Nam Dinh Vu Industrial Park - Hai Phong

The Nam Dinh Vu Industrial Park in Hai Phong is a specially designed industrial zone closely linked to the North Vietnam logistics network. This industrial zone enjoys a strategic location at the gateway to the sea, reaping the full benefits of the Hai Phong Seaport system. It is also the only industrial zone in Vietnam that owns an on-site seaport – Nam Dinh Vu Port (with a wide turning basin allowing for the reception of vessels of up to 40.000 DWT). Additionally, the well-developed road infrastructure connecting domestic and international cargo flows in this area minimizes costs and logistics risks for investors.

Identified as a key investment attraction in Hai Phong in particular, and Northern Vietnam in general, the Nam Dinh Vu Industrial Park has prepared synchronized infrastructure for handover to customers. With the most favorable tax incentives in Vietnam to date, continually invested and upgraded industrial zone facilities, and a professional customer support package, it is sure to satisfy investors.

I. Overview of Nam Dinh Vu Industrial Park – Hai Phong

Nam Dinh Vu Industrial Park – Hai Phong is located in the central area of the Dinh Vu – Cat Hai Economic Zone. It is a comprehensive economic zone and a key marine economic center, serving the socio-economic development needs of Hai Phong City, the coastal area of North Vietnam, and the whole country.

Nam Dinh Vu IP is strategically situated at the nearest gateway to the sea compared to other industrial parks in the same region.

The park has a wide turning basin (300 meters) capable of accommodating vessels with a maximum capacity of up to 40.000 DWT.

Industrial Park Planning of Nam Dinh Vu Industrial Park

There are two phases in the development of the industrial park:

Phase 1 (369 hectares):

• Ready technical infrastructure: Electricity supply, water supply, wastewater treatment plant, internal roads, greenery, sidewalks, street lighting, etc.
• Service and social infrastructure:
• • Completed and operational: Nam Dinh Vu Port (40.000 DWT), customs facilities, fire protection systems, etc.
  • Currently under construction and development: Worker and expert housing areas, gas stations, operation offices, banks, supermarkets, and restaurants.

Phase 2 (960 hectares):

• Over 100 hectares of land with complete technical infrastructure can be handed over to investors by 2020.
• Nam Dinh Vu Industrial Park, with a total area of 1.329 hectares, is owned by Sao Do Group and divided into four zones:
• • Port and logistics area: 81,6 hectares, including 7 container berths and general cargo facilities designed for 40.000 DWT vessels.
  • Oil and liquid terminal area: 30 hectares, consisting of 3 port berths for 20.000 DWT vessels and storage facilities for petroleum products.
  • Industrial land area: 106,7 hectares.
  • Complex area (industrial and warehouse): 779,5 hectares.

Nam Dinh Vu is uniquely planned with interconnected functional zones that complement each other, creating a concentrated industrial and logistics ecosystem.

Investment Situation of Nam Dinh Vu Industrial Park

Currently, the Nam Dinh Vu Industrial Park project covers a total area of 1.329 hectares, with the industrial land in Phase 1 (369 hectares) achieving an occupancy rate of 90%, while Phase 2 (960 hectares) has reached an occupancy rate of 30%. Additionally, the industrial zone is actively progressing with land leveling efforts.

Specifically, Phase 2, spanning 960 hectares (with a land reserve of 779,5 hectares), has seen the development of 200 hectares of initial infrastructure and is currently in the process of handover to customers. Presently, Phase 2’s landscape has undergone significant improvements, with infrastructure continually being upgraded, and numerous projects becoming operational. Nam Dinh Vu is making vigorous strides toward completing projects promptly.

Information about the investors of Nam Dinh Vu Industrial Park

Investor: Sao Do Investment Group Joint Stock Company (SAO DO GROUP)

Address: 768B Ngo Gia Tu Street, Thanh To Ward, Hai An District, Hai Phong City, Vietnam.

A dedicated and strategically-minded industrial park investor will provide businesses with a conducive business environment and attractive incentives to enhance their competitive capabilities for sustainable development. Therefore, the capabilities of the industrial park investor will play a crucial role in determining the quality of industrial real estate.

