Minh Quan Industrial Park - Lao Cai

I. Overview of Minh Quan Industrial Park – Lao Cai 

Information about Minh Quan Industrial Park – Lao Cai

Minh Quan Industrial Park was approved for planning in Decision No. 2077/QD-UBND dated December 25, 2008, by the People’s Committee of Lao Cai Province, with an area of 112 hectares.

On January 4, 2021, the People’s Committee of Lao Cai Province issued Decision No. 02/QD-UBND approving the detailed construction plan and adjustment of the master plan for Minh Quan Industrial Park. Accordingly, the total planned area is 107,887 hectares (reduced by 4,113 hectares compared to the project’s boundary).

Minh Quan Industrial Park – Lao cai  is one of the key industrial parks attracting investment in Lao Cai Province
The industrial park has invested in technical infrastructure to ensure the operation of production and business activities for investors within the industrial park.

In addition, Lao Cai  is one of the poor mountainous provinces in the Northern region with a large forest area, which provides advantages for the development of processing industries such as wood, minerals, and construction materials.

Investors in Minh Quan Industrial Park have the advantage of low land lease fees and infrastructure costs, as well as a solid ground foundation, resulting in lower investment costs for constructing factories.

Investment situation in the industrial park:

Within the industrial park, there are 4 registered investment projects with a total registered capital of 1,726 billion VND, and a registered land area of 34 hectares, achieving an occupancy rate of 53%.

Currently, there is 1 project operating steadily, and several new projects have been constructed and are completing investment procedures.

II. Geographical location of Minh Quan Industrial Park – Lao Cai

Minh Quan Industrial Park is located in Hoa Quan Hamlet, Minh Quan Commune, Tran Yen District, and a part of Phuc Loc Commune, , Lao Cai Province.

Boundaries:

• The northern boundary adjoins the center of Phuc Loc Commune.
• The southern boundary adjoins residential areas.
• The eastern boundary adjoins the Hong River.
• The western boundary adjoins National Highway 32C.

Distances to various locations in the region:

• Approximately 155km south of Ha Noi.
• Approximately 185km north of Lao Cai.
• Approximately 4km from Noi Bai – Lao Cai expressway.
• Approximately 10km from Yen Bai City.
• Approximately 123km from Noi Bai Airport.
• Approximately 267km from Hai Phong Seaport.
• Adjacent to National Highway 32C, which is being upgraded to a Grade III mountainous urban road with a width of 46m.

The convenient location of the industrial park facilitates the transportation of goods and the movement of labor.

III. Infrastructure of Minh Quan Industrial Park – Lao Cai

Internal Transportation:

• The road network within the industrial park is built to connect with external transportation, ensuring smooth transportation for investors in the industrial park.
• Main road system: 36m wide, branch roads: 19.5m wide.

Power System:

• Electricity is sourced from the 110/22KV Minh Quan substation.
• The power system runs along the road corridor within the industrial park and connects to each factory’s fence.

Public Lighting System:

• The street lighting network is designed with a separate power supply system and is aligned along the road axes.

There is a raw water supply system from the Yen Binh Water Plant with a capacity of 4000 m3/day and night, delivered to the industrial park through a D300 pipeline along the road axes.

Wastewater and Stormwater System:

• The industrial park plans and builds separate stormwater and wastewater drainage systems, which run along internal roads to ensure the collection of all stormwater and wastewater from the factories.
• The system directly discharges stormwater into the receiving source.
• The centralized wastewater treatment plant of the industrial park collects and treats wastewater to meet the required standards before discharging it into the Hong River.

Waste Treatment

• The factories within the industrial park will sign contracts with specialized units for waste classification, collection, and transportation to remove waste from the industrial park and prevent environmental pollution.

Wastewater Treatment

• The centralized wastewater treatment plant meets the Vietnamese standards for wastewater discharge.

Communication System

• The communication system is provided by network providers such as VNPT, FPT, and Viettel, ensuring seamless communication both domestically and internationally.
• It includes various services such as telephone, mobile phone, fax, and internet.
• The plan until 2030 includes 3000 lines, and by 2040 there will be 5000 lines.
• The Phu Loc telecommunication station provides the main signal source.

IV. Industries Attracting Investment in Minh Quan Industrial Park – Lao Cai

Minh Quan Industrial Park is a multi-sector industrial park with a focus on the following main industries:

• Construction materials manufacturing industry.
• Mineral processing industry.
• Agriculture and forestry product processing industry.
• Chemical industry.
• Consumer goods manufacturing industry.

V. Investment Costs:

• The fee for managing and maintaining infrastructure is 0.3 USD per square meter per year.
• Electricity rates: Ranging from 0.03 USD/kWh to 0.1 USD/kWh depending on the electricity usage period
• Water supply price: 0.4 USD/m3
• Wastewater treatment fee: 0.28 USD/m3 (calculated based on 80% of water consumption)

VI. Investment Incentives in Minh Quan Industrial Park – Lao Cai

Corporate Income Tax Incentives:

• Exemption from tax for 2 years, 50% reduction in tax payable for the next 4 years, starting from the taxable income of the investment project in the industrial zone.

Import-Export Tax Incentives:

• Special exemption from tax for imported goods that contribute to fixed assets for investment projects benefiting from import tax incentives at the local level.

Tax exemptions and reductions for land and land use:

• Exemption from land rental fees for the construction of industrial zone infrastructure within the basic construction period (not exceeding 3 years).
• 11 additional years for investment projects in the special investment priority sectors.

VII. Labor Source and Costs:

Labor Source:

• Over 65% of the population in Yen Bai is in the working age range (equivalent to 535,000 people), making it home to a young and abundant labor force, with nearly 80% of the population and workforce concentrated in rural areas, and over 57% belonging to ethnic minorities.
• Over 80% of vocational students find employment after graduation, closely linking vocational training activities to enterprises and the labor market.

Costs:

• Minh Quan Industrial Zone is located in Hoa Quan Village, Minh Quan Commune, Tran Yen District, and partially in Phuc Loc Commune, Lao Cai Province, belonging to Zone IV.
• Therefore, the current minimum wage in Zone IV is 3,090,000 VND per month.