Minh Hung Sikico Industrial Park - Binh Phuoc Province

Minh Hung Sikico Industrial Park: Powering Economic Growth

Minh Hung Sikico Industrial Park (Minh Hung Sikico IP) stands out as the economic powerhouse of Binh Phuoc province, boasting an expansive area meticulously planned to incorporate modern production facilities and commercial service zones. Regarded as one of the foremost industrial parks in the country, it is dedicated to the development of diverse industries, garnering attention from prominent investors in recent times. To gain deeper insights into this industrial park, explore the following article!

I. Overview of Minh Hung Sikico Industrial Park

By Decision No. 549/QD-UBND, dated March 23, 2015, the People’s Committee of Binh Phuoc Province approved Minh Hung Sikico IP with a detailed construction plan at a 1/2000 scale, covering an area of about 495.8 hectares.

Official Dispatch No. 2162/TTg-KTN, dated November 26, 2015, included Minh Hung Sikico IP in the development planning of Binh Phuoc Industrial Park by the Prime Minister until 2020, with an expected planning area of about 655 hectares.

In Official Dispatch No. 866/TTg-KTN, dated May 26, 2016, the investment orientation of Minh Hung Sikico IP received approval. Situated in hamlet 5, Dong No commune, Hon Quan district, Binh Phuoc province, the industrial park was constructed by the project investor, Hiep Phuoc Industrial Park Joint Stock Company.

The aim was to create a Green Industry – Trade – Service complex industrial park with a project lifespan of 50 years until 2066, backed by an investment of nearly 3.400 billion VND.

In Decision No. 3063/QD-UBND supplementing Decision No. 549/QD-UBND, dated November 29, 2016, the People’s Committee of Binh Phuoc province greenlit the expansion construction planning, adding an area of 159 hectares. The industrial park has successfully attracted 40 projects, accumulating a total investment capital of about 700 million USD, achieving a 50% occupancy rate.

1. Scale of Industrial Park

Minh Hung Sikico IP spans a total area of 655 hectares, broken down as follows:

• Industrial land area: 475,4 hectares, with construction-ready plots.
• Commercial and service area: 19,6 hectares, encompassing restaurants, cafes, convenience stores, and housing for engineers.
• Synchronous infrastructure land area: 13,8 hectares.
• Green space and transportation land: 146,2 hectares.

II. Geographical Location of Minh Hung Sikico Industrial Park

Minh Hung Sikico IP is situated in Dong No commune, Hon Quan district, Binh Phuoc Province, Vietnam. It holds a strategic position in Binh Phuoc province and the southern key economic region. The industrial park’s borders are defined as follows:

• North: Borders the Melaleuca forest.
• South: Borders Minh Hung – Dong No Street.
• East: Borders the existing land road.
• West: Borders the existing land road.

The industrial park’s strategic location facilitates easy access to the southern region’s key transportation network, connecting major provinces, airports, and seaports. This advantageous positioning expedites the transportation and trade of goods between neighboring regions:

1. Distances to Key Locations:

• Administrative centers:
  • Ho Chi Minh City: 89 km.
  • Thu Dau Mot – Binh Duong City: 67 km.
  • Bien Hoa City – Dong Nai: 88 km.
  • Dong Xoai City: 49 km.
• Seaports:
  • Tan Cang – Cat Lai Port: 101 km.
  • Tan Cang – Cai Mep Port: 145 km.
  • Chon Thanh dry port: 6 km.
• Airports:
  • Tan Son Nhat International Airport: 84 km.
  • Long Thanh International Airport: 120 km.
• Train stations:
  • Bien Hoa Station: 86 km.
  • Song Than Station: 84 km.
• Hoa Lu international border gate: 70 km.

2. Connecting Arterial Roads:

In addition, Minh Hung Sikico IP is positioned on the main traffic road connecting with the Central Highlands province, a significant supplier of raw materials for industries. Distances to main roads include:

• National Highway 13: 6,5 km.
• National Highway 14: 19,5 km.
• HCM – Thu Dau Mot – Chon Thanh Expressway: 8,1 km.
• Trans-Asia Railway: 6,4 km.
• Dak Nong – Chon Thanh Railway: 9 km.
• My Phuoc – Tan Van Expressway: 33 km.

III. Infrastructure of Minh Hung Sikico Industrial Park

The infrastructure at Minh Hung Sikico IP, meticulously developed by the investor, is equipped with modern, synchronized equipment, and is ready for operation. This infrastructure aims to provide businesses with optimal conditions for both business and production. The industrial park has invested extensively in a 13.8-hectare technical infrastructure, including:

1. Communication Systems

The industrial park is seamlessly connected to the Binh Phuoc telecommunications system at Dong No telecommunications station. This ensures stable information connectivity with over 5.500 subscribers through fiber optic cables. Telephone lines are pre-installed up to plot boundaries, meeting all customer communication needs. The fiber optic cable system easily integrates with various applications such as ADSL broadband telecommunications and private subscriber channels.

2. Water Supply and Drainage System

Minh Hung Industrial Park sources its water supply and drainage system from the Binh Phuoc Water Supply and Drainage Joint Stock Company, following the province’s general planning. The Phase 1 water supply plant boasts a capacity of 6,000 m3/day and night. A dedicated drainage system is provided to each investor, ensuring smooth production activities. Future plans involve building a self-owned water supply system, along with water towers, tanks, and pumping stations to regulate water services within the industrial park.

