Linh Trung 3 Export Processing Zone and Industrial Park

Linh Trung III Export Processing and Industrial Park (Linh Trung III EPZ) is an integral part of the Linh Trung Export Processing Zone. Following the success of its earlier ventures, including Linh Trung II Export Processing and Industrial Park in Ho Chi Minh City and Linh Trung I Export Processing Park, Sepzone – Linh Trung Co., Ltd. has undertaken the establishment and development of Linh Trung III EPZ in the Trang Bang district of Tay Ninh province. The inception of Linh Trung III EPZ is driven by the objective of fulfilling the investment, production, and business requirements of both domestic and foreign enterprises.

I. Overview of Linh Trung III Export Processing and Industrial Park

Linh Trung III EPZ is a collaborative project between Vietnam and China, brought to fruition by Saigon Industrial Park Development Company and China United Electricity Import-Export Company Limited. Since its establishment in 2002, Linh Trung III EPZ has experienced remarkable development, emerging as a sought-after investment destination for both domestic and international businesses.

1. Key Information

• Approval and licensing date: December 27, 2002.
• Total land area: 203,8 hectares.
  • Industrial land: 193,8 hectares.
  • Residential land for workers and experts: 10 hectares.
• The registered capital of Sepzone Linh Trung company: is 55,5 million USD.

On June 30, 2011, the Management Board of Ho Chi Minh City Export Processing and Industrial Zones issued an investment certificate. Simultaneously, the Management Board of Tay Ninh Economic Zone issued an investment certificate for the re-registration of businesses, and investment projects, and the change of the company name. Consequently, Saigon – Linh Trung Export Processing Zone Exploitation and Business Joint Venture Company transformed into Sepzone – Linh Trung Company Limited. The registered business lines of this Export Processing Zone (EPZ) and industry encompass construction and infrastructure business.

2. Investment Advantages

In 2008, Linh Trung III EPZ earned recognition for implementing the quality management system in accordance with ISO 9001:2008 and the environmental management system following ISO 14001:2004 standards. Environmental preservation stands as a top priority for Linh Trung III EPZ alongside its commitment to economic development.

II. Location of Linh Trung III Export Processing and Industrial Park

Linh Trung III EPZ is situated in An Tinh commune, Trang Bang district, Tay Ninh province. This industrial park project holds a strategic location, playing a vital role in the trade and transportation of goods. Specifically, Linh Trung III shares borders with Cu Chi district (Ho Chi Minh City) and Xuyen A road.

1. Proximity to Key Locations

• Tay Ninh city center: 45 km
• Ho Chi Minh City center: 45 km
• Moc Bai International Border Gate: 28 km
• Xa Mat international border gate: 95 km
• Saigon Port: 42 km
• Thanh Phuoc Port: 19 km
• Tan Cang Port – Cat Lai: 61,5 km
• Tan Son Nhat International Airport: 37 km
• Vung Tau Airport: 142 km
• Long Thanh International Airport: 105 km
• Saigon Station: 43,1 km
• Bien Hoa Station: 57 km

The advantageous location provides businesses in Linh Trung III EPZ with convenient access to neighboring areas through various modes of transportation such as road, waterway, air, and rail. This strategic positioning offers significant cost savings for businesses in terms of shipping.

III. Technical Infrastructure

The strategic location of Linh Trung III EPZ, conducive to the transportation and trade of goods for businesses, is complemented by a robust infrastructure designed to support production activities and enhance operational efficiency. The investor of the Linh Trung III project has made significant investments in infrastructure to cater to the growing needs of businesses.

Key Features of Technical Infrastructure:

1. Geological Foundation

• Linh Trung III is planned and constructed on flat land with an elevation ranging from 5,5 to 7,5 meters above sea level.
• The land exhibits a good geological foundation with high load-bearing capacity and a slight average slope of 0,2%.

2. Traffic System

• The internal traffic system is constructed using hot asphalt concrete, adhering to Vietnamese standards H18-H30.

