My Phuoc 1 Industrial Park - Binh Duong

My Phuoc I Industrial Park, situated at the forefront of sustainable development and economic integration in Vietnam, boasts prime geographical positioning and top-notch infrastructure. It has made a significant impact on the country’s industrial investment landscape. To delve deeper into the details, please read further in the article below from TTTFIC.

I. Overview of My Phuoc I Industrial Park Project

The My Phuoc I Industrial Park project received official approval and commenced construction on June 12, 2002, as per Establishment Decision No. 452/QD-TTg of the Prime Minister. This project marks a pivotal success in the My Phuoc industrial park series in Binh Duong Province.

The initial detailed planning of the industrial park was subsequently approved through two decisions:

1. No. 972/QD-BXD dated July 17, 2002, from the Ministry of Construction.
2. No. 3557/QD-UBND dated August 17, 2007, from Binh Duong Provincial People’s Committee.

At present, the industrial park has fulfilled its planning, with a 100% occupancy rate and complete residential infrastructure. This transformation has turned My Phuoc I into a robust, well-established urban area, creating a multitude of positive changes for investing businesses.

My Phuoc I Industrial Park is under the auspices of the Investment and Industrial Development Corporation – One Member Limited Liability Company (Becamex IDC). Established in 1946, the company comprises 19 member companies and affiliated firms across various sectors. Becamex IDC is renowned for successfully implementing projects like the VSIP industrial park chain and has become a reputable brand in projects involving industrial park infrastructure, residential areas, and transportation infrastructure.

The implementation of the My Phuoc I Industrial Park project by Becamex IDC serves as a catalyst to elevate the position of the industry and contributes to the comprehensive economic and social development of industrial parks in Binh Duong.

The scale of Industrial Park

My Phuoc I Industrial Park in Binh Duong Province primarily focuses on industrial and service development, covering a total area of 450 hectares. This includes:

• Service development area: 53 hectares.
• Industrial park planning area: 377 hectares.
• Ecological villa development and expansion areas: 20 hectares.

The industrial park is under construction with a total planned area of up to 377 hectares, which includes 276.28 hectares of industrial land available for leasing. The land use structure within the industrial park is detailed as follows:

Investment situation and capital of industrial parks

• The total investment capital earned by My Phuoc I is 223.7 billion VND.
• Total capital to implement the project: 201.15 billion VND.

II. Geographical Location of the Industrial Park

My Phuoc I Industrial Park is located in My Phuoc Town, Ben Cat Town, Binh Duong Province, within the key economic quadrangle in the South. This advantageous location facilitates the transportation processes within the Industrial Park and offers easy access to arterial traffic routes, including seaport systems, airports, and service centers in major cities.

Connection advantages at the Industrial Park:

• Situated 3 km from Ben Cat Town.
• Located 4 km from Thoi Hoa – My Phuoc IV Industrial Park.
• Approximately 14 km north of Thu Dau Mot Town.
• Approximately 45 km from the center of Ho Chi Minh City.
• Located around 42 km from Tan Son Nhat Airport.
• Situated about 32 km from Tan Cang, Saigon Port, VICT, ICD Phuoc Long.
• Adjacent to National Highway 13, featuring a 6-lane road infrastructure.

In general, the strategic location of My Phuoc I is considered the main traffic axis, effectively connecting neighboring areas and the main traffic routes of the country.

Climate conditions in the Industrial Park:

• Positioned in the Southeast region, characterized by hot weather, high precipitation, and high humidity.
• Features a tropical monsoon climate, with two distinct seasons: the dry season and the rainy season.

III. Infrastructure at My Phuoc I Industrial Park – Binh Duong

To meet the production and operational requirements of businesses, My Phuoc I Industrial Park has comprehensively developed and completed its infrastructure. Specifically:

Traffic system

The transportation system receives special attention in terms of investment and design within the Industrial Park. The entire internal road system is 25m wide, including:

• A 15m-wide asphalt surface, with each side of the corridor being 5m wide.
• It has a bearing capacity of about 40-60 tons per truck.

Electric supplying system

The industrial park is connected to the national power grid through two lines: Tan Dinh – My Phuoc and Ben Cat – My Phuoc (22KV). The power system supplies electricity to the boundaries of the land lots and extends deep into the offices and factories of businesses in the area.

The capacity of the transformer station at My Phuoc I is divided into 3 stages:

• Phase 1: 126 MVA.
• Phase 2: 200 MVA.
• Phase 3: 500 MVA.

Clean water supply system

The clean water system within the Industrial Park operates in a closed circuit and is treated according to WHO standards. It includes three phases:

• Phase I operates with a capacity of 12,000 m3/day and night.
• Phase II treats with a capacity of 30,000 m3/day and night.
• Phase III has a treatment capacity of 120,000 m3/day and night.

Wastewater treatment system: The wastewater treatment plant in My Phuoc I operates at high capacity, receiving type B wastewater and converting it to type A. It ensures compliance with prescribed standards before being discharged into the environment.

