My Xuan B1 - Conac Industrial Park - Ba Ria Vung Tau Province

My Xuan B1 – Conac Industrial Park is a new industrial park established and operating since 2012 in Ba Ria – Vung Tau province. After more than 10 years of operation, up to now, My Xuan B1 – Conac Industrial Park has become a key industrial park in Ba Ria – Vung Tau province, in particular, and in the Southern region, in general.

I. Overview of My Xuan B1 – Conac Industrial Park

My Xuan B1 Industrial Park, also known as My Xuan B1 – Conac Industrial Park, was established on April 14, 1998, according to Decision No. 300/QD-TTg of the Prime Minister. It has an expected planning area of 200 hectares, with the initial investment capital of 266 billion VND and an operating term of 50 years from the date of the Investment Decision.

On November 3, 2006, the Ministry of Construction approved the first planning of My Xuan B1 Industrial Park, and subsequent adjustments were made by the People’s Committee of Ba Ria Vung Tau province. The total approved area is 227,14 hectares, with 160,41 hectares allocated for industrial land leasing.

In April 2020, the Prime Minister approved a reduction in the area of My Xuan B1 Industrial Park to 211,92 hectares, adding an expansion plan with a scale of 110 hectares.

Master planning map of My Xuan B1 – Conac Industrial Park – Vung Tau – TTTFIC Group

1. Information on industrial park investors

The industrial park is invested by IDICO Petroleum Construction Investment Joint Stock Company (IDICO-CONAC), located at 326 Nguyen An Ninh, Ward 7, Vung Tau city, Ba Ria – Vung Tau province. With over 42 years of experience, IDICO-CONAC is committed to providing the best convenience and support for investors in My Xuan B1-Conac Industrial Park.

2. Scale, land use structure, and current investment status of the industrial park

Total investment capital for this industrial park is 543,58 billion VND with a scale of 227,14 hectares. The land use structure is as follows:

3. Investment Attraction Situation in Industrial Parks

Currently, My Xuan B1 – Conac Industrial Park has leased 100% of the industrial park land area and is in the process of planning to develop the expanded My Xuan B1 – CONAC Industrial Park. This project has attracted over 20 investment projects from countries with strong industries such as Australia, Korea, Taiwan, Hong Kong, the Netherlands, and Vietnam.

Outstanding projects here include:

• Ceramics production project of VTC Granite Ceramics Joint Stock Company,
• Youngnam Vina’s motor and generator production project,
• Metal components production project of DLHI Vietnam Company,
• Project of Global Aluminum Company,
• Project of Ewic Color Vietnam.

II. Geographical Location of My Xuan B1 – Conac Industrial Park

My Xuan B1 – Conac Industrial Park is situated in My Xuan and Hac Dich communes, Tan Thanh district, Ba Ria – Vung Tau province, now part of My Xuan Ward, Phu My Town, Ba Ria Vung Tau Province.

1. Natural Conditions

This industrial park in Ba Ria – Vung Tau province boasts a relatively flat terrain, located in the highest position of Phu My new urban area. The ground has an excellent geological structure suitable for the construction of heavy industrial projects. The region has a temperate climate with no storms or earthquakes, high soil load-bearing intensity, and is very convenient and economical in construction costs. Specifics include:

• Altitude above sea level: From +8m to +16m
• Average humidity: 79 – 84%
• Average temperature: 26oC – 27oC
• Average annual rainfall: 1.769,9 mm
• Soil hardness: Waist from 1,8 – 2,5 kg/cm²

2. Regional Links of Industrial Parks

• North: Borders My Xuan B1 Tien Hung Industrial Park
• East: Borders My Xuan B1 Ocean Industrial Park
• South: Borders the provincial road from National Highway 51 to Ngai Giao
• West: Borders Bien Hoa – Vung Tau Expressway

This geographical location provides My Xuan B1 – Conac Industrial Park with advantages in connecting the region, facilitating the transportation of goods to train stations, seaports, airports, and industrial centers:

• Distance from Ho Chi Minh City: 55 km
• From National Highway 51: 0,5 km
• From Ho Chi Minh City – Long Thanh – Dau Giay Expressway: 10 km
• From Vung Tau city: 45 km
• From Tan Son Nhat International Airport: 65 km
• From Long Thanh International Airport: 20 km
• From Thi Vai port: 10 km
• From Phu My port: 6 km

In addition, My Xuan B1 – Conac Industrial Park is part of the Phu My new urban area complex and is easily connected to two other industrial parks in My Xuan Ward (My Xuan A Industrial Park and My Xuan A2 Industrial Park).

This location not only provides favorable traffic conditions for transporting goods but also offers natural conditions for the rapid and sustainable development of My Xuan B1 – Conac Industrial Park.

With these strengths, it is undoubtedly an ideal location for domestic and foreign investors seeking investment opportunities in the southern region of Vietnam.

Facilities system of My Xuan B1 – Conac Industrial Park

III. Infrastructure System of My Xuan B1 – CONAC Industrial Park

My Xuan B1-CONAC has invested in a comprehensive technical infrastructure, including traffic systems, power supply, water supply and drainage, wastewater treatment, greenery, lighting, security, and order. This infrastructure is designed to serve the well-being of workers and ensure a stable production and business environment for businesses.

1. Internal Road System

• All asphalt concrete roads with an H30 load capacity.
• Main routes 1A, 1B, 2A, 2B, 3, 3A: 4 lanes, cross section 55 m, road surface 15m wide, connecting to National Highway 51, Go Dau Industrial Park, and My Xuan A2 Industrial Park.
• Branch roads: Cross section of 35m and road surface 8m wide.

