Hoa Phu Industrial Park

I. Overview of Hoa Phu Industrial Park:

Hoa Phu Industrial Park is oriented in the overall plan for long-term development of phase 1 and phase 2.

• The investor of Hoa Phu Industrial Park is Hoa Phu Joint Stock Company.
• The industrial park is located in Hoa Phu Commune, Long Ho District, Vinh Long Province.
• The Hoa Phu Industrial Park project – phase 2 is the area adjacent to Hoa Phu Industrial Park – phase 1, which has been approved for detailed planning at a scale of 1/2000 by the Vinh Long Provincial People’s Committee in decision No. 1752/QD-UB on August 31, 2007.
• The total area of the industrial park is 259.32 hectares.
  – Phase I: 122.16 hectares. Has attracted a total of 18 investment projects with total investment capital of 619.36 billion VND and 220.9 million USD.
  – Phase II: 137.16 hectares. Attracted 15 investment projects with a total investment capital of VND 645 billion and USD 124.4 million.
• In addition to domestic enterprises, Hoa Phu Industrial Park also attracts many foreign investors, including those from Japan (Acecook, Towa, Hatchando), the Netherlands (De Heus), as well as investors from South Korea, Singapore.

Hoa Phu is one of the strategically located industrial parks in the Mekong Delta. located next to National Highway 1A – the arterial road of Vietnam, connecting the southern provinces and cities. From the industrial park, it is easy to connect to major economic centers in the South such as Can Tho (25km), Ho Chi Minh City (140km), and Vinh Long City (10km).

During the period of 2020-2025, Hoa Phu Industrial Park remains a focal point for attracting FDI capital in Vinh Long province. Many experts believe that there will be a consideration to expand the scale of Hoa Phu Industrial Park. This is due to the current rate of development and the increasing demand for industrial land leasing.

II. Infrastructure of Hoa Phu Industrial Park:

• Electricity source: Using the existing National Grid along the National Highway 1A.
• Water source: Supplied by the Vinh Long Water Company.
• Wastewater treatment system: With a capacity of 4000 m3 per day and night.
• Solid waste treatment system: Collected and transferred to the province’s centralized treatment area.
• Contact information: Managed and provided by the Vinh Long Post Office.
• Internal road system connecting throughout the Industrial Zone.
• Affordable workers’ dormitories available for rent.

III. Industry attracting investment of Hoa Phu Industrial Park:

• Processing products from grains and fruits.
• Producing pharmaceuticals and cosmetics.
• Manufacturing consumer goods, household items, and various types of packaging.
• Textile and weaving industries.
• Manufacturing or assembling electrical and electronic equipment.
• Mechanical engineering serving agricultural mechanization.
• Building materials, ceramics, warehousing, services, etc.
• Some other manufacturing industries that cause little environmental pollution.

IV. Investment incentives of Hoa Phu Industrial Park:

Corporate income tax:

• The corporate income tax rate is 22%, and from January 1st, 2016, for cases subject to the 22% tax rate, it is reduced to 20%.
• The corporate income tax rate is 20% for enterprises with an annual revenue of no more than VND 20 billion.

Preferential tax rates:

– A preferential tax rate of 10% is applicable for 15 years to:

• Income of enterprises from implementing new investment projects in the following fields: software product manufacturing, composite material production, lightweight construction materials, rare and precious materials, etc.
• Income of enterprises from implementing new investment projects in the production sector (except for projects manufacturing goods subject to special consumption tax and mining).

– A preferential tax rate of 20% is applicable for 15 years (from January 1st, 2016, the tax rate is reduced to 17%) for:

• Income of enterprises from implementing new investment projects.
• The period of the preferential tax rate specified in this Article (Article 15, Decree 218/2013/ND-CP) is calculated continuously from the first year that the enterprise has revenue from the new investment project.

– Tax exemption, reduction:

• Tax exemption for 04 years, and 50% reduction in the tax amount payable for the following 9 years are applicable to income of enterprises from implementing new investment projects as stipulated in clause 2.1, Section III.
• Tax exemption for 02 years, and 50% reduction in the tax amount payable for the following 04 years are applicable to income of enterprises from implementing new investment projects in industrial parks.
• The tax exemption and reduction period specified in this Article is calculated continuously from the first year that the taxable income from the new investment project enjoys the incentives.

Other offers:

In addition to the investment incentives as regulated, Vinh Long province also implements preferential policies according to Decision No. 07/2013/QD-UBND dated August 19, 2013 of the People’s Committee of Vinh Long province on issuing regulations on encouragement and support policies for investment in Vinh Long province:

• Supporting the construction of technical infrastructure inside and outside the industrial parks.
• Offering incentives for projects to build housing for workers.
• Supporting land clearance and compensation.
• Supporting advertising costs.
• Supporting investment promotion costs.
• Supporting workforce training.