Nam Son - Hap Linh Industrial Park - Bac Ninh

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Information
Operating time: 2006 - 2056
Total Area: 300 ha
Infrastructure investors: Kinh Bac Urban Development Corporation
Price: 168 USD/m2
Building density: 60%
Occupancy: 70%
Address: Nam Son commune and Hap Linh ward, Bac Ninh city; Yen Gia commune, Que Vo district; and Lac Ve commune, Tien Du district, Bac Ninh province, Vietnam.

Nam Son – Hap Linh Industrial Park in Bac Ninh started as 200 hectares in 2006, expanded to 1,000 hectares in 2007, and reduced to 300 hectares in 2019. Originally managed by IGS Group and Nam Hong Company, it was later taken over by Kinh Bac Urban Development Corporation in 2010 and transformed into a clean and eco-friendly industrial park in 2013.

I. Overview of Nam Son – Hap Linh Industrial Park – Bac Ninh:

In 2006, the Vietnamese government approved the development plan for Nam Son – Hap Linh Industrial Park in Bac Ninh Province, initially spanning 200 hectares. By 2007, the plan was adjusted to encompass 1.000 hectares, including 800 hectares for industrial use. Initially, the project’s Zone A was under the stewardship of IGS Group and Nam Hong Company, covering 600 hectares. Subsequently, this area was reduced to 432 hectares due to adjustments.

However, the initial investor’s failure to meet project deadlines led to its revocation in 2010, with the project being transferred to Kinh Bac Urban Development Corporation. In 2013, the industrial park officially became Nam Son – Hap Linh Industrial Park. Over time, its area was further reduced from 800 hectares to 432 hectares and eventually down to 300 hectares due to planning adjustments related to essential provincial facilities, while its nature shifted to a clean and environmentally friendly industrial park.

Finally, in 2019, the project was greenlit by the Prime Minister with a total investment of 2,9 trillion VND and a land area of 300 hectares, marking the resolution of planning issues and the commencement of robust development efforts.

Master plan map of Nam Son - Hap Linh Industrial Park - Bac Ninh - TTTFIC Group

Master plan map of Nam Son – Hap Linh Industrial Park – Bac Ninh – TTTFIC Group

II. Geographical Location of Nam Son – Hap Linh Industrial Park – Bac Ninh:

ADDRESS: Nam Son Commune and Hap Linh Ward, Bac Ninh City; Yen Gia Commune, Que Vo District; and Lac Ve Commune, Tien Du District, Bac Ninh Province, Vietnam.

Nam Son – Hap Linh Industrial Park is strategically located adjacent to the 60-meter-wide National Highway 38 and the 35-meter-wide intersection of Nam Son – Que Vo Provincial Road, facilitating convenient transportation connections to neighboring provinces and key transportation infrastructure. Specifically, the industrial park is:

  • The center of Ha Noi is 42 kilometers away.
  • 7,4 km from the center of Bac Ninh City.
  • 37 km from Noi Bai International Airport.
  • 140 km from Hai Phong Port.
  • 15 km from Samsung Bac Ninh Plant.
  • 18 km from Tu Son Railway Station.
  • 114 km from Cai Lan Deepwater Port.

III. Infrastructure in Nam Son – Hap Linh Industrial Park – Bac Ninh:

Transportation System:

The planners have designed the road network in Nam Son – Hap Linh Industrial Park in a grid pattern with a large load-bearing capacity, ensuring that each plot of land has convenient traffic access.

  • Main roads: 32 meters wide (4 lanes)
  • Internal roads: 23 meters wide (2 lanes)

Power Supply System:

  • The power supply is provided by the national grid, with a 110KV power line from Pha Lai Thermal Power Plant and Hoa Binh Hydropower Plant.
  • The phase 1 substation with a capacity of 40MVA steps down the voltage to 22KV, supplying power to the nearest power pole to the land boundaries.

Water Supply System:

A water plant with a capacity of 6.000 m3/day and night.

