Phu My 2 Expansion Industrial Park - Ho Chi Minh Province

Referring to key industrial parks in Ho Chi Minh City, it is impossible not to mention the Phu My II Expanded Industrial Park – one of the industrial parks with the largest scale and fastest development speed in the region. This industrial park has garnered the attention of many businesses and investors due to its advantages in location, infrastructure, as well as attractive incentives. Let’s delve into more details about this industrial park with TTTFIC.

After the administrative merger, Ba Ria–Vung Tau Province was merged into Ho Chi Minh City.

I. Overview of Phu My II Expanded Industrial Park, Ho Chi Minh City

The Phu My II Expanded Industrial Park is situated in Tan Phuoc and Phuoc Hoa Wards, Phu My Town, Ho Chi Minh City, established under Decision No. 2504/QD-UBND dated December 25, 2019, and July 2008.

This industrial park in Ho Chi Minh City has a medium scale (approximately 398 hectares) with a usage term of 50 years from July 25, 2008, and was developed by IDICO Group, a leading and prestigious investor in Vietnam.

1. Land Use Structure

The land use planning at Phu My II is expanded as follows:

• Land for the construction of factories and plants: 241,39 hectares.
• Warehouse land: 9,1 hectares.
• Traffic land: 26,24 hectares.
• Land for the construction of specialized ports: 22,66 hectares.
• Static traffic land (parking lot): 1,33 hectares.
• Land for administrative and service works: 1,97 hectares.
• Land for key technical works: 9,42 hectares.
• Green land and water surface: 85,91 hectares.

Currently, the Phu My II Expanded Industrial Park has leased over 126 hectares of land, with an occupancy rate of over 46%, and hosts numerous large-scale investment projects, such as the Ultra-white float glass factory project and the Steel and auxiliary factory project of Hoa Phat.

Up to now, the Phu My II Expanded Industrial Park still offers large and small land plots at preferential prices, catering to various customers’ needs for implementing investment projects.

2. Operational Objectives and Current Investment Status

Phu My II Industrial Park expands with the goal of becoming a multi-industry industrial park, leveraging port advantages to attract fields such as manufacturing of industrial electronic equipment, consumer electrical equipment electronic components production, consumer chemical production – cosmetics, fertilizer production – microbial pesticides, leather shoe production – high-quality sandals, plastic – ceramic – glass production, mechanical manufacturing – assembly – repair, metallurgy, and more.

In addition, the Phu My II Expanded Industrial Park also aims to be an industrial park for international investors. To date, many foreign investors from Germany, Australia, Japan, Korea, Taiwan, Singapore, etc., have rented land and established manufacturing factories.

II. Location of Phu My II Expanded Industrial Park, Ho Chi Minh City

The Phu My II Expanded Industrial Park is strategically situated in Phu My Ward, Tan Phuoc Ward (from Phuoc Hoa), Ho Chi Minh City, Vietnam.:

• North: Adjacent to Phu My II Industrial Park, road 965.
• East: Adjacent to Phu My new urban technical corridor.
• South: Bordering Phuoc Hoa – Cai Mep planning road.
• West: Adjacent to Cai Mep Industrial Park.

Additionally, it is in proximity to major ports, airports, significant roads, and railway stations, as outlined below:

1. Road Distance

• National Highway 51: 1,5 km.
• Ho Chi Minh City – Long Thanh – Dau Giay Expressway: 30 km.
• Ho Chi Minh City: 40 km.
• Ho Chi Minh City: 60 km.
• Bien Hoa City: 55 km.

2. Distance to Harbours

• Thi Vai Port (for ships of 80.000 tons to dock): 1 km.
• PTSC Port (for ships of 60.000 tons to dock): 2 km.
• Phu My Port (for ships of 72.000 tons): 2 km.
• Vung Tau Port: 35 km.

3. Distance to Airports

• Tan Son Nhat Airport: 70 km.
• Long Thanh Airport (future): 35 km.

