses, which include:

1. Land Rent:

   • Exemption from land rent for projects building shared infrastructure in industrial parks according to plans.
   • Exemption from land rent for projects in the list of investment incentive fields or for new production and business establishments relocated according to planning or due to environmental pollution within 3 years from the project completion date.
   • Exemption from land rent for 11 years for investment projects in fields with special investment incentives.

2. Corporate Income Tax:

   • For new investment projects in fields such as science and technology research and development, biotechnology, clean energy, and renewable energy:
     • A preferential tax rate of 10% is applicable for 15 years.
     • A 4-year tax exemption period.
     • A reduction in the amount of tax payable by half for the following 9 years.

3. Import Tax:

   • Goods imported to create fixed assets enjoy incentives under the investment law, such as import tax exemption. This incentive is appealing to businesses considering investments in Song Than II Industrial Park.

VII. Labor Sources and Labor Costs:

• • The increasing number of workers coming to Ho Chi Minh City, especially to industrial parks like Song Than II, ensures stable production progress for businesses.
  • Labor costs in Song Than II Industrial Park range from $250 to $500 per person per month, offering a cost-effective solution for businesses to recruit highly qualified employees.
  • The industrial park has effectively addressed unemployment issues in Ho Chi Minh City and neighboring areas.

With its advantages and current progress, Song Than II Industrial Park in Ho Chi Minh City has a significant impact on the investment community and is accelerating the development of the province. The information provided in this article by TTTFIC aims to offer better insights into the potential and economic value that Song Than II Industrial Park can bring.