My Xuan A Industrial Park (My Xuan A IP) is one of the industrial parks with significant allure in Ba Ria – Vung Tau province. With outstanding advantages in geographical location and an advanced infrastructure system, this is destined to become an ideal destination for investors. Let’s delve into more details about My Xuan A Industrial Park with TTTFIC in the article below!
I. Overview of My Xuan A Industrial Park Project in Ba Ria – Vung Tau Province
The investor for the My Xuan A IP project is the Vietnam Urban and Industrial Park Development Investment Corporation (IDICO), covering a vast area of 302.4 hectares.
The establishment of My Xuan A IP dates back to Decision No. 333/TTg on May 22, 1996, and Decision No. 554/QD-TTg on July 8, 2002, both issued by the Prime Minister. The planning for the industrial park received approval through Decision No. 1248/QD-BXD on October 4, 2002, from the Ministry of Construction. The total investment capital for this project amounts to a substantial 343 billion VND, and it is slated to operate until 2052.
Situated in the southern key economic region, which includes Ho Chi Minh City, Dong Nai, Ba Ria Vung Tau, and Binh Duong, My Xuan A plays a crucial role in the industrial landscape of Ba Ria Vung Tau province.
Total planning area and land use structure in My Xuan A industrial park – Ba Ria Vung Tau province
Currently, the industrial park has successfully leased the entire industrial land area, achieving a full occupancy rate of 100%. It accommodates projects from both domestic and foreign investors, with notable entities such as Heineken Beer Company, Lixil Vietnam Company, Bach Ma Ceramics Factory (Malaysia), and Viglacera Ceramics Factory (Vietnam).
II. Location of My Xuan A Industrial Park, Ba Ria Vung Tau Province
My Xuan A IP is strategically situated in the heart of My Xuan Ward, Phu My Town, Ba Ria Vung Tau Province. The region boasts a temperate climate, is free from storms and earthquakes, and features high soil load intensity, contributing to cost savings in construction for investors and businesses.
1. Geographical Advantages
Favorable climate with no storms or earthquakes.
High soil load intensity for cost-effective construction.
2. Connectivity and Links with Other Industrial Parks
The industrial park is strategically positioned with convenient access to major roads, ports, airports, railway stations, and neighboring cities:
Adjacent to Highway 51.
My Xuan Port system within the industrial park (accommodating ships up to 30.000 tons).
Proximity to Go Dau Port (for ships up to 20.000 tons): 2 km.
Distance from Phu My Port (for ships up to 72.000 tons): 10 km.
Vung Tau Port: 45 km.
Distance from Vung Tau City: 45 km.
Saigon Port: 65 km.
Ho Chi Minh City – Long Thanh – Dau Giay Expressway: 20 km.
Distance from Ho Chi Minh City (via highway): 55 km.
Saigon Station: 60 km.
Distance from Bien Hoa Station: 50 km.
Distance from Bien Hoa City: 50 km.
This prime location enhances the efficiency of goods transportation for businesses within My Xuan A IP, ensuring convenience and cost-effectiveness.
III. Infrastructure of My Xuan A Industrial Park
1. Electricity Network
The entire My Xuan A IP is connected to the National electricity grid managed by Tan Thanh Electricity under Ba Ria – Vung Tau Electricity Company. The electricity is supplied to the factory fence at a voltage level of 22kV.
2. Water Supply System
The water used for production activities in My Xuan A IP is sourced directly from the Phu My water plant and supplied to the factory fence. The current water intake capacity is 22.000 m3/day and night.
3. Drainage System
The water supply and drainage systems are meticulously and thoroughly invested in, including:
Rainwater drainage system.
Sewerage system. These systems are planned and built separately, running along internal roads to collect rainwater and wastewater from factories. Rainwater is drained directly into the receiving source, while wastewater is collected at the centralized wastewater treatment station, meeting required standards before discharge.
4. Wastewater Treatment
The wastewater treatment plant within the industrial park treats wastewater from businesses according to prescribed standards. The operating capacity in phase 1 is 4.000 m3/day and night.
5. Transportation Network
The road system inside the industrial park is built with H30 load-bearing asphalt concrete roads, including main routes 1A, 1B, 2A, 2B, 3, and 3A connecting directly with National Highway 51, Go Dau Industrial Park, and My Xuan A2 Industrial Park. Main roads have a cross-section of 55m and a road surface of 15m wide, while branch roads have a cross-section of 35 m and a road surface of 8 m wide.
6. Communication Systems
The industrial park’s telecommunications system is provided by major carriers such as VNPT, FPT, and Viettel, directly connected to the postal network of Ba Ria – Vung Tau province. This ensures quick access to telecommunications services for businesses in My Xuan A IP, including telephone, mobile phone, fax, and Internet services.
7. Natural Gas System
My Xuan A IP features a low-pressure gas distribution station that processes gas within the industrial park to supply to investors as needed.
8. Other Systems
The industrial park invests in various systems such as fire prevention and fighting systems, security systems, etc., to promptly handle emergencies. Even after more than 20 years of operation, My Xuan A IP continues to upgrade its infrastructure system, focusing on cleanliness, environmental friendliness, and sustainable development, creating convenience for investors and promoting a green and beautiful environment.
IV. Industries Attracting Investment in My Xuan A Industrial Park
In its pursuit of becoming the most modern and developed industrial park in Ba Ria – Vung Tau province, My Xuan A is actively attracting businesses and investors in various industries. The key sectors include:
Production of Building Materials:My Xuan A IP is a hub for businesses involved in the manufacturing of building materials. This encompasses a wide range of products contributing to the construction industry.