3. Electric Supplying System

• An 80MVA transformer station is connected to the national power grid.
• Low-voltage transformer stations are strategically located at factories within Export Processing Zones (EPZs) and industrial zones.

4. Water Supply System

• The park is equipped with a water plant boasting a capacity of up to 10.000 m³/day and night.
• The water source complies with TC 505/BYT standards, ensuring an ample water supply for businesses renting land and operating factories.

5. Wastewater Treatment System

• Wastewater treatment adheres to TCVN 40:2011/BTNMT standards for discharge into the external drainage system.
• The wastewater treatment capacity at Linh Trung III is an impressive 10.000 m³/day and night, underlining the project’s commitment to environmental protection.

6. Communication Systems

• A centralized telephone switchboard with 1.500 lines facilitates communication needs.
• High-bandwidth ADSL internet stations are available to meet the international communication requirements of investors and businesses.

7. Other Utilities

• Linh Trung III EPZ provides additional utilities and services such as banking, postal, customs, healthcare, education, accommodation, dining, and entertainment to cater to the diverse needs of the local community, workers, and experts.

IV. Industries Attracting Investment

Linh Trung III EPZ serves as an attractive destination for a diverse range of industries and investment fields. Encouraged sectors for investment in this park include:

• Manufacture of machine tools, electrical, and precision mechanical equipment.
• Manufacturing components, spare parts, and industrial electronic products.
• Manufacture of computers, telecommunications equipment, microchips, and optoelectronics.
• Software research and development.
• Production of pharmaceuticals and cosmetics.
• Producing industrial chemicals, high-tech plastics, and advanced technical rubber products.
• Food processing and production industry.
• High-tech industry, renewable energy, new materials.
• Warehouse and logistics industry.
• Supporting industries.

V. Investment Incentives

Linh Trung III EPZ has implemented various investment incentive policies to attract both domestic and foreign investors. These incentives include:

1. Tax Policy

• VAT exemption for export processing enterprises.
• Exemption from export tax during operation at the Export Processing Zone (EPZ).
• Two years of tax exemption, followed by a 50% reduction in tax payable for the subsequent four years.
• Application of a corporate income tax rate of 17% for the first 10 years from the commencement of business production/operation.

In addition to tax incentives, businesses in Linh Trung III EPZ benefit from flexible payment methods and receive free legal consultation support. Investors and businesses are also encouraged to participate in investment promotion programs organized by the province and country.

Particularly noteworthy is Linh Trung III’s selective approach to investment attraction. The park prioritizes and encourages businesses with high-tech machinery while limiting those with outdated machinery that pose environmental pollution risks. This strategic direction underscores Linh Trung III’s commitment to creating an ideal, environmentally friendly investment environment and fostering sustainable development in the future.

VI. Investment Costs at Linh Trung III Export Processing and Industrial Park

Linh Trung III EPZ offers lower land rental prices compared to Trang Bang Industrial Park, providing a significant advantage for businesses seeking to expand their production activities while facing challenges with investment capital.

For a comprehensive financial assessment and informed decision-making, please refer to the table detailing investment costs associated with electricity, water, and management fees.

VII. Labor Resources and Labor Costs

Benefiting from its exceptional geographical location, Linh Trung III EPZ attracts a substantial workforce from the local community and neighboring provinces. The Project Management Board places significant emphasis on social security support, ensuring the retention of skilled workers for businesses.

As a result, the availability of labor at Linh Trung III EPZ is not a cause for concern for businesses and investors. On the contrary, the abundance of labor resources and cost-effectiveness in terms of rentals provide businesses with a competitive edge, enhancing production efficiency and cost savings.

VIII. Summary

Positioned strategically, with well-planned investment infrastructure and enticing incentive policies, Linh Trung III EPZ stands out as an optimal investment destination, holding substantial potential for development. The establishment of Linh Trung III is not only a resolution to employment challenges but also a proactive contribution to the industrialization and modernization of the local and regional sectors.

The information provided in this article from TTTFIC aims to furnish investors and businesses with a comprehensive overview of Linh Trung III EPZ, enabling them to make well-informed investment decisions.