Tam Duong II Industrial Park - Phu Tho

I. Overview of Tam Duong II Industrial Park – Phu Tho province

Tam Duong II Industrial Park was granted approval by the Prime Minister to be included in the industrial park planning of Phu Tho province through Official Letter No. 1581/TTg-KTN dated September 3, 2009, with an anticipated area of 750 hectares.

Currently, the People’s Committee of Phu Tho province has approved detailed planning for about 400 hectares out of the total planned area of 750 hectares. To implement the construction of Tam Duong II Industrial Park, the People’s Committee of Phu Tho province has decided to approve the industrial park planning divided into 3 zones: Zone A, Zone B1, and Zone B2.

Tam Duong II Industrial Park – Zone A

Phase 1:

It has an area of 90.0678 hectares, approved for detailed planning at a scale of 1/500 in Decision No. 2828/QD-UBND dated October 30, 2012, by the People’s Committee of Phu Tho province. The industrial land area in this phase is 62.8460 hectares, accounting for 69.78% of the total area.

Phase 2:

It has an area of 90.0679 hectares, assigned planning tasks according to Decision No. 168/QD-UBND dated January 23, 2013, by the People’s Committee of Phu Tho province, and approved for detailed construction planning at a scale of 1/500 in Decision No. 2731/QD-UBND dated October 3, 2013, by the People’s Committee of Phu Tho province.

It has a total area of 135.1669 hectares (adjusted from the initial area of 180.1357 hectares). The industrial land area is 96.8895 hectares, accounting for 71.681% of the total industrial park area.

The investor of Tam Duong II Industrial Park – Zone A is Vitto – Vp Company Limited.

Tam Duong II Industrial Park – Zone B

It has a planned area of 185.6 hectares, including two subzones, B1 and B2, approved for adjusted detailed planning at a scale of 1/500 in Decision No. 1889/QD-UBND dated August 17, 2018, by the People’s Committee of Phu Tho province.

On May 5, 2014, Tam Duong II Industrial Park – Zone B was assigned to FLC Group Corporation as the investor according to Decision No. 1223/QD-UBND by the People’s Committee of Phu Tho province, with a total investment capital of 2,310 billion VND.

However, after approval, the investor faced difficulties in compensation and land clearance, leading to the inability to proceed, and FLC submitted a document requesting termination of the project.

Therefore, on July 2, 2019, the People’s Committee of Phu Tho province revoked the decision to assign the investor and withdrew the investment project, canceling the establishment decision of Tam Duong II Industrial Park – Zone B in Decision No. 1610/QD-UBND.

Currently, the industrial park is investing in the construction of technical infrastructure and carrying out compensation for land clearance.

II. Geographical location of Tam Duong II – Phu Tho Industrial Park:

Tam Duong II Industrial Park – Zone A:

It is located in Kim Long Communes, Tam Duong District, and Hop Chau, Ho Son, and Tam Quan Communes, Tam Dao District, Phu Tho province.
Regarding regional connectivity:

• Approximately 3 km from National Highway 2B.
• Approximately 6 km from Noi Bai – Lao Cai Expressway.
• Approximately 34 km from Noi Bai International Airport.
• Approximately 62 km from the city center of Hanoi.
• Approximately 209 km from Cai Lan Port.
• Approximately 178 km from Hai Phong Port.

Tam Duong II Industrial Park – Zone B:

The industrial park is situated in the communes of Tam Quan and Dai Dinh in Tam Dao District, as well as Dong Tinh and Hoang Hoa in Tam Duong District, within VPhu Tho province.
Regarding regional connectivity:

The industrial park is adjacent to the Hop Chau – Dong Tinh road and is close to National Highway 2B, providing convenient transportation connections.

• Approximately 39 km from Noi Bai International Airport.
• Approximately 65 km from the city center of Hanoi.
• Approximately 10 km from the Hanoi – Lao Cai Expressway interchange.
• Approximately 17 km from the city center of Vinh Yen.
• Approximately 180 km from Hai Phong International Port.

III. Infrastructure:

Internal transportation:

• The internal transportation system within the development area is well-developed, with a flat terrain that facilitates smooth traffic flow.
• The main roads consist of four lanes, each 31 meters wide, while the branch roads consist of two lanes, each 15 meters wide.

