An Ha Industrial Zone - Ho Chi Minh City

An Ha Industrial Zone, approved in 2011 and part of the Southern key economic region, spans 159,06 hectares, offering clean zones for non-polluting industries and potential growth. With an occupancy rate of 61%, it boasts experienced management, urbanization benefits, and support for investing enterprises. Key industries, urbanization, and infrastructure upgrades contribute to its increasing asset value.

I. Overview of An Ha Industrial Zone – Ho Chi Minh City:

Information about the Industrial Zone:

An Ha Industrial Zone was approved by the Prime Minister’s Decision No. 1204/TTg-KTN on July 21, 2011, to convert from an industrial cluster to an industrial zone, and it was added to the List of prioritized new industrial zones to be established by 2015 and oriented to 2020 under the Prime Minister’s Decision No. 1107/QD-TTg on August 21, 2006.
The Detailed Construction Plan at a 1/2000 scale for An Ha Industrial Zone in Pham Van Hai Commune, Binh Chanh District, was approved by the People’s Committee Decision No. 6140/QD-UBND on December 19, 2011, with Nhut Thanh Investment and Construction Trading Joint Stock Company being the infrastructure investor for the project.

Status of the Industrial Zone:

The Industrial Zone is characterized as a clean industrial zone that does not cause environmental pollution:

• One part is designated for existing enterprises with non-polluting industries, including metal casting, metal product manufacturing, precision engineering, high-quality construction materials, pharmaceutical packaging, chemicals, and industrial production services.
• The remaining part is planned to attract key industries, including mechanical engineering, electronics, information technology, pharmaceuticals, food processing, and other non-polluting industries.

An Ha Industrial Zone has significant potential for future development, given the experienced management and support provided to investing enterprises regarding legal and investment advice. The asset value continuously increases due to urbanization and infrastructure upgrades.

Scale of the Industrial Zone:

Total area of the Industrial Zone: 159,06 hectares, including:

Industrial land area: 123,51 hectares

Total cultivated land area for industry: 81,31 hectares

Residential land area: 27,04 hectares

Available land area: 75,34 hectares

Greenery ratio: 12%

Occupancy rate of the Industrial Zone: 61%

An Ha Industrial Zone is one of the industrial zones located in the Southern key economic region. It holds significant potential for development.

II. Geographic Location of An Ha Industrial Zone – Ho Chi Minh City:

An Ha Industrial Zone is located in the northwest of Pham Van Hai Commune, Binh Chanh District, Ho Chi Minh City, Vietnam.

Boundaries and Scope:

• To the East, it borders the residential area of An Ha.
• To the West, it shares boundaries with Long An Province.
• To the South, it borders Irrigation Canal No. 2.
• To the North, it borders Irrigation Canal No. 4.

Distances to neighboring locations:

• 25 km from Saigon Railway Station.
• The distance to Ho Chi Minh City center is 17 kilometers.
• 27 km from Tan Son Nhat International Airport.
• 26 km from Saigon Port.
• 40,6 km from Cat Lai Port.
• 15 km from National Highway 1A.

III. Infrastructure at An Ha Industrial Zone – Ho Chi Minh City:

Internal Transportation:

• The internal roads are paved with hot asphalt concrete following the VNH18-H30 standard.
• The main East-West axis has a width of 70 meters, and the internal lanes have 4 – 6 lanes for vehicles.

Electricity System:

• The industrial zone utilizes the national power grid, providing electricity to the construction sites of businesses with a voltage of 22 kV.
• The frequency is 50 Hz, and the total capacity is 80 MVA.

Public Lighting System:

A separate electrical lighting network is designed for the roads, supplied with power for residential use and arranged along the transportation axes.

Water System:

• Water is sourced from Kenh Dong Water Plant with a capacity of 300.000 m3/day-night, distributed by Cho Lon Water Supply Joint Stock Company.
• Groundwater supply is obtained from Binh Loi Commune, with a capacity of 2.000 m3/day-night, managed by Nhut Thanh Company.

