Thuy Van Industrial Park - Phu Tho

I. Overview of Thuy Van Industrial Park – Phu Tho:

Thuy Van Industrial Zone is strategically located in Thuy Van commune, Viet Tri City, Phu Tho province.

Situated in the northern part of Viet Tri, it is an area known for its strong economic development. This region has also received special attention and investment from the government as an important economic zone. With its proximity of less than 1 km to National Highway 2, Thuy Van Industrial Zone enjoys convenient and fast connectivity to various transportation facilities, including road, waterway, and air transportation.

Covering an area of 369 hectares, Thuy Van Industrial Zone provides 267 hectares of industrial land for lease, with an impressive occupancy rate of 95%. The infrastructure development of Thuy Van Industrial Zone is led by the project developer, focusing on attracting high-tech industries, mechanical assembly, agricultural and forestry processing, electrical equipment, information technology, and more. A team has designed the industrial zone as a modern industrial-urban complex, incorporating a planned residential and service infrastructure that spans an area of 20.16 hectares. The infrastructure includes housing, recreational areas, kindergartens, schools, and medical facilities. Once fully operational, it can accommodate the living needs of over 6,000 workers, providing them with stable living conditions and employment opportunities.

Currently, Thuy Van Industrial Zone has attracted over 80 projects, including 46 domestic investment projects with a total investment capital of over 5,000 billion VND, and the remaining projects are foreign direct investment (FDI) projects with an investment capital of over 220 million USD.

II. Geographical location of Thuy Van Industrial Park – Phu Tho:

National Highway 2 connects the Thuy Van Industrial Zone, providing it with convenient transportation links. It is also near Xuyen A Road, Viet Tri River Port, and the Hanoi-Lao Cai railway. Notably, the establishment of Viet Tri Port in 1996 enabled it to handle 1.2 million tons of goods annually.

Here are the distances from Thuy Van Industrial Zone to key locations:

• 2 km from the city center of Viet Tri
• 80 km from the city center of Hanoi
• 59 km from Noi Bai Airport
• 2 km from Phu Duc Railway Station and 12 km from Viet Tri Railway Station
• 12 km from Viet Tri Port and 202 km from Hai Phong Seaport.

III. Infrastructure of the Industrial Park: 

Internal transportation:

• The industrial zone has fully constructed its internal road network and seamlessly connected it to Viet Tri’s transportation network.
• The main road axis consists of four lanes and is 31 meters wide, while the branch roads have two lanes and widths ranging from 13.5 to 18.5 meters.

Electrical system:

• The power supply is provided from the 2×40 MAV-110/35/22KV transformer station.
• The service provider invests in the construction and direct supply of 35KV and 22KV power lines to the perimeter of the factories in the industrial zone.
• The Thuy Van Industrial Zone connects its electrical grid system to the national power grid and establishes a link through the 35KV power lines via the 2x40MVA-110/35/22 transformer station.

Public lighting system:

The street lighting network is designed separately with a system of power supply for residential use, arranged along the traffic routes.

Water system:

• Phu Tho Water Company builds the synchronized water supply system, extending it to the project’s perimeter, ensuring the water demands of the businesses, and providing direct supply to them.
• The system has a high capacity of 20,000m3 and remains stable to meet all the water needs of the investors.

Wastewater and rainwater drainage system:

• The rainwater drainage system allows water to flow naturally along the roads, leading to channels surrounding the industrial zone and ultimately discharging into the channels and rivers in the area.
• The wastewater drainage system is arranged along the roads and converges at the industrial zone’s treatment plant.

Waste treatment:

The investor is expected to enter into service agreements with specialized waste treatment providers.

Wastewater treatment:

The wastewater treatment plant has a capacity of 5,000 m3/day-night and is operational, meeting the standards specified in the AQCVN-24:/2009 – Ministry of Natural Resources and Environment.

Communication system:

• The service provider builds a synchronized and modern telecommunication system that extends to the project’s perimeter, enabling both domestic and international communication.
• Businesses are provided with direct services and interconnected with the national and international telecommunication networks, offering essential services such as telephone, fax, and internet.
• The system ensures the basic criteria of connection speed, information quality, and security.

IV. Industries attracting investment in Thuy Van Industrial Park – Phu Tho:

They designed Thuy Van Industrial Zone to be a multi-sector industrial park utilizing advanced and modern technologies by international standards and environmentally friendly practices. The industrial park primarily attracts the following industries:

• Mechanical assembly and manufacturing of electronic components
• Consumer goods production and handicrafts
• Textile and garment industry
• Food processing and agricultural products
• Various other industries

V. Cost of land lease and support:

• Infrastructure rental fee: $0.34/m2/year (can be paid in a lump sum for the remaining term)
• Land rental fee: $0.21/m2/year (can be paid in a lump sum for the remaining term)
• Electricity tariff: Applicable according to EVN’s electricity tariff (0.1 USD/kWh)
• Water tariff: $0.4/m3, subject to change based on the decision of Phu Tho province
• Wastewater treatment fee: $0.34/m3, wastewater volume calculated based on 80% of clean water usage.

VI. Advantages of investing in Industrial Park:

Labor cost:

• Thuy Van Industrial Zone is located in Viet Tri City, Phu Tho Province, in Zone II.
• The current minimum wage in Zone II is 3,920,000 VND per month.

Tax incentives:

• Corporate income tax exemption for the first two years; a 50% reduction for the following four years; and a tax rate of 17% for the remaining years (for regular investment projects).
• The corporate income tax is exempted for the first four years of investment.
• After the initial four years, there is a 50% reduction in corporate income tax for the following nine years.
• For projects with investment incentives, a reduced tax rate of only 10% applies for the subsequent 10 years.

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