Binh Chieu Industrial Park - Ho Chi Minh City

I. Overview of Binh Chieu Industrial Park – Ho Chi Minh City:

Information about the Industrial Park:

Binh Chieu Industrial Park, located in Thu Duc City, was established in 1997 and officially started operating in March 2000.

Strategically positioned at the intersection of the two largest industrial centers in the Industrial Region 5, Binh Chieu Industrial Park boasts excellent connectivity.

The Infrastructure Development Services Company of Binh Chieu Industrial Park is the primary investor in the industrial Park.

Binh Chieu Industrial Park is surrounded by major arterial roads: National Highway 1A, National Highway 1K, National Highway 13, My Phuoc – Tan Van Expressway (Ring Road 2), Hanoi Boulevard, Metro line, etc.

Investment Situation:

As of 2020, the occupancy rate has reached 100%, with a total of 21 domestic and foreign investors and a total invested capital of 80,728,312 USD.

Benefiting from a high occupancy rate over the years, Binh Chieu Industrial Park, Thu Duc City, has been supporting stable and effective growth of businesses. It continuously upgrades its infrastructure to provide the best conditions for business operations. Binh Chieu Industrial Zone significantly contributes to the overall economy of Thu Duc City and generates over 4,500 jobs for local and non-local workers.

Industrial Zone Scale:

Total area of the Industrial Zone: 27.34 hectares, including:

Industrial land area: 16.404 hectares

Vacant land area: 0 hectares

Greenery ratio: 12%

Leased land ratio: 100%

With the rapid development of the city’s infrastructure and the plan to develop new urban areas, Binh Chieu Industrial Zone, along with other industrial zones in the area, promises remarkable progress.

Wellcome gate of Binh Chieu Industrial Park – Ho Chi Minh City – TTTFIC Group

II. Geographic Location of Binh Chieu Industrial Park – Ho Chi Minh City:

Binh Chieu Industrial Park is situated along Provincial Road 43, Binh Chieu Ward, Thu Duc City, Ho Chi Minh City.

Located at the northern gateway, it connects Ho Chi Minh City with Binh Duong Province. Therefore, Binh Chieu Industrial Park enjoys numerous advantages in terms of transportation and connectivity. It provides convenient access to other industrial zones in Binh Duong, as well as links to seaports, dry ports, bus stations, airports, and service areas.

Distances from Binh Chieu Industrial Park:

• Song Than Station: 4 km
• Saigon Station: 16 km
• ICD Phuoc Long 3, Thu Duc: 10 km
• Central Ho Chi Minh City: 16 km
• Tan Son Nhat Airport: 15 km
• Saigon Port: 15 km
• Cat Lai Port: 20.3 km
• National Highway 1A: 5 km

III. Infrastructure at Binh Chieu Industrial Park – Ho Chi Minh City:

Internal Transportation:

• The roads are paved with asphalt concrete.
• The main roads have a width of 30 meters, while the branch roads have widths of 12 meters and 20 meters.

Electricity System:

• The industrial zone uses power from the national grid.
• It is connected to Ho Chi Minh City’s general electricity network through the 110/15KV Thu Duc Bac substation.

Public Lighting System:

The street lighting system is separately designed with a dedicated power supply and is arranged along the transportation routes.

Water Supply System:

The industrial zone utilizes a groundwater supply with a capacity of 5000 m3 per day and night.

Wastewater and Stormwater Drainage System:

The industrial zone has a comprehensive stormwater drainage system to handle water runoff for the developed areas.

Waste Management:

Investors will sign service contracts with licensed professional waste management units to handle waste in accordance with regulations.

Wastewater Treatment:

The industrial zone’s wastewater treatment plant has a capacity of 3,000 m3 per day and night.

Communication System:

The telecommunication system meets international standards, providing high-speed data and communication services.

Fire Protection:

• The entire area is organized and strategically equipped with short routes for firefighting purposes.
• There are 11 fire hydrants placed at intersections around the internal roads.
• Trained firefighting teams, in collaboration with the District 9 firefighting team, protect the factories in case of emergencies, and each factory has its own firefighting system.