3. Fire Protection System

Equipped with water supply stations along internal roads, fire trucks, and ambulances, the industrial park ensures 24/7 security operations. The industrial park security force is trained in fire prevention and anti-riot skills, with the local fire station situated 5 km from the park.

4. Electric Supplying System

Minh Hung Sikico IP relies on the national power source, featuring two power supply stations with a 110/22 kV capacity. Station 1, located from Chon Thanh transformer station to Dong No via Highway 13, is operational. Station 2, expected to be added in the future, will accommodate the growing demand from factories and enterprises.

5. Waste Water Treatment System

The industrial park boasts a wastewater treatment plant system with the capacity to treat wastewater from Type B to Type A according to environmental technical standards, reaching a capacity of up to 25.000 m³/day and night. Jointly operated by GS Group, a multinational corporation with over 50 years of experience in global environmental projects, and EPC general contractor Koastal Eco Group – Singapore, the wastewater treatment uses biotechnology, ensuring an environmentally friendly approach.

6. Internal Transportation System

The industrial park’s internal transportation system features main roads and internal roads with a 4 – 6 lane scale, supporting a standard load of 12 tons/axle. Main roads have widths ranging from 42m to 62m, with a road surface width of 18m. Branch roads within the industrial park have widths from 18m to 37m, with a road surface width of 8m. This design optimally facilitates the movement and transportation of goods within the industrial park. The infrastructure also includes greenery, lighting systems, fire protection, traffic warning systems, and other underground technical utilities.

7. Landscape System

Minh Hung Sikico IP incorporates green space, providing a harmonious landscape with fresh air to boost spirits, reduce stress, and enhance labor productivity.

IV. Fields that Attract Investment in Minh Hung Sikico Industrial Park

Minh Hung Sikico IP boasts numerous advantages, including a convenient transportation system by both road and waterway. Positioned strategically, it is well-connected to various industrial parks in the region and essential border gates, providing favorable conditions for businesses within the Industrial Park to engage in seamless import and export activities with neighboring countries.

Minh Hung Sikico IP, designed as a multi-industry industrial park, aligns with the actual situation and meets the demands of both domestic and foreign markets, prioritizing environmental safety. Approved by the Ministry of Natural Resources and Environment, the industrial park welcomes investors operating in the following industries and fields:

1. Clean Industry

• Electronics and Microelectronics.
• Medicine.
• Stationery.

2. Industries Generating Wastewater

• Agricultural Processing.
• Food Processing: egg incubation, slaughtering, cashew oil extraction, etc.
• Functional Foods.
• Paper Production.
• Packaging Manufacturing.

3. Industries Releasing Gases and Wastewater

• Production of Wooden Furniture and Interior Decoration.
• Weaving and Dyeing (from fiber processing onwards).
• Crafts and Fine Arts.
• Production of Agricultural and Forestry Machinery.
• Production of Building Materials.
• Glass Production.

4. Supporting Industries

• Producing main support products and materials in industrial parks: gloves, plastic production, etc.

V. Investment Costs at Minh Hung Sikico Industrial Park

In comparison to various industrial parks in Binh Phuoc province, such as Chon Thanh I Industrial Park and Bac Dong Phu Industrial Park, Minh Hung Sikico IP offers significantly lower investment costs. Nevertheless, this reduction in costs doesn’t compromise the quality of services provided.

Here, TTTFIC presents the investment costs of Minh Hung Sikico IP in Binh Phuoc province:

VII. Investment Incentives at Minh Hung Sikico Industrial Park

Enterprises establishing factories or leasing land in Minh Hung Sikico IP will benefit from the following investment incentives:

1. Corporate Income Tax (CIT)

• Preferential corporate income tax rate: 17% (Applicable for the first 10 years from the year of revenue generation).
• Tax exemption policy: 2 years from when the business becomes profitable.
• Preferential tax rate of 8.5% for the next 4 years.

2. Import Tax Exemption

• Exemption from import tax for imported goods used to create fixed assets of investment promotion establishments:
  • Devices; Raw materials and supplies used to produce machinery, equipment, or components.
  • Specialized transport vehicles used directly in the project’s production process.
  • Local construction materials are not available.
• Exemption from import tax for a period of 5 years from the start of production for:
  • Domestic raw materials, supplies, and components are not available for the production of investment projects in fields with special investment incentives.

VII. Labor Source and Labor Costs at Minh Hung Sikico Industrial Park

Minh Hung Sikico IP consistently strives to offer investors a comprehensive, high-quality infrastructure system and a complete service ecosystem. The park has provided extensive support and investment services since its inception. The management board ensures the provision of carefully selected services and local knowledge, adhering to quality criteria at the most competitive prices for investors.

With its advantageous location, seamless traffic connectivity, and rapid construction and expansion capabilities for production facilities, Minh Hung Sikico IP stands as an attractive destination for workers from Binh Phuoc province and neighboring regions. The park prioritizes the enhancement of infrastructure and working environments, ensuring the safest and most effective working conditions for employees.

Minh Hung Sikico IP has a dedicated support and labor consulting team, facilitating easy recruitment and swift advice on labor policies. The park actively promotes programs to attract quality, skilled, and highly specialized workers, contributing to job creation in Binh Phuoc province and ensuring an adequate labor force for the industrial park.

VIII. Summary

In conclusion, through the information provided by TTTFIC, Minh Hung Sikico IP emerges as a multi-industry park with notable advantages in location, transportation, long-term lease options, and an abundant labor force. This makes it an increasingly attractive choice for investors seeking affordable yet high-quality industrial parks.