Nam Cau Kien Industrial Park - Hai Phong

Established in 2008, with Shinec Joint Stock Company as the primary investor, the Nam Cau Kien Industrial Park has consistently focused on improving its management systems and developing utility services over the course of more than 12 years in construction and business operations. These efforts are aimed at enhancing benefits for customers and establishing itself as a sustainable development partner for businesses.

To date, Nam Cau Kien Industrial Park has completed Phase 1, attracting over 70 investors from both domestic and international markets, and is renowned for being the first ecological industrial park in Hai Phong. Starting in 2020, it began to attract investments for Phase 2, featuring a synchronized and modern infrastructure system.

I. Overview of Nam Cau Kien Industrial Park – Hai Phong

Nam Cau Kien Industrial Park – Hai Phong was approved to be included in the planning of Vietnam’s industrial parks until 2020 by the Prime Minister in Decision No. 1107/QD-TTg dated August 21, 2006, with an initially planned area of 100 hectares.

On February 1, 2008, Nam Cau Kien Industrial Park was approved for an adjusted increase in area from 100 hectares to 457 hectares (an additional 357 hectares) according to Official Letter No. 180/TTg-CN from the Prime Minister’s Office. However, later on, the planned area of Nam Cau Kien Industrial Park was adjusted to decrease to 263 hectares (a reduction of 194 hectares) according to Official Letter No. 2628/TTg – KTN dated December 22, 2014, from the Prime Minister’s Office.

SHINEC Shipbuilding Industry Joint Stock Company (under VINASHIN) received Investment Certificate No. 02221000015 from the Management Board of Hai Phong Economic Zone as the investor for the investment project for construction and operation of infrastructure in Nam Cau Kien Industrial Park on May 29, 2008. The project has a total accurate area according to the planning of 263,47 hectares, of which the industrial land for lease is 166,86 hectares. The operating term of the industrial park is 50 years (from 2008 to 2058).

In 2015, SHINEC Shipbuilding Industry Joint Stock Company underwent the equitization process and changed its name to SHINEC Joint Stock Company. On May 8, 2019, Nam Cau Kien Industrial Park obtained a reissued Investment Registration Certificate No. 1680381442 and the People’s Committee of Hai Phong City officially established it on September 30, 2020, according to Decision No. 3020/QD-UBND.

Total area: 263,47 hectares

• Phase 1: 103,47 hectares. Fully occupied.
• Phase 2: 160 hectares. Infrastructure development and investment attraction in progress.

Characteristics of the industrial park

Nam Cau Kien Industrial Park is equipped with synchronized and modern technical infrastructure. There is still a significant amount of clean land available for investors to lease factories. The industrial park has abundant and high-quality labor resources.

Nam Cau Kien Industrial Park aims to build a green and environmentally friendly investment environment. The core focus is on environmental protection for sustainable development of businesses. Up to now, Nam Cau Kien Industrial Park has basically fulfilled the ecological criteria as regulated by the state.

This brings significant advantages for investors within the industrial park.

With the aim of providing an ideal investment environment, businesses develop along with the interdependent circular economy model in the industrial park. Nam Cau Kien has been and continues to affirm its brand as a true ecological industrial park, the first of its kind in Vietnam. From here, a solid foundation is established for long-lasting manufacturing enterprises that meet stringent standards. Currently, there are more than 70 domestic and foreign businesses investing in this industrial park.

Information about the Investor

Shinec Joint Stock Company – the investor of Nam Cau Kien Industrial Park.
Address: Nam Cau Kien Industrial Park, Kien Bai Commune, Thuy Nguyen District, Hai Phong City, Vietnam.
Shinec Joint Stock Company is a pioneering flag bearer in the field of industrial park development investment in Vietnam. With nearly two decades of relentless effort and continuous innovation, Shinec has achieved significant milestones.

Currently, Shinec Joint Stock Company is in the process of expanding and launching new projects in the industrial real estate and residential real estate sectors across various provinces and cities nationwide. With a track record of efficient investments and existing potential, along with the government’s new initiative to encourage the establishment of eco-friendly and circular economy industrial parks, Shinec is poised to continue its development. Bringing the eco-friendly brand to Nam Cau Kien and promoting sustainable investment principles to both domestic and foreign investors, Shinec aims to achieve remarkable growth, on par with the investment ecosystems of developed countries.

An overview perspective of Nam Cau Kien Industrial Park – Hai Phong – TTTFIC Group

II. Geographical Location of Nam Cau Kien Industrial Park – Hai Phong

Nam Cau Kien Industrial Park is located in Thuy Nguyen District, the political and industrial center, as well as the new urban area of Hai Phong City, Viet Nam.

Nam Cau Kien Industrial Park stretches across four communes: Kien Bai, Thien Huong, Lam Dong, and Hoang Dong, in Thuy Nguyen District, Hai Phong City, Viet Nam.

Strategic Investment Location:

Nam Cau Kien Industrial Park possesses a strategically advantageous location, connecting with the transportation systems of Hai Phong City, which helps businesses maximize transportation cost savings:

Roads:

• Adjacent to National Highway 10, 10 km from the city center of Hai Phong.
• 15km from the Ha Noi – Hai Phong Expressway.

SeaPort:

• The internal port within the industrial park is 13km away from Hai Phong International Container Terminal.
• The internal port within the industrial park is 60km away from Cai Lan International Container Terminal.

Airport:

• 20km from Cat Bi International Airport.

Railway:

• 15km from Hai Phong Railway Station.

Furthermore, Nam Cau Kien Industrial Park is centrally located among other industrial parks and economic zones in Hai Phong, making it suitable for attracting supporting industrial projects.

