Dai Dong Hoan Son Industrial Park Phase II - Bac Ninh

Dai Dong Hoan Son Industrial Park Phase II, Bac Ninh, established in 2020, covers 95,81 hectares, with 486 billion VND invested by Saigon Telecommunications Technology Corporation. It attracts major companies, operates in Northern Vietnam’s key economic triangle, and supports Bac Ninh’s transformation into a modern industrial city, driving regional development and prosperity.

I. Overview of Dai Dong Hoan Son Industrial Park Phase II – Bac Ninh:

Information about the industrial park:

On January 20, 2020, the People’s Committee of Bac Ninh province issued Decision No. 15/QD-UBND to establish the Dai Dong-Hoan Son Industrial Park, Phase II, with an area of 95,81 hectares. Saigon Telecommunications Technology Corporation is actively constructing and developing the infrastructure to attract investments for Phase II of this industrial park, with a total investment capital of 486 billion Vietnamese Dong across the 95,81-hectare area in Hoan Son, Phat Tich, and Tri Phuong communes of Tien Du district, Bac Ninh province.

The Dai Dong-Hoan Son Industrial Park is one of the significant projects in Bac Ninh province, offering exceptional potential for economic development in the region. According to the decision of Bac Ninh province, the total investment capital for this project is 1,097 trillion Vietnamese Dong. The industrial park will operate for 50 years, starting from the date of the first investment certificate issuance on June 14, 2010.

Investment situation:

The Industrial Park has attracted attention and investments from renowned companies such as Hayakawa, Tabuchi, Cedo, Daisen, Maeda Kosen, UMW, YG Tech, Framas, Better Resin, Seojin, and more. These projects contribute to creating a vibrant and sustainable business environment in the area.

With a planned total area of 400 hectares, the Dai Dong-Hoan Son Industrial Park has successfully implemented Phase I on a 272-hectare site, providing a solid foundation for future development. This industrial park not only serves as a strong magnet for investment but also combines residential and service areas within the Dai Dong-Hoan Son community, fostering comprehensive and rapid development in the region.

Located in the key economic triangle of Northern Vietnam, encompassing Hanoi, Hai Phong, and Quang Ninh, the Dai Dong-Hoan Son Industrial Park plays a crucial role in the economic development and investment attraction of Bac Ninh province. Managed by the People’s Committee of Bac Ninh province, this industrial park continues to actively contribute to the province’s goal of building a modern and sustainable industrial city.

In addition, the second phase of Dai Dong Hoan Son Industrial Park also brings significant benefits to the local area by creating employment opportunities, contributing to the local budget, and promoting the economic development of Bac Ninh.

The second phase of Dai Dong Hoan Son Industrial Park in Bac Ninh is an attractive and promising project, promising to bring development and prosperity to the region and the invested businesses.

Master plan map of Dai Dong Hoan Son Industrial Park Phase II – TTTFIC Group

II. Geographic Location of Dai Dong Hoan Son Industrial Park Phase II – Bac Ninh:

Location: Hoan Son, Phat Tich, and Tri Phuong communes of Tien Du district, Bac Ninh province, Vietnam.

Dai Dong Hoan Son Industrial Park enjoys a prime location at the junction of the Hanoi-Lang Son Expressway and Provincial Road 295, providing a strategic advantage. Its advantageous location provides easy access to key transportation routes and major economic hubs.

•  Approximately 26km from Hanoi.
•  Approximately 45km from Noi Bai International Airport.
• Approximately 135km from Cai Lan Port (Quang Ninh).
•  Approximately 130km from the Vietnam-China border gate (Lang Son).
•  Approximately 127km from Hai Phong Port.
• Approximately 4km from Tu Son Railway Station.
•  Approximately 7km from Lim Railway Station.
• Approximately 14km from Bac Ninh Railway Station.
• Approximately 3km from National Highway 1A.

Dai Dong Hoan Son Industrial Park is a modern and comprehensive investment destination that takes advantage of the region’s abundant resources and skilled workforce. The park focuses on hosting clean, non-toxic, and environmentally-friendly industries, contributing to sustainable development in the area.

III. Infrastructure at The Industrial Park:

Internal transportation:

• The central road axis spans 34 meters, divided into 4 lanes.
• The main road axis spans 23 meters, divided into 2 lanes.
• The secondary road axis spans 21,5 meters, divided into 2 lanes.

Electricity system:

The park is equipped with a 110kV high-voltage substation and a dedicated 22kV power line to cater to the electricity needs of businesses operating within the park.

Public lighting system:

The street lighting network operates independently with a dedicated power supply system, ensuring illumination along the traffic routes.

Water system:

• A water treatment plant with a capacity of 5.000m3/day is available.
• The water supplied in the industrial park meets the health standards set by the Ministry of Health (TC505/BYT).
• Additionally, businesses can tap into groundwater as an alternative water source to optimize costs.

Wastewater and rainwater drainage system:

• The wastewater and rainwater drainage systems are implemented separately.
• Factories treat wastewater locally according to the latest standards before discharging it into the common wastewater drainage system of the industrial park.
• The treated wastewater then flows into the centralized wastewater treatment plant.
• Moreover, rainwater, with a minimum slope of 0,05%, naturally drains through the water collection pipes installed along the roads within the industrial park.
• The collected rainwater is directed towards the main drainage system, flowing into the central discharge outlets and irrigation channels within the park.

