Dinh Huong - Tay Bac Ga Industrial Park

Overview of Dinh Huong – Tay Bac Ga Industrial Park:

The Chairman of the Provincial People’s Committee established Dinh Huong – Tay Bac Ga Industrial Park in Thanh Hoa province under Decision No. 913/QD-UBND.

Dinh Huong – Tay Bac Ga Industrial Park was formed by merging Tay Bac Ga Industrial Park with Dinh Huong Industrial Park, and it encompasses lots CH1, CN27, and KH3 for advanced quartz electronic chip factories.

The Nghi Son Economic Zone Management Board and other industrial park management boards are responsible for managing the The Industrial Park, which currently occupies an adjusted area of 202.57 hectares with an occupancy rate of over 90%.

The Industrial Park has attracted 250 investment projects, of which 202 projects have completed the investment process and are in operation.

Geographical location:

The industrial park is located in Dong Tho Ward, Thanh Hoa City, Thanh Hoa province.

Situated in the northern part of Thanh Hoa City, near National Highway 1A and close to the city center, the industrial park benefits from convenient transportation, which is one of its investment advantages.

Industrial park scale: 176.03 hectares, including:

Tay Bac Ga Industrial Park (Phase 1 + Phase 2): 133.85 hectares.

• Phase 1: 84.3 hectares – Fully occupied.
• Phase 2: 49.55 hectares – Developed and operated by Phuc Hung Architecture Joint Stock Company.

Dinh Huong Industrial Park: 28.85 hectares – Fully occupied.

The remaining area includes lots CH1, CN27, KH3, and a high-quality quartz electronic chip factory (owned by Binh Minh Construction and Building Materials Production Limited Liability Company).

Infrastructure of Dinh Huong – Tay Bac Ga Industrial Park:

Internal transportation

Main roads and branch roads divide the internal transportation system:

• The main road system is 21m wide.
• The branch road system is 16m wide.

The industrial park is connected to National Highway 1A and the North-South Expressway.

Electricity system

• Electricity is supplied from the national power grid, meeting all necessary requirements for the operation of businesses within the industrial park.

Public lighting system

• The street lighting network is designed separately with a power supply system along the traffic routes.

Water system

• The Tay Bac Ga Water Supply Company directly supplies water with a capacity of 8,400m3/day.

Wastewater and rainwater drainage system

• The roads arrange the system and centralize it to the treatment station of the industrial park.
• The wastewater drainage pipes have a diameter of D600mm-D800mm, and it is an automatic drainage system.

Waste management

• Solid waste from factories is classified, collected, and transferred to designated disposal sites according to the town’s regulations.

Wastewater treatment

• Wastewater from factories in the industrial park is immediately classified at the factories and centralized at the central treatment area of Tay Bac Ga Industrial Park.

Communication system

• The industrial park meets the demand for telephone subscriptions, broadband ADSL, and fiber optic cables.

Investment-attracting industries of Dinh Huong – Tay Bac Ga Industrial Park:

• Agriculture and forestry processing industry
• Household appliance manufacturing, handicrafts
• Machinery assembly, repair, high technology
• Textile and packaging industry

Investment situation:

As of 2018, the industrial park has attracted 253 investment projects, including:

• 248 domestic investment projects with a total registered capital of 3,553 billion VND.
• 5 foreign investment projects with a total registered capital of 13.77 million USD.

There are 202 projects that have completed investment procedures and are in operation, mainly small and medium-sized enterprises engaged in production and business in sectors such as garment, steel processing, construction materials, and warehousing.

The total annual production value of the enterprises in the industrial park reaches about 5,000 billion VND, providing employment for over 7,000 workers.

Tax incentives of Dinh Huong – Tay Bac Ga Industrial Park:

• Newly established enterprises in the industrial park with high-tech projects according to legal regulations, and software projects, benefit from a tax rate of 10% for 15 years, with a tax exemption for 4 years and a 50% reduction for the following 9 years.
• For large-scale high-tech projects that require investment attraction, the application period for the 10% preferential tax rate may be extended but not exceeding 30 years. After the incentive period, the corporate income tax rate applied is 25%.

Labor resources and costs:

Labor resources:

• Thanh Hoa has the third largest population in the country and a developed training system, thus meeting the demand for both quantity and quality of investors.
• Abundant and cost-effective labor resources.

The expenses associated with labor:

• The location of The Industrial Park is in Thanh Hoa City, which falls under Zone III.
• As a result, the prevailing minimum wage in Zone III stands at 3,430,000 VND per month.