My Phuoc 2 Industrial Park - Binh Duong

My Phuoc II Industrial Park in Binh Duong province stands as a significant achievement for the Industrial Investment and Development Corporation (Becamex IDC Corp). It embodies a novel construction model with the aim of becoming an industrial park complex. Operating for nearly two decades, My Phuoc II has consistently strived to be the fastest-growing industrial park in Binh Duong, making substantial contributions to the province’s economy.

I. Overview of My Phuoc II Industrial Park – Binh Duong Province

My Phuoc II Industrial Park was established under Decision No. 59/TTg-CN, issued on January 14, 2005, by the Prime Minister. Subsequently, on January 20, 2005, the Chairman of Binh Duong Provincial People’s Committee approved the investment project for the construction and business of technical infrastructure for My Phuoc II Industrial Park, following regulation No. 222/QD-CT and Decision approving the detailed industrial park plan No. 218/QD-BXD, dated March 4, 2005.

Infrastructure investment for My Phuoc II Industrial Park is spearheaded by the Industrial Investment and Development Corporation, a One Member Limited Liability Company (Becamex IDC). With over a decade of experience in the field of industrial park infrastructure investment, Becamex IDC Corp. undertook the development of My Phuoc II Industrial Park to serve as a catalyst for comprehensive economic and social development in the northern region of Binh Duong province.

Distinguished as the first industrial park in Binh Duong province to employ a novel construction model – the “complex industry” concept. This model not only attracts industrial production projects but also incorporates service, commercial, urban, and residential projects to ensure sustainable development and to transform the northern region of Binh Duong into a “Modern Industrial City.”

Land Use Structure in My Phuoc II

My Phuoc II Industrial Park follows in the footsteps of My Phuoc I Industrial Park, being developed approximately three years after My Phuoc I. However, it boasts twice the scale, which has led to a remarkable attraction for numerous businesses, resulting in a 100% occupancy rate.

The total investment capital for this project is 440.6 billion VND, with a vast scale of 447.39 hectares. The specific land use structure within My Phuoc II Industrial Park is as follows:

II. Geographical Location of My Phuoc II Industrial Park

My Phuoc II Industrial Park is situated in My Phuoc town, Ben Cat district, Binh Duong province, which lies within the southern key economic quadrangle encompassing Ho Chi Minh City, Binh Duong, Ba Ria-Vung Tau, and Long An.

My Phuoc II Industrial Park enjoys a prime location adjacent to Highway 13, featuring six traffic lanes. Furthermore, it connects to the My Phuoc – Tan Van route, which links up with Highway 51. This strategic positioning maximizes access to other crucial seaports such as Hiep Phuoc and Cat Lai (Ho Chi Minh City), Cai Mep – Thi Vai (Ba Ria – Vung Tau), and Long Thanh International Airport (Dong Nai). To elaborate:

Sea Ports

• Approximately 52.5 km from Saigon Port.
• Roughly 62.9 km from Cat Lai Port.
• In proximity to Tan Cang ICD.
• About 39.6 km from Song Than.
• Approximately 29.9 km from Thanh Phuoc Container Port.

Train Stations

• Approximately 38.2 km from Song Than Station.
• Around 50.8 km from Saigon Station.

Airports

• Approximately 42.9 km from Tan Son Nhat International Airport.
• About 75.2 km from Long Thanh International Airport.

Administrative Centers

• Approximately 51 km from Ho Chi Minh City.
• Around 18.2 km from Thu Dau Mot City – Binh Duong.
• Roughly 41.9 km from Bien Hoa City – Binh Duong.

This geographical location not only simplifies the transportation of goods within My Phuoc II Industrial Park but also leverages access to the labor force and the vast consumer market in the Ho Chi Minh City area and central provinces. Furthermore, this advantage makes My Phuoc II Industrial Park an appealing destination for both domestic and foreign businesses and investors.

III. Infrastructure of My Phuoc II Industrial Park – Binh Duong

My Phuoc II Industrial Park represents a model industrial park characterized by comprehensive, eco-friendly infrastructure, creating a clean, green environment for industrial production and urban activities. This approach aligns with the goal of achieving long-term and sustainable development in the northern region of Binh Duong Province.

Current Investment Status in My Phuoc II Industrial Park

As of September 2008, the total infrastructure investment capital for this industrial park project is as follows:

• Total approved infrastructure investment capital: 440,600 million VND.
• Total infrastructure investment capital: 435,856 million VND, reaching 99%. Among this:

Transportation Network Inside and Outside the Industrial Park

The internal road system within the Industrial Park adheres to the standards of a concentrated industrial park, with roads ranging from 25 to 62 meters in width, providing ample space and comfort for smooth transportation.

My Phuoc II is strategically positioned near Highway 13, featuring six traffic lanes. Additionally, the My Phuoc – Tan Van route connects to Highway 51, enabling the industrial park to optimize access to the nearby seaports.

Power Supply System for Industrial Parks

The power supply for My Phuoc II Industrial Park is sourced from the 110/22kv national grid system, with a station capacity of 200KVA. This electricity system is guaranteed to be provided to each land parcel within the park, ensuring it meets the 100% electricity requirements of businesses operating in the industrial park.

Water Supply System

My Phuoc II Industrial Park boasts a clean water supply system with a capacity of 80,000 m3 per day and night, consistently providing sufficient water to meet the operational demands of businesses. The water supply process is carried out through a pipe system that complies with international standards, with distribution extended to the factory boundaries, guaranteeing ample water supply and safety for users.

