Hoa Lu Border Gate Economic Zone: A pivotal hub for economic and transportation interchange in the southern region.
With its strategic location along the trans-Asia route connecting Vietnam with neighboring countries, the Hoa Lu Border Economic Zone, upon commencement of its operations, will serve as a driving force to boost the economic development of Binh Phuoc Province and facilitate trade activities between Vietnam and Cambodia.
I. Overview of Hoa Lu Border Gate Economic Zone
Hoa Lu Border Gate Economic Zone was established according to the Decision No. 03/2005/QD-TTg on March 5, 2005 by the Prime Minister.
The development of the Hoa Lu Border Economic Zone is based on major transportation routes, including National Highway 13 and the Xuyen A railway, connecting the three countries of Indochina and Thailand conveniently.
On January 13, 2010, the Prime Minister signed Decision No. 61/QD-TTg, approving the master plan for the construction of the Hoa Lu Border Economic Zone.
The potential of Hoa Lu Border Gate Economic Zone
With the aim of developing the Hoa Lu Border Economic Zone into an attractive investment area, since mid-2019, the People’s Committee of Binh Phuoc province has focused on investing in improving transportation infrastructure connecting the Hoa Lu Border Economic Zone with Cambodia and the key economic areas of the Southeast and Ho Chi Minh City.
One notable project is the Hoa Lu Inland Container Depot (ICD). The ICD spans an area of 25 hectares and has a capacity of 600.000 – 900.000 containers per year. It functions as a central hub for containerized imports from Cambodia, Laos, and Thailand to Vietnam. Additionally, it facilitates exports from Vietnam to various countries.
In September 2020, Binh Phuoc province upgraded and expanded National Highway 13. The project covered a distance of 12,5 kilometers, from Loc Tan junction in Loc Ninh district to Hoa Lu International Border Gate. The investment capital for this project amounted to 450 billion VND. The primary goal was to enhance trade connectivity with Cambodia and neighboring regions. The project aimed to unlock the full potential of the Hoa Lu Border Economic Zone.
Investment Attraction Situation
– The Hoa Lu Border Economic Zone has attracted 83 investors to implement various projects, covering a total area of approximately 1.719 hectares, of which 38 enterprises are currently operating.
– Among them, 3 investors have been allocated land for infrastructure investment in industrial zones, occupying 1.129 hectares, and 8 secondary investors hold approximately 590 hectares.
– In 2020, the Economic Zone Management Board granted investment certificates for a total of 26 secondary projects. These included 4 foreign projects with a combined investment capital of 6,66 million USD. Additionally, there were 22 domestic projects with a total investment capital of 995,77 billion VND.
– Prominent are 2 industrial park projects with a total area of 773 ha:
Ledana Industrial Park with an investment of 1.200 billion VND has an area of 424,5 hectares.
Hoa Lu Industrial Park with an investment capital of 1.119 billion VND has an area of 348,32 hectares.
– In December 2020, the export turnover through the Hoa Lu Border Gate amounted to 48,15 million USD. This represented a significant increase of 60,2% compared to the same period. Throughout the 11-month period, the import turnover through the border gate reached 147,58 million USD. This marked a remarkable increase of 13,68% compared to the same period. The imported goods included granite, natural rubber, and bottled oil.
– The Hoa Lu Border Economic Zone contributed 556,58 billion VND to the provincial budget. This marked a remarkable growth of 21,17% compared to the same period in 2019. The contribution has played a significant role in the stable growth of the province’s budget revenue.
II. Geographical location of Hoa Lu Border Gate Economic Zone
Hoa Lu border gate economic zone includes communes: Loc Thai, Loc Tan, Loc Hoa, Loc Thanh (separated from Loc Tan commune) and Loc Ninh town in Loc Ninh district, Binh Phuoc province, Viet Nam.
The natural area of the Hoa Lu Border Economic Zone is 28.364 hectares, with the following boundaries:
– The northern border adjoins the Vietnam-Cambodia border.
– The southern border adjoins Loc Thanh and Loc Hung communes.
– The eastern border adjoins Loc An, Loc Thuan, Loc Dien, Loc Khanh, and Loc Hiep communes.
– The western border adjoins the Vietnam-Cambodia border.
The orientation of the development of the Hoa Lu Border Economic Zone encompasses socio-economic relations with the key economic region in the South, Ho Chi Minh City, the whole country, the region, and internationally.
The Hoa Lu Border Economic Zone will become an international border economic zone between Vietnam and Cambodia. It will serve as a hub for economic, trade, tourism, and service development, an important transportation center, and holds strategic significance in terms of security and defense.
Main Gate of Hoa Lu Border Gate Economic Zone – TTTFIC GROUP
III. Infrastructure of Hoa Lu Border Gate Economic Zone
Transportation system
Out-of-town traffic:
National Highway 13, section through Hoa Lu border gate economic zone, section from Loc Thai junction to existing hospital area and from Chiu Riu branch junction to Hoa Lu border gate, widen the road width to 48m.
Provincial road 748 has 4 lanes.
