An Duong Industrial Park is a bilateral cooperation area between Hai Phong City (Vietnam) and Guangdong City (China). With its advantageous geographical location, attractive policies, and comprehensive infrastructure, this project is highly conducive to the smooth flow and transportation of goods. Moreover, there is still a considerable amount of vacant land and space available for leasing warehouses within the industrial park. The presence of a plentiful, high-quality labor force ensures that it can fully meet the needs of investors in the An Duong Industrial Park.
I. Overview of An Duong Industrial Park – Hai Phong
Information about the industrial park
An Duong Industrial Park – Hai Phong was approved to be included in the city’s industrial park planning in the Official Letter No. 180/TTg-CN dated February 1, 2008, issued by the Prime Minister of the Government. Initially, the planned area of An Duong Industrial Park was 800 hectares, which was later adjusted to 196,1 hectares (reduced by 604 hectares) according to the Official Letter No. 2628/TTg-KTN dated December 22, 2014, issued by the Prime Minister of the Government.
In December 2008, the Management Board of Hai Phong Economic Zone issued the Investment Certificate for Phase 1 of An Duong Industrial Park to Tham Viet Investment Joint Stock Company (a collaboration between Hai Phong City and private investors from Shenzhen City). The approved land area for industrial use in the industrial park was 196,1 hectares, of which the area for industrial leasing was 126,6 hectares.
In 2014, after some disruptions, the An Duong Industrial Park project was suspended and subsequently taken over by the Shenzhen Municipal Government (through Holdings Shenzhen Company) instead of private investors. The industrial park project was officially re-launched after Holdings Shenzhen organized the groundbreaking ceremony for An Duong Industrial Park Phase 2 on December 9, 2016. On September 30, 2020, after 12 years since its investment approval, An Duong Industrial Park was officially established according to the Decision No. 3021/QD-UBND issued by the People’s Committee of Hai Phong City.
Nature of the industrial park
In terms of nature, An Duong Industrial Park is a concentrated industrial park, mainly attracting investment projects in the fields of electronics, microelectronics, electrical equipment, refrigeration equipment, consumer goods, and other clean and environmentally friendly industries.
Once operational, An Duong Industrial Park is expected to attract over 1 billion USD in investment and create more than 30.000 jobs. The industrial park highlights its green and sustainable development ecosystem. It includes facilities such as storage warehouses, office areas, conference centers, parks, and recreational areas.
An Duong Industrial Park has attracted numerous domestic and foreign investors, particularly from South Korea, Hong Kong, Singapore, and Japan.
Prominent projects include
– Honor Hong Kong Science and Technology Co., Ltd. Honor is one of the world’s largest providers of electrical correction and IPC conversion. The project has a total investment of around 2,5 million USD.
– Investment project of TP-Link Technologies (SG) PTE. LTD (Singapore). The project has a total investment of 1.590,19 billion VND (equivalent to 70 million USD).
– Project of Broad-Ocean Motor (Hong Kong) Investment Company Limited. The project has a total investment of 681,66 billion VND (equivalent to 30 million USD)…
Information about the Investor
The primary investor of the An Duong Hai Phong Industrial Park is Holdings Shenzhen Investment Company Limited, based in China.
Address: An Duong Industrial Park, Hong Phong Commune, An Duong District, Hai Phong City, Vietnam.
The investor has injected over 4.000 billion VND into the project for construction capital. This is to ensure the incorporation of state-of-the-art, environmentally friendly technologies, with the aim of attracting investors.
Master plan map of An Duong Industrial Park – Hai Phong – TTTFIC Group
II. Location of An Duong Industrial Park – Hai Phong
An Duong Industrial Park is located in Bac Son and Nam Son communes, An Duong district, Hai Phong City, Viet Nam.
In terms of regional connectivity, the industrial park is adjacent to National Highway 10 and is close to major industrial parks such as Trang Due, VSIP Hai Phong, Japan – Hai Phong Industrial Park, as well as:
25 km from Dinh Vu Port; 44 km from Lach Huyen Port, 44 km from Hai Phong International Container Terminal.
