Dai Dong Hoan Son Industrial Park - Bac Ninh

Dai Dong Hoan Son Industrial Park, located in Bac Ninh Province, is managed by Saigon Telecommunications Technology Corporation and strategically positioned in the North’s economic triangle. Its goal is to facilitate Bac Ninh’s transition into an industrial city, covering nearly 400 hectares in two phases. The park has successfully attracted 232 projects, totaling $658,58 million in investments, including contributions from renowned companies like Hayakawa, Tabuchi, and UMW.

I. Overview of Dai Dong Hoan Son Industrial Park – Bac Ninh:

Information about the industrial park:

The People’s Committee of Bac Ninh Province established Dai Dong Hoan Son Industrial Park under Decision No. 1179/QD-CT issued by the Chairman of the People’s Committee of Bac Ninh Province on July 1, 2005.

The industrial park is entrusted to Saigon Telecommunications Technology Corporation (a member of Kinh Bac Urban Development Corporation) as the investor and is located in the key economic triangle of the North: Hanoi – Hai Phong – Quang Ninh.

The investor has developed Dai Dong Hoan Son Industrial Park and Residential Area as a cohesive and contemporary architectural complex, in line with Bac Ninh Province’s objective of transforming into an industrial city by 2015.

The planning of Dai Dong Hoan Son Industrial Park includes two phases, with a total area of nearly 400 hectares.

• Phase 1, covering 272 hectares, commenced in July 2005 with a registered investment capital of VND 553,50 billion.
• Phase 2: On January 20, 2020, the People’s Committee of Bac Ninh Province issued Decision No. 15/QD-UBND on the establishment of Dai Dong Hoan Son Industrial Park.

Saigon Telecommunications Technology Corporation is continuing to develop and invest in infrastructure to attract investment for Phase 2 of the industrial park, with a total investment capital of VND 486 billion on an area of 95,81 hectares in the communes of Hoan Son, Phat Tich, and Tri Phuong – Tien Du District, Bac Ninh Province.

The industrial park is located in Dai Dong, Hoan Son, Tri Phuong communes in Tien Du district, and Tan Hong commune in Tu Son city, Bac Ninh province.

Saigon Telecommunication Technology Corporation (a member of Kinh Bac Urban Development Corporation) is the investor and developer of the industrial park.

Investment situation:

Dai Dong Hoan Son Industrial Park is located in the key economic triangle of the North: Hanoi – Hai Phong – Quang Ninh. Therefore, the project is particularly of interest to the Government and State, and is prioritized by investors. The industrial park has been constructed as a cohesive and contemporary architectural complex, aligned with Bac Ninh Province’s objective of transforming into an industrial city.

As of now, Dai Dong Hoan Son Industrial Park has received licenses for 232 projects with a total registered investment capital of 658,58 million USD, including 407,5 million USD in foreign direct investment (FDI) and 5.775 billion VND in domestic investment.

Dai Dong Hoan Son Industrial Park has attracted many investment projects, including notable ones such as Hayakawa, Tabuchi, Cedo, Daisen, Maeda Kosen, UMW, YG Tech, Framas, Better Resin, and Seojin.

II. Geographical location of Dai Dong Hoan Son Industrial Park – Bac Ninh:

Location: Dai Dong, Hoan Son, Tri Phuong communes in Tien Du district, and Tan Hong commune in Tu Son city, Bac Ninh province, Vietnam.

Dai Dong Hoan Son Industrial Park sits in close proximity to the junction of the Hanoi-Lang Son Expressway and Provincial Road 295. Its proximity to the Hanoi-Lang Son Expressway, Cai Lan Deep Water Port, Hai Phong Port, and Hanoi city center creates a competitive advantage for Dai Dong Hoan Son Industrial Park.

It is situated near the intersection of the Hanoi-Lang Son Expressway and Provincial Road 295.

• Approximately 26 km from Hanoi.
• Approximately 45 km from Noi Bai International Airport.
• Approximately 135 km from Cai Lan Port (Quang Ninh).
• Approximately 130 km from the Vietnam-China border gate (Lang Son).
• Approximately 127 km from Hai Phong Port.
• Approximately 4 km from Tu Son Railway Station.
• Approximately 7 km from Lim Railway Station.
• Approximately 14 km from Bac Ninh Railway Station.
• Approximately 3 km from National Highway 1A.

This is a modern and comprehensive investment in an industrial park. Furthermore, it takes advantage of the abundant local resources and workforce. The main industries here are clean, non-toxic, and non-polluting industries.

III. Infrastructure of Dai Dong Hoan Son Industrial Park – Bac Ninh:

Internal transportation:

• The central road axis is 34 meters wide, divided into 4 lanes;
• The main road axis is 23 meters wide, divided into 2 lanes;
• The secondary road axis is 21,5 meters wide, divided into 2 lanes.

Electricity system:

There is a 110kV high-voltage substation and a separate 22kV power line to meet the electricity demand of businesses in the park.

Public lighting system:

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

Water system:

• There is a water treatment plant with a capacity of 5.000m3/day.
• The water supplied in the industrial park meets the TC505/BYT standards of the Ministry of Health.
• Additionally, businesses can save costs by utilizing groundwater as a water source.

Wastewater and rainwater drainage system:

• The wastewater and rainwater drainage systems are built separately.
• Factories locally treat wastewater according to the new standard regulations before discharging it into the common wastewater drainage system of the industrial park and directing it to the centralized wastewater treatment plant.
• Furthermore, with a minimum slope of 0,05%, rainwater is drained by gravity, following the slope into the water collection pipes arranged along the roads in the industrial park, leading to the main drainage system and flowing into the central discharge outlets and irrigation channels within the park.