Wastewater Treatment System:

  • The wastewater treatment plant with a capacity of 6.000 m3/day and night collects and treats industrial and domestic wastewater before discharging it into the canal.
  • We calculate the volume of wastewater based on 80% of the input water supply.

Information Technology:

Nam Son – Hap Linh Industrial Park has established a modern information technology system to meet communication needs, such as telephone, internet, cable television, etc.

Fire Fighting System:

  • Firefighting equipment is installed along the road axes within the industrial park, with a distance of 150m/fire hydrant.
  • Furthermore, Nam Son – Hap Linh Industrial Park has developed additional infrastructure facilities, including a separate stormwater drainage system, leveled land with elevations ranging from +5m to +5,45m, lighting systems, static parking lots for worker transportation, communication systems, and landscaping.
The transportation of Nam Son - Hap Linh Industrial Park - Bac Ninh - TTTFIC Group

The transportation of Nam Son – Hap Linh Industrial Park – Bac Ninh – TTTFIC Group

IV. Key Investment Attraction Sectors in Nam Son – Hap Linh Industrial Park – Bac Ninh:

Nam Son – Hap Linh Industrial Park is developed as a concentrated industrial park with a focus on environmentally friendly industries:

  • Light industry for processing agricultural and food products.
  • Light industry.
  • High-end consumer goods manufacturing industry.
  • Construction materials and engineering industry.

V. Investment Costs in Nam Son – Hap Linh Industrial Park – Bac Ninh:

  • Infrastructure Usage Fee: $168/m2 for the entire lease term, subject to change depending on the location of the leased plot.
  • Factory Rental: $3,5/m2 (Rental price: $3,5-4,0/m2/month. Minimum lease term: 3 years. Minimum rental area: 3,000-5,000m2. Factory for sale: market price).
  • Annual Land Lease Fee: Applied according to the decisions of the Bac Ninh Provincial People’s Committee at each specific time.
  • Infrastructure Management and Maintenance Fee: $0,7/m2/year.
  • Electricity Price: Applied according to the decisions of the Bac Ninh Provincial People’s Committee at each specific time. Reference price: $0,043-$0,12/KWh.
  • Water Supply Price: $0,44/m2 and subject to change according to the decisions of Bac Ninh province.
  • Wastewater Treatment Fee: $0,4/m3, depending on the wastewater quality.
Nam Son - Hap Linh Industrial Park - Bac Ninh - TTTFIC Group

Nam Son – Hap Linh Industrial Park – Bac Ninh – TTTFIC Group

VI. Labor Source and Costs in Nam Son – Hap Linh Industrial Park – Bac Ninh:

Labor Source:

Population of Bac Ninh province: 1.100.000 people, including:

  • Rural area: 76,5%
  • Urban area: 23,5%

Working-age population: 60%

Average wages for ordinary workers range from 6 to 9 million VND/month.

Engineers and specialized staff will have higher salaries depending on their job positions, ranging from 8 to 25 million VND.

Labor Costs:

  • Hanaka Industrial Park in Bac Ninh is located in Tu Son city, in zone II.
  • The current minimum wage in Zone II is 3.920.000 VND/month.

VII. Investment Incentives in The Industrial Park:

Corporate Income Tax Incentives:

Tax incentives: 100% exemption for the first 2 years, 50% reduction of the payable tax for the next 4 years, starting from the taxable income.
Import Tax Incentives:

Exemption from import taxes for:

  • Equipment, machinery (including accompanying parts), specialized vehicles used in the production process, and domestic construction materials not yet produced.
  • Special investment encouragement projects, projects manufacturing mechanical, electrical, electronic components, and parts are exempt from import taxes on raw materials for the first 5 years from the start of production. – Imported materials, components, and supplies for export production.

VAT Tax Incentives:

  • VAT exemption for imported equipment, machinery, and specialized vehicles used in the production process that are not yet produced domestically.
  • Tax rate: 0%.

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The land for lease that belong to Industrial Park has run out of stock. Only the land and warehouse has been re-invested by individual investor that still available

TTTFIC Group: Guide to Industrial Real Estate in Vietnam


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