Diem Thuy Industrial Park - Thai Nguyen

I. Overview of Diem Thuy Industrial Park – Thai Nguyen:

The Diem Thuy Industrial Park – Thai Nguyen was approved by the Prime Minister in Document No. 1854/TTg-KTN dated October 8, 2009, regarding the adjustment and supplementation of industrial zones in Thai Nguyen province until 2015 and the orientation towards 2020.

The total planned area of the industrial zone is 350 hectares.

The Diem Thuy Industrial Park is divided into two zones: Diem Thuy Industrial Park – Zone A and Diem Thuy Industrial Park – Zone B.

Zone A:

• The investor is the Management Board of Thai Nguyen provincial industrial zones.
• The area is 180 hectares, currently being adjusted to 191.1 hectares.
• It has been approved for detailed construction planning at a 1/500 scale in Decision No. 1084/QD-UBND dated May 18, 2009.
• The Thai Nguyen Provincial People’s Committee assigned the Management Board of Thai Nguyen provincial industrial zones as the investor in 2011, and the project officially started in 2012.
• The total investment capital is over 1,400 billion VND, and the project’s operating period is from 2011 to 2061.

Currently, Diem Thuy Industrial Zone A has fully leased out 100% of its total area to more than 60 investment projects, mainly from South Korea and Vietnam, with a total registered investment capital of over 600 million USD.

Some notable projects include:

• The medical equipment and dental instrument production project of Mani Hanoi Co., Ltd. (Vietnam).
• The production project of television frames and OLED screens by ALK Vina Joint Stock Company (South Korea).
• The metal plating and coating project of Myungjin Electronic Vina Co., Ltd. (South Korea).

Zone B:

• Planned area: 170 hectares, of which the industrial land for lease is 111.2958 hectares (accounting for 63.49%).
• Investor: Asia-Pacific Investment Corporation (now APEC Thai Nguyen Investment Joint Stock Company).
• The Management Board of Thai Nguyen provincial industrial zones issued the first investment certificate on June 4, 2009, with a 50-year operating period from the approval of the investment certificate. It was further extended on December 19, 2014, according to the Certificate of Investment Registration No. 17203100013.
• It has been approved for detailed construction planning in Decision No. 1084/QD-UBND dated May 18, 2009, and the adjusted detailed construction planning in Decision No. 250/QD-UBND dated January 21, 2020, by the Thai Nguyen Provincial People’s Committee.

Although it received investment approval in 2009 and an extension in 2014, Diem Thuy Industrial Zone B has only completed about one-third of the total industrial zone area in terms of land clearance. Furthermore, as of 2021, according to the Government Inspectorate’s conclusion, the project is delayed by 75 months based on the approved investment certificate and is being recommended for revocation.

Within the industrial zone, only 3-4 projects are currently operational, including:

• The electronic component manufacturing project of Young Jin Hi-Tech Vietnam Co., Ltd.
• The production and processing project of cable harnesses for automobiles by UJU Vina Thai Nguyen Co., Ltd.

Industrial Development with Services

Diem Thuy Industrial-Service Park is a model that combines industrial development with services, ensuring the sustainable development of the industrial zone and creating synchronization in terms of infrastructure. Therefore, in addition to the functional area for industrial production, there are also other functional areas such as service zones that can operate various types of businesses: restaurants, cafes, daycare centers, gyms, spas, saunas, and parks and landscape lakes to create a high-class living and working environment for foreign experts, high-level managers, and workers.

From construction to operation, Diem Thuy Industrial Park always operates with a modern and advanced model, striving to become the concentrated industrial zone of the province.

II. Geographical Location of Diem Thuy Industrial Zone – Thai Nguyen:

Zone A:

Location: Diem Thuy Industrial Park – Zone A is located in Phu Binh and Pho Yen districts, Thai Nguyen Province.

• Regarding regional connectivity, Diem Thuy Industrial Zone A is adjacent to the Hanoi – Thai Nguyen expressway.
• The distance from Song Cong city center is 7 km, and from Pho Yen city is 9 km.
• 16 km from Thai Nguyen city.
• 65 km from Hanoi city center.
• Noi Bai International Airport is located 39 km away.
• 166 km from Hai Phong port.

Zone B:

Location: Diem Thuy commune, Thuong Dinh commune in Phu Binh district, and Hong Tien commune in Pho Yen district, Thai Nguyen province.

Boundaries:

• North: adjacent to canal N17 in Thuong Dinh commune.
• East: adjacent to the Cau River in Nha Long commune, Xuan Phuong.
• South: adjacent to the boundary of industrial zone planning, Yen Binh urban area.
• West: adjacent to the Hanoi – Thai Nguyen railway and National Highway 3.

