Hoa Phu Industrial Park, originally approved by Bac Giang province, was named Chau Minh Industrial Zone in 2010. The Prime Minister issued a letter in 2016, approving the investment by Phu My Group. Phu My Group, formerly known as Industrial and Infrastructure Development Company, is the project’s investor. The company specializes in industrial infrastructure investment and operation. Hoa Phu Industrial Park covers 207.45 hectares and has a lease until 2066.
Located in Bac Giang province, Hoa Phu Industrial Park is strategically positioned in the Bac Bo Plain. It provides convenient access to major national routes such as National Highway 18 and Ring Road IV. This facilitates seamless trade and transportation between regions.
Hoa Phu Industrial Park has completed its technical infrastructure, including transportation systems, clean water supply, wastewater treatment, and green landscaping.
The industrial park, in conjunction with Bac Giang’s favorable policies, offers support to investors in project implementation procedures. Hoa Phu Invest Company assists clients with legal procedures, labor recruitment, and partner introductions.
With its advantageous location and significant investment, Hoa Phu Industrial Park has attracted 20 enterprises, with an occupancy rate exceeding 85%. These companies originate from various countries, including Singapore, South Korea, China, Hong Kong, Malaysia, and Vietnam. The total investment capital in Hoa Phu Industrial Park amounts to USD 420 million, equivalent to VND 9,660 billion.
Additionally, the industrial park has generated thousands of job opportunities, contributing to the province’s socioeconomic development.
A perspective on Hoa Phu IP – Bac Giang – TTTFIC Group
Geographical location:
Hoa Phu Industrial Park is strategically located in Chau Minh, Mai Dinh, and Huong Lam communes, Hiệp Hòa district, Bac Giang province. Situated near Provincial Road 295 and adjacent to the Cau River, Hoa Phu Industrial Park enjoys a prime position in the center of the Bac Bo Plain. It serves as a convenient gateway for trade and transportation between regions nationwide and international border crossings. The industrial park benefits from a well-connected transportation network, facilitating easy movement by road, sea, and air. Specifically:
It is located 44km from the capital city of Hanoi.
It is situated 34km from Bac Giang city.
The distance to Noi Bai International Airport is 24km.
It is approximately 150km from the Vietnam-China border gate (Lang Son).
The distance to Hai Phong port is 116km.
Infrastructure of Hoa Phu Industrial Park:
Hoa Phu Industrial Park prioritizes the development of comprehensive and modern infrastructure. The construction designs create a cohesive and visually appealing industrial park landscape.
In terms of transportation, the internal road system is well-designed to facilitate easy access for vehicles. It consists of main roads (24m wide) and secondary branches (15m wide), providing efficient connectivity within the park.
The electricity supply is sourced from a newly installed 110kV power line with a capacity of 2 x 63 MVA. A transformer station within the park ensures stable power distribution. The electricity distribution lines are underground, ensuring a seamless connection to each land plot.
The industrial park’s water supply is supported by a water plant with a maximum capacity of 7,500 m3/day. The water supply network reaches every land plot, ensuring consistent and sufficient water supply for the factories.
Wastewater treatment in Hoa Phu Industrial Park adopts a two-system approach, effectively separating rainwater and domestic wastewater from industrial wastewater. The Hoa Phu Industrial Park ensures thorough treatment of industrial wastewater to comply with the required standards before safely discharging it into the environment.. The park has completed Phase 1 of the wastewater treatment project, with a capacity of 4,000 m3/day.
Hoa Phu Industrial Park commits to providing businesses with quality infrastructure and services, creating an optimal environment, and promoting sustainable industrial development.
Wastewater treatment plant of Hoa Phu IP – Bac Giang – TTTFIC Group
Investment-Attractive Industries:
Hoa Phu Industrial Park primarily attracts various industries, including:
1. High-tech industries: Hoa Phu Industrial Park appeals to businesses engaged in high-tech sectors, including research and development, manufacturing, and production of high-tech products.
2. Mechanical assembly: The industrial park provides infrastructure and favorable conditions for mechanical assembly businesses, encompassing the manufacturing and assembly of mechanical products, machinery, and industrial equipment.
3. Hoa Phu Industrial Park is a hub for the electronic components industry, attracting companies engaged in the production of components, circuit boards, and electronic products. These companies have a significant presence within the industrial park.
4. Food production and processing: The industrial park offers facilities and support for food production and processing enterprises. Food factories and processing plants can leverage the amenities and services within the industrial park.