With diverse areas of operation, extensive experience, adaptability, and flexibility in the market, up to now, SAO DO GROUP has successfully launched numerous projects, including the Nam Dinh Vu Offshore Industrial Park project.

II. Geographical Location of Nam Dinh Vu Industrial Park – Hai Phong

Nam Dinh Vu Industrial Park is located in the central area of the Dinh Vu – Cat Hai Economic Zone. The industrial park is situated on the Dinh Vu Peninsula, in Dong Hai 2 Ward, Hai An District, Hai Phong City, Viet Nam.

Nam Dinh Vu Industrial Park is strategically located along the primary axis of the Northeast Economic Triangle, which includes Ha Noi, Hai Phong, and Quang Ninh. Moreover, it has direct connectivity with the national transportation network and is near significant arterial roads.

Roads

• Distance from the center of Hai Phong City: 10 km
• Distance from the Ha Noi – Hai Phong Expressway: 7 km
• Distance from the capital city Ha Noi: 105 km
• Adjacent to the Tan Vu – Lach Huyen Cross-sea road: 0 km

Waterways

• Located in the downstream area of the Bach Dang River, Nam Dinh Vu IP is connected to the primary channel of the Hai Phong Port system via the Trap and Ha Nam Canals.
• Distance from Lach Huyen International Deep-water Port: 15 km, capable of accommodating vessels up to 100,000 DWT.
  (In the future, the investor will invest in building a parallel road route connecting the Tan Vu – Lach Huyen bridge for direct transportation from the industrial park to Lach Huyen Port)
• The Hai Phong Port system can receive vessels up to 30.000 DWT.
• Nam Dinh Vu Port has been completed and put into operation.

Railways

• Nam Dinh Vu is 15 km away from Hai Phong Railway Station.
• There are plans to connect the Hai Phong – Ha Noi – Lao Cai Railway line to the Dinh Vu – Cat Hai Economic Zone, where Nam Dinh Vu is situated, in the future.

Airports

• Distance from Cat Bi International Airport: 13 km
• Cat Bi International Airport operates international flights to destinations such as Guangzhou, Bangkok, Seoul, Incheon, and Lao Cai.
• It also offers domestic flights to 8 local destinations.

III. Infrastructure of Nam Dinh Vu Industrial Park – Hai Phong

Internal Seaport System

• Nam Dinh Vu Port is a seaport located within the overall plan of Nam Dinh Vu Industrial Park, invested and built with a capital of over 1,7 trillion VND on an area of 65 hectares.
• It is designed with a dock length of over 1.500 meters, including 7 container and general cargo berths.
• Nam Dinh Vu Port can accommodate vessels with a maximum load of 40.000 tons. Its primary purpose is to serve the import and export requirements of industrial park enterprises. This service aims to reduce logistic costs and transportation time.
• Currently, Nam Dinh Vu Port has been completed and put into operation.

Internal Transportation

• The internal transportation system consists of primary roads and secondary branches.
• Width of main roads: 46 meters.
• Width of branches: 34 meters.

Electricity System

• The national grid supplies electricity to the electricity system through the 110KV Nam Dinh Vu substation.
• The capacity for Phase 1 is 1x63MVA 110/22KV, and the capacity for Phase 2 is 2x63MVA 110/22KV.
• The entire system is underground and connected close to the perimeter of each land plot.

Water System:

• Nam Dinh Vu Industrial Park has a water pipeline system with an F600 diameter, with a maximum capacity of 30.000 m3/day and night.
• The system provides clean water, raw water, and mineral water, ensuring sufficient and stable water supply for businesses in the industrial park.

Wastewater and Rainwater Drainage System

• The wastewater collection and drainage network is 100% underground using HDPE pipes.
• The rainwater collection network is 100% through concrete box culverts.

Waste Treatment

• The industrial park features a solid waste storage warehouse. This warehouse spans an area of 300 square meters. It is divided into three distinct zones. These zones include domestic waste storage, industrial waste storage, and hazardous waste storage.