4. Distance to Railway Stations

• Saigon Station: 65 km.
• Bien Hoa Station: 60 km.

The geographical advantages mentioned above will undoubtedly serve as a solid foundation for the rapid and sustainable development of the Phu My II Expanded Industrial Park in the future.

Moreover, the Phu My II Expanded Industrial Park, alongside neighboring industrial parks, will pave the way for economic development in Ba Ria province and the southern key economic region in general.

III. Infrastructure of Phu My II Expanded Industrial Park

Modern, high-end infrastructure is one of the significant advantages that attract the attention of domestic and foreign businesses and investors.

1. The Internal Transportation Network in Phu My II Expanded Industrial Park

The industrial park boasts a comprehensive internal traffic system, invested and built with good quality to ensure smooth vehicle circulation. This includes the main road system, such as D3 road, and a herringbone road system connecting to factory gates.

• Main road D3, cross-section 63m, road section 24m, median strip 3m.
• Internal branch road: 2 lanes, 8m wide.

2. The Transportation Network Outside Phu My II Expanded Industrial Park

Not only focusing on investing in the internal traffic system, but the traffic system outside Phu My II Industrial Park is also heavily invested and focused. Specifically:

• Road 965 in the Northwest passes through the Phu My II Expanded Industrial Park: length 2.065 m, the planned cross-section is 75 m, connecting from National Highway 51 to the system of ports such as Tan Cang Cai Mep, Cai Mep International Port Mep, Cai Mep Ha area…
• Phuoc Hoa – Cai Mep Road in the South passes through the industrial park connecting National Highway 51 to Road 965 to Cai Mep – Thi Vai – Phu My Port system…
• Road 2A in the Northeast is an inter-industrial park road, connecting industrial parks from Phu My to My Xuan A, Go Dau…

3. Electric Supplying System

The power source at the Phu My II Expanded Industrial Park is provided by the National Power Grid managed by Phu My Town Electricity and Ho Chi Minh City Provincial Electricity. The supply voltage for factories here is 22 kV.

The power system in expanded Phu My II will be distributed regularly across the internal traffic network, ensuring that in case the national power system has a problem, the power system on these traffic routes will still be intact, can operate stably, and will not cause any problems for businesses during production.

4. Clean Water Supply System in Industrial Park

The Phu My II Expanded Industrial Park is designed with an extremely modern clean water supply system with a capacity of 50.000/m³/day and night from the Toc Tien Water Plant.

5. Wastewater Treatment System

The centralized wastewater treatment plant in the industrial park has been completed and receives industrial wastewater from the factory fence.

• Phase 1 capacity: 4.000 m³/day and night.

6. Rainwater and Wastewater Drainage System

The industrial park has a separately built rainwater and wastewater drainage system along internal roads. Rainwater will be drained directly into the receiving source, and wastewater will be collected at the centralized wastewater treatment station of the industrial park and treated to meet the required standards before being discharged into the environment.

7. Communication Systems

The communication system is provided by network operators such as VNPT, FPT, and Viettel… ensuring smooth domestic and international communication. Includes full services such as telephone, mobile phone, Fax, Internet…

8. The Port System Inside and Outside Phu My II Industrial Park is Expanding

Phu My II Industrial Park expands near Cai Mep Port, Phu My Port, SP-SPA International Port, Saigon Vietnam International Port, and PTSC Port… These ports can receive ships from 80.000 tons to 200.000 tons.

In particular, Cai Mep Port has container ships going directly to Europe and America without having to transit through a third country.

Not only that, the expanded Phu My II also has an inland waterway port system located right inside the Industrial Park. This port can receive ships and barges of up to 5.000 tons. Convenient for transporting raw materials and goods domestically and regionally.

9. Natural Gas Supply System

The Phu My II Expanded Industrial Park has a natural gas supply source, serving specific investors with gas needs.

The two natural gas suppliers are:

• Vung Tau Low-Pressure Gas Distribution Enterprise, connected from Phu My 1 low-pressure gas station.
• Hai Linh Company Limited in Phu My II Industrial Park.

