Luong Son Industrial Park - Hoa Binh

I. Overview of Luong Son Industrial Park – Hoa Binh:

Luong Son Industrial Park was established under Decision No. 78/QD-UBND dated January 21, 2011 by the People’s Committee of Hoa Binh Province.

The industrial park is owned and invested in by An Thinh Hoa Binh Real Estate Joint Stock Company.

With a total area of 230 hectares and 20 hectares available for lease, Luong Son Industrial Park is a multi-sector industrial park ready to welcome investors for various projects.

By 2019, the industrial park had completed infrastructure investment, covering 100% of the total industrial land area. The technical infrastructure has received significant attention from the investors, with synchronized investments and the construction of a wastewater treatment plant within the industrial park.

As of now, Luong Son Industrial Park has successfully attracted close to 30 investment businesses, which include a significant number of foreign direct investment (FDI) enterprises from Japan, South Korea, and India. The total registered investment capital amounts to nearly 300 million USD and over 1,200 billion VND.

Secondary investors have contributed new products to the province’s industrial sector, creating employment opportunities for over 4,000 workers and promoting economic development and social well-being in the region.

Some notable companies include Minh Trung Co., Ltd., INC Co., Ltd. (South Korea), Dongah Elecomm Vietnam Co., Ltd. (South Korea), Composite Joint Stock Company, Techno Joint Stock Company, Almine VN Co., Ltd., etc.

With its strategic location and credible investor, Luong Son Industrial Park has become an attractive destination for businesses. The industrial park receives attention from provincial leaders and departments in Hoa Binh Province. It is particularly appealing to investors from Japan and South Korea. The park’s development contributes to the growth of Luong Son district and Hoa Binh province. Socio-economic development reaches new heights as a result.

II. Geographical location of Luong Son Industrial Park – Hoa Binh:

Luong Son Industrial Park is located in Hoa Son Commune, Luong Son District, Hoa Binh Province.

The industrial park is situated along National Highway 6, adjacent to Hanoi, 36 km from the center of the capital city, 65 km from Noi Bai International Airport, and 120 km from Hai Phong seaport.

From the center of Hanoi, it takes only 40 minutes to 1 hour by car via National Highway 6 or Lang – Hoa Lac Road to reach the industrial park.

With its highly favorable location and abundant local workforce with high skills, suitable for various types of businesses for both domestic and foreign investors, Luong Son Industrial Park has become an attractive destination for investors.

CAP Company in Luong Son Industrial Park – Hoa Binh – TTTFIC Group

III. Infrastructure of Luong Son Industrial Park – Hoa Binh:

Internal transportation system:

• The internal transportation system in phase 1 is relatively complete, providing smooth and safe traffic flow.

Electricity system:

• The 110 kV substation is located within the industrial park, receiving electricity from the Son Da Hydropower Plant through a 110/220 (2×25) MVA transformer station, supplying sufficient electricity to factories and workshops within the industrial park to ensure labor efficiency.

Water system:

• Clean water is supplied from the Song Da Water Plant and the groundwater system within the industrial park with a capacity of 6,000 m3/day, ensuring a sufficient supply for factories and workshops in the industrial zones.

Communication system:

• A 1000-line telecommunications network and high-speed Internet provided by VNPT, EVN, Viettel ensure efficient communication within and outside the country.

Waste treatment system:

• Waste is collected, consolidated, and transported to centralized treatment areas according to regulations.

Wastewater treatment system:

• A centralized wastewater treatment plant with a capacity of 3,000 m3/day and night.

Worker housing:

• A project to construct housing for workers is currently being developed.

IV. The investment-attractive industries in Luong Son Industrial Park – Hoa Binh:

The investment-attractive industries include environmentally friendly manufacturing, agro-forestry product processing, construction materials, mechanical and electronic assembly, consumer goods processing, and export-oriented industries.

NISSIN Company in Luong Son Industrial Park – Hoa Binh – TTTFIC Group

V. Investment costs:

• Land rental price with existing infrastructure is 80 USD/m2.
• Electricity prices follow EVN’s rates.
• Water prices comply with the current regulations of the provincial People’s Committee.
• The provincial People’s Committee and Industrial Park Management Board determine the fees for solid waste treatment.

VI. Investment incentives:

Corporate income tax:

• Newly invested projects are subject to a 17% tax rate for ten years. Income from newly invested projects in industrial parks in the province is tax-exempt for at least two years and a 50% tax reduction for the subsequent four years.

Land rental exemption:

• All projects are exempt from land rental fees during the basic construction period, carried out under the project associated with the state’s land lease, transitioning from land allocation without land use fees to land rental, with a maximum duration of three years.

Import tax exemption:

• Certain import tax exemptions apply to imported goods for the establishment of fixed assets in investment projects in industrial parks.
• These exemptions are based on the provisions of Decree No. 87/2010/ND-CP, dated August 13, 2010.
• This decree provides detailed regulations for the implementation of the Export Tax Law and Import Tax Law.
• Article 6, Clause 12 of the aforementioned decree stipulates the specific exemptions.

VII. Labor sources and costs in Luong Son Industrial Park – Hoa Binh:

Labor sources:

• Currently, the province has 39 vocational education institutions, including 5 colleges, 3 intermediate schools, 11 vocational education centers, and other participating training units.
• On average, more than 14,000 people are trained in occupations each year, with an estimated labor training rate of 56% by 2020 (having diplomas and certificates accounting for 22.64%).

Costs:

Since the industrial park is located in an area with a developing and growing economy, the labor force here is abundant, with the average wages as follows:

• For general laborers: 170-350 USD/person/month.
• The average wage for skilled laborers: 250-400 USD/person/month.