Kim Thanh Industrial Park - Lao Cai

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.

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.

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.

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