Chan May - Lang Co Economic Zone

I. Overview of Chan May – Lang Co Economic Zone:

The Chan May – Lang Co Economic Zone is situated at the midpoint between two major economic and cultural centers of Central Vietnam: Hue City and Da Nang City. It is part of the Central Key Economic Region in Vietnam.

Chan May Economic Zone is the only coastal area located between these two significant cities in Central Vietnam. The deep-water port of Chan May serves as the nearest gateway to the East Sea along the East-West Economic Corridor.

The economic zone is also the center of the “Central Heritage Road.” Within a radius of 200 km, visitors can access four world heritage sites in Vietnam, including Phong Nha – Ke Bang, Hue Ancient Capital, Hoi An Ancient Town, and My Son Sanctuary, along with thousands of cultural and historical relics and ancient architectural structures.

Lang Co Bay has been recognized as one of the 30 most beautiful bays in the world. Along with other beaches in Da Nang and Hoi An, Lang Co Beach forms a chain of stunning beaches in Central Vietnam, offering a true paradise for domestic and international tourists.

II. Geographical Location:

Spanning over 27,108 hectares, the Chan May – Lang Co Economic Zone encompasses Lang Co Town, as well as various communes, including Loc Thuy, Loc Tien, and Loc Vinh, which are part of Phu Loc district in Thua Thien Hue province. Vietnam

Connectivity:

• Road and rail: It is connected by National Highway 1A and the North-South Railway passing through the economic zone.
• Water transportation (sea and river): It has the Chan May deep-water port.
• Air transportation: It is approximately 45 km away from Phu Bai International Airport and around 35 km from Da Nang International Airport.

Main Functional Zones:

• Industrial Zone: 1,915 hectares.
• Tax-Free Zone: 1,080 hectares.
• Urban Zone: 2,096 hectares.
• Tourism Zone: 4,250 hectares.
• Port Zone: 668.5 hectares.

Chan May Port:

Chan May Port is a comprehensive port with container terminals and specialized terminals to serve international tourists. It has the capacity to handle ships of 3,000 to 5,000 DWT for cargo and passenger vessels of up to 10,000 GRT.

Chan May Port is an important marine transportation hub, providing deep-water port services and cargo distribution in the Central Key Economic Region. It serves as a gateway to the East Sea for the East-West Economic Corridor and the expanding Greater Mekong Subregion.

By 2030, the port area is expected to cover 668.5 hectares, including 442 hectares of land and 226.5 hectares of water surface. It will have eight general cargo terminals with a total length of 2,280 meters, one specialized oil terminal with a length of 240 meters, and one terminal for 100,000 GRT passenger ships.

The estimated cargo volume through Chan May Port by 2030 is 10 million tons, with approximately 550,000 passengers, including 300,000 domestic and 250,000 international passengers.

III. Infrastructure of the Chan May – Lang Co Economic Zone:

Power supply system:

• The economic zone is supplied with electricity from the 500/220/110KV power grid station in Da Nang.
• Currently, the economic zone has completed 3 110/22kV transformer stations with a total capacity of 75MVA.
• The distribution network provides sufficient electricity for production and daily life in the Chan May and Lang Co areas.

Water supply and drainage system:

• The economic zone receives water supply from the Bo Ghe Water Plant with a capacity of 8,000 m3/day.
• The water supply pipeline system, spanning over 20km, consists of pipelines with diameters ranging from D100 to D450. This system efficiently meets the water demand for production, business, and daily life in the present time.
• In the next phase, there will be an investment in the construction of the Loc Thuy Water Plant with a capacity of 110,000 m3/day.

Wastewater and waste treatment system:

• There is a wastewater treatment plant in Lang Co. It has a capacity of 5,000 m3 per day. Additionally, there is a solid waste treatment plant located on the eastern side of the Phuoc Tuong Pass. This plant covers an area of 30 hectares.
• Currently, the Management Board of the Economic and Industrial Zone is implementing the construction of Phase 1 of the second wastewater treatment plant for the industrial and non-tariff zones, with a capacity of 4,900 m3/day, to treat wastewater from projects in these areas. It is expected to be completed in 2018 for operation.

Telecommunications and internet system:

• Switching system: The Chan May area currently utilizes 2 Host-ERICSSON switchboards with 6 satellites.
• The total installed capacity is 9216 lines, with 6605 lines in use. There is an ongoing upgrade to two ALCATEL 1000E10MM switchboards with multimedia and multiservice capabilities.