In addition, Phu My II expansion also has a stable source of natural gas from the Nam Con Son field with large gas reserves.

IV. Industries Attracting Investment in the Phu My II Expanded Industrial Park

Possessing many advantages in geographical location as well as modern infrastructure, the Phu My II Expanded Industrial Park is currently attracting investment in many fields, including:

• Mechanical equipment and spare parts manufacturing.
• Mechanical assembly industry.
• Mechanical repair industry.
• Manufacture of industrial and specialized electronic equipment.
• Production of components, components, and accessories.
• Producing electronic materials and consumer electronic products.
• Metallurgy, rolling and drawing, post-rolling products.
• Production of consumer, cosmetic, and industrial chemicals.
• Production of fertilizers and microbial plant protection drugs.
• Textile and garment industry.
• Producing high-quality footwear and leather.
• Plastic industry.
• Ceramic, porcelain, glass industry,…

V. Incentives When Investing in the Phu My II Expanded Industrial Park

When investing in the Phu My II Expanded Industrial Park, businesses will receive the following incentives:

1. Tax Incentives

According to Decree No. 218/2013/ND-CP dated December 26, 2013, and No. 118/2015/ND-CP dated November 12, 2015, businesses will receive incentives as follows:

• The preferential tax rate is 17% for 10 consecutive years from the first year the enterprise has revenue from the project. When this preferential tax rate expires, businesses will switch to applying the 20% tax rate.
• Tax exemption for 2 years and 50% reduction for the next 4 years from the date of taxable income.
• The tax exemption and reduction period is calculated continuously from the first year the enterprise has taxable income from the project;
• In case the enterprise has no taxable income in the first three years (from the first year of revenue from the project), the tax exemption and reduction period are calculated from the fourth year.

2. Import Tax

According to the provisions of Article 16 of the Law on Export Tax and Import Tax No. 45/2005/QH11 dated June 14, 2005, and Article 12 of Decree No. 87/2010/ND-CP dated August 13, 2010, of the Government, businesses will be exempt from import tax on imported goods.

VI. Investment Costs in the Phu My II Expanded Industrial Park

The Phu My II Expanded Industrial Park is an enticing opportunity for businesses and investors seeking a production environment in Ho Chi Minh City. Some specific costs when investing in this industrial park are as follows:

• Infrastructure usage fee: 125 USD/m²/lease term.
• Annual land rent: 195 USD/m² and adjusted according to the Decision on the land price list of the People’s Committee of Ho Chi Minh City.
• Industrial park management and maintenance fee: 0,65 USD/m²/year and will be adjusted annually.
• Clean water supply fee: 12.500 VND/m³.
• Wastewater treatment fee: 0,4 USD/m³.
• Electricity supply price:
  • Normal hours: 1.555 VND/kWh.
  • Peak hour: 2.871 VND/kWh.
  • Off-peak hours: 1.007 VND/kWh.
• Internet and television prices: According to investors’ needs.

Note: The above prices do not include VAT and are subject to change.

VII. Labor Resources and Labor Costs

Similar to Phu My I Industrial Park and Phu My II Industrial Parks, the labor source in the Phu My II Expanded Industrial Park is extremely abundant, providing a significant advantage to accelerate the development speed of the industrial park.

Moreover, with its highly favorable geographical location and modern transportation network, the Phu My II industrial park can easily attract labor from many surrounding areas, especially in the southern region. Simultaneously, it aids in solving employment problems for many workers.

Not only does Phu My II expansion have an advantage in labor quantity, but it also boasts advantages in labor quality. The workforce in this industrial park mainly comprises unskilled workers with not overly high professional qualifications. They are known for being hard-working, willing to learn, and adept at absorbing modern production technologies to ensure productivity remains at a stable level.

Above is the information about the Phu My II Expanded industrial park that TTTFIC wants to share with you. With these outstanding advantages, it is certain that in the future, Phu My II expansion will evolve into an industrial park with a leading development speed and become a great partner for businesses.