5. Consumer goods and handicrafts: Manufacturers of consumer goods and handicraft products can establish their production facilities in Hoa Phu Industrial Park.
6. Construction materials manufacturing: The industrial park facilitates favorable conditions for businesses involved in the production of construction materials, such as cement, bricks, iron and steel, and other building materials.
With this diverse range of industries, the Industrial Park provides favorable conditions for economic development and investment attraction in the region.
Investment Costs of Hoa Phu Industrial Park:
Infrastructure rental price: $135 USD/m2 (This fee does not include VAT and may vary depending on the location and plot size).
Hoa Phu Industrial Park divides its production plots into diverse modules, suitable for various types of investments:
Small plots: 0.2 – 0.5 hectares.
Medium plots: 1.0 – 2.0 hectares.
Large plots: 3.0 – 4.0 hectares.
Industrial park management fee: 11,750 VND/m2/year (excluding VAT).
Clean water supply price: 11,000 VND/m3.
The wastewater treatment fee in Hoa Phu Industrial Park is 9,900 VND per cubic meter. The volume of wastewater is calculated based on 80% of the water supply volume.
Electricity supply price: According to the state’s pricing framework (ranging from 1,007 VND to 2,871 VND/kWh).
The transportation of Hoa Phu IP – Bac Giang – TTTFIC Group
Investment incentives:
The industrial park enjoys infrastructure advantages in transportation, with convenient connections to National Highway 18 and serving as a link between National Highway 17 and National Highway 37. This facilitates cost and time savings for investors in terms of transportation.
Comprehensive infrastructure investment: The industrial park has developed a synchronized transportation infrastructure system.
Smooth administrative procedures create the most favorable conditions for investors.
Competitive labor costs: Located in Hiệp Hoà district, which is in Area III, the labor costs in the industrial park are only 77% of those in Hanoi.
Corporate income tax incentives: Continuous incentives apply from the first year of taxable income from the investment project. If the enterprise does not generate taxable income in the first three years after obtaining revenue from the investment project, the tax exemption or reduction period will start from the fourth year. General incentives include a tax exemption for the first two years and a 50% tax reduction for the next four years. High-tech and support industries enjoy a 10% preferential tax rate for 15 years, with a tax exemption for the first four years and a 50% tax reduction for the following nine years.
Import tax exemptions apply to goods used as fixed assets for the project, including equipment, machinery, specialized transportation vehicles in the technological line, transportation vehicles for workers, components, parts, fittings, molds, and accompanying accessories. The exemption also extends to raw materials used in the manufacturing of equipment, machinery, components, parts, fittings, molds, and accompanying accessories. Furthermore, domestically produced construction materials that are not available are also exempted from import duties.
Labor source and cost:
Bac Giang province, with a population of over 1.8 million people (ranking 12th in the country), has a favorable demographic structure with over 1.1 million people of working age, representing the golden population period. Additionally, the province serves as a gateway for attracting labor from the mountainous regions in the North of Vietnam.
In recent years, the labor structure in the province has shifted positively. In 2020, the industrial-construction sector accounted for 37.6% of the workforce, services accounted for 24%, and agriculture-forestry-aquaculture accounted for 38.4%. The proportion of trained labor has been increasing, reaching 70% in 2020 (5.5% higher than the national average).
In 2020, the working-age population from 15 years and above in various economic sectors was around 1.1 million people (representing 61.2% of the population). Among them, the public sector accounted for 6.1%, the private sector accounted for 85.4%, and the foreign-invested sector accounted for 8.4%. The female labor force accounted for 49.6%, and the workforce in enterprises accounted for 24.4%. Currently, there are nearly 7,000 active businesses in the province, employing around 275,000 workers, including 383 businesses in industrial parks employing approximately 165,000 workers.
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
TTTFIC Group: Guide to Industrial Real Estate in Vietnam
Where you gain a comprehensive view of the ideal investment environment for foreign enterprises, we are TTTFIC Group, your reliable partner in the Industrial Real Estate sector.
For first-time investors in Vietnam, we assist in surveying suitable locations in Industrial Zones across the entire territory of Vietnam. We support handling investment procedures for projects.
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With over 20 years of experience in Design & Build for FDI projects of all scales. If you’re seeking industrial real estate in Vietnam, give us a call! With a team of experienced experts, engineers, and lawyers, we have assisted thousands in property buy, sell, M&A, and industrial real estate leasing (especially investors from the US, Germany, Denmark, Sweden, the UK, Korea, Japan, Taiwan, China, India, Singapore…).
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Industrial real estate in industrial zones, Vietnam
