Lac Thinh Industrial Zone - Phu Tho

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Information
Operating time: 2020 - 2070	Total Area: 200 Ha
Infrastructure investors: LTIP CO.,LTD	Price: 30 USD/m²
Building density: updating	Occupancy: updating
Address: Yen Thuy Commune, Phu Tho Province, Vietnam

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Lac Thinh Industrial Zone

Lac Thinh Industrial Zone (Yen Thuy) is one of the province’s eight industrial zones, assigned to the former investor (BTG Corporation) for infrastructure investment and business operations since 2013, with a total investment of millions of USD. It was expected to make significant contributions to the province’s budget and labor structure transformation. However, the project turned out to be infeasible, remaining unimplemented and wasting valuable resources.

The total area of Lac Thinh Industrial Zone is 220 hectares, included in the Vietnam Industrial Zones development plan until 2020, as decided by the Prime Minister. The detailed construction planning at a 1/500 scale was approved by the Provincial People’s Committee, with an industrial area of 134.92 hectares.

So far, the total investment from the infrastructure budget of Lac Thinh Industrial Zone has reached 157.2 billion VND. This includes 148.4 billion VND for land clearance compensation and the remaining amount covers the expenses for detailed construction planning at a 1/500 scale, clearance of bombs, mines, explosive materials, as well as investments in power lines and a 35kVA substation.

Currently, there are two projects within the industrial zone that have been granted Investment Registration Certificates: a beer production factory and GREENTEX VINA textile factory.

Geographic location

Lạc Thịnh Industrial Zone is located in Lac Thinh commune, Yen Lac commune, Hang Tram town, Yen Thuy district, Phu Tho province, approximately 100km from the center of Hanoi via the Ho Chi Minh highway.

The industrial zone enjoys a favorable location for trade, transportation, and connectivity with key economic regions in northern Vietnam. It provides favorable conditions for regional economic development, with the following distances to important locations:

3km from National Highway 6
100km from Hanoi
117km from Noi Bai Airport
107km from Nam Dinh Port
55km from Ghenh railway station.

Master plan map of Lac Thinh Industrial Zone - Phu Tho - TTTFIC Group — Master plan map of Lac Thinh Industrial Zone – Phu Tho – TTTFIC Group

Infrastructure of Lac Thinh Industrial Zone:

Infrastructure of Lac Thinh Industrial Zone – Phu Tho

Internal Transportation:

The main road within the industrial zone has a width of 39m, consisting of 4 lanes, while the branch road is 23m wide with 2 lanes.

Electricity System:

The industrial zone is supplied with electricity through a 22/35/110KV system, reaching the perimeter of the businesses.

Public Lighting System:

A separate street lighting network is designed along the traffic routes, with a power supply system for residential areas.

Water System:

A 24/7 water supply is ensured, providing a capacity of 40m3/ha/day to facilitate smooth operations for businesses.

Wastewater and Rainwater Drainage System:

There are separate systems for wastewater and rainwater drainage. Wastewater is collected from production facilities and directed to the main drainage lines for treatment.

Waste Management:

Solid and soft waste is classified and collected for proper processing at designated locations.

Wastewater Treatment:

A wastewater treatment plant meets Class A standards before discharging into the environment.

Communication System:

A modern information technology system is installed along the transportation routes, ensuring efficient communication and providing information to each factory. There are plans to invest in constructing a postal facility near the central operations center.

Investment-Attractive Industries

Lac Thinh Industrial Zone primarily attracts industries including:

Mechanical Engineering, Textiles, Dyeing, and Garment Manufacturing
Electrical, Electronics, and Pharmaceutical sectors
Food Processing and Food Industry
Wood Processing and Woodworking
Printing and Packaging Industries.

Investment incentives

Yen Thuy district falls under the fourth region’s labor wage level.

Corporate Income Tax: Regular projects enjoy a preferential tax rate of 17% for 10 years, tax exemption for 2 years, and a 50% reduction for the following 4 years. Priority sectors are eligible for a 10% preferential tax rate for 15 years, tax exemption for 4 years, and a 50% reduction for 5-9 years, or applicable tax rates ranging from 10% to tax exemption for the project’s lifetime (Decree No. 218/2013/NĐ-CP).

Land Rental Fees: Land rental fees are waived for 7-15 years (Decree No. 46/2014/NĐ-CP).

Other incentives: Industrial zone businesses employing at least 10 local workers receive vocational training support from Phu Tho province, ranging from 300,000 VND to 1,000,000 VND per local worker.

Labor source and cost

Currently, the province has 39 vocational education institutions, including 5 colleges, 3 secondary schools, 11 vocational education centers, and other training units. Annually, vocational skills training programs accommodate more than 14,000 individuals, aiming to achieve a training rate of 56% by 2020, with degrees and certificates earned at 22.64% completion.

The labor force in agriculture, forestry, and fisheries sector has a higher proportion than the national average, but the percentage of skilled labor through training is low. The main reason is the difficulty in human resource training, mainly at the elementary and intermediate levels. The province has 5 major labor training centers, but many colleges are facing challenges in enrollment and training partnerships.

With an abundant and high-quality labor force, the industrial zone in Lac Thinh – Phu Tho will fully meet the employment needs of investing businesses.

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