Wastewater and Exhaust Gas Treatment System

My Phuoc II Industrial Park has established an effective water, waste, and exhaust gas treatment system that strictly adheres to environmental standards.

Wastewater is conveyed to the wastewater treatment facility within the industrial park for processing. The wastewater treatment system at My Phuoc II is a modern investment with substantial capacity. It can treat 16,000 m3 per day and night, thereby ensuring comprehensive wastewater treatment before discharge into the environment. Investors will enter into service contracts with licensed professional waste treatment entities in accordance with regulations.

Factory emissions undergo treatment before release into the natural environment. The exhaust gas filtration system complies with national standards, reducing the adverse environmental and health impacts of exhaust gases.

Public Lighting System

The industrial park has fully invested in and installed a public lighting system along traffic routes to cater to the requirements of businesses and workers. The street lighting electrical network is designed independently of the domestic electricity supply system. This is done to maintain a stable power supply for businesses.

Communication Systems

My Phuoc II Industrial Park has implemented a modern underground communication cable system to provide extensive communication services throughout the park. This cable system is strategically laid along internal roads and extended to the factory boundaries, adhering to international standards to ensure stability and reliability in information transmission.

Through the postal and telecommunications network, the industrial park guarantees effective communication services, including private switchboards, international telephone calls, conference calls, teleconferencing, leased lines, high-speed internet, email, and more.

Social Infrastructure System

My Phuoc II provides a comprehensive social infrastructure system to support businesses, including:

• Surveillance camera systems are installed throughout the industrial park.
• A 24/7 security team ensures the safety of workers and businesses.
• A labor support and consulting center within the industrial park assists investors in recruitment and provides advice on labor policies. It promotes labor recruitment programs, and job introductions, and creates conditions to support labor in industrial parks.
• Commercial and service areas offer support services such as housing for experts, banks, delivery services, canteens for workers, medical care services, and entertainment areas.

By focusing on building a modern and comfortable infrastructure system, My Phuoc II has become an attractive investment destination for large businesses and investors.

IV. Industries Attracting Investment in My Phuoc II Industrial Park – Binh Duong Province

My Phuoc II has aimed to become a multi-sector industrial park, and after nearly 20 years of operation, it has attracted businesses from various industries. Some of the industries that have received significant investment capital here include:

• Food and food processing industry.
• Agricultural and forestry product processing industry.
• Clothing industry.
• Textile and dyeing industry.
• Fine art wooden furniture manufacturing industry.
• Electronics industry, industrial and household electricity.
• Construction machinery manufacturing industry.
• Industrial production of pharmaceuticals, agricultural chemicals, and veterinary drugs.
• Plastic manufacturing industry.
• Leather shoe industry.
• Paper and packaging industry (excluding pulp).
• Sports equipment manufacturing industry.
• Industrial production of optical instruments and medical instruments.
• Construction materials production industry.

V. Investment Incentives at My Phuoc II Industrial Park

In addition to its favorable location and infrastructure, investment incentives are a key factor in achieving a 100% occupancy rate at My Phuoc II Industrial Park.

Investors at this industrial park will enjoy tax exemptions for the first two years and a 50% exemption for the subsequent four years. Additionally, My Phuoc II offers a range of services to support businesses with investment project implementation procedures. This includes consulting and assisting investors in preparing procedures and applying for investment certificates. Furthermore, the park provides guidance on post-investment certificate procedures.

VI. Investment Costs at My Phuoc II Industrial Park

Given its large scale and modern, advanced infrastructure system, the investment costs at My Phuoc II Industrial Park are structured as follows:

Land Rent Cost

Land rent at My Phuoc II Industrial Park is $175 USD/m2/term (valid until June 30, 2056) and applies to two payment scenarios:

1. Option 1: One-time payment divided into four installments:
   • Stage 1: 40% of the total rental value payable within 14 days immediately after signing the Land Lease Contract.
   • Stage 2: 20% of the total rental value due 6 months after signing the Land Lease Contract.
   • Stage 3: 20% of the total rental value due 12 months after signing the Land Lease Contract.
   • Stage 4: 20% of the total rental value due 18 months after signing the Land Lease Contract.
2. Option 2: Annual payment, with payments in two installments in January and July each year.

Other costs

* The above costs do not include VAT according to state regulations.

VII. Labor Resources and Labor Costs

My Phuoc II Industrial Park, being a rapidly growing industrial park, has a substantial demand for labor. However, addressing this demand is not a challenging task for the industrial park. My Phuoc II benefits from its strategic location. It is situated at the crossroads of two important administrative units within Binh Duong Province. These units are Thu Dau Mot City and Ben Cat Town, with a combined population of up to 1.5 million people.

My Phuoc II Industrial Park is specifically located in Thoi Hoa Commune, My Phuoc Commune, Ben Cat District, Binh Duong Province, within Region I. Therefore, the minimum wage for workers in this area currently stands at 4,680,000 VND per month. This is as per the provisions of Vietnamese law.

The project to establish an Industrial-Service-Urban complex within My Phuoc 2 Industrial Park has received significant attention and support from the government and local agencies in Ben Cat District, Binh Duong Province. My Phuoc I, leveraging its strengths and investment incentives, has emerged as a model industrial park in Binh Duong. It plays a pivotal role in the economic development of the region.

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