Le Minh Xuan III Industrial Park - HCMC

Le Minh Xuan III Industrial Park (Le Minh Xuan III IP) is situated in Binh Chanh District, Ho Chi Minh City, a key economic center in the country. Recognized for its highly skilled workforce and diverse fields of specialization, the industrial park provides an optimal environment for investors, professionals, and workers alike. With a strategic location and robust infrastructure, Le Minh Xuan III IP is deemed an ideal hub for the development of various industries.

I. Overview of Le Minh Xuan III Industrial Park

Le Minh Xuan III IP, operational from 2014 to 2064, is an investment by VRG Saigon Investment Corporation. Spanning 311 hectares, with a cost of 150 USD/m², and a construction density of 70%, the industrial park is situated on Tran Van Giau Street, Binh Chanh District, Ho Chi Minh City.

Approved for planning and establishment by Decision No. 4252/QD – UBND on August 26, 2014, the park serves as a hub for highly skilled workers, attracting investors and businesses seeking to establish factories and enhance production activities. With a total capital exceeding 1.200 billion VND, Le Minh Xuan III IP strategically invests in technical infrastructure to facilitate production. Additionally, it offers competitive rental costs and investment incentives. An adjacent 80-hectare residential area caters to the welfare needs of experts and workers within the industrial park.

Currently, Le Minh Xuan III IP is in the process of developing ready-built factories for rent, catering to the needs of both small and medium enterprises.

II. Location of Le Minh Xuan III Industrial Park

The location plays a pivotal role in the success of an industrial park project, influencing trade convenience and connectivity for businesses and workers. Le Minh Xuan III IP boasts a prime location in Binh Chanh district, positioned as a bridge between two key economic regions: Ho Chi Minh City and the Mekong Delta. While Ho Chi Minh City serves as an economic hub with flourishing financial and scientific industries, the Mekong Delta stands as Vietnam’s primary agricultural and fishery production area.

Benefiting from this strategic location, Le Minh Xuan III IP gains a significant competitive edge in both domestic and international goods transportation. Notable regional connections include:

• A mere 5-minute drive from the Rocket area in Binh Tan district via Provincial Highway 10.
• 19km away from Tan Son Nhat airport, accessible within a 45-minute car ride.
• 5km from Ring Road 3, with a 10-minute drive.
• Ho Chi Minh City – Trung Luong Expressway, situated 10km away and reachable in 15 minutes by car.
• Vo Van Kiet Avenue, located 8km away, with a 15-minute drive.

III. Infrastructure of Le Minh Xuan III Industrial Park

Le Minh Xuan III IP stands out for its fully developed technical infrastructure, catering to the diverse needs of investors and businesses.

1. Electric Supplying System

• Power is sourced from the on-site power station, boasting a capacity of 3×63 MVA, invested, operated, and maintained by Saigon VRG Corporation.
• The stability of the power source guarantees a consistent power supply for the factories within the industrial park.

2. Water Supply System

• The water source is derived from the SAWACO Binh Chanh water plant, with a capacity of up to 300.000 m²/day and night, meeting high-quality QCVN standards.

3. Waste Water Treatment System

• A wastewater treatment system is in place to address environmental concerns.
• Production wastewater undergoes centralized collection and treatment at the on-site wastewater treatment station, featuring a capacity of 16.000 m²/day and night. This ensures compliance with standard B regulations.

4. Internal Transportation System

• The project incorporates a park with well-planned, spacious roads, featuring six lanes and a 40m wide median strip.
• Internal roads consist of 2-4 lanes and a median strip ranging from 18-29m wide.
• The industrial park investor, Saigon VRG, is committed to opening more roads as needed.

5. Communication Systems

• Le Minh Xuan III IP boasts a communication and telecommunications system meeting international standards, ready to accommodate high-speed communication and data needs.

6. Other Utilities

• Customs office
• Inland customs clearance port
• Logistics Center
• Dormitory area
• Residential area
• Market, shophouse for rent
• Gas station
• Ready-built factory
• Rooftop solar installation
• And more…

7. Additional Amenities

• Cho Ray 2 Hospital is conveniently located at the entrance to the Industrial Park.
• Schools, kindergartens, and the City Children’s Hospital contribute to the well-being of the labor force in the vicinity.

Given its robust industrial park infrastructure and comprehensive amenities, Le Minh Xuan III IP rightfully earns its status as a significant investment destination in Ho Chi Minh City.

