Cau Treo International Border Gate Economic Zone

Overview of Cau Treo International Border Gate Economic Zone:

The establishment and operation of Cau Treo International Border Gate Economic Zone are governed by Decision No. 162/2007/QD-TTg issued on October 19, 2007, by the Prime Minister of the Government.

The economic zone covers a natural area of 56,865 hectares, including Son Kim 1, Son Kim 2, Son Tay, and Tay Son town in Huong Son district, Ha Tinh province.

Cau Treo International Border Gate Economic Zone is strategically located on National Highway 8A at the Vietnam-Laos border. It plays a crucial role in the development of the East-West economic corridor, serving as a key transportation hub between the East and the West. It also connects with the Ho Chi Minh Highway and the North-South railway.

Recognizing the position and importance of International Border Gate Economic Zone in the socio-economic development and security-defense, the Prime Minister issued Document No. 1804/TTg-CN on December 18, 2020, selecting it as one of the eight economic zones for concentrated investment and development from the state budget for the period 2021-2025.

International Border Gate Economic Zone plays a vital role in the province’s and the country’s economic and foreign affairs development. Therefore, it is necessary to invest in upgrading and improving the technical infrastructure of Cau Treo Border Gate to meet the development requirements. In addition, there is a need to invest in transportation infrastructure connectivity and expand cooperation with provinces in Laos and northern Thailand.

Investment situation in Cau Treo International Border Gate Economic Zone:

The economic zone has nearly 150 businesses and 750 individual households registered for business operations.

There are 9 licensed investment projects currently being implemented with a total investment capital of nearly 2,000 billion VND.

There are 5 projects for supermarkets, restaurants, and hotels in the Gate B area that are preparing investment proposals.

Sector and Investment Attraction Projects in Cau Treo International Border Gate Economic Zone:

Manufacturing sector:

• Wood processing and furniture manufacturing, agriculture, and food processing
• Plastic household products and office supplies manufacturing
• Cosmetics and pharmaceutical manufacturing
• Livestock feed and fertilizer production
• Construction materials manufacturing: bricks, tiles, and steel

Processing and assembly:

• Electronics, refrigeration, automobile, and motorcycle assembly
• Garment, embroidery, and sports shoe processing
• Mechanical engineering and interior decoration
• Packaging and labeling

Trade, tourism, and services:

• Supermarkets, duty-free shops, office leasing, exhibition fairs
• Warehousing and logistics facilities
• Hotels, restaurants, domestic and international tour organizing
• Investment in tourism, recreation, cultural and heritage tourism, natural forest exploration, wildlife reserves, entertainment for foreign visitors
• Banking, insurance, and postal and telecommunications services
• Transportation, construction, sale or lease of real estate
• Healthcare services, environmental sanitation
• Vocational training and employment services

Infrastructure investment:

• Power systems, hydropower plants
• Bridge construction projects over the Ngan Pho River (through Tay Son Town)
• Road projects through Tay Son Town south of the Ngan Pho River
• Infrastructure for the Nước Sốt Ecotourism Area
• Infrastructure for the Dai Kim Commercial-Industrial and Cottage Industry Zone
• Infrastructure for the South Urban Area of Tay Son Town
• Water supply and drainage systems
• Telecommunications and information technology infrastructure

Investment promotion policy:

• The government promotes investment in the infrastructure of International Border Gate Economic Zone, welcoming both domestic and foreign investors. All investment projects in the economic zone are entitled to maximum incentives applicable to economically and socially difficult areas.
• Investment projects in this economic zone are subject to a corporate income tax rate of 10% for 15 years from the start of business operations. Employees in the economic zone are eligible for a 50% reduction in personal income tax.
• Manufactured, processed, recycled, and assembled goods in the economic zone that use raw materials, supplies, components, and finished products from abroad are exempt from import duties for 5 years from the start of production.
• The government affirms the protection of rights and legitimate interests of domestic and foreign investors participating in business investment in International Border Gate Economic Zone, which plays a crucial role in the coastal province of North Central Vietnam – Ha Tinh.

Local labor resources:

According to statistics from the Department of Statistics, Ha Tinh currently has 695,257 people in the working age group (15-60 for males and 15-55 for females).

The working-age population accounts for 52.6% of the total population, with approximately 20% having received formal training. The number of high school graduates ranges from 20,000 to 25,000 annually, providing a plentiful workforce.

The education system is continuously improving, providing favorable conditions to enhance the quality of the current and future workforce.

Ha Tinh currently has 1 university, 4 colleges, 3 vocational schools, and 33 vocational training centers.