Dong Banh Industrial Park - Lang Son

I. Overview of Dong Banh Industrial Park – Lang Son:

The Prime Minister approved Decision No. 1107/QD-TTg on August 21, 2006, including Dong Banh Industrial Park – Lang Son in the development plan of industrial zones in Vietnam until 2015 and the orientation towards 2020.

The People’s Committee of Lang Son Province approved Decision No. 1359/QD-UBND on August 8, 2007, to approve Dong Banh Industrial Park’s detailed construction plan at a scale of 1/2000. The establishment of Dong Banh Industrial Zone was specified in Decision No. 1575/QD-UBND on October 8, 2014, by the People’s Committee of Lang Son Province.

In 2021, the Prime Minister adjusted and reduced the area of Dong Banh Industrial Zone by 159.76 hectares (from 321.76 hectares to 162 hectares).

An estimated total investment of 894.681 trillion Vietnamese dong is planned for the industrial zone, which has an area of 321.76 hectares.

As of the end of 2021, for phase 1 of land clearance, the People’s Committee of Chi Lang District has handed over cleared land to the investor, reaching 100% completion.

For phase 2, there are still two households that have not handed over the land for the contractor to carry out construction activities on an area of 2000 square meters.

The Management Board of Dong Dang Border Economic Zone – Lang Son is the investor for the project.

Characteristics of the industrial park:

It is a concentrated multi-sector industrial zone prioritizing the development of clean and advanced industries, with minimal environmental pollution. It is newly built with comprehensive technical infrastructure, including functional areas such as factories, industrial warehouses, service management, transportation, technical infrastructure, and parking lots.

II. Geographical location:

Dong Banh Industrial Park is located within the administrative boundaries of Chi Lang Town, Chi Lang District, Lang Son Province.

Borders:

• To the North: National Highway 1;
• To the South: Hanoi – Lang Son railway;
• To the East: Thuong River;
• To the West: residential area and Song Hoa market.

From Dong Banh Industrial Zone:

• Distance to Hanoi City: 180 km, Lang Son City: 34 km.
• Distance to Noi Bai Airport: 186 km.
• Distance to Cai Lan Port: 142 km.

Lang Son is a mountainous province with uneven terrain, which poses challenges for industrial zone planning. However, its proximity to border gates and numerous seaports brings advantages to the region. As a result, the transportation and exchange of goods and raw materials become easier. It attracts a large number of laborers from other provinces, promising to provide a highly skilled workforce for the Northern industrial zone.

III. Infrastructure at Dong Banh Industrial Park – Lang Son:

Internal transportation:

• The road system consists of 2 internal lanes (14m-16m) and 2 main roads with 4 lanes each (34m-37m), ensuring access for large vehicles.

Electricity system:

• The electricity system is supplied through a 35kV power grid line from a 110kV transformer station with a capacity of 32MVA.

Public lighting system:

• The street lighting network is designed separately from the domestic power supply system, arranged along the traffic routes.

Water system:

• The water system meets the needs of both daily life and production activities, with a capacity of 40m3/ha/day.

Wastewater and rainwater drainage system:

• The rainwater drainage system naturally flows along the roads leading to channels surrounding the industrial park and discharges into channels and rivers in the area.
• Wastewater drainage system: It is arranged along the roads and centralized to the Industrial Park’s treatment station.

Waste treatment:

• The investor will sign service contracts with professional waste treatment units.

Wastewater treatment:

• The centralized waste treatment station will treat wastewater from industrial plants as well as domestic sources before discharging it into the natural environment.

Communication system:

• A modern, advanced network system following international standards is installed to facilitate both domestic and international communication for telecommunication services.

IV. Investment-attracting industries in Dong Banh Industrial Park – Lang Son:

Dong Banh Industrial Park mainly engages in the following industries:

• Electricity production, construction materials, paper, and pulp.
• Manufacturing and assembly of electrical, electronic, and computer equipment.
• Processing agricultural and forestry products.
• Chemicals, pigments, and cement production.

V. Investment costs in Dong Banh Industrial Park – Lang Son:

• Management fee: 0.2 USD/m2
• Electricity prices:
  – Peak hours: 0.1 USD
  – Normal hours: 0.05 USD
  – Off-peak hours: 0.03 USD
• Clean water price: 0.4 USD/m3
• Wastewater fee: 0.3 USD/m3
• Water quality before treatment: C (according to TCVN 5945-2005 standards)
• Water quality after treatment: Level B (according to QCVN 40:2011/BTNMT standards)

VI. Investment incentives:

The Prime Minister issued Decree No. 118/2015/NĐ-CP dated November 12, 2015, which provides detailed regulations and guidance for the implementation of certain provisions of the Investment Law. Investment projects within industrial parks in the province are entitled to investment incentives for areas with difficult socio-economic conditions as specified in Appendix II, as outlined by this decree.

Industrial parks also enjoy investment incentives as stipulated in the Investment Law No. 67/2014/QH13 dated November 26, 2014, and other tax laws (Corporate Income Tax, Export Tax, Import Tax, land rental fees, water surface fees, etc.).

Additionally, they are eligible for incentives applicable to industrial parks according to the regulations in Chapter III of Decree No. 82/2018/NĐ-CP dated June 12, 2018, issued by the Government, which provides regulations on the management of industrial parks and economic zones (such as investment costs for construction and operation, leasing of apartment buildings and infrastructure; support for administrative procedures, etc.).

Apart from the operation and leasing of apartment buildings and infrastructure, they also receive support under the specific policies of Lang Son Province according to Decree No. 12/2018/NQ-HĐND dated December 10, 2018, issued by the People’s Council of Lang Son Province.

VII. Labor force in Dong Banh Industrial Park – Lang Son:

• Population of Lang Son Province: 200,108 people (2019)
• The labor force in the province is relatively young, with individuals aged 15 and above accounting for 63.44% of the total population.
• It promises to meet the needs of all businesses in the industrial park.