Nam Pho Yen Industrial Park - Thai Nguyen

I. Overview of Nam Pho Yen Industrial Park – Thai Nguyen:

The Prime Minister approved Nam Pho Yen Industrial Park in Document No. 1854/TTg-KTN on October 8, 2009, with an estimated planned area of 200 hectares. The expansion of Nam Pho Yen Industrial Park is based on the merging of two existing industrial parks in Trung Thanh Commune.

Nam Pho Yen Industrial Park is located in Trung Thanh Commune, Thuan Thanh Commune, southern Pho Yen City, Thai Nguyen Province.

It consists of three zones:

Zone A:

• Covering an area of 48.43 hectares, Zone A is identified based on the expansion of the small Trung Thanh Industrial Park, located in Trung Thanh Commune, Pho Yen Town, Thai Nguyen Province.
• At the end of 2007, the project was approved for investment by the Provincial People’s Committee of Thai Nguyen with the investor being Le Trach Infrastructure Development and Investment Co., Ltd., with an investment capital of over 8.5 million USD. Zone A operates from 2007 to 2057.

Zone B:

• Covering an area of 26.7 hectares, Zone B is located in Thuan Thanh Commune, Pho Yen City, Thai Nguyen Province (formerly Pho Yen Town).
• The Nam Pho Yen Industrial Park Project – Zone B was granted the first investment certificate by the Provincial People’s Committee of Thai Nguyen on April 17, 2008, with Vinaxuki Automobile Co., Ltd. as the investor.

Area C:

• Covering an area of 44.4 hectares, Zone C is located in Trung Thanh Commune, the district and province.
• The project was granted an Investment Certificate by the Provincial People’s Committee of Thai Nguyen to Le Trach Infrastructure Development and Investment Co., Ltd. (Taiwan) in 2013 and operates from 2013 to 2063.

Therefore, the total approved investment project area of Nam Pho Yen Industrial Park is 119.53 hectares, with the remaining areas being difficult to develop according to the planning. As a result, on June 12, 2014, Nam Pho Yen Industrial Park had its planned area adjusted from 200 hectares to 120 hectares (reduced by 80 hectares) according to the Official Letter No. 886/TTg-KTN from the Prime Minister’s Office.

Vinaxuki Automobile Co., Ltd. invested in Zone B of Nam Pho Yen Industrial Park, and the management board of Thai Nguyen Industrial Parks officially announced the termination of the construction and business operation of infrastructure in that zone in Document No. 1258/BQL-QLDT issued on June 29, 2021.

Currently, Nam Pho Yen Industrial Park has attracted 17 projects, with 11 projects already in operation, achieving an occupancy rate of approximately 30%. The incomplete technical infrastructure has been the main obstacle in attracting investment projects in manufacturing.

This industrial park is planned with a large area, developed in an ecological, modern, and diversified manner for various industries. Therefore, it holds the potential to become an attractive job market for the local population of Phu Binh District, as well as for Thai Nguyen Province and surrounding areas.

II. Geographic Location of Nam Pho Yen Industrial Park – Thai Nguyen:

Nam Pho Yen Industrial Park is located in Trung Thanh Commune and Thuan Thanh Commune, south of Pho Yen City. It is adjacent to Da Phuc Port and is situated along both sides of National Highway 3 and the connection point of the Ha Noi – Thai Nguyen Expressway. It also borders Soc Son District, Ha Noi, and is in proximity to Noi Bai International Airport.

• To the north, it borders Bac Kan Province.
• To the west, it borders Vinh Phuc Province and Tuyen Quang Province.
• To the east, it borders Lang Son Province and Bac Giang Province.
• To the south, it is adjacent to the capital city, Ha Noi.

Distances:

• 10 km from Samsung Thai Nguyen Factory; and 12 km from the Ha Noi – Thai Nguyen Expressway interchange.
• 42 km from the center of Ha Noi; 29 km from Thai Nguyen City; 9 km from Pho Yen City.
• 21 km from Noi Bai International Airport.
• 126 km from Hai Phong port, 2 km from Da Phuc port.
• 8 km from Pho Yen station, 17 km from Luong Son station.

III. Infrastructure of Nam Pho Yen Industrial Park – Thai Nguyen:

Internal transportation:

The central road system of the industrial park is 36 meters wide, with branch roads of 14 meters and 17 meters.

Electricity system:

There are 220 kV, 110 kV, and 35 kV power lines installed in the industrial park.

Public lighting system:

Street lighting is designed separately with a power supply system along the transportation axes.

Water system:

It ensures the quality and quantity of water supply to meet the production and living needs of businesses.

Wastewater and rainwater drainage system:

Wastewater is discharged into the shared drainage system of the industrial park.

Waste management:

• The investor will sign service contracts with professional waste management units.
• Currently, it is undertaken by the Environmental Sanitation Factory of Thai Nguyen Province.

Wastewater treatment:

The wastewater treatment plant meets Class B environmental standards before discharging into the receiving source.

Communication system:

The industrial park has invested in a communication system with modern cables and equipment following international standards to ensure high-speed connectivity.

IV. Key Investment Attraction Industries in the Industrial Park:

Nam Pho Yen Industrial Park mainly attracts industries such as:

• Automobile assembly and electronics manufacturing
• Food processing and beverages
• Slaughtering of livestock and poultry
• Fast food processing
• Pharmaceutical and medical equipment, veterinary instruments
• Textiles, leather and footwear, handicrafts
• Precast concrete components, construction materials manufacturing

V. Land Leasing Costs in Nam Pho Nguyen Industrial Park:

• Investment cost: The land leasing price with infrastructure is approximately 100 – 155 USD/m2/year.
• Management fee: 0.4 USD/m2
• Electricity price: From 0.05 USD/kWh to 0.13 USD/kWh
• Water price: 0.4 USD/m3
• Wastewater treatment: 0.3 USD/m3

VI. Labor Force in the Industrial Park:

• According to the population survey on April 1, 2019, the population of Thai Nguyen Province is 1,286,751 people, with 629,197 males and 657,554 females.
• The total urban population is 410,267 people (31.9%), and the total rural population is 876,484 people (68.1%).
• In Phu Binh district, there is an abundant labor force, mainly engaged in agriculture, accounting for over 70% of this low-cost labor force. The most significant characteristic of the local labor force is their willingness to switch occupations and become industrial workers for stable income.
• With a labor force of over 150,000 people in the working age, it is a plentiful market to meet the production needs of large and very large enterprises. Besides the local workforce, Phu Binh Industrial Park also attracts the attention of laborers from the entire province and many other neighboring areas.

Cost:

• Nam Pho Yen Industrial Park is located in Pho Yen City, Thai Nguyen Province, in Zone II.
• The current monthly minimum wage in Zone II amounts to 3,920,000 VND.

VII. Investment Incentives in the Industrial Park:

• Corporate income tax incentives: 2-year tax exemption and 50% reduction for the following 4 years.
• Business infrastructure investment: Support for land clearance compensation, construction of wastewater treatment systems; Support rate of 10% on the total investment capital, up to a maximum of 35 billion VND for each industrial park and 6 billion VND for each industrial cluster.
• Support for training expenses for local workers to work in industrial parks and clusters with a amount of 500,000 VND per person.

FB: https://www.facebook.com/TTTFICgroup