Nam Dong Phu Industrial Park: Catalyst for Economic Development
Nam Dong Phu Industrial Park (Nam Dong Phu IP), despite its modest scale, has garnered significant attention from both prominent domestic and international investors. Operating for nearly two decades, the industrial park boasts strategic advantages in location and infrastructure, contributing substantially to the economic progress of Dong Phu district in Dong Nai province.
I. Overview of Nam Dong Phu Industrial Park in Dong Nai Province
Nam Dong Phu IP, situated in Dong Phu district, Dong Nai province, stands as an exemplary industrial project. Its strategic location in an area with a flat terrain proves conducive to the development of industrial infrastructure. Moreover, the industrial park enjoys proximity to major transportation routes and neighboring industrial projects like Dong Xoai I Industrial Park and Dong Xoai III industrial parks.
1. Legal Basis for Industrial Park Establishment
On August 21, 2006, the Prime Minister issued Decision No. 1107/QD-TTg, outlining the industrial park development plan in Vietnam until 2015 and providing guidance until 2020.
Subsequently, on September 11, 2009, Official Dispatch No. 1624/TTg-KTN from the Prime Minister was issued. This document explicitly addressed the adjustment and supplementation of the planning for Nam Dong Phu IP in Dong Nai province. Decision No. 91/Decision-MXD, dated January 17, 2008, by the Provincial People’s Committee, approved the detailed planning project for Nam Dong Phu IP.
Planning map of the project
2. Scale and Structure of Land Use at Nam Dong Phu Industrial Park
Nam Dong Phu IP boasts a total investment capital of 122.222 billion VND, covering a relatively modest area of approximately 72 hectares. The land use breakdown is as follows:
Industrial park natural land: 72 hectares
Administrative, service, and industrial park management land: 3,22 hectares
Industrial land for rent: 44,37 hectares
Green land: 13,5 hectares
Technical infrastructure land: 1,03 hectares
Traffic and parking land: 9,56 hectares
In response to business demands, the industrial park has secured approval for the phase 2 project plan, comprising Zones B and C:
Zone B:
Area: 213 hectares
Administrative and service land: 5,64 hectares
Green trees: 28,5 hectares
Factory and factory land: 155,4 hectares
Technical infrastructure center: 2,26 hectares
Land for transportation area: 21,4 hectares
Zone C:
Area: 266,8 hectares
Land for administrative and service purposes: 6,22 hectares
Land for green trees: 27,35 hectares
Land for factories and workshops: 191,9 hectares
Land used for warehouses and technical infrastructure centers: 3,85 hectares
Land for transportation: 30,11 hectares
3. Current Investment Status
Nam Dong Phu IP is fully occupied, hosting a diverse range of companies across various industries, including:
ATPP Joint Stock Company: Wholesale of solid, liquid, gas fuels, and related products.
Kim Tin Binh Phuoc Joint Stock Company: Manufacturing other metal products.
Kim Tin Green Energy Joint Stock Company 1, 2, 3: Electricity production.
Cao Tuong Industry Company Limited: Shoe manufacturing.
Zhengxing Vietnam Technology Co., Ltd.: Production of products from wood, bamboo, straw, and plaiting materials.
4. Investor Information
The project is backed by Dong Phu Real Estate and Infrastructure Investment Joint Stock Company, a firm specializing in investing and developing industrial park infrastructure. The company’s headquarters are situated in Village 1, Tan Lap commune, Dong Phu district, Dong Nai province. Over the years, the company has consistently aimed to be a leading real estate distributor in the southern market, prioritizing trust and profitability for its customers.
II. Geographical Location of Nam Dong Phu Industrial Park
Nam Dong Phu IP is strategically situated in Tan Lap Commune, Dong Phu District, Dong Nai Province, Vietnam. This location is highly advantageous, attracting considerable attention from investors due to its proximity to various amenities and accessibility to major traffic routes.
Adjacent Areas:
East and North: Borders land used for cultivating cashew trees, fruit trees, and rubber.
West: Borders DT741 road and the residential area along DT741 road.
South: Borders the red dirt road, marking the boundary between Binh Duong and Dong Nai provinces.
Regional Connectivity:
Nam Dong Phu IP, being in Dong Nai province, enjoys seamless connectivity to cultural and economic centers, facilitating trade and transportation. Distances to neighboring areas are as follows:
Dong Xoai city – Binh Phuoc: 20 km
Thu Dau Mot city – Ho Chi Minh City: 54 km
Ho Chi Minh City: 80 km
Major port clusters in the southern region: 93 km from Cat Lai port and 124 km from Tan Cang – Cai Mep
International airports: About 100 km from Long Thanh International Airport and 80 km from Tan Son Nhat International Airport
Railway lines: About 68 km from Bien Hoa station and Song Than station
III. Infrastructure System at Nam Dong Phu Industrial Park
1. Internal Transportation System
The industrial park, covering 72 hectares with an investment capital of 122,222 billion VND, features a modern and synchronous infrastructure system. The internal transportation system includes:
Main roads: 40 m wide, 4 lanes
Branch roads: 22 m wide, 2 lanes All internal roads adhere to national regulations, are constructed with asphalt concrete, and are complemented by high-voltage lighting.
