Lai Vu Industrial Park - Hai Phong

The Lai Vu Industrial Park is managed by Hai Phong Province. It features a wide internal transportation system, ample construction space, and utilities such as electricity and water supply that meet international standards. It has successfully attracted numerous major investors to invest in this location.

I. Overview of Lai Vu Industrial Park – Hai Phong

Legal information of the Industrial Park

The Lai Vu Industrial Park has its origins in the Lai Vu Shipbuilding Industrial Park, which was approved by the Prime Minister in the General Development Plan for Industrial Parks in Vietnam under Decision No. 1107/QD-TTg dated August 21, 2006, with an envisaged planned area of 212 hectares.

On June 25, 2007, the Lai Vu Shipbuilding Industrial Park was officially established according to Decision No. 2326/QD-UBND of the People’s Committee of Hai Phong Province, with the initial investor being the Vietnam Shipbuilding Industry Group (VINASHIN). The direction was to create an industrial park focused on specialized factories and facilities serving the Vietnamese shipbuilding industry.

Due to the VINASHIN restructuring on June 18, 2010, the Prime Minister issued Decision No. 926/QD-TTg regarding the restructuring of VINASHIN. Consequently, the Lai Vu Shipbuilding Industrial Park development project was entrusted to the Vietnam Oil and Gas Group (PVN).

On April 7, 2014, the Government Office issued Document No. 2301/VPCP-KTTH regarding the approval for PVN to transfer the entire Lai Vu Industrial Park (including Lai Vu Industry Park Company Limited) to the management of Hai Phong Province. On June 27, 2014, Lai Vu Industrial Park was officially handed over to Hai Phong Province for management.

Information regarding the investor of the Industrial Park

Lai Vu IP is owned by Lai Vu Industry Park Company Limited, which serves as the investor.

• Main office address: Lai Vu Industrial Park, Lai Vu Commune, Kim Thanh District, Hai Phong Province, Vietnam.

It is a well-designed and modern industrial park with a planned area of 212,89 hectares, located adjacent to the important transportation route of National Highway 5 in Lai Vu Commune, Kim Thanh District, Hai Phong Province.

The industrial park features a wide internal transportation system, spacious construction areas, and utilities such as electricity and water supply that meet international standards.

Currently, Lai Vu IP is home to 11 operating enterprises, providing employment opportunities for over 12.000 workers.

Notably, two major investors in the textile and garment industry are Tinh Loi Garment Co., Ltd and Pacific Crystal Textile Co., Ltd.

II. Geographical location of Lai Vu Industrial Park – Hai Phong

The industrial park is situated in Lai Vu commune, Kim Thanh district, Hai Phong province, Vietnam.

Lai Vu Industrial Park (Lai Vu IP) enjoys a favorable location, situated near National Highway 5. This highway serves as a vital transportation artery connecting key economic regions in the northern part of Vietnam. Additionally, it provides convenient conditions for the circulation of goods and cost savings for investors.

In terms of transportation and regional connectivity:

• Lai Vu Industrial Park is conveniently situated at a distance of 10 kilometers from National Highway 5.
• It is 64 km away from the center of Hanoi.
• It is 37 km from Hai Phong Port
• 44 km Cat Bi International Airport.
• It is 68 km from Quang Ninh Deep-Water Port.
• It is 20 km from Cao Xa Railway Station.
• The center of Hai Phong City is located 14 kilometers away.

III. Infrastructure of Lai Vu Industrial Park – Hai Phong

Internal Transportation:

• The width of the central area’s transportation system is 27m, with the main road measuring 16,5m in width.
• Branch roads and connecting roads have a width of 13,5m.

Electrical System:

• The industrial park maintains stable and uninterrupted electricity by receiving a continuous power supply from the 110kV Lai Khe substation.

Water System:

• Guaranteeing a clean water supply with a capacity of up to 15.000m3 per day and night.

Drainage System for Wastewater and Rainwater:

• The design includes two separate independent drainage systems for wastewater and rainwater, which run along the roadways.

Waste Management:

• Solid waste from the factories within the industrial park is classified, collected, and transported to the centralized landfill in Hai Phong City.

Wastewater Treatment:

• A wastewater treatment plant with a capacity of 2.000m3 per day and night.

Communication System:

• The industrial park has invested in a modern and high-speed communication system.
• Services are provided by Viettel and VNPT network providers.

IV. Industries attracting investment of Lai Vu Industrial Park – Hai Phong

• Mechanical assembly and shipbuilding.
• Manufacturing consumer goods and handicrafts.
• Textile and garment production.
• Food processing industry.
• Agricultural processing and agricultural products.
• And various other industries.

V. Cost of land lease and support of Lai Vu Industrial Park – Hai Phong

Land rental cost: 70 USD/m2.

• The land lease period is 50 years, starting from 2007 to 2057.

Infrastructure management and maintenance fee: 0,4 USD/m2/year.

Wastewater treatment fee: 0,35 USD/m3.

• Water quality before treatment is of type B, and water quality after treatment is of type A.

Electricity supply price: According to EVN’s electricity supply tariff.

• The reference price is 0,05 USD/kWh.

Water supply price: 12.500 VND/m3, approximately 0,52 USD/m3.

Raw land rental fee: According to the decision of Hai Phong Provincial People’s Committee.

VI. Advantages of investing in Lai Vu Industrial Park – Hai Phong

Labor cost

• Lai Vu IP is located in Kim Thanh district, Hai Phong province, in Zone III.
• In Zone III, the present monthly minimum wage amounts to 3.430.000 VND.

Investment incentives

Corporate income tax

• The incentives are applicable continuously from the first year when the enterprise generates taxable income from the investment project.
• In cases where the enterprise has no taxable income in the first three years from the date of generating revenue from the investment project, the tax exemption or reduction period will start from the fourth year.
• General incentives include a 2-year tax exemption and a 50% reduction for the next 4 years (applying a tax rate of 20%).

Import tax

• Exemption from import tax on goods used for fixed asset creation in the project (equipment, machinery; Specialized transport vehicles in the production line and vehicles for transporting workers; Components, spare parts, detachable components, accessories, molds, accompanying accessories for equipment, machinery, and transport vehicles; Raw materials and materials used for manufacturing equipment, machinery components, spare parts, detachable components, accessories, molds, accompanying accessories for equipment, machinery; Construction materials produced domestically).
• Exemption from import tax on imported goods for processing for foreign parties.

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