Power system:

• Tam Duong II Industrial Park – Zone A receives electricity from the Tam Duong 110/35/22KV power substation with a capacity of 126 MVA.

Public lighting system:

• The street lighting network is designed with a separate configuration, where the power supply system is strategically placed along the traffic routes.

Water system:

• The Lien Son Water Plant supplies a convenient water capacity of 80,000 m3 per day and night for water supply and drainage.

Wastewater and rainwater drainage system:

• The rainwater drainage system flows naturally along the road networks into canals surrounding the industrial park and drains into channels and rivers in the area.
• The drainage system for wastewater is strategically positioned along the roadways, guiding the flow toward the treatment station within the Industrial Park.

Waste management:

• Waste within the industrial park is sorted, collected, and transported out of the industrial park by contracted waste management facilities to prevent environmental pollution.

Wastewater treatment:

• The industrial park has a centralized wastewater treatment station where industrial wastewater is collected and processed.
• The wastewater treatment plant currently has a capacity of 2,000 m3 per day.

Communication system:

• The entire communication system is provided by leading Vietnamese telecommunications infrastructure providers such as VNPT, Viettel, and FPT Telecom, ensuring full coverage throughout the industrial park and global connectivity with the highest quality through the fiber optic system within the park.

IV. Investment-attracting industries in Tam Duong II Industrial Park – Phu Tho province

Tam Duong II Industrial Park primarily attracts industries including:

• Precision mechanical equipment manufacturing, electrical equipment, agricultural machinery manufacturing.
• Electronics, refrigeration, equipment, auto parts, motorcycles.
• Manufacturing molds for both metal and non-metal products.
• Other industries.

V. Investment costs:

• The land rental price ranges from 100 – 155 USD/m2. The unit price may vary depending on the area and location of the rented land.
• Management fee: 0.35 USD/m2/year.
• Electricity rates:
  – Peak hours: 1.1 USD/KW.
  – Normal hours: 0.8 VND/KW.
  – Off-peak hours: 0.6 VND/KW.
• Water supply price: 0.59 USD/m3, calculated based on actual clean water usage.
• Wastewater treatment price: 0.47 USD/m3.
  Input treatment standard: Column A for metal targets and Column B for organic targets according to QCVN40/2011/BTNMT.

VI. Investment incentives in Tam Duong II Industrial Park – Phu Tho province

Land rental incentives:

• Investors are exempt from land rental fees during the construction period and enjoy 11 years of land rental exemption starting from the completion date of the project and commencement of operations.
• Land rental fee = 0.75% (the lowest land rental fee rate) x Land price.
• Land rental fees are stable for five (05) years.

Tax policies:

• Personal income tax: Vietnamese and foreign individuals working on the project receive a 50% reduction in personal income tax for taxable incomes.
• Investors enjoy import tax incentives for imported goods used in construction projects according to the regulations on export tax and import tax.

Incentives from Phu Tho province:

• Infrastructure investors implementing investment, construction, business, and operation activities in industrial parks within the province are supported as follows:
• There is 100% support for the following technical items in Phu Tho province:- Environmental impact assessment report for infrastructure investment projects.
  – 1/500 industrial park planning.
  – Clearance of mines and explosives in industrial parks.
• Support for technical items in fencing, including waste collection systems, and centralized wastewater treatment systems, ensuring compliance with specific standards according to the area’s scale.

VII. Labor sources and costs:

Labor sources:

• As of 2021, Phu Tho province has an average population of approximately 1,191.8 thousand people, including about 642 thousand people of working age (15 years and older). The labor force participation rate in the province is 54%.
• From 2017 to 2021, Phu Tho province trained approximately 142,226 individuals. This includes 5,764 individuals with college degrees, 26,878 individuals with intermediate degrees, and 109,584 individuals with elementary degrees. The proportion of trained labor increased from 74.2% in 2019 to 76.1% in 2020. Additionally, 33.4% of the labor force holds certificates.
• By 2025, Phu Tho province aims to achieve a labor force training rate of 82%, including 40% of the workforce having obtained degrees or certificates.

Costs:

• Tam Duong II Industrial Park is located in Tam Duong district, Phu Tho province, in Region III.
• Therefore, the current minimum wage in Region III is 3,430,000 VND/month.