Waste management:

Solid waste from factories is properly classified, collected, and transported to centralized landfill sites in accordance with municipal regulations.

Wastewater treatment:

• The park has a wastewater treatment plant with a capacity of 2.500m3/day, meeting international standards.
• Covering an area of 2,1 hectares, the wastewater treatment plant is situated adjacent to the irrigation channel area, ensuring compliance with technical requirements for sanitation distance and wind direction.
• Businesses discharge their wastewater through reinforced concrete centrifugal pipes (Ø400) to the wastewater treatment plant within the industrial park.
• The treated wastewater is then released into the city’s wastewater drainage system.

Communication system:

A modern telecommunications and communication system, meeting international standards, is in place, facilitating efficient and reliable communication both domestically and internationally.

Fire protection system:

Firefighting stations are strategically located along the roads within the industrial park, with a distance of 100-150 meters between each station.

Greenery and public facilities:

Greenery and public facilities cover 15-30% of the total land area of the industrial park, creating a harmonious and pleasant environment.

A perspective on Dai Dong Hoan Son Industrial Park Phase II – TTTFIC Group

IV. Key Industries at Dai Dong Hoan Son Industrial Park Phase II – Bac Ninh:

Dai Dong Hoan Son Industrial Park, in Bac Ninh, attracts various prominent industries, including:

– High-tech industries
– Electronics and refrigeration components
– Mechanical engineering, manufacturing, and assembly
– Supporting industries
– Other light industries with low pollution and toxicity.

V. Investment Costs in the Industrial Park:

• Land lease cost: $100 USD/m2
• Infrastructure management and maintenance fee: $0,35 USD/m²/year (excluding VAT)
• Annual land rent: Determined by the People’s Committee of Bac Ninh Province
• Factory rental: $3,6 USD/m2
• Clean water supply price: Determined by the service provider (approximately $0,52 USD/m3)
• Electricity supply price: Based on EVN’s electricity pricing table (ranging from $0,043 USD – $0,12 USD/kWh)
• Wastewater treatment fee: $0,48 USD/m3 (including VAT)
• Inlet treatment standard: Standard B according to Vietnamese standards – QCVN 40:2011/BTNMT
• Outlet treatment standard: Standard A according to Vietnamese standards

VI. Labor Source and Costs at The Industrial Park:

Labor source:

• Population of Bac Ninh Province: 1.100.000 people, including:
• Rural area: 76,5%
• Urban area: 23,5%
• Working-age population: 60%
• Population of Bac Giang Province: 1.600.000 people
• Working-age population: 57%

Wage levels (reference data, subject to variation depending on each enterprise):

• 1.040.000 VND/person/month (~ $57 USD)
• Actual average wage: $80-90 USD/person/month
• Engineers/office staff: $200-250 USD/person/month
• Management staff: $300-350 USD/person/month

Labor costs:

• Dai Dong Hoan Son Industrial Park is located in Tien Du District and Tu Son District, Bac Ninh Province, falling under Zone II.
• In Zone II, the prevailing minimum wage is 3.920.000 VND per month.

VII. Investment Incentives in the Industrial Park:

Corporate Income Tax Incentives:

• Preferential tax rate of 10% for 15 years applies to newly established enterprises from investment projects in the following sectors:
• High technology as regulated by the law; Scientific research and technological development
• Investing in water plants and the development of water supply and drainage systems.
• Software production
• Exempt from tax for 4 years and 50% reduction of payable taxes for the following 9 years.
• Newly established enterprises operating in socialized sectors (determined by the Prime Minister) such as education, training, healthcare, culture, sports, and environment enjoy a preferential tax rate of 10% for the entire duration of their operation.
• Exempt from tax for 4 years and 50% reduction of payable taxes for the following 5 years.

The application period for preferential tax rates and tax exemption/reduction is as follows:

• The application period for preferential tax rates is calculated continuously from the first year of revenue from eligible tax incentives activities.
• The application period for tax exemption/reduction is calculated continuously from the first year of taxable income from the investment project.

Tax reduction in other cases:

• Enterprises engaged in manufacturing, construction, and transportation that employ a significant number of female workers can receive corporate income tax reduction based on the additional expenses incurred for female workers, including:
• Expenses for retraining, health examinations within the year, and postnatal training for female workers.
• The allocation of up to 10% of the enterprise’s revenue to the science and technology development fund, according to Article 17 of the Corporate Income Tax Law.

Import Tax Exemption:

• Import tax exemption applies to equipment, machinery (including accompanying spare parts), specialized transportation vehicles used in the technological process, and domestically unproduced construction materials.
• Special encouraged investment projects, component manufacturing projects, mechanical, electrical, and electronic spare parts are exempt from import tax on raw materials for the first 5 years of production and business.
• Imported materials, spare parts, and supplies for manufacturing goods for export.

VAT Exemption:

• Imported equipment, machinery, and specialized vehicles used in the technological process that are not domestically produced are eligible for VAT exemption.
• VAT exemption applies to imported raw materials for production, processing, and export goods under production contracts, processing, and export contracts signed with foreign partners; goods and services traded between foreign countries and non-tax zones, and between non-tax zones.

Repatriation of Profit Tax:

Tax rate: 0%

Land Lease Fee Exemption and Reduction Incentives:

Service-oriented projects in the industrial park are eligible for a 7.

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