Cat Lai 2 Industrial Park - HCMC

Cat Lai 2 Industrial Park, founded in 2001 and active since 2003 in Ho Chi Minh City, Vietnam, draws investors due to its strategic port-side location, strong transport links, and quick 100% occupancy rate. Encompassing 136,95 hectares, it accommodates 33 investors, with a total capital of $48.222.814 USD, and boasts a full occupancy rate, establishing itself as a flourishing industrial hub.

I. Overview of Cat Lai 2 Industrial Park – HCMC:

Information about the Industrial Park:

Established in 2001 and operational since 2003, Cat Lai 2 Industrial Park is located in K1, Thanh My Loi Ward, Thu Duc City, Ho Chi Minh City, Vietnam.

With its advantageous geographical position near major ports, Cat Lai 2 Industrial Park offers significant benefits for both import and export activities.

One of the few industrial parks with excellent transportation advantages, Cat Lai 2 Industrial Park is strategically situated at the hub of major road networks and in proximity to the major ports of Ho Chi Minh City, Dong Nai, and Ba Ria – Vung Tau. Its prime location in the largest industrial hub in the South quickly led to a 100% occupancy rate within just a few years of operation.

Currently, Cat Lai 2 Industrial Park continues to attract investments due to its solid foundation and ideal connectivity with other industrial parks, clusters, and supporting industries in the region.

The Infrastructure Development Services Company Limited – District 2 is the investor responsible for the infrastructure of the industrial park.

Industrial Park Scale:

• Total planned area of the industrial park: 136,95 ha
• Leased industrial land: 133,78 ha
• Estimated labor force: 8.697 people
• Residential population of workers: 6.000 people
• Operational since: 2003
• Occupancy rate of the industrial park: 100%

Land usage structure of the industrial park:

• Factory and warehouse area: 86,97 ha
• Administrative and service area: 4,81 ha
• Technical areas: 1,46 ha
• Greenery and water surface: 23,95 ha
• Transportation area: 16,59 ha

Investment Situation:

• Leased land rate: 100%
• Total number of investors: 33
• Total investment capital: 48.222.814 USD
• Total investment capital: 359.037.000.000 VND

II. Geographic Location of Cat Lai 2 Industrial Park – HCMC:

Cat Lai 2 Industrial Park is located in K1, Thanh My Loi Ward, Thu Duc City, Ho Chi Minh City, Vietnam.

Cat Lai II Industrial Park boasts substantial economic advantages and potentials.

The geographical boundaries of the industrial park:

• Northwest bordering the Eastern Belt Road
• Northeast bordering Provincial Road 25B
• South bordering Road A and Saigon Port Industrial Zone
• Southeast bordering local industrial clusters

Distances from the Industrial Park to Strategic Locations:

• 20 km from Ho Chi Minh City Center
• 12 km from Saigon Port, 3 km from Cat Lai Port
• 16 km from Saigon Station
• 20 km from Tan Son Nhat Airport
• 16 km from National Highway 1A
• 29 km from Saigon-Trung Luong Expressway
• 5 km from Hanoi Highway

III. Infrastructure at Cat Lai 2 Industrial Park – HCMC:

Internal Transportation:

16,59 hectares are allocated for the transportation system, with road widths ranging from 24m to 40m.

Power System:

• The power supply for the planned area is sourced from the existing 110/15-22KV Cat Lai substation.
• Additionally, three new 15-22/0,4KV transformer stations with a capacity of 100KVA each will be constructed to provide power for street lighting, using aesthetically suitable station designs.

Public Lighting System:

• The road lighting network is designed separately with a dedicated household electricity system, installed along the traffic axes.
• Traffic lighting utilizes 150W – 250W – 220V high-pressure Sodium lights mounted on 8m – 9m galvanized steel poles.

Water System:

• The city’s tap water system is used, relying on the water supply pipelines of 0600 on Nguyen Thi Dinh Street from the Thu Duc Water Plant.
• Water supply standards: 180 liters/person/day for domestic water, 40 m3/ha/day for industrial water, and 25 liters/s for firefighting, with the ability to handle two simultaneous fires.
• Total water supply for the entire area: Qmax = 6.702 m3/day.

Wastewater and Rainwater Drainage:

• The drainage network is designed for self-flow and entirely constructed from reinforced concrete round culverts buried underground.
• Branch culverts intersect perpendicularly with the main culverts running along the road axes.

Waste Management:

• The investor will sign service contracts with licensed professional waste disposal units.
• The district’s enclosed waste compacting station collects waste daily and transports it to the city’s centralized waste treatment alliance according to the plan.

Wastewater Treatment:

• A centralized wastewater treatment plant with a capacity of 6.097 m3/day.

Communication System:

• The communication network meets international standards and is ready to meet high-speed communication and data requirements.
• Cat Lai 2 Industrial Park, along with VNPT and postal-telecommunication service companies, ensures the provision of on-demand services for investors.

