I. Overview of Kim Hoa Industrial Park – Vinh Phuc:
Kim Hoa Industrial Park, established on August 1, 1998, by the Prime Minister’s Decision No. 679/QD-TTg, operates as an industrial park following the guidelines of Industrial Parks, Export Processing Zones, and High-Tech Parks, as stipulated in Government Decree No. 36/CP issued on April 24, 1997.
The industrial park is located in Kim Hoa, Phuc Thang, Thanh Lam communes, Me Linh district, Vinh Phuc province.
With a total area of 150 hectares (Phase I: 50 hectares; Phase II: 55 hectares) and a total investment of 328.948 billion VND, the industrial park has completed 100% of infrastructure construction, ensuring sufficient facilities for investors and workers. Currently, all industrial land in the park has been leased and is in use.
The investor of Kim Hoa Industrial Park is IDICO-URBIC Urban and Industrial Development One Member Company Limited. The operation of the industrial park is guaranteed from 2003 to 2053.
The design of Kim Hoa Industrial Park aims to be modern and synchronized, featuring a wide internal transportation system, extensive green areas, and electricity and water supply systems that meet international standards.The land plots within the park are flexible and suitable for various types of factories. Situated at the heart of the pivotal economic region in the North, the industrial park finds itself nestled between Hanoi, Hai Phong, and Quang Ninh. This is a favorable location with the lowest costs for supplying goods to major cities in the region and the whole country. Currently, there are industrial projects in the park, including Honda and Toyota factories from Japan.
Master plan map of Kim Hoa Industrial Park – Vinh Phuc – TTTFIC Group
II. Geographic Location of Kim Hoa Industrial Park – Vinh Phuc:
Kim Hoa Industrial Park is built as a multi-sector industrial park, focusing on attracting investment projects in industries that have minimal or no environmental pollution.
With excellent transportation connectivity, specifically, the industrial park is situated at the border between Vinh Phuc province and Hanoi.
32 km from the center of Hanoi
8 km from Noi Bai Airport
6 km from the center of Phuc Yen City; 16 km from the center of Vinh Yen City
10 km from the Hanoi – Lao Cai expressway interchange
15 km from Hai Phong Port, 152 km from Haiphong Port
2 km from Vinh Yen Station.
III. Infrastructure of Kim Hoa Industrial Park – Vinh Phuc:
Internal transportation:
The roads within the industrial park have a width of 8m and 15m, with sidewalks for pedestrians and a system of green tree-lined lighting, creating a clean and beautiful landscape for the industrial park.
Power system:
The power supply will come from the 220/110KV Soc Son Substation and the 110KV Dong Anh Substation.
Therefore, the industrial park always ensures a stable electricity supply.
Public lighting system:
A separate street lighting network is designed with an arranged power supply system along the transportation routes.
Water system:
The Quang Minh Water Plant treats the underground water source with a capacity of 14,000m3 per day and night, supplying clean water.
It ensures continuous water supply 24/7 to investors within the factory fences.
Wastewater and rainwater drainage system:
The rainwater drainage system flows naturally along the roads leading to the channels surrounding the industrial park and then discharges into the canals and rivers in the area.
Waste management:
The factories within the industrial park collect and transport waste out of the industrial park for proper sorting and disposal, thereby preventing environmental pollution.
Wastewater treatment:
Wastewater undergoes preliminary treatment at a plant that meets industrial park standards before discharge.
The wastewater treatment plant in the industrial park will centrally treat it, ensuring it meets TCVN 6982:2001 standards, before discharging it into the external drainage system.
The capacity for Phase 1 is 4,000m3 per day.
Communication system:
Top telecommunications infrastructure providers in Vietnam, such as VNPT, Viettel, and FPT Telecom, furnish the comprehensive communication system, ensuring seamless coverage throughout the entire industrial park and providing superior global connectivity through the advanced fiber optic network deployed within the park.
A perspective on Kim Hoa Industrial Park – Vinh Phuc – TTTFIC Group
IV. Key Investment-Attractive Industries in Kim Hoa Industrial Park:
Kim Hoa Industrial Park primarily attracts industries including:
Mechanical engineering, machinery and equipment manufacturing and processing
Construction materials production, motorcycle and equipment manufacturing and repair
Electrical and electronics
Industrial product processing and food production
Other non-polluting industries
V. Land Rental Costs in Kim Hoa Industrial Park – Vinh Phuc:
Land rental cost: $100 – $155 USD/m2/year
Workshop rental cost: $4 USD/m2/year
Management fee: $0.4 USD/m2
Electricity tariff: $0.1 USD/kWh, based on EVN’s electricity pricing
Water tariff: $0.59 USD/m3, calculated based on actual water usage
Wastewater treatment tariff: $0.4 USD/m3, wastewater volume is calculated as 80% of clean water usage
VI. Labor Costs and Incentives in Kim Hoa Industrial Park:
Labor costs:
Kim Hoa Industrial Park is located in Vinh Yen City, Vinh Phuc Province, falling under Region II.
The current minimum wage in Region II is 3,920,000 VND/month.
Human Resources:
Vinh Phuc Province has an average population of approximately 1.231 million people as of 2019. The working-age population accounts for 70%, and the proportion 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%; skilled workers account for 47.32%; technicians account for 38.8%, and other job types account for 0.05%.
Investment incentives:
Corporate income tax rate: 20%
Tax incentives:
A preferential tax rate of 17% for 10 consecutive years starting from the first year the company generates revenue from the project. After the expiration of this preferential tax rate, the company will switch to the standard tax rate of 20%.
Tax exemption for 2 years and 50% reduction for the following 4 years from the year the taxable income is generated:
The company calculates the period of tax exemption/reduction continuously from the first year it generates taxable income from the project.
In case the company does not have taxable income in the first three years (starting from the first year of revenue from the project), the tax exemption/reduction period will start from the fourth year.
The granting of import tax exemption is applicable to the goods listed under the preferential category when imported for the purpose of establishing fixed assets for new investment projects.
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
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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
