Khai Quang Industrial Park - Phu Tho

I. Overview of Khai Quang Industrial Park – Phu Tho

Khai Quang Industrial Park is located on the border of Khai Quang Ward, Vinh Yen City, Phu Tho province.

After nearly 20 years of operation, the industrial zone has attracted over 80 investment projects, of which nearly 70 projects have foreign direct investment (FDI), providing employment for over 40,000 workers and making positive contributions to the socio-economic development of  Phu Tho province.
According to Decision No. 67/2006/QD-UBND of  Phu Tho province, the official establishment of Khai Quang Industrial Zone took place on September 11, 2006. The industrial zone had a total investment capital of over 286 billion VND and a duration of 50 years starting from September 2003. Phu Tho Infrastructure Development Joint Stock Company invests in the total area of over 262.16 hectares.
The industrial zone, built and developed with the orientation of being a multi-sector industrial zone, utilizing advanced and environmentally-friendly technologies in accordance with international standards, sits in the center of the key economic triangle in the North, including Hanoi – Hai Phong – Quang Ninh.

With its completed infrastructure, convenient location, and attractive investment policies, the industrial zone has become an appealing destination for domestic and foreign investors.

II. Geographic Location of Khai Quang Industrial Park – Phu Tho

Khai Quang Industrial Park is planned as a multi-sector industrial park and highly appreciated by feng shui experts due to its location shielded by Trong Mountain to the Northeast and a 6-hectare artificial lake adjacent to create a “backed by mountains, facing water” position.
The industrial zone is located at the gateway to Vinh Yen City, with National Highway 2 and the Noi Bai – Lao Cai railway running through it.Furthermore, it occupies a pivotal position within the prominent economic region of the North. The industrial zone is strategically located within the administrative boundaries of Khai Quang Ward, Vinh Yen City, Phu Tho province. In terms of transportation, it boasts excellent connectivity to major transportation routes and key economic hubs, including:

• 4 km from the city center of Vinh Yen.
• Approximately 10 kilometers away lies the interchange of the Hanoi – Lao Cai expressway.
• About 10 km from National Highway 2A.
• The distance from Noi Bai International Airport is 25 kilometers.
• 6 km from Vinh Yen Station.
• 45 km from the center of Hanoi; 61 km from Bac Ninh City.
• 180 km from Hai Phong Port; 170 km from Cai Lan Port (Quang Ninh).

In summary, this is a favorable location with low costs for supplying goods to major cities in the region and throughout the country.

III. Infrastructure of the Industrial Park:

Internal transportation:

• The transportation system is designed logically with road widths ranging from 15 to 31 meters, divided into 2 or 4 lanes.
• All roads are paved with durable asphalt or concrete.

Electricity system:

The power supply is sourced from the national power grid, with a transformer station of 220/110KV capacity.

Public lighting system:

A separate design for the street lighting network allocates a power supply system along the traffic routes.

Water system:

• The Quang Minh Water Plant supplies clean water from treated underground sources, with a capacity of 14,000 m3 per day and night..
• Continuous water supply is ensured 24/7 for investors within the factory compound.

Wastewater and rainwater drainage system:

• Rainwater is collected through drainage systems and discharged into nearby rivers.
• Wastewater is collected and sent to the industrial zone’s wastewater treatment plant for processing.

Waste management:

Contracted factories collect, sort, and transport the waste generated within the industrial zone to prevent environmental pollution.

Wastewater treatment:

The centralized wastewater treatment system utilizes biological treatment with activated sludge technology, with a capacity of 2,000 m3 per day and night.

Communication system:

• The entire communication system is provided by leading telecommunication infrastructure providers in Vietnam, such as VNPT, Viettel, FPT Telecom.
• It covers the entire industrial zone and connects globally through high-quality fiber optic cables within the industrial zone.

IV. Key Investment-attracting Industries in Khai Quang Industrial Park:

Khai Quang Industrial Zone primarily attracts industries including:

• Mechanical assembly, production of electronic components and spare parts.
• Precision engineering, refrigeration manufacturing.
• Consumer goods production, handicrafts, and fine arts.
• Textile and garment industry.
• Metal and non-metal mold manufacturing.
• Food processing and agricultural products, along with various other industries.

V. Land Rental Costs in Kim Hoa Industrial Park – Phu Tho province

• Land rental cost: 60 USD/m2/year.
• Workshop rental cost: 5 USD/m2/year.
• Management fee: 0.5 USD/m2.
• Electricity rates: Peak hours: 0.9 USD/kWh, Normal hours: 0.43 USD/kWh, Off-peak hours: 0.31 USD/kWh.
• Water rates: Range from 1.08 to 0.56 USD/m3, based on actual water usage.
• Wastewater treatment fee: 0.4 USD/m3, calculated based on 80% of the clean water consumption.

VI. Labor Costs and Investment Incentives in the Industrial Park:

Labor Costs:

• Khai Quang Industrial Zone is located in Khai Quang Ward, Vinh Yen City, Phu Tho province, within Zone II.
• The current minimum wage in Zone II is 3,920,000 VND per month.

Human Resources:

• Phu Tho Province has an average population of approximately 1.231 million people as of 2019.
• The working-age population accounts for 70%, and the percentage of trained workers with degrees or certifications is 65%.
• Among the total workforce, leaders account for 1.32%, high-level technical professionals account for 8.4%, mid-level technical professionals account for 4.01%, simple trades account for 47.32%, skilled workers account for 38.8%, and other types of jobs account for 0.05%.

Tax incentives:

Corporate Income Tax incentives:

• Applied tax rate of 20%.
• Full exemption of Corporate Income Tax for the first two years and a 50% reduction in tax payment for the next four years for new investment projects in the industrial zone.

Import Tax incentives:

Import tax exemption for imported goods used to establish fixed assets for new investment projects, subject to the designated list of incentives in accordance with the Investment Law at the time of project implementation.

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