Ba Thien I Industrial Park - Phu Tho

I. Overview of Ba Thien I Industrial Park – Phu Tho province

On April 6, 2021, the Prime Minister officially approved the investment policy for Ba Thien I Industrial Park – Phu Tho in Decision No. 547/QD-TTg. The project involves the construction and operation of technical infrastructure for Ba Thien I Industrial Zone, covering an area of 247,357 hectares, with a total investment capital of 2,500 billion Vietnamese Dong and an operational period of 49 years from December 20, 2018, according to Decision No. 3160/QD-UBND. On August 17, 2021, Ba Thien I Industrial Park was established according to Decision No. 2253/QD-UBND by the People’s Committee of Phu Tho province.

After the auction and establishment, Ba Thien I Industrial Zone has undergone two detailed construction plan adjustments at a scale of 1/500 in Decision No. 3073/QD-UBND dated December 3, 2019, and Decision No. 168/QD-UBND dated January 24, 2022, by the People’s Committee of Phu Tho province.

According to the latest plan, Ba Thien Industrial Zone has a total area of 325.75 hectares, including:

• Zone I with an area of 247.357 hectares (invested and managed by HDTC)
• Zone II with an area of 78.393 hectares managed by the Management Board of Phu Tho Industrial Zones.

The total industrial land for lease in both zones is 216.52 hectares (152.677 hectares in Zone I), accounting for 66.47%.

Ba Thien I Industrial Park is invested by Housing Development and Trading Corporation (HDTC). HDTC is a state-owned enterprise with a prominent position in the real estate market, particularly in investment and business in real estate, construction, and management of industrial zone infrastructure.

With a total area of 247.357 hectares, synchronized technical infrastructure, full amenities, and a favorable geographical location, Ba Thien Industrial Zone is considered one of the top choices for investors.

II. Geographical Location of Ba Thien I Industrial Park – Phu Tho province

The planned location of Ba Thien I Industrial Park falls within the administrative boundaries of Ba Hien Town, Thien Ke Commune, Binh Xuyen District, Phu Tho province. It serves as the entryway to the northwest of Hanoi and is one of the eight provinces within the North’s key economic region.
Distance from the industrial zone to various locations:

Urban areas:

• 50km northwest of Hanoi.
• 8km from the city center of Vinh Yen in the southwest direction.
• Located in Thien Ke Commune, Ba Hien Town, Binh Xuyen District, Phu Tho province.

Roads:

• 6km from the Xuyen A Noi Bai – Lao Cai expressway.
• 50km from Hanoi.
• 10km from Vinh Yen City.
• National Highway 2 (leading to Viet Tri – Ha Giang – China)
• National Highway 18 (leading to Cai Lan Deepwater Port in Quang Ninh Province)
• Adjacent to Ring Road 4 of Hanoi
• Located in the Hanoi – Hai Phong – Con Minh Economic Corridor.

Railway:

• Hanoi – Phu Tho – Lao Cai – China railway line (8km from Huong Canh station).

Airports:

• 20km from Noi Bai International Airport.

Seaports:

• 160km from Dinh Vu Port, Hai Phong, via National Highway 5B.
• 180km from Cai Lan Deepwater Port via National Highway 18.

With its prime location, along with synchronized infrastructure and legal framework, Ba Thien I – Phu Tho Industrial Zone is becoming an attractive destination for both domestic and foreign investors.

III. Infrastructure of Ba Thien I Industrial Park – Phu Tho province

Internal Transportation:

• Internal concrete roads are constructed with 2 to 6 lanes, 40 meters wide, divided into 4 lanes.
• Branch roads are 31 meters wide, while internal roads within the industrial zone have a width of 15 meters.

Electricity System:

• The total electricity demand is 112,845.80 kVA ~ 112.84 MVA.
• 110/22kV Substation: Ba Thien Substation is located near the northwest of the project, with a capacity of 2×63 MVA.
  22/0.4kV Grid Substation: The substation capacity ranges from 250 to 630KVA (in special cases, it can be larger or multiple substations with 2 transformers can be installed).
• 22kV Grid: The power distribution network consists of overhead power lines starting from the 110/22kV transformer substations – 2x63MVA Thien Ke and Ba Thien.

