Bim Son Industrial Park - Thanh Hoa Province

Overview of Bim Son Industrial Park – Thanh Hoa Province:

The Prime Minister approved Decision No. 1107/QD-TTg on August 21, 2006, outlining the development plan for Vietnam’s industrial parks until 2015, with a vision towards 2020, which includes Bim Son Industrial Park Thanh Hoa Province as one of the eight industrial parks. It is also part of the adjusted development plan for industrial parks in Thanh Hoa Province until 2020, stated in Official Letter No. 2269/TTg-KTN on November 13, 2014, with the objective of building and developing a multi-sector concentrated industrial park.

Industrial Park Planning:

The People’s Committee of Thanh Hoa Province approved the detailed plan for Bim Son Industrial Park in Decision No. 1471/2005/QD-UBND on June 2, 2005, with an initial planned area of 540 hectares.

The Bim Son Industrial Park has undergone multiple adjustments, resulting in a current total area of 524.92 hectares. It is divided into two zones, namely Zone A and Zone B. The investment in the technical infrastructure of the industrial park is undertaken by three entities.

The technical infrastructure of Bim Son Industrial Park is invested by three infrastructure investors, including:

Zone A – Bim Son Industrial Park:

Established officially in Decision No. 3187/QD-UBND on August 22, 2018, by the Provincial People’s Committee, with an area of approximately 308.63 hectares, assigned to two infrastructure investment companies as the main investors:

• Northern Zone A: Developed by VID Thanh Hoa Investment Development Joint Stock Company as the infrastructure investor, covering an area of about 163.36 hectares.
• Southern Zone A: Developed by Tan Phuc Hung Group Joint Stock Company (formerly known as Phuc Hung Architecture Joint Stock Company) as the infrastructure investor, covering an area of about 145 hectares.

Zone B – Bim Son Industrial Park:

Developed by HUD4 Construction Investment Joint Stock Company as the infrastructure investor and officially established in Decision No. 603/QD-UBND on March 1, 2011, by the Chairman of the Provincial People’s Committee, with an adjusted planned area of 216.29 hectares.

Geographical Location:

Bim Son Industrial Park is located in Bim Son town, Thanh Hoa Province.

The industrial park is situated in the northern part of Thanh Hoa Province, adjacent to National Highway 1A, and it is traversed by the North-South railway. It enjoys a convenient geographical location, being close to Bim Son town, Thanh Hoa Province.

The location offers advantages in terms of electricity and water supply, transportation, and services. Additionally, it is easy to attract skilled labor with low costs. Compared to other industrial parks in northern Vietnam, the infrastructure investment is much lower.

Master plan map of Bim Son Industrial Park – Thanh Hoa Province – TTTFIC Group

Infrastructure of Bim Son Industrial Park – Thanh Hoa Province:

North Zone A – Bim Son Industrial Park:

VID Thanh Hoa Investment Development Joint Stock Company undertakes the project as the investor for the investment, construction, and infrastructure development of North Zone A in Bim Son Industrial Park, Thanh Hoa.

They were initially granted the Investment Registration Certificate (IRC) No. 26221000171 on December 18, 2013, and the third adjustment certificate No. 5470102643 on September 6, 2018.

The planned area of the industrial park is 163 hectares, with a total investment capital of 886.5 billion VND. So far, the actual capital invested in the project has reached approximately 450 billion VND.

South Zone A – Bim Son Industrial Park:

Tan Phuc Hung Corporation is the investor undertaking the project for investment, construction, and infrastructure development of South Zone A in Bim Son Industrial Park, Thanh Hoa.

Tan Phuc Hung Corporation received the initial IRC No. 26221000138 on February 8, 2013, and the first adjustment certificate No. 3750277445 on December 11, 2017.

The planned area after multiple adjustments is 145 hectares, with a total investment capital of 516.7 billion VND.

The actual capital invested in the project has reached approximately 450 billion VND. The project has implemented infrastructure construction on an area of approximately 130 hectares.

Zone B – Bim Son Industrial Park:

HUD4 Investment and Construction Joint Stock Company is undertaking the project to construct, exploit, and manage the infrastructure in Zone B of Bim Son Industrial Park.

HUD4 Investment and Construction Joint Stock Company obtained the Investment Registration Certificate (IRC) No. 26221000040 on September 24, 2008, and received the second adjustment certificate on May 5, 2015.

The total investment capital of the project is 547 billion VND, and the actual capital invested has reached approximately 380 billion VND.

Infrastructure invested in Bim Son Industrial Park – Thanh Hoa Province:

Internal transportation:

The main roads and branch roads divide the internal transportation system. Heavy-duty asphalt concrete structures are used in the construction of the roads.

• The main road system is 30m and 40m wide.
• The branch road system is 20.5m wide.