The Xuyen A Railway passes through the area of Loc Ninh town and the border gate area to the west of National Highway 13, running parallel to National Highway 13 at the border gate.
Internal traffic:
The main road in the east of the economic zone, the section from the intersection with Provincial Road 748 to the non-customs zone, has a width of 70m.
The main road from Chiu Riu auxiliary gate to the National Highway 13 intersection has a width of 45 m.
The main urban road from the existing hospital area to the intersection with the Chiu Riu auxiliary gate has a width of 48m.
The main urban road section from the intersection with the Xuyen A Railway to the intersection with the main road in the East of the Economic Zone has a width of 48m.
The roads connecting functional areas have a width of 26 m to 31 m, sidewalks on each side are at least 8 meters wide.
Local roads have a width of 21 m to 26,5 m, sidewalks on each side are at least 6 m wide.
Master Planning Map of Hoa Lu Border Gate Economic Zone – TTTFIC GROUP
Stormwater drainage:
The stormwater drainage system will consist of open drains or culverts. The economic zone management board will install drainage works along the roads. They will collect rainwater from construction areas. Rainwater collection system will discharge directly into the nearest river or stream.
Water supply:
Water demand:
The economic zone management board expects the total water demand to be 32.000 m3/day in 2015 and 70.000 m3/day in 2025.
Water sources: Construct three water plants (WP): WP 1 in Loc Hoa commune, utilizing water from Suoi Nuy Lake with a capacity of 15.000 m3/day, WP 2 in Loc Tan commune, utilizing water from Loc Thanh Lake with a capacity of 15.000 m3/day, WP 3 in Loc Hiep commune, utilizing water from the Be River, considering the construction of a water reservoir or dam with enough capacity to support a WP with a capacity of 45.000 m3/day.
Firefighting water supply:
Firefighting water intakes are located 150 meters apart along the main water supply system of the planned area. The management board of the economic zone shall arrange its own fire fighting stations in border towns and industrial-commercial zones.
Electricity supply:
The electricity demand in 2015 is 37,5 million kWh/year, and in 2025, it is projected to reach 150 million kWh/year.
Power supply sources:
The initial power supply source for the area is the 110/22 kV Loc Ninh substation, which will be upgraded from 2×25 MVA to 2×40 MVA in the future.
Two additional 110/22 kV substations will be built for the area. These substations will be located adjacent to the concentrated industrial-commercial area in the north. Substation 1 will have a capacity of 4 x 63 MVA, and Substation 2 will also have a capacity of 4 x 63 MVA. These substations will receive power from the national grid via the 110 kV Loc Ninh – Thac Mo transmission line.
Wastewater treatment:
Urban wastewater flow in 2015 is 4.000 m3/day and night, in 2025 it will reach 10.560 m3/day. Industrial wastewater flow in 2015 is 18.000 m3/day and night, in 2025 it will reach 36.000 m3 /day and night.
The management board of the economic zone will build two separate wastewater drainage systems. The first system will be designated for rainwater, allowing it to flow directly into the river. A treatment area will handle the wastewater, directing it for purification before discharging it into the river.
Solid waste management:
Construct a 50-hectare landfill and waste treatment facility for the border urban area.
The estimated waste volume is an average of 1 kg per person per day, projected to be around 50 tons/day in 2015 and 100 tons/day in 2025.
IV. Industries attracting investment in the Hoa Lu International Border Economic Zone
The structure of industries and sectors attracting investment mainly focuses on the following areas: Manufacturing and assembling electronic components, producing supportive industrial products, clothing manufacturing, woodworking, textile and garment support industry, and the footwear and leather industry. In recent years, and in the upcoming trends, the processed poultry and pork products sector has emerged as a new and promising industry expected to significantly contribute to the province’s growth.
V. Investment incentives in Hoa Lu Border Economic Zone
Corporate income tax incentives:
– A tax rate of 10% is applied for a period of 15 years from the start of business operation. After the expiration of this period, corporate income tax is paid according to the tax rate specified in the Corporate Income Tax Law.
– Exemption from tax for 4 years from the first taxable income and a 50% reduction in tax payment for the subsequent 9 years. The tax exemption and reduction are determined based on the appropriate tax calculation period. The tax exemption and reduction start from the first tax calculation period when the business generates taxable income. The calculation is continuous without any interruptions or breaks in between the tax periods.
Land rental incentives:
Exemption from land rental for 11 years from the start of the project’s operation.
Exemption from land rental for 15 years from the start of operation for projects in the preferred investment sectors.
Full exemption from land rental for the entire operating period for projects in the special preferred investment sectors.
Import tax exemption and reduction incentives:
Investors are exempt from import tax for imported goods used in investment projects in the encouraged sectors as regulated by the current laws.
Visa and immigration incentives:
Investors, experts, and technical workers from foreign countries working in Hoa Lu Border Economic Zone are eligible for multiple-entry visas. The visas have a maximum validity period of 5 years for each issuance. Family members of the aforementioned individuals are also eligible for the visa benefits.
Other incentives:
Advertising cost incentives.
Support for human resources training.
Support for investment promotion consultancy.
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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