IV. Attractive Industries for Investment in Le Minh Xuan III Industrial Park:

Le Minh Xuan III IP places a strategic focus on the development of the following industrial fields and sectors:

1. Electricity – Electronics – Information Technology

• Manufacturing software, electronics, telecommunications equipment, computers, optics, and electronic components.
• Production of equipment for the electricity industry.

2. Food Industry

• Processing and production of processed foods.
• Beverage production.

3. Mechanical

• Manufacturing machinery.
• Production of motor vehicles and means of transport.
• Manufacturing prefabricated metal products and metal processing.

4. Chemical and Pharmaceutical Industry

• Production of drugs and medicinal materials.
• Manufacturing perfumes and cosmetics.
• Production of hygiene products.

5. Additional Supported Industries

• Medical equipment and medical instruments.
• Production of synthetic fibers, textile fabrics, and finished textile products.
• Clothing production.
• Skin product manufacturing.
• Production of paper and paper products.
• Printing industry.
• Manufacturing rubber and plastic products.
• Tobacco product manufacturing.
• Production of building materials.
• Jewelry production.
• Furniture production.
• Production of sports equipment.
• Repair and maintenance of mechanical equipment and industrial services.

Le Minh Xuan III IP, in addition to prioritizing the mentioned industries, is equipped to support and meet the production needs of various other sectors. This diverse industrial landscape positions the park as an attractive destination for a wide range of businesses.

V. Investment Incentives of Le Minh Xuan III Industrial Park

To attract investors and businesses, the Management Board of Le Minh Xuan III IP and the authorities of Binh Chanh district, Ho Chi Minh City have implemented a range of attractive investment incentive policies.

1. Corporate Income Tax Rate

• Corporate income tax rate: 20%.
• Tax exemption for 2 years, followed by a 50% reduction in tax payable for the next 4 years.
• The tax exemption and tax reduction period are calculated continuously from the first year the enterprise has taxable income from the new investment project. In case there is no taxable income in the first 3 years, the tax exemption or reduction period will be calculated from the 4th year.

2. Import Tax Incentives

• Import and export goods are exempt from export tax, import, and export tax under the following conditions:
  • Machinery and equipment serving a specific job for a certain period.
  • Goods are considered movable assets of Vietnamese or foreign organizations and individuals brought into or out of Vietnam within prescribed limits.
  • Goods exported and imported by foreign organizations and individuals enjoying diplomatic incentives in Vietnam.
  • Goods imported for processing abroad are exempt from import tax. Upon exporting finished products to foreign countries, they are exempt from export tax.
  • Goods are exported and imported according to tax-free luggage standards for exit and entry, including parcels and express delivery packages with a minimum taxable value according to the Prime Minister’s regulations.

VI. Investment Costs at Le Minh Xuan III Industrial Park

Compared to many industrial parks in Ho Chi Minh City, such as Hiep Phuoc Industrial Park and Vinh Loc Industrial Park, Le Minh Xuan III IP offers competitively evaluated and significantly lower investment costs. However, this does not imply any compromise on the quality of services provided.

Currently, Le Minh Xuan Industrial Park still has available land for rent to construct factories and workshops, enabling investors to review the investment cost table below. This allows investors and new businesses to make informed decisions about whether to choose this industrial park or not.

VII. Labor Resources and Labor Costs

Ho Chi Minh City stands as the major economic center of the country, hosting numerous key industrial parks, thereby attracting a substantial labor force for residency and employment. As per the 2013 data from the Department of Labor and Employment in Ho Chi Minh City, the city’s population was 7.939.752 people. Approximately 5,5 million individuals, constituting 70,6% of the city’s population, are estimated to make up the local workforce.

Moreover, the workforce in Ho Chi Minh City possesses high levels of education and skill, adequately meeting the requirements set by businesses. Le Minh Xuan Industrial Park offers a strategic advantage for businesses to easily attract local labor to fulfill production needs. The presence of an exceptional utility system around the industrial park further enhances the overall living conditions of workers.

VIII. Summary

Le Minh Xuan III Industrial Park amalgamates numerous advantages in terms of location, utilities, infrastructure, investment costs, and preferential policies. Consequently, it stands out as the top choice for businesses seeking expansion in production and operations, especially for small and medium enterprises aiming to optimize costs.

Through TTTFIC shared article on Le Minh Xuan III Industrial Park, investors can make informed decisions about choosing this location. The park is expected to reach a 100% occupancy rate, becoming a pivotal industrial park that significantly strengthens Ho Chi Minh City’s industrial economy.