Do Son Industrial Zone - Hai Phong

The Do Son Industrial Zone in Hai Phong, Vietnam, is situated in the southeast part of the city of Hai Phong, the largest port city in the northern region. It serves as a crucial transportation hub in the Northern Key Economic Region and ranks as one of the five centrally administered cities in Vietnam. Do Son plays a pivotal role in the economic, social, and national security aspects of the Northern Key Economic Region and the entire country.

Spanning a total area of 150 hectares, the Do Son Industrial Zone officially commenced its infrastructure development on May 13, 2004. Over time, it has attracted nearly 50 investors, both large and small, hailing from various countries such as the United States, Japan, South Korea, China, Taiwan, Hong Kong, and Vietnam. These investments primarily focus on constructing factories and have drawn thousands of local and nearby provinces’ labor force. Currently, the occupancy rate of Do Son Industrial Zone has exceeded 90%.

I. Overview of Do Son Industrial Zone – Hai Phong

Key information about the Do Son Industrial Zone

The Do Son Industrial Zone was established under License No. 1953/GP issued by the Ministry of Planning and Investment on June 26, 1997. It officially commenced operations on May 13, 2004, with its first phase covering an area of 150 hectares, including 100 hectares designated for industrial purposes and 50 hectares for high-tech industries.

The precursor to the Do Son Industrial Zone was the Hai Phong Export Processing Zone 96, established on June 26, 2007, under License No. 1935/GP and amended License No. 1935/GPĐC1 on January 9, 2006, granted by the Ministry of Planning and Investment. It was established through a joint venture between Hang Tung Group, Asia Glorius Development Limited (Hong Kong), and the city of Hai Phong.

The Do Son Industrial Zone is the only industrial zone in northern Vietnam with investment capital from Hong Kong. It boasts comprehensive and modern infrastructure, providing complete technical facilities for businesses within the industrial zone. Consequently, it has attracted numerous foreign investors. Currently, the industrial zone is home to more than 50 companies from the United States, Japan, South Korea, China, Hong Kong, Taiwan, and Vietnam.

Information about the investor

The investor of the Do Son Industrial Zone is the Joint Venture Company of Do Son Hai Phong Industrial Zone, formed through a partnership between Asia Glorious Development Limited (Hong Kong) and the People’s Committee of Hai Phong. The total investment capital for the industrial zone is USD 75 million, with Hong Kong contributing 70% and Vietnam contributing 30%.

Main office address: Ngoc Xuyen Ward, Do Son District, Hai Phong, Vietnam.

The Joint Venture Company of Do Son Hai Phong Industrial Zone was established under Investment License No. 1935/GP issued by the Ministry of Planning and Investment on June 26, 1997, and amended License No. 1935/GPĐC1 on January 9, 2006.

This joint venture company was proposed by the Hai Phong City People’s Committee to the Prime Minister for permission to establish the project for infrastructure development of the Do Son Industrial Zone, covering a total area of 150 hectares in Tan Thanh Ward, Duong Kinh District, and Ngoc Xuyen Ward, Do Son District, Hai Phong City.

The company’s primary objectives include participating in investment promotion for the planned development of the industrial zone, constructing technical infrastructure, public utilities, standard workshops, and offering developed infrastructure plots for lease to investors within the industrial zone. Additionally, it is involved in providing warehouse and storage services within the industrial zone.

II. Geographical location of Do Son Industrial Zone – Hai Phong

Do Son Industrial Zone is located in the southeast part of the city, adjacent to Ngoc Xuyen Ward, Do Son District, Hai Phong City, Vietnam.

It serves as an important transportation hub in the key economic region of Northern Vietnam, contributing to the economic and social development as well as national security of the region.

The industrial park is connected to the DT353 road, providing easy access to the city center and other key locations:

• 16 km from the city center of Hai Phong.
• 18 km from Dinh Vu Port, 29 km from Lach Huyen Deep-water Port, and 6 km from Hai Phong Port.
• 5 km from the Hanoi – Hai Phong Expressway.
• 120 km from Hanoi City.
• 135 km from Noi Bai International Airport and 3,6 km from Cat Bi International Airport.
• 14km from Hai Phong Train Station.