Communication systems

My Phuoc I Industrial Park, in Binh Duong Province, is fully equipped with telephone lines, providing ample capacity as required by customers, without quantity limits. Additionally, the fiber optic cable system is capable of linking with broadband telecommunications applications (ADSL) and leased lines (Lease Line).

Fire protection system

The Industrial Park maintains a professional and experienced team of firefighters. Water supply systems are in place along internal roads, and 24/7 security forces operate with training in fire prevention and anti-riot measures.

To ensure the stable production operations of businesses in the Industrial Park, in addition to the aforementioned amenities, My Phuoc I also provides a range of additional facilities to support the life needs of officials and workers living and working in the area. These amenities include a labor consulting and support center, My Phuoc I Trade Center, medical stations, schools, sports centers, resorts, entertainment areas, and linked houses in My Phuoc I. The Industrial Park also offers a free support service for project implementation procedures.

IV. Industries Attracting Investment in My Phuoc I

With its advantages of location, a convenient transportation network, and modern infrastructure, My Phuoc I Industrial Park has attracted significant interest from various private individuals. Below is a list of industries that are particularly attractive for investment in the Industrial Park:

• Electronics and electrical engineering, including the production of industrial and household electrical machinery, equipment, and spare parts.
• Electronics, information technology, and telecommunications industry.
• Production of children’s toys, jewelry, and imitation jewelry.
• Textile, garment, and footwear industry.
• Production of ceramics, glass, and crystal products.
• Warehouses and storage facilities.
• Consumer goods processing and export industry, including food and instant noodles.
• Mechanical processing industry, including the manufacturing and assembly of watches and optical instruments.
• Mechanical manufacturing industry, with a focus on construction mechanics.
• Production of fine art wooden furniture for export, office equipment, hotels, and interior decoration.
• Production of plastic products, metal products, and household appliances.

V. Investment Incentives in My Phuoc I Industrial Park

My Phuoc I Industrial Park offers various attractive incentive policies to encourage investment from both domestic and foreign businesses when renting land and establishing operations within the area. These incentives include:

Land Rent

As per Decree No. 135/2016/ND-CP dated September 9, 2016, and Decree No. 46/2014/ND-CP dated May 15, 2014, issued by the Government:

• Projects aimed at building shared infrastructure in industrial zones and clusters are eligible for exemptions from land and water surface rent for the entire duration of the project.

As per Government Decree No. 118/2015/ND-CP dated November 12, 2015, projects included in the list of investment incentive fields will be granted a 3-year exemption from land and water surface rent, effective from the date of project completion and commencement of operations. For projects situated in special preferential areas, the land rent exemption will last for 11 years.

Corporate Income Tax

When businesses invest in My Phuoc I Industrial Park, they will benefit from a preferential tax rate of 10% for a period of 15 years. This includes tax exemption for the initial 4 years and a subsequent 50% reduction in tax for the subsequent 9 years.

Import Tax

According to Decree No. 134/2016/ND-CP issued by the Government on September 1, 2016, businesses are entitled to import tax exemption for goods imported for the creation of fixed assets if they meet the incentives as specified in the investment regulations.

VI. Investment costs at My Phuoc I industrial park

Investment costs at My Phuoc I Industrial Park are listed in the following table:

• Note: The above investment costs do not include VAT.

VII. Labor Resources and Labor Costs

My Phuoc I Industrial Park, with its strategic location and well-developed transportation system, has been instrumental in creating numerous job opportunities for the local population. It has contributed significantly to reducing unemployment in the region and delivering sustainable value to society.

The industrial park is located in an area with a large working-age population, including more than 200,000 people, as well as approximately 5,000 to 7,000 high school graduates. This favorable demographic situation provides excellent conditions for recruiting a high-quality workforce for the Industrial Park. Furthermore, it promotes business development and the expansion of production facilities, thereby generating many job opportunities for workers.

VIII. Economic Value in My Phuoc I Industrial Park

My Phuoc I Industrial Park serves as a driving force for the development of integrated industrial and urban areas, as well as commercial and service areas in Binh Duong. Consequently, business activities within the Industrial Park are flourishing and have garnered the interest of numerous companies. Some of the prominent companies operating in the Industrial Park include:

• De Heus LLC
• Southeast Vietnam Packaging Company Limited
• Thai Long Vietnam Co., Ltd
• Chin Hsin Vietnam Company Limited
• Primacy Vietnam Company Limited

Furthermore, My Phuoc I is one of the key industrial centers within the My Phuoc Industrial Park chain, exhibiting rapid growth and remarkable economic efficiency compared to other regions.

With a strategic vision and a commitment to sustainable development, My Phuoc I Industrial Park has demonstrated its vital role in advancing Vietnam’s economic development and international integration. Simultaneously, it has created significant positive value for the surrounding community.