I. Overview of Kim Thanh Industrial Park – Lao Cai:
The Lao Cai Provincial People’s Committee approved Kim Thanh Industrial and Commercial Zone Phase 1 under Decision No. 2969/QD-UBND dated October 10, 2008, and also approved the detailed adjustment of the International Road Border Gate II – Kim Thanh and its expansion plan (phase until 2020, vision until 2030) under Decision No. 3199/QD-UBND dated October 30, 2014, encompassing a total area of 182.36 hectares.
Currently, the Prime Minister has issued Decision No. 40/2016/QD-TTg dated September 22, 2016, regarding the expansion of the Lao Cai Border Economic Zone in Lao Cai Province. This decision terminates the operations of the Kim Thanh Industrial and Commercial Zone, and the Lao Cai Provincial People’s Committee is studying the adjustment of the Kim Thanh Industrial and Commercial Zone’s plan to transform it into a multifunctional, modern, and civilized Urban Complex closely linked to the International Road Border Gate II – Kim Thanh.
The operation of the Kim Thanh Industrial and Commercial Zone will provide an opportunity for Vietnamese goods to accelerate their entry into the vast Chinese market before the economic corridor of Kunming – Hekou – Lao Cai – Hanoi – Haiphong becomes active. It will also serve as a driving force for the strong development of the Kunming – Lao Cai – Hanoi – Haiphong economic corridor.
Master plan map of Kim Thanh Industrial Park – Lao Cai – TTTFIC Group
II. Geographical location of Kim Thanh Industrial Park – Lao Cai:
Kim Thanh Industrial and Commercial Zone is located within the Kim Thanh International Border Gate area, encompassing the administrative boundaries of Dong Tuyen commune (Lao Cai city) and Quang Kim commune (Bat Xat district), Lao Cai Province.
It includes the Kim Thanh Commercial Zone, International Road Border Gate No. 2 Kim Thanh, and the expansion area of the border gate. Kim Thanh Industrial and Commercial Zone serves as a crucial connection point in the Kunming (China) – Lao Cai – Hanoi – Haiphong (Vietnam) economic corridor, and it is the largest industrial and commercial zone in the Northwest border region of the country.
Planning boundaries are as follows:
To the North, it borders Quang Kim commune, Bat Xat district.
To the South, it borders the Bac Duyen Hai Industrial Zone.
To the East, it borders the Red River.
To the West, it borders the road leading to Bat Xat.
III. Infrastructure of the Industrial Park:
Internal Transportation:
The industrial zone features a complete road transportation system, providing easy movement for vehicles.
The main roads have four lanes, while the secondary roads have two lanes.
Electrical System:
The industrial zone ensures a stable power supply for the factories.
The designers have arranged the public lighting system and street lighting network separately from the residential power supply system, along the road network.
Water System:
The water supply system will be installed up to the perimeter of the factory fences.
The stormwater drainage system and wastewater system are independent of each other.
Waste Management:
Investors will enter into service contracts with professional waste management companies.
Wastewater Treatment:
Before being discharged into the environment, we will treat wastewater to meet Class A standards.
Communication System:
Leading telecommunications infrastructure providers in Vietnam, such as VNPT, Viettel, and FPT Telecom, deploy and provide coverage for the entire communication system.
It ensures high-quality coverage throughout the industrial zone and global connectivity through the fiber optic network within the zone.
A perspective on Kim Thanh Industrial Park – Lao Cai – TTTFIC Group
IV. Industries attracting investment of Kim Thanh Industrial Park – Lao Cai:
Kim Thanh Industrial Commercial Zone Phase 1 serves as a hub for commercial, service, financial, and telecommunications activities, as well as warehouse services.
It plays a vital role in supporting the industrial production activities of the province and the surrounding region.
V. Cost of land lease and support:
Rent Price: $50 per square meter.
The annual fee for infrastructure management and maintenance is $0.4 per square meter.
Electricity Price: Ranging from $0.03 to $0.1 per kilowatt-hour, depending on the usage period.
Water Supply Price: $0.4 per cubic meter.
Wastewater Treatment Fee: $0.28 per cubic meter (calculated based on 80% of water consumption).
VI. Advantages of investing in Industrial Park:
Labor Cost:
Kim Thanh Industrial and Commercial Zone Phase 1 is located in Lao Cai City, Lao Cai Province, in Region II.
The current minimum wage in Region II is 3,920,000 VND per month.
Investment Incentives:
Enterprises at the Lao Cai border economic zone will benefit from a 10% corporate income tax rate applied for a period of 15 years on their income from new investment projects. The tax incentives will be calculated from the first year of the enterprise’s new project with revenue.
New investment projects at the Lao Cai border economic zone will exempt corporate income tax for 4 years and reduce it by 50% of the maximum payable tax for the following 9 years. The exemption and reduction period will be continuously calculated from the first year of generating taxable income. If there is no taxable income for the first 3 years, the exemption and reduction period will be calculated from the year of the first revenue, starting from the fourth year.
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.
Our Design & Build approach means that from the moment the investor completes the land lease location, we take responsibility for all steps, including obtaining IRC/ERC; DTM; Fire prevention and firefighting certificates; legal aspects of the project from the design phase; applying for construction permits; progressing to the construction phase, and completing the factory for handover to the investor in an operational state in a turnkey manner.
You don’t waste time searching, don’t incur additional consulting fees, and don’t have to spend money on investment estimates. We offer a complete package from receiving the client’s idea to completing the project, ensuring a smooth start of operations, reducing 2/3 of the time, effort, and money for you.
Services include Lease, Purchase, Sale, and M&A (Merger & Acquisition): We provide specialized information and support for your real estate needs in key business areas.
Legal Consultation: Our experienced legal team assists with real estate-related issues, ensuring smooth procedures for foreign investors.
Foreign Direct Investment (FDI) Establishment: We guide the easy establishment of foreign direct investment businesses, ensuring compliance with regulations.
Investment Project Development Consultation: From market surveys to detailed planning, we support the development of your project.
Construction Licensing & Compliance: We assist in obtaining permits, ensuring compliance with safety and environmental standards.
Registration & Tax Consultation: We handle tax compliance, ensuring your business meets all legal regulations.
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…).
Together, we can build a prosperous and sustainable future for both businesses and communities. We look forward to collaborating with you.
Industrial real estate in industrial zones, Vietnam