Industrial Zone Fence:

• A shared fence surrounds the industrial zone, with an average height of about 2 meters and concrete pillars spaced approximately 3 meters apart.
• The total length of the fence is 2334 meters.

Greenery:

• Trees are planted on both sides of the roads to enhance the landscape’s beauty and provide a positive environmental impact, preventing pollution and creating a fresh atmosphere for the workforce.
• The greenery area within the industrial zone covers 12,350 square meters, predominantly consisting of fruit trees, mango trees, and grass carpets.

Postal and Telecommunication Services:

Enterprises within the industrial zone sign contracts with telecommunications companies to construct infrastructure and provide communication services.

A perspective on Binh Chieu Industrial Park – Ho Chi Minh City – TTTFIC Group

IV. Key Industries at Binh Chieu Industrial Park – Ho Chi Minh City:

Binh Chieu Industrial Park primarily prioritizes the development of the following industries:

• Mechanical product manufacturing
• Electrical and electronics
• Paper packaging products
• Building materials
• Food and timber processing
• Premium paints
• Steel product maintenance.

V. Investment Costs in Binh Chieu Industrial Park – Ho Chi Minh City:

• Land rental price: 150 USD/m2/50 years.
• Infrastructure maintenance fee: 0.5 USD/m2/year.
• Clean water fee: 0.38 USD/m3.
• Wastewater treatment fee: 0.35 VND/m3.
• Electricity charges (Based on Ho Chi Minh City Power Company’s regulations):
• Normal hours: 0.08 USD/KWh.
• Off-peak hours: 0.04 USD/KWh.
• Peak hours: 0.13 USD/KWh.

Note: The prices and fees above do not include VAT. The pricing table may change at different times.

VI. Labor Source and Costs at Binh Chieu Industrial Park – Ho Chi Minh City:

Labor Source:

The 2019 Population and Housing Census results indicated that the population of Ho Chi Minh City as of April 1, 2019, was 8,993,082 people.

Among the total population, over 4.8 million people are part of the local workforce:

• The labor force between the ages of 20 and 45 accounts for 65.81% of the workforce, with the age group of 20-24 being the highest at 16.7%, followed by the age group of 25-29 at 15.18%, and the age group of 30-34 at 17.58%.
• The female labor force represents 52.41% of the total workforce, and the female participation rate in various age groups is consistently higher than that of males.
• Regarding education, 47.6% of the labor force and population have completed high school or higher, while 27.34% have graduated from secondary school.
• 58% of the labor force has received vocational training. In terms of technical expertise, 9.35% have a university degree, 1.67% have a college degree, 4.37% have attended technical school, and 42.61% have received basic training without formal certification.

Schools: The education system in the area provides quality education at all levels, from preschool to higher education, catering to the educational needs of the district and the city.

• Annually, there are around 55,000 graduates from universities and colleges in the city, including technical schools, and about 180,000 people with vocational training or short-term skill training seeking employment.
• 40% of them specialize in technical fields, while 60% specialize in management and professional fields.

Labor Costs:

• Binh Chieu Industrial Park is located in Thu Duc City, Ho Chi Minh City, which belongs to Region I.
• In Region I, the present minimum wage stands at 4,680,000 VND per month.

VII. Investment Incentive Policies at Binh Chieu Industrial Park – Ho Chi Minh City:

The standard corporate income tax rate currently applied is 25%.

However, depending on the industry and the incentive policies regulated by law, investors may enjoy the following preferential corporate income tax rates:

• Various incentive rates: from 10% to 20% (applied for 15 to 30 years or the entire project duration).
• Maximum tax exemption duration: 4 years.
• Maximum tax reduction duration (50%): 9 years.

For sectors such as education, vocational training, healthcare, culture, sports, and environmental fields: The tax rate is 10% applied to the income earned by the operating enterprise.

For industries such as software production, high-tech industries, investment in water plants, power plants, water supply and drainage systems; roads, railways; airports, seaports, river ports; airports, terminals, and infrastructure projects: They will enjoy a preferential tax rate of 10% for 15 years.

Regarding import taxes: For goods that are raw materials and machinery imported by investors to create fixed assets that cannot be produced domestically, the investor may be exempted from import and export duties.

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