Dong Nam Industrial Park - HCMC

Dong Nam Industrial Park (Dong Nam IP) stands out as a magnet for both domestic and foreign investors in Ho Chi Minh City. Its strategic location, nestled between key areas, combined with top-notch infrastructure, makes it an attractive choice. For more information about this industrial park, please join us in following the article below!

I. Overview of Dong Nam Industrial Park, Ho Chi Minh City

Dong Nam IP, situated in Cu Chi District, Ho Chi Minh City, was planned and licensed according to Decision No. 5945/QD-UBND on December 29, 2009, by the People’s Committee of Ho Chi Minh City. Operated by Saigon VRG Investment Corporation, a member of the Vietnam Rubber Group, the park emphasizes high-tech and environmentally friendly activities. The investor aims to transform it into an eco-friendly high-tech center, offering comprehensive infrastructure packages to meet various investor needs, especially small and medium enterprises, through the construction and rental of ready-built factories.

Despite its smaller construction scale compared to other industrial parks like Tay Bac Cu Chi Industrial Park and Tan Phu Trung Industrial Park, Dong Nam IP has become a key economic hub, fostering economic exchanges with other provinces and cities in Ho Chi Minh City.

1. Scale of Industrial Park

• Total area: 342,53 hectares.
• Construction density: 70%.
• Industrial land: The majority of the area, with 55 hectares allocated for housing, resettlement, and urban areas.
• Operating period: 50 years (2009–2059).

II. Geographical Location of Dong Nam Industrial Park

Dong Nam IP spans Binh My and Hoa Phu communes in Cu Chi district, Ho Chi Minh City. Its strategic location is a notable advantage, being adjacent to major cities like Binh Duong and Bien Hoa and connected by Provincial Road 8 and Provincial Road 9.

1. Boundaries

• North: Existing residential area and Provincial Road 8.
• South: Agricultural land and a section of the Ba Be canal.
• West: Ben Than Street.
• East: Provincial Road 9.

2. Distances

• 10 km from Xuyen A road.
• 25 km from Ho Chi Minh City center.
• 1 km from the center of Binh Duong province.
• 29 km from Bien Hoa city, Dong Nai province.
• By waterway: 42 km from Hiep Phuoc Port, 25 km from ICD Phuoc Long Port, and 40 km from Cat Lai Port.
• 20 km from Tan Son Nhat airport.

The advantageous geographic location facilitates efficient goods circulation, connecting with road and inland waterway transport easily. Dong Nam IP also benefits from an abundant labor source, ensuring stable employment for the local population.

As the industrial park continues to grow, it is poised to solve employment issues and stands as a promising destination for both domestic and foreign investors.

Dong Nam Industrial Park promises to be a promising destination for domestic and foreign investors

III. Infrastructure of Dong Nam Industrial Park

Dong Nam IP stands out among industrial parks due to its excellent geographical location, positioned right along Provincial Road 8. This prime location, accessible by both road and waterway, creates numerous attractive business opportunities for industries within the park.

The investor of Dong Nam IP prioritizes a balanced land-use structure, emphasizing urbanization alongside a comprehensive infrastructure and technical system. The goal is to establish a favorable working environment, and key infrastructure elements include:

1. Power System

• Supplied by Tan Quy power plant with a capacity of 2 x 63 MVA.
• Average electricity prices range from 0,0354 to 0,1064 USD/kWh.

2. Water System

• Sourced from Binh Duong Water Plant (200.000 m³/day and night capacity) and Tan Hiep Water Plant (300.000 m³/day and night capacity).
• Average monthly water price: 0,46 USD/m³.

3. Wastewater Treatment System

• Operates with two wastewater treatment plants with capacities of 10.000m³/day and 15.000m³/day, respectively.

4. Traffic System

• Comprehensive transportation system meeting diverse business needs.
• Main road with 6 lanes, 40m wide median strip, and internal roads with 1-4 lanes and 18-29m wide median strips.
• Provision for additional roads as needed, supported by the industrial park investor.

