Bau Xeo Industrial Park stands as a prominent entity in Dong Nai province’s industrial landscape. This project is often referred to as a pivotal catalyst for the economic development of Trang Bom district, while also offering alluring profit opportunities for businesses. To stay updated, follow TTTFIC through the article below.
I. Overview of Bau Xeo Industrial Park
Thong Nhat Joint Stock Company is the driving force behind the development and investment in Bau Xeo Industrial Park. Launched in 2006, the industrial park has operated for a total of 50 years. Boasting a comprehensive set of amenities and infrastructure, coupled with reasonably competitive rental rates, Bau Xeo has quickly become the preferred choice for investors both large and small. This has resulted in the industrial park attracting a significant amount of Foreign Direct Investment (FDI) capital, totaling up to $600 million USD and 400 billion VND.
The scale of the Industrial Park
Bau Xeo Industrial Park was initiated with an extensive planned area of 499,79 hectares, out of which industrial land and rental service areas cover 353,03 hectares. A detailed breakdown of land usage within the industrial park is provided in the table below:
No
Soil type
Area (m2)
Percentage (%)
1
Land to build factories and enterprises
3.280.806
65,64
2
Central service area land
174.377
3,49
3
Warehouse and wharf land
83.649
1,67
4
Green land
648.094
12,78
5
Land transport
643.370
12,87
6
Land reserved for technical areas
177.697
3,55
Total
4.997.993
100
II. Geographical Location
Bau Xeo Industrial Park is situated in Song Trau Commune, Tay Hoa Commune, and Doi 61 Commune within Trang Bom District, Dong Nai Province. The project boasts a central and highly advantageous location, making it ideal for various industrial and business activities.
Bau Xeo Industrial Park comprises two areas positioned along National Highway 1A, a crucial transportation route connecting Ho Chi Minh City to Bien Hoa City. Specifically, Area 1 in the North covers 188,4168 hectares, while Area 2 in the South spans a substantial 311,3825 hectares. This strategic positioning enables the Industrial Park to easily access extensive consumer markets and support services.
The boundaries of the industrial park are as follows:
To the North, it is adjacent to high-voltage power lines: 220kV, 110KV, and 35KV.
To the South, it is adjacent to the North-South railway line.
To the West, it is adjacent to residential projects following urban planning.
To the East, it is adjacent to the existing residential area located in Zone 1 and Zone 2.
Connection Advantages of the Industrial Park
Benefiting from its strategic location, Bau Xeo Industrial Park offers numerous opportunities for collaboration and connectivity with neighboring regions and key areas. This facilitates smoother inter-provincial transportation to international ports and airports within the Southern Economic Region. Specifically:
Located approximately 2 km from Trang Bom Station.
Positioned 20 km away from the center of Bien Hoa City.
Situated 50 km from the heart of Ho Chi Minh City.
Located 20 km from the new Long Thanh International Airport.
Situated 50 km from Tan Son Nhat International Airport.
Positioned 40 km from Go Dau Port, capable of accommodating ships up to 15.000 tons.
Located about 45 km from Phu My Port, with the capacity to handle ships up to 50.000 tons.
Positioned 60 km from Cai Mep Container Port, which can handle ships up to 80.000 tons.
A corner of the Bau Xeo Industrial Park – Dong Nai Province – TTTFIC GROUP
III. Infrastructure
The infrastructure system at Bau Xeo Industrial Park plays a crucial role in providing a solid foundation for the region’s sustainable development. It also fosters opportunities for economic cooperation with domestic and international businesses. Here are some essential criteria related to the industrial park’s infrastructure:
Internal Transportation System
The primary traffic artery within the Industrial Park is National Highway 1A. Bau Xeo internal road system has been upgraded and modernly designed, featuring roadbeds meeting standards with a width of 10,5 m, and capable of bearing loads of up to 30 tons. This connectivity allows the Industrial Park to interconnect with adjacent projects and Trang Bom Town.
Clean Water Supply System
The industrial park receives a supply of clean water from the Thien Tan water plant, guaranteeing it meets the needs of business establishments. The plant operates with a capacity of 12.000 m3/day and night, ensuring a connection to the perimeters of land lots and factories.
Electric Supplying System
Bau Xeo Industrial Park sources its power from a transformer station with a capacity of 110/22KV (126MVA), ensuring production stability and preventing unwanted interruptions.
Wastewater Treatment System
Within Bau Xeo Industrial Park in Dong Nai, wastewater treatment plants boast a total capacity of up to 8.000 m3/day and night. Phase 1 handles a capacity of 4.000 m3/day and night, ensuring wastewater from the Industrial Park is collected, and toxic substances are removed before discharge into the Thao River.
Communication Systems
The industrial park is seamlessly connected to the communication system of Trang Bom District, meticulously equipped to ensure convenient communication.
With the aim of becoming a modern industrial park with a robust foundation fully meeting business requirements, Bau Xeo Industrial Park is invested in and synchronously planned with a comprehensive, standardized infrastructure system.