Wastewater Treatment

• The industrial park has a wastewater treatment plant with a capacity of 10.000 m3/day and night.
• Phase 1 of the wastewater treatment plant has a capacity of 2.500 m3/day and night.
• Before being directed to the centralized wastewater treatment plant, the industrial park performs preliminary treatment of the wastewater to meet the inlet wastewater standards.
• An automatic continuous monitoring station measures the quality of treated wastewater.

Communication System

• The communication system ensures stability, and reliability, and avoids the need to invest in new telecommunications infrastructure when changing service providers.

IV. Industries Attracting Investment in Nam Dinh Vu Industrial Park – Hai Phong

The industrial park attracts the main industries, including:

• Electronics, electronic components, computer components
• Supporting industries, mechanical engineering, industrial machinery and equipment, aircraft parts, automotive parts, motorcycles
• Heavy industry, paper, energy, food, pharmaceuticals
• Logistics, warehousing and petroleum business, liquefied gas business
• Plastic and packaging production
• Production of office equipment components

V. Investment Incentive Policies in Nam Dinh Vu Industrial Park – Hai Phong

As Nam Dinh Vu (Zone 1) Industrial Park is located in the Dinh Vu – Cat Hai Economic Zone, which is a non-tariff zone and a seaport, investors enjoy the following special investment incentives:

Tax incentives

• Corporate income tax rate of 10% for 15 consecutive years, starting from the first year when the enterprise generates revenue from the privileged activities. Afterward, the tax rate is 20% in subsequent years.
• Exemption from taxes for 4 years and a 50% reduction in tax payment for the following 9 years, calculated from the first year when the enterprise earns taxable income from the investment project. If the enterprise does not generate taxable income in the first 3 years after earning revenue from the investment project, the tax exemption and reduction period will start from the fourth year.

Land use fees

• 100% exemption from land use fees throughout the project implementation period.

Additionally, other tax incentives are available according to the current regulations of the Government of Vietnam. Furthermore, Nam Dinh Vu Industrial Park offers flexibility in adjusting land lease prices, payment terms, and customer services to provide the most favorable conditions for investors.

VI. Investment Costs in Nam Dinh Vu Industrial Park – Hai Phong

• Infrastructure usage fee: 100 USD/m2/entire lease term. The unit price may vary depending on the location and size of the leased land.
• Infrastructure management and maintenance fee: 1.400 VND/m2/month ~ 0,058 USD/m2/month.
• Annual land rental fee: Nam Dinh Vu Industrial Park is exempt from annual land rental fees for the entire project duration.
• Electricity tariff: Applied according to EVN’s electricity tariff schedule and subject to additional management fees based on the actual electricity consumption of the businesses.
• Water supply price: 16.300 VND/m3 ~ 0,68 USD/m3, and the unit price may be subject to a decision by the Hai Phong City authorities.
• Wastewater treatment fee: Ranging from 9.000 VND to 24.000 VND/m3 ~ (0,37 USD – 1 USD/m3) depending on the quality of the incoming wastewater.
• Other expenses: Charged by suppliers based on the actual usage needs of the businesses.

Note: The above prices do not include VAT and are subject to change without prior notice.

VII. Labor Source and Costs in Nam Dinh Vu Industrial Park – Hai Phong

Labor source

• In addition to its favorable geographical location, Hai Phong also benefits from its labor force.
• As of 2019, Hai Phong had 1,2 million workers, with 75% of them having received training. Hai Phong is the central hub of the North Coastal region. This region has a population exceeding 20 million people. Consequently, Hai Phong enjoys a significant labor force advantage.
• Hai Phong possesses a high-quality labor force. This workforce can meet the demands of advanced and modern technologies. The city is home to 4 universities. It also boasts over 60 colleges and vocational schools.
• The industrial park boasts an abundant and high-quality labor force. This workforce can fully satisfy the needs of businesses investing in Nam Dinh Vu Industrial Park, Hai Phong.

Costs

• Nam Dinh Vu Industrial Park is located in Hai An District, which is in Zone I.
• The current minimum wage in Zone I is 4.420.000 VND/month.