Regarding regional connectivity:

Diem Thuy Industrial Park – Zone B is located adjacent to provincial road DT266, directly connected to National Highway 37 and DT252, and:

• 5.5 km from Song Cong city center; 15 km from Thai Nguyen city.
• 68 km from Hanoi city center.
• Noi Bai International Airport is located 41 kilometers away.
• 168 km from Hai Phong port.
• 5 km from Da Phuc River port.
• 7 km from Samsung Thai Nguyen factory.
• Approximately 1.3 km from the intersection of Hanoi-Thai Nguyen expressway.

With the advantages of the above-mentioned location, Diem Thuy Industrial Park has convenient transportation, easy connectivity, and is very suitable for investors to choose as a location for factories and workshops.

III. Infrastructure of Diem Thuy Industrial Park – Thai Nguyen:

Internal transportation:

• The industrial zone has a modern transportation system with roads paved with Asphalt designed according to Vietnamese standards.
• The main axis has 4 lanes, each 41 meters wide, while internal roads have 2 lanes with widths ranging from 19.5 to 36 meters.

Power system:

• The power supply is stable, with a 35kV power source installed along the industrial zone road and connected to factories, ensuring a highly stable power supply to meet the needs of businesses.
• The power production capacity is 3000KW/ha.

Public lighting system:

• The street lighting network is independently designed, with a power supply system strategically placed along the traffic routes.

Water system:

• The water supply and drainage system is placed underground along the road, with a capacity of 20,000m3/day sourced from the Song Cong Water Plant, located 1km away from the industrial park.
• The water pipes have a diameter of 100-200mm, ensuring an adequate water supply for factories and workshops within the industrial zone.

Wastewater and rainwater drainage system:

• The underground drainage system is installed along the roads with manholes to ensure effective drainage in the industrial zone, preventing flooding.

Waste management:

• The investor will sign service contracts with professional waste management units.
• Currently, the environmental sanitation factory in Thai Nguyen province is responsible for this.

Wastewater treatment:

• The industrial park invests in wastewater treatment facilities with a capacity of 5,000m3/day and night.
• In phase 1, the capacity is 2,200m3/day and night, ensuring that the wastewater from businesses meets the prescribed environmental standards.
• The wastewater collection system is also constructed and designed along the road routes.

Communication system:

• The industrial park is connected to the provincial Post and Telecommunication network.
• The modern communication system with a wide bandwidth and high-speed connectivity equips it, ensuring uninterrupted domestic and international communication.

IV. Investment-attracting industries in Diem Thuy Industrial Park – Thai Nguyen:

Diem Thuy Industrial Zone aims to attract foreign investors in various industries such as:

• Mechanical engineering, automobile manufacturing
• Production of automobile spare parts and assembly
• Steel refining and production
• Manufacturing of electronics, information technology products
• Light industrial product groups with low toxicity
• Production of high-quality construction materials
• Processing of agricultural, forestry, and aquatic products

V. Investment Costs:

• Infrastructure rental fee: $100 USD per square meter for the entire lease term. The unit price varies depending on the area and location of the leased land.
• Management and maintenance fee for infrastructure: $0.3 USD per square meter per year.
• Land rental fee: Applied according to the land price table announced by the Thai Nguyen Provincial People’s Committee at each specific time, with a maximum exemption of 11 years as decided by the Provincial People’s Committee.
• Electricity tariff: Applied according to the electricity tariff schedule of EVN (0.042 – 0.12 VND/Kwh).
• Water tariff: $0.55 USD per cubic meter, the unit price may vary according to the decision of the Thai Nguyen Provincial People’s Committee.
• Wastewater treatment fee: 0.34 VND per cubic meter, calculated based on 80% of the clean water usage.

VI. Investment Incentives at Diem Thuy Industrial Park – Thai Nguyen:

Corporate income tax incentives:

• For the first 10 years of the project, the project applies a preferential corporate income tax rate of 17%.
• In addition, 100% exemption of the payable Corporate Income Tax (CIT) for the first 2 years and a 50% reduction of the payable CIT for the following 4 years.

Import tax incentives:

• Import tax exemption for goods on the list of preferential tax items, imported to establish fixed assets for the enterprise.

Land rental fee incentives:

• Maximum exemption of land rental fee for 11 years as decided by the Thai Nguyen Provincial People’s Committee.

VII. Labor Source and Costs at Diem Thuy Industrial Park – Thai Nguyen:

Labor source:

• The province/district where the Industrial Zone is located, namely Pho Yen town and Phu Binh district, has a working-age population of 310,715 people, constituting the number of laborers.
• Labor force training institutions: including 7 universities: Industrial University, Medical University, Pedagogical University, Agricultural and Forestry University, …
• In addition, there are 10 colleges and more than 35 secondary schools with vocational training programs.
• 8 technical worker training schools provide 25,000 laborers annually.

Costs:

• Diem Thuy Industrial Zone is located in Phu Binh district and Pho Yen city, Thai Nguyen province, belonging to Zone III.
• Hence, the present monthly minimum wage in Zone III amounts to 3,430,000 VND.