My Xuan A2 Industrial Park - Ho Chi Minh City

When mentioning Ho Chi Minh City, many people immediately think of Phu My town because it is a hub for leading industrial parks in the southern region. One such prominent industrial park is My Xuan A2 Industrial Park, anticipated to attract substantial investment capital, thereby contributing to the province’s economic development.

After the administrative merger, Ba Ria–Vung Tau Province was merged into Ho Chi Minh City.

I. Overview of My Xuan A2 industrial park, Ho Chi Minh City

My Xuan A2 Industrial Park (My Xuan A2 IP) is one of the large industrial parks situated in the northwest of the Phu My urban area, featuring a modern transportation network that connects with many major cities in the southern region of the country.

1. Legal basis for establishing the industrial park

My Xuan A2 IP was established under License No. 2205/GP by the Ministry of Planning and Investment on May 24, 2001. On January 23, 2002, the Ministry of Construction approved the planning of My Xuan A2 IP according to Decision No. 126/QD-BXD, with the planned area for the entire region being 312,8 hectares. The investor of this industrial park is the International Development Company Limited. However, on September 4, 2007, the People’s Committee of Ho Chi Minh City approved the planning of the expanded My Xuan A2 IP with a total planning area of 109,42 hectares, of which the industrial land area for rent is 73,35 hectares.

2. Land use structure:

As of now, the total planned development land area for My Xuan A2 IP and the expanded My Xuan A2 IP is 422,22 hectares, with the industrial land area for lease being 326,5 hectares and an occupancy rate reaching 98%.

The land use structure in the My Xuan A2 urban area is divided into two specific phases:

3. Current investment status:

My Xuan A2 IP is currently attracting numerous domestic and foreign investors. Notable projects include:

• 12 projects under construction by Taiwanese investors with a total registered investment capital of nearly 120 million USD, including the screw production project of Ting Ray Joint Stock Company.
• Household appliance production project of Lock&Lock Vina Co., Ltd. (Korea).
• Mechanical processing project of Anchor Fasteners Vietnam Co., Ltd. (Taiwan).
• Autumn fur processing project of Prime Asia Co., Ltd.
• China Steel & Nippon Steel Vietnam Joint Stock Company, and more.

II. Geographical Location of My Xuan A2 Industrial Park, Ho Chi Minh City

My Xuan A2 IP is strategically situated in Phu My Ward, Ho Chi Minh City, Vietnam, within the southern key economic region, encompassing Ho Chi Minh City, Bien Hoa, and Vung Tau. The location provides excellent connectivity for waterway, road, and air transportation, contributing to its attractiveness for investors.

1. Connectivity Highlights

• From Go Dau Port: 2 km.
• From Phu My Port: 6 km.
• From Cai Mep Thi Vai International Port: 13 km.
• From National Highway 51: 17 km.
• From Vung Tau Ward: 20 km.
• Approximately 40 km from Long Thanh International Airport (planned).
• From Saigon Station (Ho Chi Minh City): 53 km.
• 55 km from Tan Son Nhat International Airport.
• From Ho Chi Minh City: 50 km.

2. Surrounding Industrial Parks

My Xuan A2 IP enjoys proximity to significant industrial parks in Ho Chi Minh City, fostering collaboration and trade. These include Dong Xuyen Industrial Park, My Xuan A Industrial Park, My Xuan B Industrial Park, Phu My Industrial Park, Cai Mep Industrial Park, among others. This strategic location positions the park as a gateway and trading hub for the three major economic cities in the South.

Furthermore, its adjacency to the southern key economic area, especially Ho Chi Minh City, is advantageous due to the city’s large population, numerous educational institutions, and the potential to tap into high-quality human resources for businesses.

This prime location enhances the trade prospects of My Xuan A2 IP, fostering connectivity with localities, ports, and border gates for foreign trade.

III. Infrastructure of My Xuan A2 Industrial Park, Ho Chi Minh City

1. Internal Transportation Network

• Roads: The internal traffic system includes H30 asphalt concrete roads with widths of 8m and 15m, featuring sidewalks for pedestrians.
• Lighting and Greenery: Equipped with modern lighting and surrounded by trees, enhancing the overall landscape of the industrial park.

2. External Transportation System

• Proximity to major infrastructure projects such as Long Thanh International Airport and Cai Mep – Thi Vai International Seaport.
• Accessible through National Highways (NH) 51, 55, 56, Ring Roads 3 and 4, HCM – Long Thanh – Dau Giay Expressway, Bien Hoa Vung Tau Expressway, and Ben Luc – Long Thanh Expressway.

3. Electricity Network

• Supplied from Phu My Power Plant and the national power grid.
• Ensures a continuous 22KV power supply 24/7 for factories.
• 110/22KV – 63MVA transformer station for industrial production activities.

4. Water Supply System

• Sourced from Phu My underground water plant (20.000 m³/day and night) and Toc Tien water supply plant (40.000 m³/day and night).
• Ensures sufficient water supply for all industrial park activities.

5. Garbage and Wastewater Treatment

• Waste transported to treatment sites following regulations.
• Common wastewater treatment plant for the entire industrial park with a capacity of 25.000 m³/day and night.

6. Drainage System

• Separate stormwater drainage system and industrial wastewater drainage system.
• Rainwater drained directly outside, and industrial wastewater treated before release.

7. Communication Systems

• Telecommunications provided by major networks with broadband and high data transmission speeds.
• Ensures seamless connection to external information for factories.

8. Fire Protection System

• Installation of a fire prevention and fighting warning system.
• Adheres to Vietnamese state regulations and maintains communication with district and town fire prevention teams.