IV. Industries Attracting Investment
Benefitting from its favorable geographical location and sound infrastructure, Bau Xeo Industrial Park has garnered interest and investment from a diverse range of industries. The Industrial Park gives priority to lighter, less environmentally impactful industries while limiting water usage to minimize negative environmental effects. The following is a list of attractive industries for investment within the industrial park:
Agricultural product processing industry, grain, food, and animal feed.
Wood processing industry, plastic, and related products.
Textile, garment, leather goods, jewelry, and jewelry manufacturing.
Wooden furniture manufacturing industry, focusing on office and interior decoration.
Equipment for the sports and fitness industry.
Components, microelectronics, and electronic equipment manufacturing.
Packaging, printing, design, and modeling industry.
Mechanical industry, including frame stamping, motorcycle, and spare parts manufacturing.
Pharmaceutical, chemical, cosmetic, and stationery manufacturing industry.
Handicrafts and construction materials production.
V. Investment Incentives in Industrial Parks
Upon selecting Bau Xeo Industrial Park for investment and establishing production facilities and factories, investors can take advantage of the following preferential policies:
Corporate Income Tax
Enterprises enjoy a two-year tax exemption and a 50% reduction for the subsequent four years for new investment projects in industrial parks. This benefit takes effect in the first year of taxable income from the projects.
Depending on the enterprise’s size and the investment project’s field, separate support policies will be applied according to legal provisions.
Additional Offers
The Bau Xeo Service Center provides investors and workers with a wide range of services and amenities to facilitate their living and working processes. These amenities encompass apartment buildings for workers and individuals, shopping centers, supermarkets, vocational schools, hospitals, and more.
Investors receive support to rent or purchase premises at attractive prices, which are highly competitive compared to many other industrial parks.
Moreover, the Bau Xeo Industrial Park Management Board offers support and expedited guidance to businesses for conducting business registration and payment procedures, as well as the installation of complete equipment, tools, and machinery to ensure effective production and business activities.
Bau Xeo Industrial Park is located right in the center and has a very prime location
VI. Investment costs
A summary of investment costs at Bau Xeo Industrial Park is fully listed in the following table:
Electricity supply price
Peak hours are from 9:30 a.m. to 11:30 a.m.; 5:00 p.m. – 8:00 p.m.: 0,1 USD/KWH.Normal hours from 4:00 a.m. – 9:30 a.m., 11:30 a.m. – 5:00 p.m., 8:00 p.m. – 10:00 p.m.: 0,05 USD/KWH.
Off-peak hours: 0,03 USD/KWH.
According to the regulations of Dong Nai Electricity Company.
Price of clean water supply
0,4 USD/m3/month. According to the price prescribed by the Dong Nai Provincial People’s Committee.
One-time fee for using infrastructure
1.380.000 VND/m2 (2056).
Annual management fee
11.500 VND/m2/year, equivalent to 0,48 USD/m2/year.
Land rents
One-time payment: 160 USD/m2 or pay annually until the end of the operating period.
Fees for wastewater and solid waste treatment
0,28 USD/m3/month.Wastewater and input waste standards: type B.
Thao River output treatment standards: grade A (QCVN 40:2011/BTNMT).
Note: The above component costs do not include VAT.
VII. Labor Resources and Labor Costs
Bau Xeo Industrial Park has enticing investment policies and modern infrastructure. This has garnered significant interest from investors, creating an environment for expanding production and generating ample employment opportunities.
Benefiting from a local population of over 670.000 residents in the Trang Bom district, businesses operating within the park can readily access a pool of skilled labor to meet their workforce demands. This not only enables companies to promptly address their staffing needs but also contributes to the economic and social development of the region.
VIII. Economic Value of Bau Xeo Industrial Park
The development and operation of industrial parks have positively impacted Vietnam’s industrial landscape, enhancing the prominence of Bau Xeo Industrial Park, both within the region and the broader Dong Nai Industrial Park community. Below, we outline the economic contributions of Bau Xeo over the years:
In 2016, the industrial park achieved a steadily increasing occupancy rate, reaching an impressive 90,95%, surpassing many projects across the province. During this period, the park attracted 27 projects and was granted investment certificates. Of these, 8 projects secured domestic investments, while 19 projects garnered foreign investments, accumulating an estimated total capital of up to USD 940,485 million.
From 2014 to 2016, the after-tax profit of Bau Xeo Industrial Park surged from VND 0,7629 billion/ha to VND 1,3640 billion/ha. Additionally, the park contributed VND 417,5678 billion to the budget of Dong Nai province.
According to the financial report for 2021, Bau Xeo Industrial Park experienced a 45% decrease compared to 2020. This decrease resulted in total revenue of VND 172 billion. After-tax profit also exhibited a 58% reduction, reaching over VND 63 billion. Remarkably, the after-tax profit surpassed the projected target for the following year by 11%.
From the information presented above, it becomes evident that Bau Xeo Industrial Park represents a paradigm for development. It also plays a crucial role in economic integration within the industrial sector. With its solid foundational steps, Bau Xeo is poised to continue as a reputable and quality choice for investors. They can lease land and establish their businesses in this promising location.
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