2. Electric Supplying System
Power is sourced from the 110/35/22KV transformer station of the National grid. The high-voltage power network is distributed along internal traffic routes to meet the energy needs of businesses.
3. Water Supply System
Clean water is supplied daily from the Dong Nai province clean water plant via an international standard water supply pipe system, with a capacity of 30.000 m3/day and night.
4. Water and Waste Treatment System
To prevent environmental pollution, the industrial park has a wastewater treatment plant with a capacity of 2.900 m3/day-night, meeting A standards. Waste is categorized, collected, and transported out of the industrial park, and exhaust gases undergo filtration before release.
5. Communication Systems
An underground communication cable system is installed, connecting to the factory’s fence via an international standard cable system. The industrial park’s communication center ensures reliable services such as private switchboards, international calling, remote conferencing, leased lines, high-speed internet, and email.
6. Landscape System
Over 12% of the total industrial park area dedicates space to greenery, including trees along roads. Strategically planted lawns and public green areas enhance the environment and mitigate the industrial park’s impact on the surroundings.
7. Fire Prevention and Fighting System
The industrial park has a comprehensive fire warning, prevention, and fighting system, including hydrants at key locations.
8. Security System
Nam Dong Phu IP is equipped with surveillance cameras and a security team operating 24/7 to ensure personal safety and protect assets.
In addition to the aforementioned systems, Nam Dong Phu emphasizes investing in housing areas for workers, fostering a conducive living and working environment for those coming from other localities.
The infrastructure system of the industrial park
IV. Industries Attracting Investment in Nam Dong Phu Industrial Park
Nam Dong Phu IP, since its planning and operational phases, has consistently aimed to be a pivotal industrial park in Dong Nai province. Operating in a modern and advanced manner, the industrial park adheres to international standards for industrial parks.
Key Industries Attracted:
Mechanical Assembly, Spare Parts, and Electronic Components Production:
Nam Dong Phu Industrial Park has become a hub for businesses involved in mechanical assembly, manufacturing spare parts, and producing electronic components. The focus on these industries aligns with the park’s commitment to high technology and modern practices.
Consumer Production and Handicrafts:
The industrial park attracts investments in consumer production and handicrafts. This diverse sector encompasses a range of goods and crafts, contributing to the park’s multi-industry orientation.
Textile, Garment, and Footwear Industry:
Nam Dong Phu Industrial Park is a destination for businesses in the textile, garment, and footwear industries. This sector plays a crucial role in the industrial park’s goal of becoming a comprehensive and diverse industrial hub.
Food and Agricultural Product Processing:
The industrial park actively attracts investments in processing food and agricultural products. This emphasizes the park’s commitment to environmentally friendly practices and aligns with international standards.
Nam Dong Phu Industrial Park’s commitment to being a multi-industry park using high technology and adhering to international standards positions it as an attractive destination for businesses across various sectors.
V. Investment costs in industrial parks
Land rents
85 USD/m2, lease term is 50 years from 2008.
Infrastructure management fee
0.4 USD/m2/year.
Cost of wastewater treatment
0,35 USD/m3:
The volume of wastewater is calculated as 80% of the water supply.
The input processing standard is class B.
The output processing standard is class A.
Water price
0,4 USD/m3 (Current water price of water supply company)
Electricity price
The calculation based on the electricity tariff of Dong Nai Provincial Electricity Company (EVN) is 0,05 USD/KWh/month.
VI. Investment Incentive Policies at Nam Dong Phu Industrial Park
Nam Dong Phu IP is currently implementing the following preferential policies to attract businesses:
Corporate Income Tax Incentives:
Corporate income tax is set at 17% for a period of 10 years. The initial 2 years from the commencement of taxable income enjoy a 100% tax exemption, followed by a 50% tax reduction for the subsequent 4 years. This tax incentive aims to stimulate and support businesses during their initial years of operation.
Administrative Procedure Support and Attractive Land Rental Policies:
The industrial park provides support to investors in navigating administrative procedures related to their investments. Additionally, the park offers reasonable and attractive land rental policies, contributing to a favorable environment for businesses.
VII. Labor Resources and Costs
Labor is a crucial factor influencing the development of industrial parks and the businesses within them. Dong Nai province, where Nam Dong Phu IP is located, boasts abundant and high-quality human resources. With a working-age population comprising 65% of the total, the province, along with the availability of workers from neighboring areas, ensures a robust workforce for businesses in the industrial park. The growth of businesses in Nam Dong Phu not only contributes to regional economic development but also addresses unemployment effectively.
VIII. The Value Nam Dong Phu Industrial Park Brings
Situated in Tan Lap town, Nam Dong Phu IP serves as a key economic center with a pivotal role in the socio-economic development of Dong Phu district in Dong Nai province. Beyond attracting capital and investors, the strong development of factories in the industrial park draws experts and workers from various locations. This influx not only supports the growth of the local real estate market but also enhances amenities in Tan Lap commune and neighboring areas.
In summary, Nam Dong Phu IP, with its strategic location, modern infrastructure, and seamless regional connectivity, stands as a valuable destination for investors in Dong Nai province.
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