Dong Pho Moi Industrial Park - Lao Cai

I. Overview of Dong Pho Moi Industrial Park – Lao Cai:

The People’s Committee of Lao Cai Province approved Dong Pho Moi Industrial Park – Lao Cai in Decision No. 4099/QD-UBND on December 25, 2008.

Dong Pho Moi Industrial Park covers 100 hectares, with 69.95 hectares dedicated to factory construction land. By the end of 2017, the land allocation rate for project implementation had reached 96.67% of the total industrial area. It serves as an ideal destination for both domestic and foreign investors, offering opportunities for business growth.

Investment situation:

• As of the end of 2017, Dong Pho Moi Industrial Park has attracted 41 registered investment projects with a total registered capital of over 1,158 billion VND.
• Among them, 36 projects are currently in operation, 4 projects are under construction, and 1 project is in the process of completing procedures for construction.
• Currently, there are 2.32 hectares of available industrial land in Dong Pho Moi Industrial Park. This land is ideal for attracting investment in various sectors such as processing, pharmaceutical processing, and packaging for import and export goods. The park offers opportunities for businesses to expand their operations and tap into new markets.
• The number of workers employed in the industrial park is 565; average income is 5 million VND per person per month.

Lao Cai Inland Container Depot (ICD):

Lao Cai province has a strategic location between Kunming and Hai Phong. It plays a crucial role in the Kunming – Lao Cai – Hanoi – Hai Phong economic corridor. Lao Cai serves as a connecting point for the Xuan A Highway from Kunming to various destinations. The highway links Lao Cai to Hanoi, Hai Phong, and Quang Ninh, as well as countries in the Mekong sub-region.

In particular, the Lao Cai international border gate serves as an important gateway for the shortest route connecting Vietnam with the Southwest China market, ASEAN countries, and the rest of the world.

Through the Lao Cai (Vietnam) – Hekou (China) international border gate pair, goods can be transported directly from Vietnam to Kunming, the capital of Yunnan Province, and then to other regions within mainland China.

Transportation companies can easily transport goods from China to Hai Phong, Hanoi, provinces, and cities nationwide in Vietnam, as well as transfer them to ASEAN countries and the rest of the world.

Therefore, the Lao Cai ICD will serve as a crucial trade gateway, linking Yunnan Province, China to the Northwest region of Vietnam and nearby regions. Lao Cai ICD is the sole inland port in the North with access to the national railway. It facilitates the transportation of goods from Lao Cai, Hai Phong, Cai Lan Port, Saigon Port, and provinces across the country. The transportation methods employed include a combination of rail, inland waterway, and road, ensuring efficient movement of goods.

II. Geographical location of Dong Pho Moi Industrial Park – Lao Cai:

Dong Pho Moi Industrial Park is located in Lao Cai Ward, Pho Moi Ward, and a part of Van Hoa Commune in Lao Cai City, Lao Cai Province.

• Thieu Quang Phuc Road borders it to the North.
• It is adjacent to the Hong River to the South.
• The Xuan Man hill range in Xuan Man hamlet, Van Hoa commune, borders it to the East.
• It is adjacent to the Lao Cai railway station to the West.

The industrial zone is approximately 4 kilometers northeast of the city center of Lao Cai, in Pho Moi Ward.

III. Infrastructure of Dong Pho Moi Industrial Park – Lao Cai:

Internal transportation:

• The industrial zone has a complete road transportation system, facilitating the movement of goods between bustling economic regions such as Lai Chau, Ha Giang, Yen Bai.
• It is convenient for setting up intermediate storage warehouses and clean industrial facilities. These facilities include electrical, electronic, refrigeration assembly, handicrafts, and packaging assembly. They serve import and export purposes.

Electricity system:

• The electricity supply system ensures sufficient power capacity for factories and workshops within Dong Pho Moi Industrial Park – Lao Cai.

Public lighting system:

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

Water system:

• Water Plant supplies clean water to Dong Pho Moi Industrial Park at a capacity of 40 m3/ha/day.
• The water supply system will be installed up to the factory fence.

Wastewater and rainwater drainage system:

• Rainwater drainage system naturally flows along the road routes into the channels surrounding the industrial zone and discharges into the channels within the area.
• The industrial zone arranges the wastewater drainage system along the road routes and directs it to the treatment station.

Waste treatment:

• The investor will enter into service contracts with professional waste treatment units.
• The wastewater treatment plant will be constructed outside the industrial zone with a capacity of 500m3/day.
• The factories will transfer the treated wastewater to the industrial zone’s wastewater treatment plant for further treatment to meet Standard A after they have met Standard B.

Communication system:

• Leading infrastructure providers in Vietnam, such as VNPT, Viettel, and FPT Telecom, deploy and cover the entire communication system throughout the industrial zone.
• It is connected globally with the highest quality through the fiber optic system within the industrial park.

IV. Industries attracting investment in Dong Pho Moi Industrial Park – Lao Cai:

Planners have designated Dong Pho Moi Industrial Park as a “clean” industrial park, capable of accommodating various industries such as:

• Electronic assembly industry,
• Manufacturing and processing consumer goods,
• Textile, garment, and light industries,
• Handicrafts and fine arts,
• Warehousing and logistics services,
• Other industries.

V. Investment incentives in Dong Pho Moi Industrial Park – Lao Cai:

Incentives for land and water surface rental fees:

The specific incentives for land and water surface rental fees in Dong Pho Moi Industrial Park are as follows:

• Exemption from land and water surface rental fees for projects in specially incentivized industries.
• Exemption from land and water surface rental fees for 15 years from the completion and operation commencement date for projects in incentivized industries.
• Projects not falling under the above-mentioned two categories are exempt from land and water surface rental fees. The exemption period lasts for 11 years from the completion and operation commencement date of the projects.
• Projects are granted a 70% reduction in land and water surface rental fees upon expiration of the incentive period. The reduction is based on the rental rates in the district with the lowest rates. This district is located in Lao Cai province.

Incentives for corporate income tax:

• The Lao Cai border economic zone applies a corporate income tax rate of 10% on the income derived from newly invested projects for 15 years. The enterprise’s new project starts counting the incentive period from the first year of revenue generated.
• Newly invested projects in the Lao Cai border economic zone are granted a 4-year exemption from corporate income tax and a subsequent 50% reduction of the maximum payable tax amount for the following 9 years.
• The exemption and reduction period is counted continuously from the first year of taxable income. In the case of no taxable income in the first 3 years, the exemption and reduction period starts from the fourth year since the first year of revenue.

VI. Labor Source and Costs in Dong Pho Moi Industrial Park – Lao Cai:

Dong Pho Moi Industrial Park plays a significant role in creating job opportunities and contributing to the economic development of the region.

It is an attractive destination for both domestic and foreign businesses, providing favorable conditions for them to carry out production and business activities.

The average income in this industrial park is 5 million Vietnamese dong per person per month, allowing workers to have a stable and satisfactory standard of living.