Deputy Chairman Nguyen Tien Nhuong issued Decision No. 775/QD-UBND regarding the expansion of Yen Phong I Industrial Park in Bac Ninh. The expansion increases its total area to 658,71 hectares, with 100% occupancy in Phase 1 and over 90% in Phase 2, attracting investments of over $10 billion from FDI and domestic sources. Viglacera Corporation is the experienced investor behind this project, operating 11 industrial parks in Vietnam and contributing significantly to annual export turnover. Companies like HTNS YEN PHONG Logistics Center 2, Youngjin Vina, and Niigata Vietnam are among its tenants.
I. Overview of Expanded Yen Phong I Industrial Park – Bac Ninh:
Information about the industrial park:
Deputy Chairman of the Provincial People’s Committee, Nguyen Tien Nhuong, has recently issued Decision No. 775/QD-UBND regarding Expanded Yen Phong I Industrial Park – Bac Ninh.
On October 20, 2011, the Bac Ninh Provincial People’s Committee approved the detailed construction plan for the expansion of Yen Phong Industrial Park at a scale of 1/2000, stated in Decision No. 1298/QD-UBND, with a total area of 313,9 hectares, of which the industrial land area is 189,91 hectares.
After the expansion, Yen Phong I Industrial Park will have a total area of 658,71 hectares, with the industrial land area being 436,23 hectares.
Phase 1: 344,81 hectares (Project timeline: 2005 – 2055), groundbreaking in February 2006 with a registered investment capital of VND 989,70 billion. Occupancy rate: 100%.
The investor of the industrial park is Viglacera Corporation – JSC.
Viglacera Corporation is a reputable investor with over 20 years of experience in industrial parks. It is currently a leading developer of industrial parks with 11 industrial parks in Vietnam and 1 economic zone in Cuba.
Currently, Viglacera Corporation has 38 subsidiaries with over 8.400 employees. The company’s products contribute over 30 million USD to the annual export turnover and are present in 40 countries worldwide.
Investment situation:
After 15 years of construction and operation, Yen Phong Industrial Park has achieved 100% occupancy for the industrial land area and over 90% occupancy for the expanded Yen Phong Industrial Park with a total registered investment capital of over 10 billion USD from FDI and domestic sources.
Yen Phong I Industrial Park expansion is the investment destination for companies such as:
HTNS YEN PHONG Logistics Center 2
Youngjin Vina Company
SeGyung Vina
Kostat Vina Co., Ltd
Vina Suorec Technology Co., Ltd
Niigata Vietnam Co., Ltd
KM ACT Co., Ltd
Master plan map of Expanded Yen Phong I Industrial Park – Bac Ninh – TTTFIC Group
II. Geographical location of Expanded Yen Phong I Industrial Park – Bac Ninh:
The expanded Yen Phong I Industrial Park is located in the administrative areas of Yen Trung, Thuy Hoa, Dung Liet, and Tam Da communes, Yen Phong District, Bac Ninh Province, Vietnam.
In terms of regional connectivity, the expanded Yen Phong I Industrial Park is centrally located between Hanoi and Bac Ninh, adjacent to important transportation routes, enabling convenient access to economic and political centers in the region.
Expanded Yen Phong I Industrial Park is close to National Highway 18 (connecting Noi Bai Airport and Halong City, Quang Ninh):
45 km from the center of Hanoi (50 minutes by transportation).
15 km from Bac Ninh city (20 minutes by transportation).
25,7 km from Noi Bai International Airport (30 minutes by transportation).
155 km from Hai Phong Port (2 hours 30 minutes by transportation).
Lang Son Border Gate (Vietnam-China) is 130 km away.
Cai Lan Port (Halong City) is approximately 181 km away (via National Highway 18).
The main road connecting to Yen Phong I Industrial Park is 42 meters wide.
Expanded Yen Phong I Industrial Park is in close proximity to Yen Phong I Industrial Park, with favorable regional connections and fast and easy access to neighboring provinces and key areas through road, waterway, and air transportation. This provides convenient conditions for the transportation of goods for businesses.
III. Infrastructure of Expanded Yen Phong I Industrial Park – Bac Ninh:
Technical Infrastructure:
Internal transportation:
The internal roads are designed in a chessboard pattern, with the main axis having a width of 80m and the branch roads ranging from 25m to 40m wide, ensuring convenient connectivity to all areas within the industrial park.
