Nhon Trach 5 Industrial Park

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Information
Operating time: 2003 - 2053
Total Area: 309,4 Ha
Infrastructure investors: IDICO Corporation - JSC
Price: 185 USD/m2
Building density: 60 %
Occupancy: 100 %
Address: Long Tan commune and Hiep Phuoc town, Nhon Trach district, Dong Nai province, Vietnam.

Nhon Trach V Industrial Park, operational since 2003, is a significant project in Nhon Trach district, Dong Nai province. IDICO Corporation serves as the investor in this industrial park, contributing to the region’s sustainable development. The park’s strategic location facilitates efficient transportation of goods and production expansion. Let’s delve deeper into this industrial park through the following article.

I. Overview of Nhon Trach V Industrial Park

Nhon Trach V Industrial Park is an integral part of Nhon Trach’s new urban area. The park is situated within the planned industrial city, which covers a vast 8.000-hectare area and encompasses various elements like airports, ports, industrial parks, residential planning, and more. It serves as the focal point for Dong Nai province’s industrial park.

The park has attracted investments from diverse countries and hosts factories from companies such as Hyosung, Jang In Furniture, Sam Hwan, Hyundai, Posco Steel Processing, Lock & Lock (Korea), Texhong Vietnam Textile (Hong Kong), Sun Yad, Headway, and others.

The scale of the Industrial Park

Nhon Trach V Industrial Park spans a total enterprise area of 309,4 hectares with a total investment of 328.948 billion VND. The industrial park’s operational period runs from 2003 to 2053. Currently, it offers nearly 40 hectares for lease with an occupancy rate exceeding 80%.

In addition to industrial land for rent, the park features basic infrastructure components like green areas, land for road construction within the industrial zones, an operator, warehouse facilities, and more. Moreover, Nhon Trach V Industrial Park has expanded housing areas for workers and accommodations for experts and managers.

II. Geographical Location of Nhon Trach V Industrial Park, Dong Nai

Nhon Trach V Industrial Park is located in Long Tan Commune, Hiep Phuoc Town, Nhon Trach District, Dong Nai Province. It enjoys a prime location adjacent to the East Saigon Area and serves as a major hub for multiple transportation routes, including National Highway 51, Ring Road 3, Ho Chi Minh City – Long Thanh – Dau Giay Expressway, Bien Hoa – Vung Tau Expressway, and more.

The park’s strategic positioning ensures seamless connectivity to key areas:

  • 25 km from Ho Chi Minh city center.
  • 15 km from Bien Hoa city.
  • 50 km from Vung Tau city.
  • Approximately 4 km south of Dong Xoai town center.
  • 44 km from Saigon port.
  • 15 km from Go Dau Port.
  • 49 km from Tan Son Nhat International Airport.
  • 11 km from Long Thanh International Airport.
  • 39 km from Bien Hoa Station.
  • 45 km from Saigon Station, Ho Chi Minh City.

Additional Geographical Advantages

Nhon Trach V Industrial Park benefits from proximity to major transportation networks and significant seaports. This favorable location facilitates efficient goods transportation, allowing 15.000-ton ships to dock and handle container and machinery equipment handling. The park also enjoys easy access to neighboring areas and other economic clusters, such as Nhon Trach I Industrial Park to the North, Nhon Trach VI Industrial Park to the South, and Nhon Trach III Industrial Park to the West.

The strategic geographical positioning, coupled with effective transportation routes, positions Nhon Trach Industrial Park as an ideal destination for savvy investors and production development. It plays a pivotal role in fostering economic and industrial growth in Dong Nai province and the nation as a whole.

Nhon Trach 5 Industrial Park - Dong Nai Province - tttfic.com

Nhon Trach 5 Industrial Park – Dong Nai Province – tttfic.com

III. Infrastructure of Nhon Trach V Industrial Park

Nhon Trach V Industrial Park, beyond its strategic location and transportation connectivity to key areas, continually invests in and upgrades its infrastructure. Robust infrastructure is vital for creating a conducive working environment and fostering the growth of production and living activities. Here are some key elements of the industrial park’s infrastructure:

Power System

Nhon Trach V Industrial Park receives its electricity supply from the 110/22KV Transformer Station located within the park. This transformer station is managed and operated by IDICO-UDICO Housing and Urban Development Investment Joint Stock Company.

The 110kV Nhon Trach V transformer station is connected to the national power system through the 220/110kV Long Binh transformer station, ensuring a stable and high-quality power supply.

Electricity rates (22kV) are in accordance with State regulations, as specified in Decision 648/QD-BCT dated March 20, 2019. They are as follows:

  • Normal hours: 1.555 VND/kWh
  • Peak hours: 2.871 VND/kWh
  • Off-peak hours: 1.007 VND/kWh

Water Supply System

Nhon Trach V Industrial Park sources its water supply from the Tuy Ha Underground Water Plant, which has a daily capacity of 22.000 m3 during both day and night. This water supply is provided by Investor IDICO-URBIZ, and the pricing adheres to Dong Nai province regulations.

Wastewater Treatment System

The centralized wastewater treatment plant at the industrial park has a processing capacity of 12.000 m3 daily, serving both day and night.

Drainage System

The industrial park has separate systems for draining rainwater and wastewater. These systems run along internal roads, collecting all rainwater and factory wastewater.

Rainwater is directly drained into the receiving source, while wastewater is collected and thoroughly treated at the industrial park’s centralized wastewater treatment station. This rigorous treatment process ensures that the discharged water meets environmental standards and does not pollute the surrounding areas and Dong Nai province.

