Chan Hung Industrial Park - Phu Tho

I. Overview of Chan Hung Industrial Park – Phu Tho province

Planning information:

The Provincial Party Committee’s Standing Committee approved the implementation of Chan Hung Industrial Park – Phu Tho, initially known as Chan Hung Industrial Cluster, through Resolution No. 14-NQ/TU on January 6, 2003. The Provincial People’s Committee approved the detailed planning in Decision No. 3740/QD-UB on October 3, 2003, and Decision No. 4075/QD-UB on November 17, 2004.

On August 21, 2006, the Prime Minister issued Decision No. 1107/QD-TTg, approving the list of Chan Hung Industrial Park with an area of 80 hectares. Prime Minister’s Documents No. 214/TTg-KTN on December 8, 2009, and No. 2628/TTg-KTN on December 22, 2014, later increased the scale to 131.31 hectares.

On July 31, 2013, Chan Hung Industrial Park underwent detailed planning adjustment at a ratio of 1/2000 in Decision No. 1975/QD-UBND. The industrial park’s area decreased from 131.31 hectares to 129.75 hectares. Of this, 90.4 hectares were designated for industrial land leasing, which accounted for 69.67% of the planned area.

Information about the investor:

On August 29, 2006, the Phu Tho Provincial People’s Committee assigned the Vietnam Glass and Ceramics Corporation – Ministry of Construction (VIGLACERA) as the investor responsible for construction and infrastructure development of Chan Hung Industrial Park, according to Decision No. 2045/QD-UBND.

The Phu Tho Provincial People’s Committee transferred Chan Hung Industrial Park to a new investor, FLC Group Joint Stock Company, on September 6, 2014. This was done in accordance with Decision No. 2420/QD-UBND. The total planned investment for the park was over 1,100 billion VND.

However, since becoming the investor, FLC has been unable to carry out any construction activities due to obstacles in compensation, land clearance, and procedural matters. Furthermore, the regulations of the new Investment Law (2014) required conducting a land use right auction to select investors for Chan Hung Industrial Park at the time of the transfer to FLC.

Therefore, on June 27, 2019, the Phu Tho Provincial People’s Committee issued Official Letter No. 1561 to revoke and cancel all decisions related to the investment project of Chan Hung Industrial Park assigned to FLC. A legal auction process will be conducted to select a new investor after the completion of the compensation and land clearance.

Investment information:

Currently, Chan Hung Industrial Park has not found a new infrastructure investor after the reclamation from the previous investor FLC. As a result, the industrial park has not yet commenced infrastructure construction. Phu Tho province is actively addressing related issues to promptly find a new investor capable of continuing the project’s implementation.

II. Geographical location of Chan Hung Industrial Park – Phu Tho province

Chan Hung Industrial Park is located in Chan Hung commune, Vinh Tuong district Phu Tho province.

Boundaries:

• Adjacent to National Highway 2A, Vinh Yen – Viet Tri route.
• Northern boundary adjacent to the railway corridor, southern boundary adjacent to the delineation road of National Highway 2A.
• Western boundary adjacent to the entrance road to Huong Lai station.
• Eastern boundary adjacent to So and Hop Thinh Industrial Zones.

Regional connectivity:

• 38 km from Noi Bai International Airport.
• 58 km from Hanoi city center.
• 15 km from Vinh Yen city.
• 176 km from Hai Phong port.
• Cai Lan port (Quang Ninh) is located approximately 170 km away.
• Adjacent to the Hanoi – Lao Cai railway line.

III. Infrastructure of Chan Hung Industrial Park – Phu Tho province

Internal transportation system:

• The main axis of Chan Hung Industrial Park has a cross-sectional width of 62 meters, with a road width of 2*10.5 meters including median and greenery on both sides.
• Branch roads within the industrial park have cross-sectional widths ranging from 21.5 to 31 meters, with road widths of 10.5 to 15 meters.

Power supply system:

• Vinh Phuc Power Company manages the Vinh Tuong 110kV/22kV substation, which supplies the production power in The Industrial Park.
• The requirements connect each plot within the industrial park.

Water supply system:

• Chan Hung Industrial Park receives water supply for production from the Hop Thinh Water Plant with a capacity of 16,000 m3/day and night.
• The water is supplied through a pipeline along National Highway 2.
• When the industrial park operates stably, the Song Lo Water Plant, with a capacity of 100,000 m3/day and night, will replace the water supply with clean water.

Wastewater treatment system:

• A centralized wastewater treatment plant with a capacity of 3,000 m3/day and night collects and treats all industrial wastewater in the industrial park before discharging it into the environment.

Drainage system:

• It includes a separate design for both rainwater drainage and industrial and domestic wastewater drainage.
• The centralized wastewater treatment plant locally treats industrial and domestic wastewater according to standards using microbial methods.
• Regulating ponds are then used to settle and remove sludge and harmful impurities.
• The industrial park collects, classifies, and transports solid waste from factories to the landfill within the park for proper disposal.

Firefighting system:

• To ensure effective fire extinguishing, fire hydrants are strategically arranged along the main transportation axes within Chan Hung Industrial Park.

Communication system:

• The specific communication requirements for investors operating in the industrial park are provided by the provincial post office.

IV. Investment-attracting Industries in Chan Hung Industrial Park – Phu Tho province

Chan Hung Industrial Park focuses on industries with minimal environmental pollution. The main industries targeted for investment include:

• Construction material production.
• Mechanical manufacturing and engine fabrication.
• Hoisting equipment and steel structure production.
• Mold manufacturing for metal and non-metal products.
• Automotive industry support industries.

V. Investment Costs in Chan Hung Industrial Park – Phu Tho province

• Investment cost: Infrastructure-inclusive land rental fee: $100 – $155 USD/m2 for 49 years, subject to variation depending on the location of the leased plot.
• Industrial park management fee: $0.4 USD/m2/year.
• Electricity tariff: $0.1 USD/kWh.
• Wastewater treatment fee: Starting from $0.4 USD/m3, depending on the quality of the incoming wastewater.
• Water tariff: 0.4 VND/m3.

VI. Investment Incentives in Chan Hung Industrial Park – Phu Tho province

Corporate income tax:

• Phu Tho has implemented a corporate income tax rate of 10% for a period of 15 years for high-tech enterprises.
• This also applies to income tax from newly invested projects in research and development fields.
• The authorities apply a corporate income tax rate of approximately 22% to other enterprises.
• Tax exemptions and reductions are available for 2 to 4 years, and a 50% reduction in tax payment is offered for 4 to 9 subsequent years, depending on the industry of the registered investment project.

Land and water rental exemptions and reductions:

• As regulated by the law, the approved project exempts land and water rental fees for a maximum of 3 years from the date of lease approval during the basic construction period.
• After the basic construction period, there is a waiver of land and water rental fees for 11 years.
• The industrial park also applies a support policy for land clearance, with compensation not exceeding 15% based on the compensation plan and 100% funding in case of compulsory acquisition.

VII. Labor Source and Costs in Chan Hung Industrial Park – Phu Tho province

Labor source:

• Population of Phu Tho province: 1,151,154 people (according to the 2019 population and housing census).
• The workforce in Phu Tho is abundant, accounting for approximately 70% of the total population.
• The proportion of trained workers with degrees and certifications is 65%.

Costs:

• The Industrial Park is located in Chan Hung commune, Vinh Tuong district, Phu Tho province, belonging to Zone II.
• Therefore, the minimum wage in Zone II is currently 3,920,000 VND per month.