Bau Bang Industrial Park - Binh Duong

Bau Bang Industrial Park (IP) stands as one of the prominent industrial hubs within Binh Duong Province. Spanning a vast expanse of over 2,000 hectares, with comprehensive infrastructure investments, this park is currently regarded as a pivotal catalyst for extraordinary economic growth opportunities in the region.

I. Overview of Bau Bang Industrial Park

Bau Bang IP is a distinguished constituent of the Binh Duong Province Industrial Park, founded on May 10, 2007. The visionary investor behind the development of Bau Bang IP is the Becamex IDC Industrial Development Investment Joint Stock Company. With a proven track record in constructing numerous expansive industrial parks in Binh Duong, including VSIP and My Phuoc IP, Becamex IDC brings substantial experience and expertise to the project. As a result, since its inauguration, Bau Bang IP has rapidly emerged as a prime destination, characterized by a multitude of strengths and remarkable advantages, thus making it a magnet for both domestic and international investments.

Bau Bang IP has secured licensing and implementation for a multitude of significant projects from countries with robust economies, such as Japan and Korea. Furthermore, the park’s allure extends beyond its financial prospects, thanks to its modern architectural design, top-notch amenities, harmonious natural surroundings, and an overall aesthetic that is both beautiful and distinct.

Bau Bang Industrial Park’s Extensive Scale

Bau Bang Binh Duong Industrial Park encompasses an area exceeding 2,000 hectares, characterized by the following allocations:

• Land designated for industrial development: 1,000 hectares
• Service land and urban space: 1,000 hectares

The comprehensive land area allocation includes:

• Land for industrial factory construction: 699.2369 hectares
• Land for construction and service management: 67.1257 hectares
• Technical infrastructure land: 101.9549 hectares
• Traffic land: 10,2952 hectares
• Green areas and canals: 119.13 hectares

The remarkable appeal of Bau Bang IP has led to its full occupancy, with businesses from various countries such as the United States, Japan, Taiwan, Italy, and China.

II. The Prime Location of Bau Bang Industrial Park, Binh Duong

Bau Bang IP is strategically positioned across two communes, Lai Hung and Lai Uyen, in the Bau Bang district of Binh Duong Province. This location is considered ideal, as it lies within the pivotal southern key economic quadrilateral, encompassing Binh Duong, Ho Chi Minh City, Dong Nai, and Ba Ria Vung Tau. Furthermore, the park enjoys a convenient traffic location, situated directly along National Highway 13, ensuring rapid access to Ho Chi Minh City and serving as a crucial trade gateway connecting the Southeast region with the Central Highlands.

Key Connectivity Points of Bau Bang IP:

• 35km from Binh Duong New City
• 60km from the center of Ho Chi Minh City
• 60km from Cat Lai Port
• Proximity to Cai Mep Deep Water Port
• 62km from Tan Son Nhat International Airport

III. Infrastructure at Bau Bang Industrial Park

Bau Bang Industrial Park’s inclusion in the list of significant and essential industrial parks in Binh Duong Province alongside notable industrial parks like VSIP I, VSIP II, and VSIP III is no accident. In addition to its prime location and convenient transportation, Bau Bang IP boasts synchronized infrastructure, including:

Internal Transportation:

• The park features a 25-meter-wide, 4-lane internal road system with a robust load-bearing capacity of 40-60 tons per truck. The extension of the My Phuoc – Tan Van route also reduces travel time from Bau Bang IP to Ho Chi Minh City. Furthermore, investments have been made in urban Railways and rapid bus lines to stimulate further development.

Power Supply System:

• Bau Bang IP is equipped with a 110/22kV national grid power system to ensure a dependable supply of electricity for businesses.

Water Supply System:

• Investors and businesses at Bau Bang IP can have confidence in their production, as the reliable clean water supply system produces up to 10,000 m3/day, serving the boundaries of each land plot. Notably, the water undergoes treatment according to WHO standards to ensure hygiene and safety.

Wastewater Treatment System:

• The park is equipped with a wastewater treatment plant with a capacity of up to 4,000 m3/day and night, capable of treating waste from type B to A, in compliance with state regulations. This guarantees that 100% of wastewater meets standards before discharge into the environment.

Postal and Telecommunications System:

• Bau Bang IP maintains a standard postal and telecommunications system with 100% fiber optic cables and telephone lines. The fiber optic cable system is connectable to leased channels, providing complete flexibility based on customer needs.

Fire Protection System:

• Fire prevention is a top priority at Bau Bang IP. Professional fire prevention teams operate 24/7 to respond to emergencies promptly. Additionally, a water supply system is arranged along the internal road to prevent unwanted fires.

