Hoa Binh Industrial Park - Long An

Possessing strong potential for development thanks to a complete infrastructure system and a standard investment environment, Hoa Binh Industrial Park is attracting the attention of many investors. Thanks to that, this industrial park plays an extremely important role in creating motivation to promote comprehensive development for Long An province as well as the country in general.

I. Overview of Hoa Binh Industrial Park

1. Legal Grounds

Hoa Binh Industrial Park received Investment Certificate No. 50221000262 from the Long An Economic Zone Management Board on August 4, 2011, with a total capital of 592 billion VND.

Hoa Binh Industrial Park (Hoa Binh IP), spanning a total land area of 117.67 hectares, has garnered significant attention from the leaders of Long An province. The province is dedicated to enhancing infrastructure quality and fostering economic development. The investor behind this industrial park is Hoa Binh Investment and Construction Joint Stock Company (HBI). Currently, Hoa Binh IP has leased up to 80% of the total land area, accompanied by well-developed social services and infrastructure, promising continued growth in the future.

In terms of nature, Hoa Binh IP is a multi-industry industrial park, attracting various industrial occupations across different fields. The park’s operation has substantially contributed to the increase in total GDP income, the attraction of FDI capital, and the active augmentation of local budget revenue. Consequently, the lives of people in the region are witnessing positive changes, making a significant contribution to stabilizing social security.

2. Land use structure in industrial parks

Enterprises interested in leasing land in Hoa Binh IP should be aware of the land rental prices structured across 6 payment installments:

• Stage 1: 10% after signing the Land Lease Contract
• Stage 2: 25% after signing the Land Lease Contract
• Stage 3: 20% after 1 month of signing the Land Lease Contract
• Stage 4: 20% after 2 months of signing the Land Lease Contract
• Stage 5: 20% after 4 months from the date of signing the Land Lease Contract
• Stage 6: 5% after receiving notice of the issuance of the Land Use Rights Certificate

Hoa Binh IP is currently under development with the aim of becoming a key industrial park in Long An, attracting foreign investors for the establishment of manufacturing plants. Investors from countries such as Japan, Korea, China, France, and Switzerland are actively considering Hoa Binh IP for their ventures.

II. Geographical Location of Hoa Binh Industrial Park

Hoa Binh IP is situated in Nhi Thanh commune, Thu Thua district, Long An province, Vietnam. This industrial park holds a strategically vital location, being in proximity to major transportation routes such as the Trung Luong – Ho Chi Minh Highway and National Highway 1A. Additionally, its position serves as a crucial gateway connecting Ho Chi Minh City with the provinces of the Mekong Delta.

1. Borders

• East: Adjacent to residential areas, workers’ housing in the industrial park, and Chin Dat canal.
• West: Borders New Canal and existing residential areas.
• North: Borders DT818, the road connecting National Highway 1A with Thu Thua town.
• South: Borders Nam Duong canal.

2. Regional Connections

Surrounding Hoa Binh IP is a network of large canals and rivers, including the Thu Thua Canal, the Cau Giao Canal, the Vam Co Tay River, and the Vam Co Dong River. Additionally, there are several other industrial parks with high development rates in Long An, such as Phu An Thanh Industrial Park. The growth of the Ben Luc district into a satellite urban area in the south of Ho Chi Minh City also positively influences the development of industrial parks.

From the current Hoa Binh IP, you can easily access areas like:

• Tan An City: approximately 9 km
• Phu My Port (for ships of 72.000 tons): 2 km
• Bourbon Ben Luc Port: about 9,8 km
• Vung Tau port: 35 km
• Long Phu Residential Area Project: about 9,1 km
• Tran Anh Riverside Urban Area: 8,4 km
• Solar City Ben Luc Urban Area: about 9,5 km
• Tan Son Nhat International Airport: about 40 km

III. Infrastructure of Hoa Binh Industrial Park

Hoa Binh IP is currently undergoing extensive investment in a highly synchronized, comprehensive, and advanced infrastructure system to meet the demands of international investors.

1. Traffic System

The off-site transportation system in Hoa Binh IP provides ample opportunities for outstanding development, with numerous large roads surrounding the industrial park. This facilitates easy and convenient transportation and import-export activities. Key roads include National Highway 1A, National Highway 62, Provincial Road 818, and Nguyen Van Linh Street.