IV. Main Industries in Cat Lai 2 Industrial Park – HCMC:

Cat Lai 2 Industrial Park primarily focuses on developing the following industries:

Manufacturing Industries:

• Mechanical Engineering; Precision Mechanics; Assembly; Fabrication.
• Electrical, Electronics; Robotics; Computers; Software; Telecommunications.
• Pharmaceuticals; Cosmetics; Functional Foods; Biotechnology; Chemical Cosmetics.
• Printing and Paper Packaging.

Supporting Industries:

• Industries that support the aforementioned manufacturing groups and high-tech supporting industries.

Service and Commercial Industries:

• Testing, Inspection, Calibration, and Measurement of Industrial, Consumer, and Import-Export Products; Mechanical Product Maintenance and Warranty Services; Research and Development; Industrial Product Showrooms; Distribution of Industrial Supplies and Equipment; Packaging.

Logistics Services:

• Cargo Handling Services; Warehousing and Storage Services; Handling of Raw Materials and Equipment; Freight Forwarding and Transportation Agent Services; Other support services include receiving, storing, and managing information related to transportation and warehousing of goods throughout the logistics chain.

V. Investment Costs at Cat Lai 2 Industrial Park – HCMC:

Land Lease Price in the Industrial Park: $150 USD/m2/50 years.

Workshop Rental Fee: 4 USD/m2/year.

Infrastructure Maintenance Fee: 0,77 USD/m2/year.

Clean Water Fee:

• Domestic Clean Water: 0,54 USD/m3.
• Production Water: 0,54 USD/m3.

Wastewater Treatment Fee: 0,3 USD/m3.

Electricity Cost (Based on the pricing set by the Thu Duc Power Company):

• Peak Hours: 0,13 USD/kWh.
• Normal Hours: 0,07 USD/kWh.
• Off-Peak Hours: 0,046 USD/kWh.

Please be aware that the prices and fees mentioned do not encompass VAT and are subject to variations at different intervals.

VI. Labor Source and Costs at Cat Lai 2 Industrial Park – HCMC:

Labor Source:

According to the 2019 Population and Housing Census, the population of Ho Chi Minh City as of April 1, 2019, was 8.993.082 people.

• Based on the statistics of over 4,8 million people, the workforce aged 20 to 45 accounted for 65,81% of the labor force, with the highest percentage in the 20-24 age group at 16,7%, followed by the 25-29 age group at 15,18%, and the 30-34 age group at 17,58%.
• Female labor force accounts for 52,41% of the total workforce, with the female labor participation rate consistently higher than that of male labor.
• Regarding educational qualifications, 47,6% of the labor force and population have completed high school or higher education, while 27,34% have completed lower secondary education.
• The proportion of skilled labor through vocational training is 58% of the total labor force. The technical specialization breakdown is as follows: University degree – 9,35%; College degree – 1,67%; Intermediate level – 4,37%; Basic level – 42,61%; No formal qualifications – 42%.

By 2025, Thu Duc City is expected to receive an influx of over 50.000 immigrants, including 2.000 specialized engineers coming to work.By 2030, Thu Duc City is projected to have approximately 1,5 million people, and by 2040, it is expected to reach around 2,2 million people, attracting highly skilled labor and a professionally trained workforce.

Thu Duc City is projected to achieve a labor productivity three times that of Ho Chi Minh City within 5-10 years, with its population and labor force contributing to 10% of the city’s total, making it the country’s third-largest economic area.

Labor Costs:

• In the vibrant city of Ho Chi Minh, within District 2, lies the bustling Cat Lai 2 Industrial Park, situated on Nguyen Thi Dinh Street, Thanh My Loi Ward, proudly situated in Zone I.
• The current minimum wage in the region is 4.680.000 VND/month.

VII. Investment Incentives Policy at Cat Lai 2 Industrial Park – HCMC:

The normal corporate income tax rate is 25%. However, depending on the industry and the incentives provided by the laws and regulations, investors may be eligible for preferential corporate income tax rates as follows:

• Various incentives: from 10% to 20% (applicable for 15 to 30 years or the project implementation period).
• Tax exemption period (corporate income tax): up to 4 years.
• Tax reduction period (50% reduction): up to 9 years.

For sectors such as education and training, vocational training, healthcare, culture, sports, and environment, a tax rate of 10% is applied for the entire operating period, regarding the income of the operating enterprise.

For industries such as software production, high-tech, investment in water plants, power plants, water supply and drainage systems; roads, railways, airports, seaports, river ports; airports, railway stations, and infrastructure facilities; a preferential tax rate of 10% is applied for a period of 15 years.

Regarding import taxes: For goods that are raw materials, machinery, and equipment imported by investors to create fixed assets that are not yet domestically produced, investors are eligible for consideration of import tax exemption.

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