Production and Manufacturing of Precision Mechanics: The industrial park is conducive for businesses engaged in the precise manufacturing of mechanical components. This includes industries that rely on precision mechanics for their operations.
Manufacturing and Repairing Motorbikes and Equipment: Businesses focusing on the manufacturing and repair of motorbikes and related equipment find My My Xuan A IP an ideal location for their operations.
Textile, Electrical, and Electronic Industries: The industrial park attracts investment from the textile sector, as well as businesses involved in the production of electrical and electronic goods.
Processing Industrial and Food Products: My Xuan A is a suitable destination for industries engaged in the processing of industrial and food products. This includes a diverse range of manufacturing activities.
Environmentally Friendly Industries: The industrial park is open to businesses operating in industries that prioritize environmental sustainability and do not contribute to pollution.
By welcoming businesses from these sectors, My Xuan A IP aims to create a diverse and dynamic economic environment, fostering growth and development in Ba Ria – Vung Tau province.
The main industries attracting a lot of investment capital in My Xuan A industrial park – Ba Ria Vung Tau province
V. Investment Incentives at My Xuan A Industrial Park
My Xuan A IP stands out among investors due to its attractive incentive programs, designed to encourage and facilitate large-scale investments. These incentives include:
Corporate Income Tax Rate: The corporate income tax rate is set at 20%.
Tax Incentives:
The preferential tax rate for businesses is 17% for an uninterrupted period of 10 years, starting from the initial year when the business generates revenue from the project.
Following the expiration of the preferential tax rate, businesses will transition to applying the standard 20% tax rate.
Tax Exemption and Reduction:
Businesses enjoy a tax exemption for the first 2 years and a subsequent 50% reduction for the next 4 years from the date of taxable income.
The tax exemption and reduction period are calculated consecutively. It starts from the first year the enterprise generates taxable income from the project.
In cases where the enterprise has no taxable income in the first three years (counted from the first year of project revenue), the tax exemption and reduction period commence from the fourth year.
Import Tax Exemption:
Enterprises are exempt from import tax on imported goods as per the regulations outlined in Article 16 of the Law on Export Tax and Import Tax No. 45/2005/QH11 dated June 14, 2005, and Article 12 of Decree No. 87/2010/ND -CP dated August 13, 2010, issued by the Government. These details specify the implementation of certain articles of the Law on Export Tax and Import Tax.
These robust investment incentives make My Xuan A IP an appealing choice for businesses looking for a conducive environment with financial advantages to support their growth and development.
VI. Investment Costs at My Xuan A Industrial Park – Ba Ria Vung Tau Province
Investment costs are a critical consideration for businesses and investors as they directly impact a company’s financials. The investment costs specific to My Xuan A IP are as follows:
1. Land Rents
Price: 150 USD/m2
Land Lease Term: 50 years
Flexible payment according to each contract.
2. Infrastructure Management and Maintenance Fees
Price: 0,5 USD/m2/year
Subject to annual adjustments.
3. Water Price
Price: 12.500 VND/m3 (excluding VAT).
4. Electricity Price
22kV electricity price (excluding VAT) as per state regulations:
Normal hours (04:00-9:30, 11:30-17:00, 20:00-22:00): 1.424 VND/kWh.
Ensures wastewater treatment according to output A and input B standards.
These cost details provide transparency for businesses and investors considering My Xuan A IP, enabling them to make informed decisions about their financial commitments in this industrial zone.
VII. Labor Resources and Labor Costs
The availability of a skilled and abundant labor force is pivotal for fostering industrial park development. In Ba Ria – Vung Tau province, especially within My Xuan A IP, human resources and labor costs remain stable. The region boasts approximately 1,2 million people, with over 60% falling within the working-age population.
My Xuan A IP’s prime geographical location in the center of Ba Ria – Vung Tau province allows for easy access to a large labor pool from neighboring provinces. This abundance of skilled and stable labor creates favorable conditions for businesses. It enables them to recruit and select the most suitable workforce while mitigating the risk of labor shortages.
The construction and ongoing development of My Xuan A IP play a significant role in effectively addressing employment challenges for workers. This, in turn, contributes to the overall economic well-being of the region.
VIII. Economic Value of My Xuan A Industrial Park
My Xuan A IP features a robust and modern infrastructure system. It is strategically located near two major regional projects: Long Thanh International Airport and Cai Mep – Thi Vai International Seaport. This advantageous position has attracted significant capital, resulting in the swift occupancy of factories and fostering remarkable economic growth in the Phu My area and Ba Ria – Vung Tau as a whole.
The operational businesses and factories within the industrial park generate a substantial demand for accommodation for both experts and workers. The heightened demand for housing not only stimulates the local economy in Phu My town and Ba Ria – Vung Tau but also serves as a catalyst for significant growth in the real estate market. My Xuan A IP emerges as an attractive investment opportunity, propelling economic development and contributing to the region’s prosperity.
In conclusion, My Xuan A IP is an enticing prospect for investors and businesses. It has evolved over time, asserting remarkable potential for robust and sustained development. For further advice, feel free to contact us, and stay tuned to TTTFIC for additional valuable insights!
The land for lease that belong to Industrial Park has run out of stock. Only the land and warehouse has been re-invested by individual investor that still available
TTTFIC Group: Guide to Industrial Real Estate in Vietnam
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