O Mon Industrial Zone - Can Tho

O Mon Industrial Zone – Can Tho

• Investor: Hiep Hoa Phat Corporation
• Address: Phuoc Thoi Ward, O Mon District, Can Tho City, Vietnam
• Scale: 256 hectares

I. OVERVIEW:

• O Mon Industrial Zone is one of the eight operational industrial zones in Can Tho. It is strategically located in the city center, boasting well-developed infrastructure and excellent connectivity.
• As of 2020, Can Tho has successfully implemented 8 industrial zone projects, covering a total area of approximately 2,267 hectares, with 567.19 hectares already leased out, providing employment opportunities for over 32,000 workers, including 64 foreign workers. Being the industrial hub of Region 6 (comprising provinces in the Southwestern region of Vietnam), Can Tho is receiving budgetary support and new investment projects from the Government.
• Possessing numerous advantages for industrial development compared to other provinces in the Mekong Delta region, industrial zones in Can Tho have quickly achieved high occupancy rates. Among them, O Mon Industrial Zone stands out as an exemplary project with significant appeal to both domestic and foreign investors.

1. Phase 1: 134 hectares

• Clean industrial production factories (small-scale): 100 hectares
• Exhibition area, display area, warehouses, etc.: 16 hectares
• Residential area – resettlement area integrated with the industrial zone: 18 hectares

2. Phase 2: 122 hectares

This phase focuses on land for constructing the industrial zone and modern factories, combined with residential investment to create comprehensive linkage while ensuring green standards.

II. GEOGRAPHICAL LOCATION:

O Mon Industrial Zone is situated along the newly built Provincial Road 922, in Phuoc Thoi Ward, O Mon District, Can Tho City, Vietnam

• Northeast: Adjacent to the Hau River
• Southeast: Adjacent to the Cai Chom Canal and Tra Noc 2 Industrial Zone
• Northwest: Adjacent to the Noc Canal
• Southwest: Adjacent to residential areas and National Highway 91
• Located in an economically and socially favorable area, the industrial zone benefits from a well-established infrastructure.
• O Mon Industrial Zone is situated close to highways and pre-planned roads with excellent infrastructure, facilitating smooth transportation of goods for businesses and making it attractive for investment.
• Distance to Can Tho Airport: 10km
• Distance to Can Tho Port: 10km
• Distance to Can Tho City Center: 16km
• Distance to National Highway 1A: 22km
• Distance to Can Tho Bridge: 23km
• Distance to Cai Cui Port: 30km
• Distance to Ho Chi Minh City Center: 187km

III. INVESTMENT-ATTRACTIVE INDUSTRIES:

• Food processing
• Production of construction materials
• Manufacturing of machinery and industrial equipment
• Motorcycle/automobile manufacturing and assembly
• Shipbuilding
• Industrial sewing
• Component manufacturing
• Assembly of electrical and industrial products
• Electronics industry

IV. INVESTMENT COSTS/FACTORY RENTAL PRICES:

• One-time land lease payment (50-year lease term): 100 – 120 USD/m2
• Annual land lease payment: 10 – 12 USD/m2/year
• One-time factory rental (50-year lease term): 170 – 180 USD/m2 of construction
• Annual factory rental: 16 – 18 USD/m2 of construction/year
• Annual infrastructure maintenance fee: 0.45 USD/m2/year
• Electricity price: Peak hours 0.1 USD/kwh, Normal hours 0.05 USD/kwh, Off-peak hours 0.03 USD/kwh
• Water price: 0.4 USD/m3
• Wastewater treatment fee: 0.28 USD/m3
• Labor cost: Reference price ranging from 200 – 500 USD/person/month

Although it is currently an ideal time for industrial zones in Can Tho to boost their investment appeal and quickly reach maximum occupancy rates, O Mon Industrial Zone and North O Mon Industrial Zone are facing various issues due to the development location of the projects. Many investors have been considering the leasing policies of industrial zones in these areas with some hesitation.

The decision to lease land/factories within O Mon Industrial Zone should be carefully considered, taking into account various factors. Currently, numerous experts still hold a positive outlook on the development potential of this industrial zone.

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