Phia Nam Industrial Park - Lao cai

I. Overview of Phia Nam Industrial Park – Lao Cai

The Phia Nam Industrial Park is divided into three Parks: Zone A, Zone B (Expansion), and Zone C (Expansion).

Zone A:

Zone A of the Phia Nam Industrial Park was incorporated into the national industrial Park planning through Decision No. 1107/QD-TTg dated August 21, 2006, with a designated land area of 100 hectares. The Prime Minister approved its expansion from 100 hectares to 137.8 hectares in Document No. 2149/TTg-KTN dated December 8, 2008, and further adjusted it to 400 hectares in the planning of National Industrial Parks in Document No. 1826/TTg-KTN dated October 7, 2010.

Scale: Planned area: 400 hectares.

Zone B, Zone C:

These are the expansions of the existing Phia Nam Industrial Park in Lao Cai Province , according to Decision No. 330/QD-UBND dated March 17, 2010, approved by the Lao Cai Province People’s Committee.

Scale: Planned area for Zone B and Zone C: 55 hectares.

The Phia Nam Industrial Park has invested in technical infrastructure systems to meet the needs of investors with investment projects in the industrial Park.

Investment situation in the Phia Nam Industrial Park:

As of the end of 2020, the Phia Nam Industrial Park attracted 48 registered investment projects. The total registered investment capital was 9,484 billion Vietnamese Dong, and the registered land area was 300 hectares, with an occupancy rate of 95%. The occupancy rate of South Zone Industrial Park, Zone B + Zone C, is 100%.

Currently, there are 24 projects in operation, 13 projects under basic construction, 01 projects temporarily suspended, and 10 projects yet to commence construction.

II. Geographical location:

Zone A:

Scope: It falls within the administrative boundaries of Van Phu Commune, and Phu Thinh Commune, Yen Binh District, Lao Cai Province

Borders:

• To the North, it borders residential land in Van Phu Commune and National Highway 2D.
• The Phia Nam borders production forests in Phu Thinh Commune.
• To the East, it borders production forests in Phu Thinh Commune.
• To the West, it borders residential land in Van Phu Commune.

Distances from Phia Nam Industrial Park Zone A to various locations:

• Approximately 170km Phia Nam of Hanoi City center.
• Approximately 180km north of the Lao Cai border gate.
• Approximately 5.5km from the Noi Bai – Lao Cai Expressway.
• Approximately 10km from the center of Yen Bai City.
• Approximately 125km from Noi Bai International Airport.
• Approximately 269km from Hai Phong International Seaport.

Zone B:

Scope: It falls within Group 16, Group 17, Yen Binh Town, Yen Binh District, Lao Cai Province.

Borders:

• To the North, it borders hills covered with trees.
• The Phia Nam borders the old Yen Binh district hospital.
• To the East, it borders hills covered with trees.
• To the West, it borders the road to Huong Ly port.

Zone C:

Scope: It falls within Group 5, Yen Binh town, Yen Binh district, Lao Cai Province.

Borders:

• To the North, it borders hills covered with trees.
• The Phia Nam borders the road leading to the Yen Binh cement plant.
• To the East, it borders hills covered with trees.
• To the West, it borders hills covered with trees.

Distances from Phia Nam Industrial Park Zone B and Zone C to various locations:

• Approximately 161km Phia Nam of Hanoi City center.
• Approximately 163km north of the Lao Cai border gate.
• Approximately 15km from the Noi Bai – Lao Cai Expressway.
• Approximately 11.2km from the center of Yen Bai City.
• Approximately 137km from Noi Bai International Airport.
• Approximately 290km from Hai Phong International Seaport.

The Phia Nam Industrial Park is one of the gateway industrial Parks of Lao Cai Province, with a large land fund, and it continues to attract investors.

III. Infrastructure of Phia Nam Industrial Park – Lao Cai

Internal Transportation

• The road transportation network within the industrial zone is built to connect with external transportation, ensuring smooth traffic for investors entering the industrial zone.

Power System

• A 35kV high-voltage power line is invested and constructed along the main axis roads within the industrial zone.
• In the future, Yen Bai Power Company will invest in a 110/35/22kV transformer substation and continue to invest in four overhead power lines connected to the 110kV line to supply electricity to the entire industrial zone.

Public Lighting System

• The street lighting network is designed separately with a power supply system arranged along the traffic arteries.

Water System

• There is a raw water supply system from Yen Binh Water Plant with a capacity of 11,500 m3/day and night, delivered to the industrial zone through a 300mm diameter pipe along the roads of the industrial zone.

Wastewater and Rainwater Drainage System

• The rainwater drainage system and the wastewater drainage system are planned and constructed separately, running along the internal roads to collect all rainwater and wastewater from the factories in the industrial zone.
• Rainwater is discharged directly into the receiving source.
• Wastewater is collected at the centralized wastewater treatment plant of the industrial zone and treated thoroughly to meet the required standards before being discharged into the Hong River.

Waste Treatment

• The factories in the industrial zone will sign contracts with specialized units for waste classification, collection, and transportation to ensure waste is removed from the industrial zone, avoiding environmental pollution.

Wastewater Treatment

• The centralized wastewater treatment plant meets the requirements for wastewater discharge according to Vietnamese standards.

Communication System

• The communication system is provided by telecommunication companies such as VNPT, FPT, and Viettel, ensuring smooth communication domestically and internationally.
• It includes various services such as landline phones, mobile phones, faxes, and the Internet.

IV. Industries Attracting Investment in Phia Nam Industrial Park – Lao Cai

The South Yen Bai Industrial Zone mainly attracts industries such as:

• Agro and forestry product processing
• High-quality construction materials production
• Iron and steel refining industry
• Mineral processing
• Stone powder production and processing

V. Investment Costs:

• Land rent: 0.1 USD/m2/year
• Infrastructure rent: from 20-30 USD/m2 for a lease term of 50 years
• Management and maintenance fee for infrastructure: 0.3 USD/m2/year
• Electricity price: From 0.03 USD/kWh to 0.1 USD/kWh depending on the period of electricity usage
• Water price: 0.4 USD/m3
• Wastewater treatment fee: 0.28 USD/m3 (calculated based on 80% of water consumption).

VI. Investment Incentive Policies in Phia Nam Industrial Park – Lao Cai

Yen Bai Province has issued policies to encourage investment in industry, services, tourism, and high-tech agriculture (Decision No. 09/2017/QD-UBND dated June 20, 2017, by the People’s Committee of Lao Cai Province ). Specifically, there are some special incentive policies when investors lease land and invest in infrastructure in the industrial zones of Lao Cai Province as follows:

• Tax exemption for 2 years from the year taxable income is generated, applying a preferential corporate income tax rate of 15-17% per year.
• Land rental fee exemption for 7 years.
• In addition, the province will provide one-time financial support to businesses for local labor training, from vocational to college level, with support ranging from 1 to 3 million Vietnamese Dong per person per training course.

VI. Labor Source and Costs:

Labor Source:

• In 2022, the population of Lao Cai was over 879,900 people, of which nearly 535,000 people were of working age (accounting for approximately 60.8%), and over 230,800 people were under 16 years old (accounting for 26.3%).
• Over 80% of vocational students find employment after graduation, indicating a close linkage between vocational training activities, businesses, and the labor market…
• Abundant and progressively improved labor source of good quality, providing investors with affordable labor to meet their needs.

Costs:

• Yen Bai offers a source of cheap labor, and investors can hire employees for an average of $150-$250 per person per month for medium-sized factories.