Drainage System for Wastewater and Rainwater:

• Investors in the industrial zone have implemented a complete drainage system for rainwater in the cleared areas.
• The total length of implemented rainwater drainage lines is 25.841 meters, and the total length of wastewater drainage lines is 5.171 meters.

Waste Management:

The investor will contract professional waste disposal units with licenses as per regulations.

Wastewater Treatment:

• Wastewater from factories must undergo minimum local treatment reaching Grade B according to Vietnam Standard QCVN: 24/2009/BTNMT before being discharged into the centralized wastewater treatment system of the industrial zone.
• The wastewater treatment capacity of An Ha Industrial Zone is 5.000 m3/day-night.

Communication and Information System:

• The communication system meets international standards, ready to fulfill communication and high-speed data requirements.
• An Ha Industrial Zone, along with VNPT and postal-telecommunication service companies, ensures service provision according to investor demands.

IV. Primary Industries at An Ha Industrial Zone – Ho Chi Minh City:

An Ha Industrial Zone primarily prioritizes the development of the following industries:

• Mechanical engineering, precision engineering.
• Electrical, electronics, information technology.
• Pharmaceuticals, chemicals.
• Manufacturing metal products.
• Metalworking, casting.
• Premium construction materials.
• Production of various types of packaging.
• Processing of agricultural and food products (refined).
• Other industrial services that do not cause environmental pollution.

V. Investment costs in An Ha Industrial Zone – Ho Chi Minh City:

• Land leasing price: 150 USD/m2. (Until Jan 29, 2058)
• Workshop leasing price: 4 USD/m2.
• Infrastructure maintenance fee: 0,5 USD/m2/year.
• Clean water fee: 0,62 USD/m3.
• Wastewater treatment fee: 0,35 USD/m3.
• Electricity cost (Based on the pricing regulations of Ho Chi Minh City Power Company):
• Normal hours: 0,07 USD/KWh.
• Off-peak hours: 0,045 USD/KWh.
• Peak hours: 0,13 USD/KWh.

Note: Prices and fees do not include VAT. The price list may change at different times.

VI. Human resources and labor costs in An Ha Industrial Zone – Ho Chi Minh City:

Abundant and high-quality labor force:

Utilizing a skilled and technically educated workforce with high levels of expertise to produce high-value-added products. Universities, colleges, and vocational schools in Ho Chi Minh City and neighboring areas train this labor force.

According to statistics, the labor force aged from 20 to 45 years old accounts for 65,81% of the total workforce, with the age group 20-24 being the highest at 16,7%, the age group 25-29 at 15,18%, and the age group 30-34 at 17,58%.

Female labor force constitutes 52,41% of the total workforce and has a higher representation in different age groups compared to male labor force.
The education level of the labor force and the population: high school graduates or above account for 47,6%, and junior high school graduates account for 27,34%.

58% of the labor force has received vocational training. The technical expertise structure includes: University degree: 9,35%; College degree: 1,67%; Intermediate level: 4,37%; Primary level: 42,61%; Unskilled: 42%.

Labor costs:

• An Ha Industrial Zone is located in Binh Chanh district – Ho Chi Minh City, in region I.
• The current minimum wage in region I is 4.680.000 VND/month.

VII. Investment incentive policies in An Ha Industrial Zone – Ho Chi Minh City:

Projects invested in An Ha Industrial Zone will receive special tax incentives. Specifically, businesses will be exempt from taxes for 2 years (from the year they generate taxable income) and enjoy a 50% reduction in the following 4 years.

However, depending on the industry and the incentive policies regulated by law, investors may enjoy the following preferential corporate income tax rates:

• Various incentive rates: from 10% to 20% (applied for 15 to 30 years or the entire project duration).
• Maximum tax exemption duration: 4 years.
• Maximum tax reduction duration (50%): 9 years.