Internal Traffic

Nhon Trach V IDICO Industrial Park benefits from its central location in the southern key economic zone, which includes Ho Chi Minh City, Bien Hoa, and Vung Tau. As a result, the industrial park enjoys favorable conditions for transporting goods via road and waterways. The road network includes roads 25B and 25C, connecting to National Highway 51 for easy access to Ho Chi Minh City (50 km), Bien Hoa (40 km), and Vung Tau (60 km). The waterway system facilitates efficient transportation of goods to major ports like Saigon, Vung Tau, Phu My, and Go Dau.

Communication

Nhon Trach V Industrial Park offers a robust domestic and international telecommunications system. It provides diverse and reliable communication services, including VNPT, FPT, Viettel, landlines, mobile phones, fax, and internet services.

IV. Industries Attracting Investment in Nhon Trach V Industrial Park

Nhon Trach V Industrial Park’s strategic location on major transportation routes, within industrial park clusters, and surrounded by diverse natural resources make it an attractive destination for investors and workers. The industries that have already received investments and development within the park include:

  • Textile, garment, shoe, and non-tanning leather industries
  • Electrical, electronic, mechanical, and construction materials industries
  • Food processing (excluding seafood processing)
  • Pharmaceutical, cosmetic, chemical, and dyeing industries
  • Medical equipment manufacturing
  • Sports equipment, batteries, accumulators, and interior decoration
  • Wood processing, ceramics, porcelain, glass, plastic, and rubber (excluding hat processing)
  • Packaging and paper (excluding pulp production)

V. Investment Incentives in Nhon Trach V Industrial Park

Nhon Trach V Industrial Park, with its years of continuous operation and development, has leveraged its inherent strengths to attract both domestic and foreign investors effectively. The park offers highly appealing investment incentives, including:

Corporate Income Tax

Investors in Nhon Trach V Industrial Park benefit from a preferential corporate income tax rate of 20%.

Tax Incentives

The industrial park implements a preferential tax rate of 17% for a consecutive 10-year period from the first year that the enterprise generates revenue from the project. After this preferential tax rate period expires, a rate of 20% is applied.

Additionally, businesses enjoy tax exemptions for the first two years and a 50% reduction for the subsequent four years from the date of taxable income. The tax exemption and reduction period begins in the first year when the enterprise generates taxable income from the project. In cases where the enterprise has no taxable income within the first three years, the tax exemption or reduction period commences from the fourth year.

Import Tax

Nhon Trach V Industrial Park grants import tax exemptions for goods imported in accordance with Vietnamese law, as specified in Article 16 of the Law on Export Tax, Import Tax No. 45/2005/QH11 dated June 14, 2005, and Article 12 of Decree No. 87/2010/ND-CP dated August 13, 2010, issued by the Government, detailing the implementation of various provisions of the Law on Export Tax and Import Tax. These incentives are in accordance with Decree No. 218/2013/ND-CP dated December 26, 2013, and No. 118/2015/ND-CP dated November 12, 2015, which determine tax incentives.

Nhon Trach 5 Industrial Park - Dong Nai Province - tttfic.com

Nhon Trach 5 Industrial Park – Dong Nai Province – tttfic.com

V. Investment costs in Nhon Trach V industrial park, Dong Nai

Below, TTTFIC would like to send you the investment costs of Nhon Trach V industrial park, Dong Nai province as follows:

Electricity priceElectricity prices at the Industrial Park are calculated over different time periods with:

  • Peak hours: 0,1 USD/kWh/month
  • Normal hours: 0,05 USD/kWh/month
  • Off-peak hours: 0,03 USD/kWh/month
Water priceMaintained at a price of 0,4 USD/m3/month.
Infrastructure management and maintenance fees0,4 USD/m2/year. Payment upon request at the end of the month
Land rentsFrom 60-80 USD/m2. Lease term until 2053, annual payment.
Cost of wastewater treatment0,28 USD/m3/month. Payment upon request at the end of the month

VII. Labor Resources and Labor Costs

Nhon Trach V Industrial Park boasts several strengths due to its prime geographical location within the industrial park cluster of Dong Nai province. Situated as a focal point for economic development, it enjoys proximity to major roadways and key southern seaports, such as Saigon. This strategic positioning has propelled the growth of Nhon Trach V Industrial Park, creating favorable conditions for both domestic and international goods transportation. Furthermore, it has facilitated the expansion of relationships with major investors and generated numerous job opportunities.

Additionally, the park features cutting-edge infrastructure, encompassing modern electrical and water systems, thereby attracting significant investments. Currently, there is a surplus of underemployed workers, and the Industrial Park has provided a new lifeline for them. Moreover, thanks to its advantageous features and sustained efforts, the Industrial Park has become a hub for attracting a large workforce from all provinces and regions across the country, effectively meeting the growing demands of the industrial park.

VIII. Economic Value in Nhon Trach V Industrial Park

According to recent statistics from the Department of Planning and Investment in Dong Nai province, Nhon Trach district has attracted nearly $212 million in foreign direct investment (FDI) into its industrial parks since the beginning of 2022. Notably, Nhon Trach 5 Industrial Park has attracted a significant capital injection of $124,7 million. This investment is for the VN2 Nylon Manufacturing Factory project.

In the first half of this year, Idico Investor recorded and settled revenue from realized projects in Nhon Trach V Industrial Park. This demonstrates the park’s economic growth. This remarkable achievement led to a profit exceeding VND 1,4 billion in the second quarter of 2022. This accounted for 63% of the industrial park’s revenue during that period.

These data points from TTTFIC highlight the immense development potential of Nhon Trach V Industrial Park, making it an enticing destination for major investors. With meticulous and strategic investments, along with an innovative approach, Nhon Trach V Industrial Park is on track to become a pivotal urban industrial hub in Dong Nai province. Its focus on innovation and careful investment exemplifies its potential. Consequently, it offers new opportunities for domestic and foreign investors.

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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