Waste management:

Solid waste from factories is classified, collected, and transported to centralized landfill sites according to municipal regulations.

Wastewater treatment:

• The park treats wastewater to international standards with a capacity of 2.500m3/day.
• The wastewater treatment plant covers an area of 2,1 hectares, located adjacent to the irrigation channel area, ensuring technical requirements for sanitation distance and wind direction.
• Businesses discharge the wastewater through reinforced concrete centrifugal pipes (Ø400) to the wastewater treatment plant in the industrial park, which then releases it into the city’s wastewater drainage system.

Communication system:

There is a modern telecommunications and communication system that meets international standards, providing efficient and reliable communication both domestically and internationally.

Fire protection system:

Firefighting stations are installed along the roads in the industrial park at distances of 100-150 meters per station.

Greenery and public facilities:

Greenery and public facilities cover 15-30% of the industrial park’s land area.

IV. Main industries in the industrial park:

Dai Dong Hoan Son Industrial Park primarily attracts the following industries:

• High-tech industries
• Electronics and refrigeration components
• Mechanical engineering, manufacturing, and assembly
• Supporting industries
• Other light industries with low pollution and toxicity.

V. Investment Costs in the Industrial Park:

• Land lease cost: $100 USD/m2
• Infrastructure management and maintenance fee: $0,35 USD/m²/year (excluding VAT)
• Annual land rent: According to the decision of the People’s Committee of Bac Ninh Province
• Factory rental: $3,6 USD/m2

Rental price: $3,6 – $3,8 USD/m2/month (excluding VAT)

Minimum lease term: 3 years

Minimum rental area: 2.300 m2

Factory for sale: $240 – $250 USD/m2

• Clean water supply price: According to the regulations of the service provider (approximately $0,52 USD/m3)
• Electricity supply price: According to the electricity pricing table of EVN (ranging from $0,043 USD – $0,12 USD/kWh)
• Wastewater treatment fee: $0,48 USD/m3 (including VAT) Inlet treatment standard: Standard B according to Vietnamese standards – QCVN 40:2011/BTNMT
• Outlet treatment standard: Standard A according to Vietnamese standards

VI. Labor Source and Costs in Dai Dong Hoan Son Industrial Park – Bac Ninh:

Labor source:

Population of Bac Ninh Province: 1.100.000 people, including:

• Rural area: 76,5%
• Urban area: 23,5%

Working-age population: 60%

Population of Bac Giang Province: 1.600.000 people

Working-age population: 57%

Wage levels (reference data, may vary depending on each enterprise):

• 1.040.000 VND/person/month (~ $57 USD)
• Actual average wage: $80 – 90 USD/person/month
• Engineers/office staff: $200 – 250 USD/person/month
• Management staff: $300 – 350 USD/person/month

Labor costs:

• Dai Dong Hoan Son Industrial Park is located in Tien Du District and Tu Son District, Bac Ninh Province, belonging to Zone II.
• In Zone II, the prevailing minimum wage stands at 3.920.000 VND per month.

VII. Investment Incentives in the Industrial Park:

Corporate Income Tax Incentives:

Preferential tax rate of 10% for 15 years applies to:

Enterprises that have recently been established as a result of investment projects in the following sectors:

• High technology as regulated by the law; Scientific research and technological development
• Investment in water plants, water supply and drainage systems
• Software production

Exempt from tax for 4 years and 50% reduction of payable taxes for the following 9 years.

Preferential tax rate of 10% throughout the operation period applies to:

• Newly established enterprises from investment projects operating in socialized sectors (determined by the Prime Minister) such as education and training, vocational training, healthcare, culture, sports, and environment.
• Exempt from tax for 4 years and 50% reduction of payable taxes for the following 5 years.

The application period for preferential tax rates and tax exemption/reduction is as follows:

• The application period for preferential tax rates is calculated continuously from the first year of revenue from eligible tax incentives activities.
• From the first year of taxable income from the investment project, the application period for tax exemption/reduction is calculated continuously.

Tax reduction in other cases:

Enterprises engaged in manufacturing, construction, and transportation that employ a significant number of female workers can receive corporate income tax reduction by the additional amount spent on female workers, including:

• Expenses for retraining, health examination within the year, and postnatal training for female workers.

The allocation of up to 10% of the enterprise’s revenue to the science and technology development fund, according to Article 17 of the Corporate Income Tax Law.

Import Tax Exemption:

– Exemption from import tax applies to equipment, machinery (including accompanying spare parts), specialized transportation vehicles used in the technological process, and domestically unproduced construction materials.

– Special encouraged investment projects, component manufacturing projects, mechanical, electrical, and electronic spare parts are exempt from import tax on raw materials for the first 5 years of production and business.

– Imported materials, spare parts, and supplies for manufacturing goods for export.

VAT Exemption:

• Imported equipment, machinery, and specialized vehicles used in the technological process that are not domestically produced are eligible for VAT exemption.
• VAT exemption applies to imported raw materials for production, processing, and export goods under production contracts, processing and export contracts signed with foreign partners; goods and services traded between foreign countries and non-tax zones, and between non-tax zones.

Repatriation of Profit Tax:

• Tax rate: 0%

Land Lease Fee Exemption and Reduction Incentives:

If the land lease fee is directly paid to the State, service-oriented projects in the industrial park are eligible for a 7-year exemption from land lease fees.

Exemption from land lease fees for 11 years for:

• Infrastructure development projects in the industrial park if the industrial park investor directly pays the land lease fee to the State.
• Production and business projects in the industrial park (when directly paying the land lease fee to the State).

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