Public Lighting System:

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

Water System:

• A supply of 20,000 m3/day-night is provided for industrial and domestic use within the industrial zone.
• The clean water supply system is located at the foot of the factory fences.

Wastewater and Rainwater Drainage System:

• Rainwater drainage system flows naturally along the roads leading to the channels surrounding the industrial zone and discharges into the canals and rivers in the area.
• Wastewater drainage system is arranged along the roads and converges to the Industrial Zone’s Treatment Plant.

Waste Treatment:

• Investors will enter service contracts with professional waste treatment units.

Wastewater Treatment:

• The centralized wastewater treatment system in the industrial zone has a capacity of 2,500 m3/day-night.

Communication System:

• A seamless communication system is provided by network providers such as Viettel and VNPT.

Other Services:

• From Ba Thien Industrial Zone, it takes approximately 15 minutes by car to reach Vinh Yen city, the center of Phu Tho province, with a full range of amenities including supermarkets, restaurants, shopping centers, entertainment venues, and other facilities.
• Moreover, Phu Tho is known for its resorts and recreational areas with beautiful and charming natural landscapes.

IV. Investment-attracting Industries in Ba Thien I Industrial Park – Phu Tho province

Ba Thien I Industrial Zone primarily attracts industries including:

• Manufacturing of computers, information technology and telecommunications equipment, internet, and key information technology products.
• Production of electronic components and liquid crystal displays.
• The manufacturing of semiconductors and advanced electronic components.
• Software production.
• Light industry.

V. Costs in the Industrial Park:

• Infrastructure usage fee: $70/m2 for the entire lease term, including one-time land rental fee.
• Infrastructure management and maintenance fee: $0.4/m2/year.
• Annual land rental fee: One-time payment included in the infrastructure rental price.
• Electricity rate: Applied according to EVN’s electricity tariffs (ranging from $0.06 to $0.12/kWh).
• Water rate: 0.59 VND/m3, subject to the decision of Phu Tho province.
• Wastewater treatment fee: $0.4/m3, depending on the quality of wastewater.

VI. Investment Incentive Policies in Ba Thien I Industrial Park – Phu Tho province

Regarding land rental fees:

• Investors are exempt from land rental fees during the construction period and enjoy a land rental fee exemption for 11 years from the completion and commencement of project operations.
• The calculation of the land rental fee rate multiplies the land price by 0.75% (the lowest land rental fee rate).
• The land rental fee is stable for five years.

Regarding tax policies:

• Personal income tax: Vietnamese and foreign individuals working in the project are eligible for a 50% reduction in personal income tax for taxable incomes.
• Export and import tax laws stipulate that investors have the entitlement to import tax incentives for imported goods used in construction projects.

Incentives from Phu Tho province:

• Infrastructure investors implementing investment, construction, business, and operation activities in industrial zones within the province will receive the following support:
• Full financial support for environmental impact assessment reports of industrial infrastructure investment projects; 1/500 industrial zone planning; clearance, bomb and mine removal within the industrial zone.
• Support for technical items in the fence, including waste collection systems, centralized wastewater treatment systems, ensuring compliance with specific standards based on the area scale.

VII. Labor Source and Costs in Ba Thien I Industrial Park – Phu Tho province

Labor Source:

• The average population in Phu Tho province in 2021 is estimated at 1,191.8 thousand people. The estimated number of people aged 15 and above engaged in employment is 642 thousand.
• The labor training rate in 2021 is estimated to reach 77.6%.
• In the past five years alone, vocational training institutions in the province have admitted 142,226 students, including 5,764 college-level students, 26,878 intermediate-level students, and 109,584 primary-level students.
• This provides an abundant and high-quality labor source for businesses investing in Ba Thien I Industrial Zone.

Costs:

• Ba Thien I Industrial Zone is located in Binh Xuyen district, Phu Tho province, which falls under Zone II.
• Therefore, the current minimum wage for Zone II is 3,920,000 VND per month.