Ba Thien II Industrial Park - Vinh Phuc

I. Overview of Ba Thien II Industrial Park – Vinh Phuc:

The Prime Minister approved Ba Thien II Industrial Park as an addition to Vietnam’s industrial zone planning, as stated in Letter No. 1821/TTg-CN dated November 26, 2007. The planned area is estimated to be 350 hectares. The People’s Committee of Vinh Phuc Province approved the detailed planning of the Industrial Zone at a scale of 1/2000 in Decision No. 4045/QD-UBND on November 6, 2008.

Based on Decision No. 1625/QD-UBND dated July 2, 2019, by the People’s Committee of Vinh Phuc Province, the Industrial Park was officially established and put into operation. It has a planned area of 308.83 hectares and is located within the administrative boundaries of Ba Hien and Thien Ke communes, as well as Trung My commune in Binh Xuyen district, Vinh Phuc province.

The Industrial Park not only meets the requirements of domestic investors but also surpasses the stringent demands of foreign investors, with 100% of the investors coming from the United States, South Korea, Japan, Hong Kong, and other countries.

Vina – CPK Joint Stock Company is developing and operating Ba Thien II, with a focus on transforming it into a high-tech manufacturing industrial zone that specializes in clean technology production and business in line with modern trends and environmental friendliness. The project benefits from its strategic location adjacent to the capital city of Hanoi, as well as economic advantages and local investment incentives. The Industrial Zone possesses leading competitiveness in meeting the development needs of various industries in the future.

Currently, the occupancy rate of Ba Thien II Industrial Zone exceeds 80%, with the presence of many prominent brands and large corporations such as TAL Vietnam, IM Vina, New Flex Technology Vina, HAEINCNS Vina…

II. Geographic Location of Ba Thien II Industrial Zone – Vinh Phuc:

Ba Thien II Industrial Zone is located 50 kilometers northwest of Hanoi. It is situated in the communes of Thien Ke, Ba Hien, and Trung My. The industrial zone is in Binh Xuyen district, Vinh Phuc province. It offers convenient connectivity to provinces in the Northern economic region and neighboring areas. This is facilitated through the transportation network.

• 6 kilometers from the Xuyen A Highway (Noi Bai – Lao Cai).
• 10 kilometers from Vinh Yen City via National Highway 2 (leading to Viet Tri – Ha Giang – China).
• National Highway 18 (connecting to Cai Lan Deepwater Port in Quang Ninh province).
• Adjacent to Hanoi’s Ring Road No. 4 and the Hanoi – Hai Phong – Quang Ninh Economic Corridor.
• The Hanoi – Vinh Phuc – Lao Cai – China railway line (located 8 kilometers from Huong Canh Station) also provides convenient transportation access.
• 49 kilometers from the center of Hanoi.
• Noi Bai International Airport is located 22 kilometers away.
• 10 kilometers from the center of Vinh Yen City.
• 13 kilometers from Vinh Yen Station.
• 166 kilometers from Hai Phong Port and 213 kilometers from Cai Lan Port.

III. Infrastructure of Ba Thien II Industrial Zone – Vinh Phuc:

Internal Transportation:

• The designers thoughtfully designed the internal transportation system with 2 to 6 lanes, ranging from 19.5 to 39 meters in width, to meet the standards of concrete roads.
• This design minimizes disruptions to production plans caused by road repairs and upgrades.
• Ample green spaces, grassy sidewalks, and median strips complement the internal road system of the industrial zone, creating a pleasant and green landscape throughout the entire zone.

Electricity System:

• The electricity system in Ba Thien II Industrial Zone is supplied by the Thien Ke substation, specifically built to serve industrial production purposes.
• The power transmission lines operate at 110/22KV at the substations and run along the internal road routes of the industrial zone.
• The power capacity is 63 MVA for phase 1, which will be increased to 126 MVA upon completion.
• Electrical connection points are strategically located near customers’ land plots and regularly maintained and managed in coordination with specialized units to ensure a smooth power supply for the manufacturing processes.

Public Lighting System:

The street lighting network is separately designed with a power supply system allocated along the traffic routes.