5. Other Amenities

Dong Nam IP provides various facilities and support services, including:

• On-site customs agent.
• Inland customs clearance port.
• Logistics Center.
• Dormitory area.
• Residential area.
• Market.
• Gas station.
• Kiosk for rent.
• Ready-built factories for rent.
• Logistics warehouses for rent, etc.

IV. Industries Attracting Investment in the Dong Nam Industrial

Capitalizing on its strategic location between major roads and key southern industrial parks, Dong Nam IP has successfully attracted investments. The investor’s focus on providing a high-quality working environment and continuously upgrading infrastructure has made it a key economic hub in Ho Chi Minh City. Industries attracting investment in Dong Nam IP encompass:

• Mechanical engineering and machine manufacturing.
• Electronic devices.
• Information technology.
• Production of pharmaceuticals, medicinal materials, and medical drugs.
• Consumer food and beverages.
• Production of construction materials and interior decoration.
• Production of sports equipment.
• Industrial plastics and chemicals.
• High-tech technical rubber.

V. Investment Incentives in Dong Nam Industrial Park

Dong Nam IP continually strengthens its position as a thriving industrial hub, leveraging its strategic location and offering compelling incentives to attract significant investments and a robust labor force. The industrial park’s efforts include:

1. Corporate Income Tax

Investors in Dong Nam IP benefit from attractive corporate income tax incentives, featuring a standard rate of 20% (for normal industries) and a progressive reduction for 10 consecutive years:

• Tax exemption for the first 2 years.
• A 50% reduction in the subsequent 4 years (from the year the enterprise generates taxable revenue).

For industries that attract investment, a preferential corporate income tax rate of 10% is applicable for the first 15 years. This incentive is extended to the following industries:

• High-tech industry/supporting industry.
• Minimum investment capital: equal to or greater than 6.000 billion VND. Specifically, the enterprise must contribute capital within 3 years and employ a minimum of 3.000 workers.

2. Other Offers

In its future development plans, the Industrial Park aims to diversify industries and create more densely populated areas, generating employment opportunities. The focus is on enhancing real estate value.

The industrial park’s expansive land area features a limited number of polluting factories, fostering a fresh environment with ample green spaces. The conditions and premises are conducive to long-term investments.

Despite its prime location and high population density, the land prices remain affordable.

Many investment incentives in Dong Nam industrial park

VI. Investment costs in Dong Nam Industrial Park – Ho Chi Minh City

Below, TTTFIC would like to send you the investment costs of Dong Nam IP, Ho Chi Minh City specifically as follows:

VII. Labor Resources and Labor Costs

Dong Nam IP strategically situates itself between two key areas:

• Ho Chi Minh City: A hub with abundant financial, scientific, and human resources.
• Binh Duong Province: A leading region in the country for foreign direct investment.

Exploiting the supporting industries of the southern key economic region, the Industrial Park efficiently connects with road and inland waterway transportation. This facilitates the swift and smooth transport and circulation of goods, optimizing time utilization.

The Industrial Park is actively developing ready-built factories for rent, catering to the diverse needs of investors, especially small and medium enterprises, and supporting businesses. Furthermore, continuous efforts are made to enhance infrastructure and the working environment, ensuring the safety and efficiency of workers.

These favorable conditions have attracted numerous large domestic and foreign investors, as well as thousands of workers from various provinces and regions across the country, seeking opportunities to live and work in the area.

VIII. Economic Value in Dong Nam Industrial Park

The Dong Nam IP construction project has invested significantly in comprehensive infrastructure, including roads, water supply and drainage systems, electricity, greenery, and wastewater treatment plants.

As of 2022, over 60% of the available land area for lease has been successfully leased in Dong Nam IP. Foreign investments alone have reached 1,2 billion USD. The industrial park has played a crucial role in generating employment opportunities for the local population and neighboring areas.

The financial report of Dong Nam IP from January 1, 2023, to June 30, 2023, demonstrates substantial growth compared to the beginning of the year, with the industrial park’s valuation rising from 14 billion USD to nearly 15 billion USD within six months.

In conclusion, Dong Nam IP, with its advantageous geographical location, coupled with progressive policies and advanced infrastructure, aims to establish the most developed business environment in the southern key region and the entire country.