Hanoi - Dai Tu Industrial Park - Ha Noi

TheHanoi – Dai Tu Industrial Park is strategically located adjacent to National Highway 5 and National Highway 1B, as well as the Hanoi-Hai Phong Expressway, ensuring convenient connectivity to Northern provinces such as Bac Ninh, Hai Duong, Hai Phong, and Quang Ninh.

Dai Tu Industrial Park, also known as Hanoi – Dai Tu Export Processing Park, is a thriving industrial hub nestled right in the heart of Hanoi. Boasting a prime location and well-established infrastructure, this industrial park has garnered significant attention from both large and small investors and corporations.

I. Overview of Hanoi – Dai Tu Industrial Park – Hanoi

On August 23, 1995, Hanoi – Dai Tu Industrial Park was established under the license QD 1358/GP of the Ministry of Planning and Investment of Vietnam, covering a total area of 40 hectares. The initial investor was Taiwan Industrial Park Development Corporation with a registered capital of 12 million USD. It was the first foreign-invested industrial park licensed in Hanoi, with the initial aim to attract investments from Taiwanese enterprises for manufacturing projects.

However, since its completion in 2000, Hanoi – Dai Tu Industrial Park has not attracted the expected investment projects. In 2016, the Prime Minister agreed to assign Hanoi People’s Committee to develop a plan to convert the function of the industrial park into an urban area due to its limited success in attracting high-tech, green, and clean technology projects, and concerns about environmental issues from existing industrial activities. If approved and legally completed, this transformation will contribute to the goal of changing the landscape and environment of Hanoi and create a healthy living environment for its residents.

Current Investor:

Currently, the Taiwanese investor has divested from the industrial park, and the current investor of Hanoi – Dai Tu Industrial Park is the Infrastructure Construction and Business Company under Vietnam Investment Development Group (VID), which is wholly owned by Taiwan – Hanoi Industrial Park Development Corporation.

The main headquarters is located at 386 Nguyen Van Linh Street, Sai Dong Ward, Long Bien District, Hanoi City, Vietnam.

Location:

Until 2005, when the investment orientation of the industrial park shifted to attract projects from other countries such as South Korea, Japan, and Vietnam, Hanoi – Dai Tu Industrial Park began to show signs of revival.

Hanoi – Dai Tu Industrial Park, also known as Hanoi – Dai Tu Export Processing Zone, is a converging industrial park located right in the center of Hanoi. With its strategic location and existing infrastructure, the industrial park has attracted considerable attention from various investors and companies, both large and small.

After more than 25 years of operation, Hanoi – Dai Tu Industrial Park has fully leased out its total area, mainly for logistic warehouse projects, serving the transportation of goods to the inner districts of Hanoi. Notable projects include logistic warehouses of GHTK, Shopee, and Truong Hai.

II. Geographical Location of Hanoi – Dai Tu Industrial Park – Hanoi

The industrial park is situated in Phuc Loi Ward, Long Bien District, Hanoi City, Vietnam.

Hanoi – Dai Tu Industrial Park is situated adjacent to National Highway 5 and National Highway 1A, strategically located near the center of Hanoi, the city’s airport, Hai Phong port, and Quang Ninh – Cai Lan port. Besides its advantageous location and spacious area, the industrial park boasts modern technical infrastructure, abundant labor force, and excellent facilities.

It enjoys convenient connectivity to major economic and cultural centers:

• Approximately 16 kilometers away from Hanoi’s city center.
• 25 km from Bac Ninh city.
• 117 km from Hai Phong, 110 km from Cai Lan port (Quang Ninh).
• Approximately 33 kilometers away lies Noi Bai International Airport.
• 10 km from Gia Lam railway station, 17 km from Hanoi railway station.
• 2 km from National Highway 1A, 4 km from National Highway 5.

Its strategic location facilitates transportation, making it an essential role in the region’s economic development. Consequently, it has attracted numerous domestic and foreign investors and companies.

III. Infrastructure at Hanoi – Dai Tu Industrial Park – Hanoi

Internal transportation:

A well-designed internal transportation system facilitates easy and convenient movement for vehicles to each plot.

• Main road system: 36m wide
• Branch road system: 24m wide

Electricity system:

• A continuous and stable power supply is derived from Hanoi’s high-voltage power lines.
• The power grid is provided along the internal transportation routes within the industrial park.
• Businesses invest and build substations based on their power consumption needs.

Public lighting system:

A separate street lighting network is designed, along with a residential power supply system, arranged along the transportation routes.

Water system:

An internationally standardized water supply pipe system supplies water to the factory gates.

Rainwater and wastewater drainage system:

Rainwater drainage channels are positioned along the main roads and inter-block internal roads.

Waste management:

Urban environmental companies collect solid waste at stations within the industrial park after signing contracts and segregating waste.

Wastewater treatment:

Wastewater is treated at the industrial park’s treatment plant before being discharged into the system.

Communication system:

A modern communication system ensures smooth communication both nationally and internationally, including telephone, fax, mobile phones, and the internet.

IV. Key Industries in Hanoi – Dai Tu Industrial Park – Hanoi

Dai Tu Industrial Park primarily attracts various industries, including:

• Electronics
• Automotive accessories
• Mechanical engineering
• Food processing
• Cosmetics
• Consumer goods
• Household appliances

V. Investment Costs at Hanoi – Dai Tu Industrial Park – Hanoi

• Infrastructure rental fee: 110 USD/m2 (This fee does not include VAT and may vary depending on the location and plot area)
• Workshop rental fee: 4 USD/m2
• Minimum lease area: 5.000m2
• Industrial park management fee: $0,7 USD/m2/year (excluding VAT)
• Clean water supply cost: $0,45 USD/m3
• Wastewater treatment fee: $0,4 USD/m3 (Wastewater volume calculated at 80% of the supplied water volume)
• Electricity cost: According to the state’s pricing framework (from $0,06 USD to $0,12 USD/kWh). Average electricity price: 0,09 USD/kWh.

VI. Labor Source and Costs at The Industrial Park

High-quality labor source:

• Hanoi has a comprehensive education and training system, attracting labor from both the North and Central regions for studying and working. It effectively meets the quantity and quality requirements of investors.
• Total number of workers: 2.800 employees.

Labor costs:

• Dai Tu Industrial Park is located in Long Bien district, classified as Zone I.
• The current minimum wage in Zone I is 4.420.000 VND per month.

VII. Investment Incentive Policies at Hanoi – Dai Tu Industrial Park – Hanoi

Corporate income tax incentives:

• A preferential tax rate of 10% (compared to the regular rate of 20%) is applicable for 15 years from the first year the enterprise generates revenue;
• Tax exemption for a maximum of 4 years and a 50% reduction in tax payable for a maximum of 9 years thereafter, starting from the first year the enterprise generates taxable income.
• If the enterprise does not have taxable income in the first three years, the incentive will apply from the fourth year from the first year the enterprise generates revenue.

Land rental fee incentives:

• Exemption from land rental fees during the basic construction period approved by the competent authority for a maximum of 3 years from the date of the land lease decision;
• Exemption from land rental fees for 11 years after completing the basic construction period;
• Exemption from land rental fees for 15 years after completing the basic construction period for projects in the priority investment sector;
• Exemption from land rental fees for the entire lease term for investments in sectors with special preferential investment policies.

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