Additionally, the fully developed internal traffic system within the industrial park features roads capable of bearing loads up to 12 tons and a width of 24m. To mitigate flooding during heavy rain, we have effectively invested in green spaces along roads and drainage systems to serve production and business enterprises.

2. Electric Supplying System

Hoa Binh IP receives electricity from the national grid system through the Thu Thua transformer station. Electricity prices within the industrial park are calculated according to Vietnam Electricity Group standards. The electric supply system ensures a stable provision for businesses engaged in industrial production, preventing any interruptions.

3. Water Supply System

The clean water within Hoa Binh IP comes from the Binh Anh Water Plant, which boasts a capacity of 60.000 m³/day and night and is available 24/7 to consistently serve businesses. The water source directly supplies each factory’s perimeter within Hoa Binh IP.

4. Waste Water Treatment System

The industrial park features a wastewater treatment capacity of up to 4.000 m³/day and night, with a wastewater treatment fee of 7.330 VND/m³. Strict compliance with national technical regulations ensures improved living conditions for workers and nearby residents. Regular inspections and evaluations by the Department of Natural Resources and Environment promptly address any arising issues with the wastewater treatment system.

5. Telecommunications System

The telecommunications system in Hoa Binh IP plays a crucial role. The design includes a perfect fiber optic cable system capable of connecting to high-speed networks, ensuring stable domestic and international communication.

6. Industries Attracting Investment

Priority industries for development in Hoa Binh IP align with the actual situation and the needs of domestic and foreign markets. Emphasis is placed on green industries to avoid environmental pollution. Key industries in the park include:

• Food processing: production of beverages, soft drinks, milk, confectionery, and cooking oil.
• Stationery equipment and working tools production.
• Garment processing without washing or cleaning.
• Cosmetics, pharmaceuticals, and chemicals production.
• Manufacturing and assembling agricultural and forestry machinery and equipment.
• Production of construction materials, interior decoration materials, and tiles for nationwide projects.
• Concrete production and products from cement and plaster.
• Electronic electrical components and telecommunications cables production.
• Cold-rolled steel processing, hot rolling, and pressing of other metals.
• Warehouse and wharf projects.
• Manufacturing, assembling, repairing, and maintaining motorcycles.

V. Investment costs in Hoa Binh Industrial Park

When investing in Hoa Binh IP, businesses need to pay attention to some investment costs as follows:

VI. Investment Incentives in Hoa Binh Industrial Park

Enterprises that establish factories or rent land in Hoa Binh IP are entitled to the following investment incentives:

1. Corporate Income Tax

• The corporate income tax rate for businesses within industrial parks is 20% per year from the signing date.
• Enterprises initiating new investment projects in industrial parks enjoy a 2-year income tax exemption from the time they generate taxable income. Subsequently, for the next 4 years, a 50% reduction of the tax amount applies.
• Businesses with investment projects in sectors with special investment incentives, as specified in Decree 118/2015/ND-CP dated November 12, 2015, receive a full income tax exemption for the first 4 years from generating taxable income. For the subsequent 9 years, a 50% tax reduction is granted.

2. Import Tax

• Goods produced for export are exempt from import and export taxes.
• Machinery, equipment, raw materials, and specialized vehicles stored as fixed assets or used in the production of exported goods are exempt from import and export taxes. Additionally, construction materials not domestically produced are also eligible for this exemption.

Investors in Hoa Binh IP benefit from various preferential investment policies. Moreover, employees enjoy supportive policies in accordance with the current Labor Law. They also receive rewards during holidays or at the year-end.

VII. Labor Sources and Labor Costs

1. Labor Source

Labor availability in Hoa Binh Industrial Park is abundant. Thu Thua district is undergoing a development shift towards industrialization. This shift is causing the labor force to transition from agriculture, forestry, and fishery to the industrial sector. The high demand for jobs presents an excellent opportunity for workers in Long An and neighboring areas to secure employment and stabilize their lives.

2. Utilities

The internal and external utility systems in Hoa Binh Industrial Park receive extensive investment, are diverse, and fully meet the needs of both industrial park workers and residents in the surrounding areas. The Management Board of Long An Economic Zone has effectively implemented solutions to improve the lives of workers. This includes the construction of public facilities and housing. This favorable condition contributes to the sustainable development of Hoa Binh Industrial Park and facilitates the industrialization and modernization goals of Long An province.

The above information from TTTFIC provides readers with insights into Hoa Binh Industrial Park in Long An province. It is a promising destination for investors with its comprehensive infrastructure system.