2. Electric Supplying System

• Power sources: National power grid 220/110KV Ba Ria – Long Binh and Phu My Thermal Power Plant through the 110/22 KV-2×40 MVA intermediate station.
• Voltage level supplied to Factories: 22kV.
• Power distribution on internal traffic network ensures stable operation in case of national power system issues.

3. Water Supply System

• Water supplied from Toc Tien Water Plant with a capacity of 50.000 m³/day and night.

4. Wastewater Treatment System

• Centralized wastewater treatment plant operational.
• Phase 1 capacity: 1.000 m³/day and night, Phase 2: 2.000 m³/day and night.
• Treated water meets national technical regulations on industrial wastewater.

5. Drainage System

• Rainwater and wastewater drainage systems are planned and built separately along internal roads.
• Rainwater is directly discharged into the receiving source.
• Wastewater is collected at the centralized industrial wastewater treatment plant.

6. Industrial Gas Supply System

• Businesses can use industrial gas from CNG Vietnam Joint Stock Company at a preferential price.

7. Internet System and Telecommunications Services

• Provided by network operators such as VNPT, FPT, and Viettel, ensuring smooth domestic and international communication.

8. Security System

• Security team in place to ensure personal safety and protect investors’ assets.
• Regular contact with the economic police team in the area to ensure overall safety.

IV. Industries that Attract Investment

My Xuan B1 – Conac Industrial Park aims to attract investments in various industries, including:

• Construction materials industry.
• Wood production industry.
• Manufacturing, repair, and mechanical assembly industry.
• Electronic and refrigeration assembly industry.
• Light industry: textile, leather shoes, garment.
• Food and food processing industry.
• Other industries that do not cause heavy pollution and toxicity.

V. Investment Costs in My Xuan B1 – CONAC Industrial Park

My Xuan B1 – CONAC Industrial Park is a compelling investment destination for businesses seeking a production environment in Ba Ria Vung Tau province. The costs associated with investing in this industrial park are deemed reasonable and competitive within the context of industrial parks in Ba Ria – Vung Tau province. The specific costs that businesses need to consider are outlined below:

1. Land Rents

• Amount: 180 USD/m².
• Lease term: 50 years, starting from 2012.

2. Infrastructure Management Fee

• Amount: 0,4 USD/m²/year (adjusted annually).

3. Water Supply Price

• Amount: 12.500 VND/m³ (equivalent to 0,52 USD/m³).

4. Wastewater Treatment

• Amount: 0,32 USD/m³.
• Standards: Type B input, Class A output.

5. Electricity Price

• According to Decision 648/QD-BTC dated March 20, 2019.
• Peak hour: 2.621 VND/KWh (equivalent to 0,11 USD/KWh).
• Off-peak hours: 901 VND/KWh (equivalent to 0,038 USD/KWh).

6. Electricity, Telephone, and Other Utility Fees

• Investors will directly sign contracts with specialized management agencies.

Note:

• The provided prices are reference values and do not include 10% VAT.
• Prices are subject to change depending on the rental duration without prior notice.

VI. Investment Incentive Policies at My Xuan B1 – Conac Industrial Park

My Xuan B1 – Conac Industrial Park provides several incentives to businesses, as outlined below:

1. Corporate Income Tax Incentives

• Applicable Corporate Income Tax Incentive: 20%.

2. Tax Incentives

• Preferential tax rate: 17% for 10 consecutive years from the first year of enterprise revenue from the project.
• After the expiration of the preferential tax rate, businesses will transition to a 20% tax rate.
• Tax exemption for the first 2 years and a 50% reduction for the subsequent 4 years from the date of taxable income.
• Basis for determining tax incentives: Decree No. 218/2013/ND-CP dated December 26, 2013; No. 118/2015/ND-CP dated November 12, 2015.

3. Enterprise Import Tax Incentives

• Exemption from import tax for imported goods according to the provisions of 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, of the Government detailing the implementation of a number of articles of the Law on Export Tax and Import Tax.

4. Incentives for Paying Land Rent

• Payment of land rent is divided into two installments:
  • 1st installment payment: 60% within 15 days from the date of signing the land lease contract (including a 10% deposit).
  • Phase 2: 40% within 12 months from the date of signing the land lease contract and before receiving the Land Use Rights Certificate.
• Businesses in My Xuan B1 – Conac will receive free support from the investor for procedures related to Investment Policy, Investment Registration Certificate, and Establishment Certificate.

VII. Labor Resources and Labor Costs

Similar to other industrial parks in Ba Ria – Vung Tau, My Xuan B1 – Conac benefits from an abundant labor source, providing a favorable condition for the park’s accelerated development. Key points regarding labor resources and costs include:

• Abundant Local Labor Resources:
  • In Ba Ria – Vung Tau province, there are approximately 1,2 million people.
  • The working-age population constitutes over 60% of the total population.
• Strategic Location and Modern Transportation Network:
  • Positioned at the center of Ba Ria Vung Tau province with a modern transportation network.
  • Rapid development and housing systems contribute to attracting labor from various locations.

The information shared above about My Xuan B1 – Conac Industrial Park aims to provide insights into its outstanding strengths. With these advantages, the industrial park is poised to witness robust development, becoming a key player in the southern region and a trustworthy partner for businesses.