Lien Ha Thai Industrial Park (GREEN IP-1) - Hung Yen

I. Overview of Lien Ha Thai Industrial Park (GREEN IP-1) – Hung Yen

Lien Ha Thai Industrial Park (GREEN IP-1) in Hung Yen province, officially known as the Lien Ha Thai Industrial – Urban – Service Zone (GREEN IP-1), is a designated area for investment, approved by Decision No. 180/QD-TTg on February 8, 2021, by the Prime Minister of the Government of Vietnam, and established according to Decision No. 464/QD-UBND on February 17, 2021, by the People’s Committee of Hung Yen province.

The GREEN IP-1, part of the Lien Ha Thai Industrial – Urban – Service Zone, is planned within the Hung Yen Economic Zone, covering the areas of Thuy Lien commune and Diem Dien town, Thai Thuy district, Hung Yen province. The total planned area is 807.88 hectares, with 588.84 hectares allocated for industrial purposes and 219.04 hectares for urban development. Lien Ha Thai Industrial Park, as the first industrial park in the Hung Yen Economic Zone, designs itself as a multi-sector, high-tech, environmentally friendly industrial complex with a focus on key industries such as:

• Power industry
• Electronics
• Information technology
• Mechanical engineering
• Consumer goods manufacturing
• Food and beverage production…

II. Geographic Location Lien Ha Thai Industrial Park (GREEN IP-1) – Hung Yen

Convenient Transportation Connections:

Located in Diem Dienn town, Thai Thuy district, Hung Yen Province, GREEN IP-1 Industrial Park enjoys excellent transportation connectivity within the region. In terms of regional connections, GREEN IP-1 is:

• 40 km from Lach Huyen International Port.
• 35 km from Cat Bi International Airport.
• 36 km from the center of Hai Phong city.
• 30 km from the center of Thai Binh city.
• 130 km from the center of Hanoi.

Regarding transportation, Lien Ha Thai Industrial Park is adjacent to the coastal highway, coastal roads, and provincial routes such as Route 456, National Route 37, and National Route 39.

Tax Incentives within the Economic Zone:

As part of the Hung Yen Economic Zone master plan, GREEN IP-1 Industrial Park enjoys full tax incentives. Specifically, investment projects in Lien Ha Thai Industrial Park are eligible for the following incentives:

• Corporate income tax rate of 10% for 15 years (regular tax rate is 20%).
• Specifically, 100% tax exemption for the first 4 years, and a 50% reduction in tax payment for the following 9 years.
• The incentive period starts from the year the enterprise generates taxable revenue or from the fourth year of operation (whichever comes first). These tax incentives are considered to be among the highest offered to businesses.

Abundant and Stable Labor Force with Low Labor Costs:

• Hung Yen is the 11th most populous province in Vietnam, and within the Northern region, it ranks fourth with a population of 1.942 million people. This provides Hung Yen province, including Lien Ha Thai Industrial Park, with a large and readily available labor force.
• Furthermore, due to the agricultural tradition and the challenging socio-economic conditions, the average per capita income in Hung Yen is relatively low. The province falls under Region IV, which has the lowest minimum wage level in the country.
• As of 2021, the minimum wage level for the location of Lien Ha Thai Industrial Park is approximately 3,070,000 VND/person/month (equivalent to 133.5 USD/person/month, excluding allowances and insurance). The average wage, including allowances, in this area is around 200 USD/person/month.

Comprehensive Social Infrastructure Services:

• Lien Ha Thai Industrial Park aims to develop a complete and prosperous industrial-urban-service zone by including functional zones alongside the industrial production area. These zones include housing for experts and workers, addressing the accommodation needs for both professionals and laborers and serving the operational needs of factories in the industrial park.
• Additionally, the industrial park is located in the bustling town of Diem Dien. It is in close proximity to cultural and political centers. The strategic location of the park offers opportunities for recreational activities. It also provides a range of entertainment options. Moreover, the park caters to consumer needs, ensuring a thriving environment.

III. Infrastructure of Lien Ha Thai Industrial Park (GREEN IP-1) – Hung Yen

The infrastructure at Green IP-1 is comprehensively planned and designed to meet the needs of investors. Specifically:

Power supply system:

• The industrial park ensures a stable power supply through two 110KV/22KV – 63 MVA substations.
• The 22KV power lines will directly connect to the factory fences of the operating companies within the industrial park.

Water supply system:

• Lien Ha Thai Industrial Park plans to build a water treatment plant with a capacity of 25,000 m3/day to meet the production water demand of the factories operating within the industrial park.

Wastewater treatment system:

• The centralized wastewater treatment plant with a capacity of 15,000 m3/day will treat the wastewater from the factories in the industrial park.

Internal road system and green spaces are invested in synchronously and completely.

IV. Investment Costs at Lien Ha Thai Industrial Park (GREEN IP-1) – Hung Yen

• Infrastructure usage fee: $90 per square meter until 2071 (VAT not included).
• Annual land rental fee: Investors leasing land in Lien Ha Thai Industrial Park will be exempted from land rental fees for the first 15 years from the date of land lease. After the exemption period, land rental fees will be determined according to the regulations of the Provincial People’s Committee at that time.
• Management fee: 10,000 VND per square meter per year (equivalent to $0.434 per square meter per year).
• Water supply fee: 12,000 VND per cubic meter (equivalent to $0.52 per cubic meter).
• Wastewater treatment fee: 10,000 VND per cubic meter (equivalent to $0.434 per cubic meter). The wastewater volume is calculated based on 80% of the clean water usage.
• Electricity tariff: Applied according to EVN’s electricity tariff. Specifically, refer to the range of 1,007 VND – 2,871 VND per kWh.

Note: The above prices and fees do not include VAT and may be subject to change at the time of leasing.

V. Attracting Investment:

Lien Ha Thai Industrial Park is currently in the process of completing infrastructure and has attracted several initial investors, including some notable projects such as:

• The Lotes Thai Thuy Vietnam Factory Investment Project is undertaken by LOTES Vietnam Co., Ltd. It aims to produce RAM connectors, computer cables, electronic device connectors, and connection devices. The project caters to companies such as Intel, Samsung, and Sony. The registered investment capital for this project amounts to $120 million.
• Greenworks Hung Yen Vietnam Factory Project by Greenwork Co., Ltd., with a registered investment capital of $200 million, focusing on manufacturing gardening equipment.

Additionally, the industrial park has signed principle agreements with other investors regarding land leasing. For example, Nam Tai Group has signed a principle agreement to lease 42 hectares of land for an investment project with an estimated capital of around $100 million.