Binh Xuyen II Industrial Park - Phu Tho

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Information
Operating time: 2008 - 2058	Total Area: 180 Ha
Infrastructure investors: FU CHUAN LLC	Price: 100 - 155
Building density: 60	Occupancy: 90
Address: Binh Tuyen Commune / Binh Nguyen Commune, Phu Tho Province, Vietnam

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I. Binh Xuyen II Industrial Park:

Binh Xuyen II Industrial Park in Phu Tho spans approximately 42.21 hectares and was constructed by FU CHUAN LLC. It became fully occupied in 2008.

The Phu Tho People’s Committee approved the detailed planning for Binh Xuyen Industrial Park on September 24, 2007, and later included Binh Xuyen 2 Industrial Park in the provincial industrial park planning. Initially, it covered around 700 hectares.

However, the planned area was subsequently reduced to 485 hectares on December 22, 2014, and further reduced to 393 hectares. This division resulted in Thang Long Phu Tho Industrial Park (213 hectares) and Binh Xuyen 2 Industrial Park (180 hectares).

The development occurred in two phases. Phase 1 covered 42.2112 hectares, with detailed planning approved in various decisions. Phase 2 encompassed 63.1139 hectares and went through location research and detailed planning processes.

After multiple adjustments and approvals, Binh Xuyen 2 Industrial Park now spans 105.3251 hectares, with 76.709 hectares available for lease as industrial land.

Fuchuan LLC, a subsidiary of Foxconn, received an investment certificate in February 2008. However, the project faced delays, and the Phu Tho People’s Committee set an ultimatum for infrastructure completion by April 2, 2014. It was only in 2014 that Binh Xuyen 2 Industrial Park achieved partial completion and commenced operations.

Wellcome gate of Binh Xuyen II Industrial Park -Phu Tho - TTTFIC Group — Wellcome gate of Binh Xuyen II Industrial Park – Phu Tho – **TTTFIC Group**

II. Geographical location:

Binh Xuyen II Industrial Park is strategically located in Binh Xuyen district, offering several geographical advantages. It is situated just 2km from the Noi Bai – Lao Cai Expressway, providing convenient access to transportation routes. The industrial park is also in close proximity to key infrastructures, with Noi Bai International Airport located 20km away and Hanoi city center just 45km away.

Furthermore, Binh Xuyen II Industrial Park enjoys easy connectivity to surrounding areas. It is adjacent to Provincial Road 310B and Nguyen Tat Thanh Road, facilitating transportation and logistics activities. Additionally, Vinh Yen city is only 10km away, offering nearby amenities and services.

In terms of maritime connections, Binh Xuyen II Industrial Park is positioned at a distance of 166km from Hai Phong port, providing access to international trade opportunities. This advantageous location contributes to the park’s potential for economic growth and investment opportunities.

Phase 2 of Binh Xuyen II Industrial Park has the following details:

– Location: It is located in Binh Xuyen district, with a distance of 2km from the Noi Bai – Lao Cai Expressway, 20km from Noi Bai International Airport, 50km from Hanoi city center, 165km from Cai Lan Port (Quang Ninh), and 4km from the railway station.

– Area: The total area is 58.8 hectares, with 45.5 hectares allocated for industrial land.

– Target investment sectors: The project aims to attract investment in electronic components, office equipment, mobile phones, software production, and more.

– The expected commencement of investment attraction is in 2021.

III. Infrastructure of Binh Xuyen II Industrial Park:

The internal transportation system within Binh Xuyen II Industrial Park is well-developed, benefiting from a flat terrain that facilitates smooth traffic flow. It features main roads measuring 28m in width and branch roads measuring 10m.

The water supply for Binh Xuyen II Industrial Park is sourced from the Vinh Yen clean water plant, with a capacity of 61,000 m3/day and night.The D300 pipeline delivers this supply to the industrial park, catering to both industrial water needs and fire prevention purposes.

Binh Xuyen 2 Industrial Park provides electricity at a capacity of 126MVA, with power supplied at 110/35/22kV for the operation of businesses within the park.

To address wastewater management, the park has a centralized treatment system with a capacity of 1,800 m3/day and night. It effectively treats all wastewater generated within the industrial park to meet environmental standards before discharging it.

The park also has an efficient drainage system for both wastewater and rainwater. Rainwater flows naturally along the roadways into the surrounding channels and rivers, while wastewater is directed through designated routes to the park’s treatment station.

Investors enter into contractual agreements with professional waste treatment entities to outsource waste management services.

A comprehensive communication network is deployed throughout Binh Xuyen II Industrial Park, covering the entire area and ensuring high-quality connectivity. The network is provided by leading telecommunications infrastructure providers in Vietnam and is connected globally through a high-quality fiber optic system within the park.

A perspective on Binh Xuyen II Industrial Park - Phu Tho - TTTFIC Group — A perspective on Binh Xuyen II Industrial Park – Phu Tho – TTTFIC Group

IV. Investment-Attractive Industries

The industries in Binh Xuyen II Industrial Park encompass:

– Mobile phone manufacturing

– Electronic components production

– Liquid crystal displays

– Electronic sound equipment

– Semiconductor manufacturing and high-tech electronic components

– Software production and digital content

– Provision of software services, information technology research, and information technology workforce training

– Electronic product manufacturing

– Investment in research and development (R&D) with a minimum of 25% revenue allocation.

V. Investment Costs

The investment costs for Binh Xuyen II Industrial Park are as follows:

– Land rental with existing infrastructure: 100 – 155 USD/m2/project lifespan.

– Infrastructure maintenance management fee: 0.5 USD/m2/year (paid annually).

– Wastewater treatment fee: 0.4 USD/m3/month (from grade B to grade A).

– Clean water price: 0.58 USD/m3.

– Raw land lease fee: 0.13 USD/m2/year, paid annually according to the regulations of the Phu Tho People’s Committee.

– Raw land lease fee for businesses is exempted until December 31, 2025.

– Average production worker salary: 150 USD – 200 USD.

– Managerial staff salary varies depending on the position and job responsibilities.

– Ready-built factory area available for rent: 2,500m2 – 5,000m2.

– Factory rental price: 2.7 – 3.1 USD/m2/month. Industries and manufacturing sectors include electronic components, office equipment, mobile phones, software, etc.

VI. Investment incentives:

Binh Xuyen II Industrial Park offers the following tax incentives:

– 100% exemption of corporate income tax (CIT) for the first 2 years.

– 50% reduction of CIT payable for the following 4 years.

In addition, there are tax incentives on import duties. Goods that businesses use to establish fixed assets and are listed under the preferential tax list are exempt from import duties.

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