Water System:

• The designers have designed the clean water supply system in Ba Thien II Industrial Zone with a total capacity of 10,000 m3/day.
• Clean water is provided by the Vinh Phuc Clean Water Supply Company through two water plants: Phuc Yen Water Plant (total capacity of 28,000 m3/day) and Ba Hien Water Plant (total capacity of 10,000 m3/day).
• Additionally, the industrial zone has two underground reservoirs built to secure water reserves or for emergency use in case of unforeseen circumstances.

Wastewater and Stormwater Drainage System:

• The stormwater drainage system flows naturally along the road routes, leading into channels surrounding the industrial zone and ultimately into the canals and rivers in the area.
• The Industrial Zone arranges the wastewater drainage system along the road routes and centralizes it to the treatment plant.

Waste Management:

Investors will enter into service contracts with professional waste management units.

Wastewater Treatment:

• KOASTAL Group, a leading company in building wastewater treatment plants for industrial zones, has invested in and constructed the wastewater treatment plant of Ba Thien II Industrial Park.
• The wastewater treatment system meets the standards of Class A wastewater treatment (QCVN 40:2011/BTNMT), with a designed total capacity of 10,000 m3/day.
• The industrial zone has fully trained and transferred the entire wastewater treatment system for operation, ensuring a reliable 24/7 operation and instilling confidence in the manufacturing units within the zone.

Communication System:

• Leading telecommunication infrastructure providers in Vietnam, such as VNPT, Viettel, and FPT Telecom, deploy the entire communication system.
• It covers the entire Ba Thien II Industrial Zone and connects globally through high-quality fiber optic cables within the zone.

IV. The main sectors attracting investment in Ba Thien II Industrial Park include:

• High-tech industry, telecommunications industry, electronic components.
• Assembly and production of automotive and motorcycle spare parts.
• Manufacturing industrial equipment.
• Logistics and other supporting industries.
• General light industry.

V. Land rental costs in Ba Thien II Industrial Park – Vinh Phuc:

• Investment cost: Land rental price with infrastructure is approximately100 – 155 USD/sqm/year.
• Workshop rental cost: 5 USD/sqm/year.
• Raw land rental fee: 0.26 USD/sqm/year, paid annually according to the regulations of Vinh Phuc Provincial People’s Committee.
• Industrial park management fee: 0.35 USD/sqm/year.
• Electricity cost: Peak hours: 0.1 USD/kWh.
• Water cost: 0.59 USD/m3, calculated based on actual water usage.
• Wastewater treatment cost: 0.3 USD/m3/month (from level B to level A).

VI. Labor force and labor cost in the Industrial Park:

Labor force:

With 22 training facilities offering secondary, college, university, and vocational education in the region, Vinh Phuc province provides 20,000 to 30,000 workers to the labor market annually. In addition, 5,000 workers are supplemented from neighboring provinces each year.

• Statistical data for 2018:
• Labor force: 636,134.
• Graduated from high school: 12,073.
• Graduated from high school, college, university, and vocational training centers: 13,356.

Income:

• Workers: 200 – 230 USD/person/month.
• Engineers/Technicians/Office staff: 500 – 700 USD/person/month.
• Department heads/Chief accountants/Managerial positions: 1,000 – 2,000 USD/person/month.

 Labor cost:

• Ba Thien II Industrial Park is located in Binh Xuyen district, Vinh Phuc province, in region II.
• The minimum wage in region II is currently set at 3,920,000 VND per month.

VII. Investment incentives in Ba Thien II Industrial Park – Vinh Phuc:

Land rental benefits:

• Investors are exempt from land rental fees during the construction period and enjoy a rent-free period of 11 years starting from the completion of the project and its commencement of operation.
• Land rental rate = 0.75% (the lowest land rental rate) x Land price.
• Land rental fees are fixed for five years.

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.
• Investors receive import tax incentives for construction-related imported goods under export and import tax laws.

Provincial incentives:

The province supports infrastructure investors implementing investment, construction, business, and operation activities in the industrial park.

• 100% funding support for environmental impact assessment reports for infrastructure investment projects in the industrial park; master planning at a scale of 1/500 for the industrial park; bomb and mine clearance within the industrial park.
• Support is provided for technical items within the perimeter fence, including waste collection systems and centralized wastewater treatment facilities, ensuring they meet specific standards according to the area’s scale.

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