Firefighting system:

There is a Firefighting Police station within the economic zone equipped with fire trucks and fire hydrants.

Internal transportation:

• As per the master plan, the authorities have completed the main transportation routes within the economic zone. These routes cover over 100 km of roads and fulfill the internal transportation requirements of the zone. Additionally, they provide connectivity to National Highway 1A and other regions through the Chan May port.

Social amenities:

• Construction is currently underway for various infrastructure facilities to meet the needs of workers and investors. These facilities include hospitals, resettlement areas, tourist areas, hotels, restaurants, banks, post offices, markets, and supermarkets.

IV. Attracting investment sectors of Chan May – Lang Co Economic Zone:

• Clean industrial projects, high technology, environmentally friendly.
• Supporting industrial projects in sectors such as textile, electronics, healthcare, and automobile manufacturing.

V. Investment incentives of Chan May – Lang Co Economic Zone:

In accordance with the Investment Law, Corporate Income Tax Law, and other tax regulations, investment projects in the Chan May – Lang Co Economic Zone are entitled to incentives that apply to regions with challenging socio-economic conditions.

• The corporate income tax rate of 10% will be applied for 15 years from the commencement of the project.
• Exempt from corporate income tax for four years from the first taxable income and a 50% reduction for the following nine years.
• High-income individuals, both Vietnamese and foreigners, also enjoy a 50% tax reduction.
• In addition to the incentives stipulated in the General Regulations of the Chan May – Lang Co Economic Zone, projects in high-tech sectors as defined by the State are eligible for incentives. Furthermore, projects of significant importance to the regional development and projects investing in construction and business operations within the duty-free zone and Chan May port will also benefit. These projects will enjoy a corporate income tax rate of 10% throughout the project implementation period.
• May port are eligible for a 10% corporate income tax rate throughout the project implementation period.

VI. Investment situation of Chan May – Lang Co Economic Zone:

As of January 2020, the Chan May – Lang Co Economic Zone had a total of 46 investment projects. These projects had a combined registered capital of 79,017 billion VND, according to the report by the Management Board of the Economic and Industrial Zone of Thua Thien Hue province.

• Saigon – Hue Investment Corporation is undertaking the construction of the infrastructure for the Saigon – Chan May Industrial Zone and Non-tariff Zone. The project has a registered investment capital of 2,583 billion VND. The project covers an approximate land area of 657 hectares.
• The Minh Vien – Lang Co International Tourist Area project, invested by Minh Vien International Joint Stock Company, has a total investment of 368 million USD. An area of 102 hectares is dedicated to the development of the project.
• Bach Viet Automobile Manufacturing Joint Stock Company is expected to commence the Automobile Production and Assembly Complex project in July 2020. The total capital for the project is 2,655 billion VND.

VII. Labor force and labor costs:

Human resources in the region:

• Population: The population of the Economic Zone is approximately 40,000 people, with around 27,000 people in the working age group, accounting for 65% of the population.

Labor from neighboring areas:

• Within a radius of 20km, taking the Economic Zone as the center, there are about 16 communes with a total of nearly 80,000 people in the working age group.
• Within a radius of 30km, there are about 25 communes with a total of 120,000 people in the working age group.
• The Chan May – Lang Co Economic Zone is located between Hue City and Da Nang City in Central Vietnam. It serves as a strategic area for labor training with a combined population of around 2 million people. Within this population, approximately 1.1 – 1.3 million individuals are of working age.
• Educational institutions: Thua Thien Hue province has 9 universities and 1 academy, 6 colleges, 7 vocational schools, and numerous other vocational training facilities.
• Currently, the Economic Zone is calling for investment in the construction of the Chan May Technical Workers’ School, with a capacity of 500 students per year.

Labor costs:

• The minimum wage is 3.09 million VND per month.
• For general labor, the salary ranges from 4.5 to 5.5 million VND per month.
• Skilled labor receives a salary of 6 to 8 million VND per month.
• Management labor earns between 8 and 12 million VND per month.
• Overtime costs: According to general regulations
• Social insurance: 25% (Employers contribute 17% included in the costs; Employees contribute 8%)
• Health insurance: 4.5% (Employers: 3%, Employees: 1.5%)
• Unemployment insurance: 2% (Employers: 1%, Employees: 1%)