9. Security System

• Surveillance camera system and 24/7 security teams to ensure personal safety and protect assets.
• Special attention to housing areas for workers from other localities.

My Xuan A2 IP prioritizes modern, international-standard infrastructure, making it an appealing choice for multi-industry businesses. The comprehensive infrastructure systems contribute to the overall development and attractiveness of the industrial park for potential investors.

IV. Industries Attracting Investment in My Xuan A2 Industrial Park, Ho Chi Minh City

Since its planning and operational phases, My Xuan A2 IP has consistently aimed to establish itself as a key industrial park in Ho Chi Minh City. Operating in a modern and advanced manner, adhering to international standards for industrial parks, My Xuan A2 has successfully attracted numerous significant investors, particularly those from foreign countries.

1. Industries Attracting Substantial Investments

• Leather Manufacturing, Garment Manufacturing, Dyeing, and Textile Printing Industries:
  • The park is conducive to the establishment and growth of industries involved in the manufacturing of leather products, garments, and textile-related processes such as dyeing and printing.
• Pipe Manufacturing, Mechanical Engineering, and Iron and Steel Manufacturing Industries:
  • My Xuan A2 has become a preferred location for industries engaged in the production of pipes, mechanical engineering, and the manufacturing of iron and steel.
• Waste Treatment Industries:
  • The industrial park accommodates industries specializing in waste treatment, including both solid waste and household waste treatment.
• Household Appliance Manufacturing:
  • My Xuan A2 IP has attracted investments in the manufacturing of household appliances, contributing to the diversity of industries within the park.
• Medical Equipment Manufacturing:
  • The park is an appealing destination for investors in the medical equipment manufacturing sector, aligning with the global demand for advanced healthcare technologies.

These industries signify the diverse and dynamic investment landscape of My Xuan A2 IP, reflecting its commitment to modernity and international standards, and contributing to the economic development of the region.

V. Investment Costs in My Xuan A2 Industrial Park

Investing in My Xuan A2 IP involves various costs that businesses should be aware of. Here are the key investment costs associated with the industrial park:

1. Land Rental Price

• The land rental price in My Xuan A2 IP is set at 150 USD/m2 for the entire lease term. It’s worth noting that this rental price may vary depending on the location and area of the rented land.

2. Infrastructure Management and Maintenance Fee

• Businesses are required to pay an infrastructure management and maintenance fee, which is 0.46 USD/m2/year. This fee is subject to annual adjustments and excludes a 10% VAT.

3. Electricity Prices

• Electricity prices are applied based on the electricity price list prescribed by the State. The specific rates are determined by the state regulations.

4. Water Price

• The water price in My Xuan A2 IP is set at 12.500 VND/m³ (excluding VAT 5%). This price is subject to change according to the decision of the People’s Committee of Ho Chi Minh City.

5. Wastewater Treatment Fee

• Businesses are required to pay a wastewater treatment fee, which is set at 0,22 USD/m³ (excluding 10% VAT). This fee is calculated based on 80% of the amount of clean water used.

6. Important Note

• Land rent at My Xuan A2 IP will be applied according to the land price list announced by the People’s Committee of Ho Chi Minh City. This pricing is subject to periodic updates.

These investment costs contribute to the overall expenses associated with establishing and operating businesses within My Xuan A2 IP. It’s crucial for investors to consider these costs as part of their financial planning and decision-making process.

VI. Labor Source and Labor Costs at My Xuan A2 Industrial Park

Labor is a crucial factor influencing the growth and development of industrial parks and the businesses operating within them. Ho Chi Minh City, where My Xuan A2 IP is located, boasts abundant and high-quality human resources. Here are key insights into the labor source and labor costs at My Xuan A2 IP:

1. Abundant Human Resources

• Ho Chi Minh City has a population of approximately 1,2 million people, with about 60% of the population in the working age group. This provides a substantial and diverse pool of human resources for businesses operating in My Xuan A2 IP.

2. Attracting Workers from Neighboring Provinces and Cities

• Given its strategic location, My Xuan A2 IP can easily attract workers from neighboring provinces and cities. The accessibility and connectivity of the industrial park make it a desirable employment destination.

3. Promoting Regional Economic Development

• The development of businesses in My Xuan A2 IP not only contributes to the growth of the local economy but also plays a vital role in addressing unemployment challenges. Job opportunities created by industrial activities help enhance the economic well-being of the region.

Investors and businesses considering My Xuan A2 IP can leverage the available labor force and benefit from the positive economic impact of their operations. The local workforce, combined with the park’s strategic location, can contribute to the success and sustainability of businesses established within the industrial park.

VII. The Importance of My Xuan A2 Industrial Park

My Xuan A2 IP, situated in Phu My town, stands as a pivotal economic center with a strategically important position. It serves as an industrial and port service hub, boasting numerous infrastructure advantages in the region. This industrial park has evolved into a traffic and exchange nucleus, playing a crucial role in propelling the socio-economic development of the entire western region of Ba Ria-Vung Tau province.

Moreover, the robust development of factories within My Xuan A2 IP not only attracts capital and investors but also draws a substantial influx of experts and workers from other areas who choose to live and work here. This surge in population creates an increasing demand for housing, food, entertainment, and more. Consequently, this growth exerts pressure on various sectors such as real estate, shopping, education, parks, and entertainment areas in the Phu My town region. This dynamic development significantly contributes to the economy and the increased value of real estate in the Phu My area, specifically, and the entire Ho Chi Minh City, in general, is expected to rise sharply in the near future.

This concludes the comprehensive information about My Xuan A2 IP compiled and shared by TTTFIC. With its advantageous location, modern and flexible infrastructure, and seamless regional connectivity, this industrial park undoubtedly emerges as a promising destination for investors in the southern region.