The industrial park has a well-connected transportation system encompassing road, rail, sea, and air routes. This facilitates convenient transportation of raw materials and goods into and out of the industrial park, promoting efficient, sustainable production and business operations while saving costs and time.

III. Infrastructure of Nam Cau Kien Industrial Park – Hai Phong

Internal transportation:

• The roads within the industrial park are paved with concrete, complying with Vietnamese road standards.
• Width of the main road: 30m.
• Width of branch roads: 15-25m.

Electricity system:

• There is a 110kV high-voltage substation and 22kV power lines with a voltage of 35kV/22kV.
• The power supply capacity is 189MVA 3×63, serving the electricity demand of businesses in the industrial park.

Water system:

• Thuy Son Water Plant, with a capacity of 25.000 m3/day and meeting the quality standards of the Ministry of Health, provides an abundant water supply for production.

Wastewater and rainwater drainage system:

• The wastewater and rainwater drainage systems are separately constructed, with drainage systems collecting rainwater and discharging it into the nearby rivers.
• The rainwater drainage system consists of reinforced concrete box culverts with a width of 1m and a slope of I = 3%, connecting to the city’s rainwater drainage system.

Waste treatment:

• The city’s solid waste treatment company will provide services for collecting domestic and industrial waste after treatment by businesses.
• The waste treatment system follows advanced technology.

Wastewater treatment:

• Wastewater is treated through the industrial park’s wastewater treatment plant.
• The quality meets international standards with a capacity of 2.000 m3/day.
• Vietnam has designed and built the first and only wastewater treatment plant that satisfies modern technical requirements and follows Japanese industrial park standards.

Communication system:

• A modern communication system is in place, providing comprehensive postal and telecommunication services.
• Stable international transmission lines are available.

Internal port:

• The planned internal port within Nam Cau Kien Industrial Park, Hai Phong, will have a length of up to 1km.
• The port can accommodate vessels with a payload ranging from 5.000 DWT to 6.500 DWT.

Nam Cau Kien Industrial Park – Hai Phong – TTTFIC Group

IV. Industries attracting investment at Nam Cau Kien Industrial Park – Hai Phong

Nam Cau Kien Industrial Park is oriented towards attracting investment in high-tech industries and environmentally friendly sectors, such as:

• Support technology
• Manufacturing machinery and equipment for investment technology
• Production of interior and exterior decoration products for export
• Service industries serving manufacturing within the industrial park
• Other low-pollution manufacturing sectors

V. Investment costs

Infrastructure rental fee:

• 140 USD/m2. To be negotiated depending on the location and area of the leased land (excluding land tax and annual land rental fees payable to the state)
• Service fee: 15.000 VND/m2/year ~ 0,62 USD/m2/year.

Clean water connection fee: 80.000.000 VND/connection point

Wastewater discharge connection fee: 80.000.000 VND/connection point

Electricity connection fee:

• < 560 kVA: approximately 3.150 USD/connection point
• From > 560 kVA to < 5 MVA: approximately 6,3 USD/kVA
• > 5 MVA: To be negotiated

Clean water usage fee: 19.000 VND/m3 ~ 0,79 USD/m3 (Paid by the tenant according to monthly meter readings)

Electricity usage fee:

• Normal hours: 1,526 VND/kWh ~ 0,063 USD/KWh (Monday to Saturday: 4:00 – 9:30, 11:30 – 17:00, and 20:00 – 22:00 / Sunday: 4:00 – 22:00)
• Off-peak hours: 989 VND/kWh ~ 0,041 USD/KWh (All days of the week from 22:00 – 4:00)
• Peak hours: 2.817 VND/kWh ~ 0,12 USD/KWh (Monday to Saturday: 9:30 – 11:30, 17:00 – 20:00)

Waste treatment fee:

• According to the pricing schedule for each type of waste provided by the service provider within the industrial park

Wastewater collection and treatment fee:

• Fixed wastewater treatment fee (for wastewater meeting the industrial park’s standards): 17.500 VND/m3 ~ 0,73 USD/m3 (Based on 80% of the average incoming water volume. In case the wastewater quality does not meet the input criteria of the industrial park, the investor must bear the additional costs)

VI. Investment Incentives at Nam Cau Kien Industrial Park – Hai Phong

Tax incentives for regular industries:

• Exemption from taxes for the first 2 years and a 50% reduction for the following 4 years.
• Standard tax rate of 20%.

Tax incentives for special projects:

• Exemption from taxes for the first 4 years and a 50% reduction for the next 9 years.
• Tax rate of 10% for the following 15 years.
• High-tech industries/Supporting industries (according to legal regulations).
• Projects with a minimum investment capital of 6.000 billion VND:
  • Investors must make disbursements within 3 years from the issuance of the investment license.
  • Minimum total revenue of 10.000 billion VND per year or regular employment of at least 3,000 workers within 3 years of generating revenue.

Export-processing enterprises are eligible for tax incentives:

• Exemption from import/export taxes when importing fixed assets or raw materials for production or when exporting finished products.
• Export-processing enterprises are exempt from Value-Added Tax (VAT).

VII. Labor Source and Costs

Stable labor source:

• The development of industrial projects by foreign investors in Hai Phong attracts a large number of workers from neighboring provinces such as Thai Binh, Quang Ninh, and Hai Duong, leading to an abundant labor force in the Thuy Nguyen area.
• Therefore, recruitment in the industrial park is more convenient and effective.

Costs:

• Minimum wage in Region I: 4.420.000 VND/month.
• Reference salary range for workers: 6.000.000 – 12.000.000 VND/month.
• Reference salary range for managers: 12.000.000 – 30.000.000 VND/month.

(Varies by each enterprise).