III. Infrastructure of Do Son Industrial Zone – Hai Phong

Internal transportation:

The roads within the industrial park are all paved with concrete, complying with Vietnamese standards. They include:

• Main road width: 34m.
• Branch road width: 21,5m.

Electricity system:

There is a separate 110kV high-voltage substation and a 22kV power line to serve the electricity needs of businesses.

Water system:

• The water supply in the industrial park is provided by the He River water plant with a capacity of 10.000m3/day and night.
• The water quality meets the TC505/BYT standards set by the Ministry of Health.
• Businesses can also save costs by using groundwater.

Wastewater and stormwater system:

• The wastewater and stormwater systems are built separately.
• Stormwater is collected through drainage systems and discharged into rivers in the area.

Waste treatment:

• The municipal solid waste treatment plant will provide services for collecting both industrial and household waste.
• Each business is responsible for treating its own waste.

Wastewater treatment:

• The industrial park’s wastewater treatment plant, with a capacity of 1.200m3/day and night, treats wastewater in compliance with international standards.
• A reinforced concrete pipe with a diameter of 400mm transports the wastewater from businesses to the industrial park’s wastewater treatment plant.
• After treatment at the industrial park’s facility, the wastewater is discharged into the city’s wastewater system.

Communication system:

There is a modern communication system in place, providing comprehensive postal and telecommunication services.

IV. Industries attracting investment of Do Son Industrial Zone – Hai Phong

Do Son Industrial Zone primarily focuses on encouraging investments in high-tech industries and clean industries such as:

• Electronic equipment
• Biotechnology products related to marine life
• Tourism
• Technology, art, cosmetics
• Sporting goods
• Traditional medicine, oriental medicine, and medical machinery
• Food, clean food, seafood
• Agricultural product refining
• Agricultural, construction, and industrial machinery
• Printing, packaging, interior, and exterior decoration.

V. Cost of land lease and support

Infrastructure rental rate: 50 USD per square meter for the entire lease duration. Rates may vary depending on the location and plot size.

Infrastructure management and maintenance fee: 0,5 USD per square meter per year.

Annual land lease fee: Determined based on the decision of the Hai Phong City People’s Committee for each specific period.

Electricity rates: As per state regulations:

• Normal hours (4:00 AM – 6:00 PM): 1.685 VND/kWh, approximately 0,07 USD/kWh.
• Peak hours (6:00 PM – 10:00 PM): 3.076 VND/kWh, approximately 0,13 USD/kWh.
• Off-peak hours (10:00 PM – 4:00 AM): 1.100 VND/kWh, approximately 0,046 USD/kWh.

Water rates, according to Hai Phong City regulations: 18.000 VND/m3, approximately 0,75 USD/m3.

Wastewater treatment fee: 0,3 USD per cubic meter, calculated based on 80% of the clean water consumption volume.

VI. Advantages of investing in Industrial Zone

Labor costs:

• Do Son Industrial Zone is located in Do Son District and Duong Kinh District, belonging to Zone I.
• The current minimum wage in Zone I is 4.420.000 VND/month.

Investment incentives:

Regarding taxes:

• Corporate income tax (Decree No. 218/2013/ND-CP): Exemption from corporate income tax for 2 years and a 50% reduction in the payable tax amount for the following 4 years when investors invest in the industrial park.
• VAT exemption: Applicable to enterprises certified as export processing enterprises.

Land rental fees (Decree No. 46/2014/ND-CP):

• Projects using land for building workers’ housing in industrial parks under approved projects.
• Land for common infrastructure construction in industrial parks, industrial clusters, and export processing zones in accordance with the approved planning stipulated in Clause 2, Article 149 of the Land Law.

Regarding preferential investment sectors (Decree No. 118/2015/ND-CP on the list of investment incentive sectors):

• Highly preferred sectors: High technology, information technology, supporting industries.
• Preferential investment sectors: Science and technology, electronics, mechanical engineering, materials production, information technology.

Legal procedures:

One-stop administrative procedures and streamlined processes are highly convenient and efficient for investors.

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