Power system:
The industrial park has 4 110/22KV power stations with a total capacity of 11×63 MVA.
Public lighting system:
The street lighting network is separately designed with a power supply system arranged along the transportation axes.
Water system:
The water supply capacity of the clean water plant in Phase 2 is 22.000m3/day.
Wastewater and rainwater drainage system:
The rainwater drainage system flows naturally along the road routes leading to channels arranged around the industrial park and discharges into channels and rivers in the area.
The wastewater drainage system is arranged along the roads and centralized to the Treatment Station of the industrial park.
Waste treatment:
Solid waste from the factories is classified, collected, and transported to the centralized landfill according to the regulations of the town.
Wastewater treatment:
The expanded wastewater treatment station has a capacity of 12.000m3/day.
Nitrogen supply station:
The industrial park has a nitrogen supply station with a capacity of 30 million m3/year.
Communication system:
A modern postal and telecommunications network with multiple services is available, providing full postal and telecommunication services to meet all communication needs within the country and internationally.
Service infrastructure:
Within the industrial park, there are police stations, general clinics, banks, warehouses, fuel supply stations, post offices, etc.
Social infrastructure:
Yen Phong urban area, located 1,5 km away from the industrial park, covers a total area of 51 hectares and provides facilities for workers within the industrial park, such as residential areas for experts, dormitories for workers, and Viglacera Vocational College.
The workers’ residential area covers a total area of 20 hectares, adjacent to Expanded Yen Phong I Industrial Park, providing over 2.000 apartments for workers within the industrial park.
IV. Investment-attracting industries in Expanded Yen Phong I Industrial Park– Bac Ninh:
Expanded Yen Phong I Industrial Park is a concentrated and modern industrial park that includes various industries with low levels of hazardous pollution, clean industries utilizing local resources and labor, including:
Agricultural processing and food industry.
Light industry.
High-end consumer goods manufacturing industry.
Electrical, electronic, and mechanical assembly industry.
Construction materials manufacturing industry.
A perspective on Expanded Yen Phong I Industrial Park – Bac Ninh – TTTFIC Group
V. Investment costs in Expanded Yen Phong I Industrial Park– Bac Ninh:
Infrastructure land rental price: 160 USD/m2 for the entire lease term.
Management fee: 0,5 USD/m2/year.
Annual land rental fee: 0,2 USD/m2/year. This may be subject to changes according to the regulations of the People’s Committee of Bac Ninh Province.
Electricity rate: Applied based on the industrial electricity pricing by EVN (ranging from 0,043 – 0,12 USD/KWh).
Water rate: 0,42 USD/m3.
Wastewater treatment fee: 0,309 USD/m3. The volume of wastewater is calculated at 80% of the clean water consumption.
VI. Investment incentives in Expanded Yen Phong I Industrial Park – Bac Ninh:
Regarding corporate income tax: Applicable tax rate of 20%.
100% exemption of corporate income tax for the first 2 years and 50% reduction of corporate income tax for the following 4 years.
Regarding import tax: Exemption of import tax for imported goods used to establish fixed assets for new investment projects.
In addition, investors in Yen Phong Industrial Park also receive free support from the developer, such as free consultation for investment registration, business registration, and personnel information registration.
VII. Labor source and costs in Expanded Yen Phong I Industrial Park– Bac Ninh:
Labor source:
Bac Ninh Province always encourages local young labor force and attracts labor from other provinces to participate in comprehensive vocational training programs to improve the quality of the workforce.
Moreover, the investors themselves establish Viglacera Vocational College, which annually trains over 6.000 students for businesses within the industrial park, such as Samsung, Lock&Lock, Canon.
Having a young and high-quality labor force is the foundation for investors to place their trust and decide to invest in Yen Phong Industrial Park.
Costs:
Yen Phong I Expanded Industrial Park – Bac Ninh is located in Yen Phong District, Bac Ninh Province, which belongs to Zone II.
Therefore, the current minimum wage in Zone II is 3.920.000 VND/month.
The land for lease that belong to Industrial Park has run out of stock. Only the land and warehouse has been re-invested by individual investor that still available
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