Le Minh Xuan II Industrial Park - HCMC

Le Minh Xuan II Industrial Park, established in 2012 by Le Minh Xuan II Industrial Park Investment Joint Stock Company, a member of Saigon Investment Group, has a total investment of approximately 1,020 billion Vietnamese dong. This 320-hectare industrial park comprises various zones, including industrial, warehouse, operation, and transportation areas, with greenery accounting for a significant portion. It is expected to annually contribute 354 billion Vietnamese dong in tax revenue and land rental to Ho Chi Minh City while offering employment to 10.000 workers and fostering local economic development.

I. Overview of Le Minh Xuan II Industrial Park – HCMC:

Le Minh Xuan II Industrial Park was added to the list of industrial Parks in Ho Chi Minh City by Decision No. 1736/QD-TTg dated December 2, 2008, regarding the adjustment and supplementation of the development plan for industrial Parks in Ho Chi Minh City until 2015 and the orientation to 2020, issued by the Prime Minister.

Le Minh Xuan II Industrial Park was approved for establishment by the People’s Committee of Ho Chi Minh City in November 2016. It is located in Le Minh Xuan commune, Binh Chanh district, covering an area of around 320 hectares and is expected to be completed after a 6-year construction period, operating for 50 years.

Le Minh Xuan II Industrial Park is invested by Le Minh Xuan II Industrial Park Investment Joint Stock Company (a member of Saigon Investment Group), established in 2012 with a charter capital of 458 billion Vietnamese dong. The total investment in the industrial Park is about 1.020 billion Vietnamese dong.

Within the total area of 320 hectares of the industrial Park:

• Industrial land accounts for 207,76 hectares;
• Warehouse and yard land covers 9,2 hectares;
• Operation and service center land covers 11,62 hectares;
• Technical infrastructure land covers 3,42 hectares;
• Transportation land covers 38,54 hectares;
• Greenery covers 43,83 hectares.

The Le Minh Xuan II Industrial Park project will contribute 354 billion Vietnamese dong in tax revenue and land rental annually to Ho Chi Minh City, providing employment for 10,000 workers and promoting local economic development.

II. Geographical location of Le Minh Xuan II Industrial Park – HCMC:

Le Minh Xuan II Industrial Park is located in Le Minh Xuan commune, Binh Chanh district, Ho Chi Minh City, Vietnam.

Boundaries:

• East: adjacent to Canal B Industrial Park;
• West: adjacent to Ring Road 3;
• South: adjacent to Tran Dai Nghia Road;
• North: adjacent to Le Minh Xuan 3 Industrial Park.

Situated in a key economic area of Ho Chi Minh City, it connects with provinces in the East and the Mekong Delta region.

The location of the industrial Park is highly convenient for transportation:

• Distance to the center of Ho Chi Minh City: 19km.
• Distance to Tan Son Nhat International Airport: 22km.
• Distance to Phu My Hung urban area: 12km.
• Connected to provinces in the East and the West via National Highway 1A.
• Distance to Saigon Port: 20km.
• Distance to Cat Lai Port: 40km.
• Distance to Tan Tao Inland Container Depot (ICD): 2km.

III. Infrastructure of Le Minh Xuan II Industrial Park – HCMC:

Internal transportation:

• A complete internal road system facilitates easy access and transportation for vehicles to key economic areas.
• The central arterial road of the industrial Park is 30m wide, and internal roads are 16-18m wide.

Electricity system:

• The power supply is obtained from the existing 110/15-22KV Le Minh Xuan substation.
• The new Le Minh Xuan II Industrial Park will construct a 110/15(22) KV transformer substation, with a capacity of 3 x 63MVA, located within the industrial Park to provide 22KV medium-voltage power for the industrial Park following the general plan.

Public lighting system:

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

Water system:

• The industrial Park uses the water supply from the city, relying on the planned water supply pipeline with a diameter of Ø500 on Lang Le – Bau Co Road, with a total water supply flow for the whole area of Qmax = 11.000 m3/day.

Wastewater and rainwater drainage system:

• The industrial Park has a complete rainwater drainage system.

Wastewater treatment:

• The industrial Park has a centralized wastewater treatment plant with the task of treating industrial wastewater and domestic wastewater from the industrial Park to meet the National Technical Regulation on Industrial Wastewater QCVN 40:2011 – Column B with the coefficients Kq=0.9 and Kf-1.1.

Communication system:

• Investors are provided with a modern information technology system built to meet their communication needs both domestically and internationally, with high-speed ADSL lines…

In addition, there are many other amenities such as dormitories for workers, residential areas for experts, multi-specialty clinics, convenience stores, schools, entertainment services, banks, and security facilities.

IV. Investment-attracting industries:

Le Minh Xuan II Industrial Park primarily focuses on developing the following industries, with top priority given to environmentally friendly sectors and limiting the use of pollution-causing chemicals:

• Mechanical engineering and machinery supply.
• Information technology.
• Chemicals.
• Premium technical plastics and rubber.
• Electronics.

V. Investment Costs at Le Minh Xuan II Industrial Park – HCMC:

• Land rental price: $150 USD/m2/year.
• Electricity price: $0,12 USD/KWh. Electricity fees are charged based on the regulations of Ho Chi Minh City Electricity Company.
• Normal hours: $0,073 USD/Kwh
• Off-peak hours: $0,048 USD/Kwh
• Peak hours: $0,12 USD/Kwh
• Clean water price: $0,4 USD/m3.
• Solid waste treatment fee: According to the regulations of the Provincial People’s Committee and the Industrial Zone Management Board.
• Wastewater treatment fee: $0,3 USD/m3.
• Infrastructure maintenance fee: $0,4 USD/m2/year.

Note: The above pricing table may change at different time periods.

VI. Investment Incentives:

• Tax exemption for the first 2 years and a 50% reduction of payable taxes for the following 4 years.
• The tax authority calculates the tax exemption and reduction period continuously from the first year with taxable income from the new investment project. In case there is no taxable income in the first 3 years, the tax exemption and reduction period will start from the fourth year after having business activities from the new investment project.

VII. Labor Source and Costs at Le Minh Xuan II Industrial Park – HCMC:

Labor Source:

• According to statistics from the Ho Chi Minh City Department of Labor – Invalids and Social Affairs in 2013, the total population of Ho Chi Minh City was 7.939.752 people. Among them, 47,63% were male and 52,07% were female.
• In 2012, the total labor force was approximately 5,5 million people, accounting for 70,6% of the total population. Among them, more than 4 million people were employed, accounting for 72,89% of the total labor force.
• Regarding education levels in the labor force of Ho Chi Minh City, 47,6% had completed high school or higher, and 27,34% had completed junior high school. Annually, the city has around 70.000 university and college graduates, including technical workers and short-term training attendees, totaling approximately 180.000 individuals. This presents a significant advantage for the city in attracting foreign investment.

Costs:

• Le Minh Xuan II Industrial Park is located in Binh Chanh district, Ho Chi Minh City, falling under Zone I.
• Therefore, the current minimum wage in Zone I is 4.680.000 VND/month.