IV. Industries Attracting Investment in Bau Bang Industrial Park

The industries actively encouraged to invest in Bau Bang Industrial Park include:

• Electronic industry, information technology, information and communication, and telecommunications
• Food processing industry, covering food, agricultural, and forestry products
• Machine manufacturing industry, encompassing automobiles, equipment, and spare parts
• Mechanics, precision mechanics with plating
• Medical and optical instrument manufacturing
• Manufacturing of sports equipment and children’s toys
• Fiber and textile industry
• Plastic, tire, and rubber industry
• Wood production industry, interior decoration, construction materials
• Packaging, processing, printing, and paper manufacturing
• Industrial waste recycling

V. Investment Incentives at Bau Bang Industrial Park

Bau Bang Industrial Park boasts an impressive occupancy rate, attracting numerous large corporations and businesses, primarily due to its exceptional investment incentives.

Land Rent

Bau Bang IP offers exemptions on land rent and water surface rent for the entire lease duration. This exemption applies to projects focused on constructing shared infrastructure within industrial parks and industrial clusters, following the approved planning guidelines.

Furthermore, projects listed in Decree No. 118/2015/ND-CP, issued by the Government on November 12, 2015, qualify for a three-year exemption from land rent and water surface rent. This incentive extends to new production and business establishments of economic organizations, either due to relocation according to planning or because of environmental considerations.

Investment projects falling within the category of fields with special investment incentives, as defined in Decree No. 118/2015/ND-CP dated November 12, 2015, are eligible for a limited-time exemption from land rent and water surface rent, covering an eleven-year duration.

Corporate Income Tax

Investors at Bau Bang Industrial Park enjoy attractive tax incentives, including:

• A preferential corporate income tax rate of 10% for a generous 15-year period.
• Tax exemption for the initial four years.
• A 50% reduction in the tax payable for the subsequent nine years. This reduction applies to income generated from new investment projects, particularly in areas such as:
  • Research and development of science and technology.
  • Software production.
  • Production of composite materials.
  • Light construction materials.
  • Rare materials.
  • Recycled energy.
  • Clean energy.
  • Energy derived from waste treatment and biotechnology.

Import Tax

Bau Bang Industrial Park offers import tax exemptions for eligible subjects, which encompass:

• Machinery, equipment, components, parts, and spare parts used for assembly or machinery and equipment utilization.
• Materials utilized in the production of machinery and production equipment.

VI. Investment Costs at Bau Bang Industrial Park

Prospective customers and investors considering Bau Bang Industrial Park are understandably interested in understanding the associated investment costs.

As follows:

VII. Labor Resources and Labor Costs

Bau Bang Industrial Park’s multitude of advantages have been instrumental in its continuous development, attracting a substantial labor force from various regions to reside and work here. Additionally, the ample local labor pool enables investors in Bau Bang Industrial Park to access a high-quality workforce, adept at fulfilling production and business requirements.

VIII. Economic Value of Bau Bang Industrial Park

Although Bau Bang Industrial Park may have emerged later and lacked certain advantages compared to preceding industrial parks in Binh Duong, over the years, it has undergone significant transformation. Featuring synchronized infrastructure and an array of attractive investment incentive policies, this industrial park boasts a high occupancy rate and exhibits considerable growth potential.

The economic contributions attributed to Bau Bang Industrial Park are truly remarkable, including:

• The attraction of 1,153 projects, encompassing 954 domestic projects with a combined capital investment of over 31,149 billion VND, along with 199 foreign projects valued at 3.5 billion USD.

According to available statistics, the industrial production value at Bau Bang enjoys substantial growth, averaging an impressive 18% per year. Furthermore, it is anticipated that between 2021 and 2030, Bau Bang Industrial Park will be home to a population of approximately 120,000 residents. The District People’s Committee and Binh Duong Province have proactively established policies to incentivize businesses to expedite investments within industrial parks and secure the future supply of human resources.

Conclusion

The statistical data underlines Bau Bang Industrial Park’s exceptional potential for prospective investors. By adopting methodical investment strategies, Bau Bang Industrial Park is poised to evolve into a high-tech industrial and urban hub within Binh Duong Province. Without a doubt, in addition to that, Bau Bang Industrial Park is destined to be a bustling investment destination, teeming with ideal opportunities for both domestic and foreign investors

The information shared herein provides insight into the Bau Bang Industrial Park project, as compiled and presented by TTTFIC. Don’t forget to explore the website for additional information on key industrial parks across the country.