16 km from the city center of Hai Phong
100 km from the center of Hanoi
20 km from Cat Bi International Airport.
Approximately 9 km from the Hanoi – Hai Phong Expressway
An Duong Industrial Park benefits from its favorable geographic and transportation location, with convenient access to road, sea, river, rail, and air transportation for the circulation and transportation of goods.
III. Infrastructure of An Duong Industrial Park – Hai Phong
Internal transportation:
The internal road network within the industrial park is divided into main roads and branch roads. Specifically:
Width of main roads: 43m, with a length of 2,3km
Width of branch roads: 16-35m, with a length of 8,1km
Electricity system:
The power supply includes 22KV and 0,4KV to ensure stable electricity supply 24/7.
Electricity is provided stably for production, even during peak seasons, according to the enterprises’ demand.
Water system:
The water system includes F600 pipelines with a maximum capacity of 30.000m3/day and night.
Wastewater and rainwater drainage system:
Arranged along the roads and directed to the industrial park’s treatment station.
Waste treatment:
Solid waste from factories is classified, collected, and transported to the city’s centralized waste disposal area.
Wastewater treatment:
The industrial park has an underground wastewater treatment plant with a capacity of 10.000m3/day and night.
Communication and information system:
The industrial park is equipped with broadband ADSL services, international telecommunication (IDD), and fiber optic cables.
IV. Investment-attractive industries of An Duong Industrial Park – Hai Phong
An Duong Industrial Park primarily focuses on the sectors of light industry, green industry, branded products, and international competitiveness. The industrial park attracts the following industries:
Electronics manufacturing and assembly
Garment and textile
Consumer goods production
Machinery and equipment manufacturing
Office supplies
Handicrafts and fine arts…
A perspective on An Duong Industrial Park – Hai Phong – TTTFIC Group
V. Investment Costs at An Duong Industrial Park – Hai Phong
Infrastructure rental fee:
100 USD/m2 for the entire lease term, the unit price may vary depending on the location and size of the leased land.
Infrastructure management and maintenance fee:
0,45 USD/m2, subject to change at different times.
Annual land rental fee:
Applied according to the land price table of Hai Phong City at each specific time.
16.300 VND/m3 (equivalent to 0,7 USD/m3), the unit price may vary based on the city’s decision.
Wastewater treatment fee:
0,35 USD/m3 of wastewater, calculated based on 80% of the actual clean water usage.
Please note that the prices mentioned above do not include VAT and are subject to change without prior notice.
VI. Investment Incentives at An Duong Industrial Park – Hai Phong
100% exemption from corporate income tax for the first 2 years and a 50% reduction in tax for the following 4 years.
100% exemption from VAT for enterprises certified as export-processing (EP) companies.
Specifically, industries such as information technology, supporting industries, high technology, scientific research and technology, mechanical engineering, electronics, and material production will receive attractive investment incentives.
VII. Labor Source and Costs in Hai Phong City
Labor source:
As of 2019, Hai Phong had 1.2 million workers, of which 75% had received training. Hai Phong is particularly located in the center of the Northern Coastal Region, which has a total population of over 20 million people and provides an abundant labor force for Hai Phong.
With a system of 4 universities and over 60 colleges and vocational schools, Hai Phong possesses a high-quality labor force capable of meeting the requirements of advanced and modern technology.
With this abundant and high-quality labor force, An Duong Industrial Park can fully meet the employment needs of investing enterprises.
Costs:
An Duong Industrial Park is located in An Duong District, which falls under Zone I.
The current minimum wage in Zone I is 4.420.000 VND/month.
The land for lease that belong to Industrial Park has run out of stock. Only the land and warehouse has been re-invested by individual investor that still available
TTTFIC Group: Guide to Industrial Real Estate in Vietnam
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