Electricity system:

• Supplied from the national power grid (10,000KW/35KV), meeting all necessary conditions for operation.

Public lighting system:

• The industrial park designs a street lighting network separate from the power supply system and arranged along traffic axes.

Water system:

• The Bim Son water plant is the source of the water supply, providing a total capacity of 8,400m3/day and night.

Wastewater and rainwater drainage system:

• Arranged along the roads and directed to the treatment station of the industrial park.

Waste treatment:

• Factories sort, collect, and transfer solid waste to the designated landfill according to the town’s regulations.

Wastewater treatment:

• The industrial park has an underground wastewater treatment plant with a capacity of 1,500m3/day and night in phase 1.

Communication system:

• The industrial park meets the demand for telephone subscribers, broadband ADSL, and fiber optic cables.

Master plan map of Bim Son Industrial Park – Thanh Hoa Province – TTTFIC Group

Investment-attractive industries in Bim Son Industrial Park – Thanh Hoa Province:

• Agro-forestry processing industry.
• Machinery assembly, repair, and high-tech industry.
• Textile and packaging industry.
• Petroleum refining industry.

Investment incentives at Bim Son Industrial Park – Thanh Hoa Province:

Corporate income tax:

• The corporate income tax rate is 25%.
• Newly established businesses in the industrial park with high-tech projects according to the law, and software projects, benefit from a tax rate of 10% applied for 15 years, with a tax exemption for 4 years and a 50% reduction for the following 9 years.
• For large-scale high-tech projects that require investment attraction, the 10% preferential tax rate can be extended up to a maximum of 30 years. After the incentive period, the corporate income tax rate is 25%.
• If the enterprise has taxable income, the preferential tax rate is calculated from the first year. In the case of no taxable income for the first three years but with revenue, the company will calculate tax exemption and reduction from the fourth year onwards.

Import-export taxes:

• Exempting import duties for machinery imported to create fixed assets.
• Exempting export duties for imported raw materials and materials used for export production.

Foreign tax payment:

• No taxes apply to foreign money transfers.

Value-added tax (VAT):

• Imported goods, including production materials, and goods processed for export under signed processing contracts with foreign partners are exempt from VAT.

Investment attraction results of Bim Son Industrial Park – Thanh Hoa Province:

Up to now, Bim Son Industrial Park has attracted 52 projects. This includes 29 domestic direct investment projects with a total registered capital of 7,076.5 billion VND. Additionally, there are 23 foreign direct investment projects with a total registered investment capital of 375.6 million USD.

The secondary projects have occupied an area of approximately 216.61 hectares (filling more than 60% of the available industrial land for lease).

In recent years, the investment attraction in Bim Son Industrial Park has been remarkable. Particularly notable are the large-scale foreign investment projects, such as the consortium led by Shandong Intco Group – Singapore. This consortium has a total investment capital of 215 million USD, and it is projected to increase to 322 million USD by the year-end. The consortium includes Intco Medical Vietnam Factory with a capital of 120 million USD, Intco Vietnam Nitrile Glove Manufacturing Plant with a capital of 70 million USD, and an environmentally friendly decorative product manufacturing project with a capital of 25 million USD.

Additionally, there is the Radial Car Tire Manufacturing Plant project with a total investment capital of 63.7 million USD.

Business activities:

• So far, about 20 out of 49 projects have been fully or partially operational.
• In 2021, the estimated value of industrial, commercial, and service production reached 1,652.5 billion VND, with estimated revenue of 2,305 billion VND.
• The value of imports amounted to 21.9 million USD, while exports reached 31 million USD.
• The park also contributed 70 billion VND to the state budget and provided employment for 2,638 workers throughout the province.

Labor supply and labor costs:

Local labor supply:

• The total population of Thanh Hoa province is 3,640,128 people (over 60% of the population is of working age).
• Among them, the labor force accounts for 67% through training.
• Thanh Hoa province has approximately 14 vocational colleges.

Labor supply in the region:

• Hanoi – the largest training center in Northern Vietnam with famous universities, colleges, and high schools, has thousands of graduates in management and high-tech fields.
• With a reasonable and convenient distance for daily commuting between Hanoi and KCN Kovipark Bim Son, this highly skilled labor force is a strength for the industrial park’s development.

Labor cost:

• The location of KCN Bim Son (KCN Kovipark Bim Son) is in Bim Son town, Thanh Hoa province, within region III, which sets the current monthly minimum wage at 3,430,000 VND.
• Insurance:
  – Social insurance: 24%
  – Health insurance: 4.5%
  – Unemployment insurance: 2%
  – Businesses must contribute 21% of the total employee wages, comprising 17% for social insurance, 3% for health insurance, and 1% for unemployment insurance.