Au Lau Industrial Park - Lao Cai

I. Overview of Au Lau Industrial Park – Lao Cai Province

The Provincial People’s Committee of Lao Cai Province approved the planning of Au Lau Industrial Park in Lao Cai Province through Decision No. 2078/QD-UBND on December 25, 2008.

The investment project for the construction of technical infrastructure in Au Lau Industrial Park was approved by the Provincial People’s Committee of Lao Cai Province in Decision No. 1685 on October 31, 2011, with the first adjustment made in Decision No. 1371 on July 11, 2016. The total investment is over 433 billion VND.

The total planned area of the industrial park is 118.35 hectares. It is a multi-sector industrial park with industries that focus on clean and less environmentally harmful production. The area for factories and warehouses covers 81.06 hectares, ensuring compliance with regulations and specific requirements of investors.
As of October 2021, Au Lau Industrial Park has 9 registered investment projects with a total registered capital of 1,622 billion VND and a registered land area of 60.6 hectares. The occupancy rate of the industrial park is currently nearly 75%.

II. Geographical location:

Au Lau Industrial Park is located in Chau Giang 2 Hamlet and part of Dang Con Hamlet, Au Lau Ward, Lao Cai Province, Vietnam

Boundaries:

• The northern boundary is adjacent to the Au Lau – Quy Mong road.
• The southern boundary is adjacent to residential areas in Dang Con village.
• The Hong River forms the eastern boundary.
• The western boundary is adjacent to the Noi Bai – Lao Cai expressway.

Distances:

• Approximately 170km north of the capital city, Hanoi.
• Approximately 170km south of Lao Cai.
• Located near National Highway 37 and the Noi Bai – Lao Cai expressway.

Au Lau Industrial Park has a convenient location for transportation and the transportation of goods.

III. Infrastructure of Au Lau Industrial Park – Lao Cai

Internal transportation:

• The internal road network in the industrial park is built to connect with external transportation, ensuring convenient access for investors to the industrial park.
• Main road system: 32.5mm, 4 lanes. Internal road system: 26.5mm, 2 lanes.

Electricity system:

• The power source is obtained from a 110/22KV transformer station.
• The electricity system is provided along the road corridor within the industrial park, connected to each factory.

Public lighting system:

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

Water system:

• There is a raw water supply system from Yen Binh Water Plant with a capacity of 4000m3/day and night, delivered to the industrial park through a D300 pipeline along the park’s road network.

Wastewater and rainwater drainage system:

• The rainwater drainage and wastewater drainage systems are planned and built separately, running along internal road routes, ensuring the collection of all rainwater and wastewater from the factories within the industrial park.
• Rainwater is directly discharged into receiving sources.
• Wastewater is collected and treated in the centralized wastewater treatment plant of the industrial park, meeting the required standards before being discharged into the environment.

Waste treatment:

• Factories within the industrial park will sign contracts with specialized waste sorting, collection, and transportation units to remove waste from the park, avoiding environmental pollution.

Wastewater treatment:

• The centralized wastewater treatment plant meets the discharge requirements according to Vietnamese standards.

Communication system:

• The communication system is provided by network providers such as VNPT, FPT, Viettel, ensuring smooth communication domestically and internationally.
• It includes various services such as telephone, mobile phone, fax, and internet.

IV. Industries attracting investment in Au Lau Industrial Park – Lao Cai Province

Au Lau Industrial Park is a multi-sector industrial park, including industries such as:

• Garment and textile technology, footwear and leather goods
• Handicrafts
• Electronic assembly technology
• Agricultural and forestry processing technology
• Mechanical engineering and consumer goods manufacturing

V. Investment costs:

• The fee for managing and maintaining the infrastructure is 0.3 USD per square meter per year.
• Electricity tariff: Ranging from 0.03 USD/kWh – 0.1 USD/kWh depending on the electricity usage period.
• Water tariff: 0.4 USD/m3.
• Wastewater treatment fee: 0.28 USD/m3 (calculated based on 80% of water consumption).

VI. Investment incentives at Au Lau Industrial Park – Lao Cai Province

Corporate income tax incentives:

• Exemption from income tax for 2 years and a 50% reduction in tax payable for the following 5 years from the first taxable income of the investment project in the industrial park.

Import and export tax incentives:

• Special tax exemption for imported goods used to create fixed assets for investment projects enjoying import tax incentives in the local area.

Land and land use tax exemptions and reductions:

• Waiver of land lease fees for infrastructure construction of the industrial park during the basic construction period (not exceeding 3 years).
• 11 additional years for investment projects in the special investment incentives sector.

VII. Labor source and costs:

Labor source:

• Lao Cai Province has a young and abundant workforce, with over 65% of the population in working age (equivalent to 535,000 people), of which nearly 80% reside in rural areas and over 57% belong to ethnic minority groups.
• Vocational training activities establish close links with businesses and the labor market, resulting in over 80% of vocational school graduates finding employment.

Costs:

• Au Lau Industrial Park is located in Chau Giang 2 Hamlet and part of Dang Con Hamlet, Au Lau Ward, Lao Cai Province, Vietnam, within Zone III.
• Consequently, the prevailing minimum wage in Zone III stands at 3,430,000 VND per month.