Pho Noi A Industrial Park - Hung Yen

Overview of Pho Noi A Industrial Park – Hung Yen:

Pho Noi A Industrial Park – Hung Yen is the first real estate and industrial project of Hoa Phat. Since 2005, Pho Noi A Industrial Park has officially welcomed investment projects, boasting a total area of 596 hectares, which positions it as the largest industrial park in Hung Yen Province. In early March 2021, the Prime Minister approved the expansion of Pho Noi A Industrial Park by an additional 92.5 hectares, increasing the total area to 688.5 hectares.

Along with the expansion of the industrial park’s area, many existing businesses have leased additional plots of land to expand their production and business activities. The investment projects in Pho Noi A – Hung Yen Industrial Zone are as follows:

• Nutifood Vietnam’s second milk processing plant covers 12 ha
• Ngoc Diep aluminum plant occupies 5 hectares.
• Toan Phat Copper Tube Manufacturing Plant number 2 spans 4.6 hectares.
• IDE 2 comprehensive industrial project occupies 3 hectares.
• Lixil Vietnam warehouse, located on land plot number 3, covers 2.16 hectares.

Geographical location:

Pho Noi A Industrial Park is situated in Yen My District, Van Lam District, and My Hao Town, Hung Yen Province.

The industrial park enjoys a favorable location along National Highway 5 and is close to other major arterial roads such as National Highway 1A and National Highway 18. It is also in proximity to the railway system, and the internal infrastructure of the industrial zone is fairly well-developed. This convenient location allows easy access to various major cities and satellite towns.

This is a significant advantage for businesses in implementing transportation, distribution, and import-export activities to domestic and international markets. Pho Noi A Industrial Park offers modern infrastructure and a supportive community, creating a strong foundation for businesses. It enables effective operations, and stability, and fosters long-term relationships.

The infrastructure of Pho Noi A Industrial Park – Hung Yen:

The entire technical infrastructure of the industrial park has been comprehensively and modernly completed, including internal transportation systems, electricity and water systems, fire protection systems, etc. Pho Noi A Industrial Park has become an attractive destination, attracting hundreds of domestic and foreign investors to settle here in the long term.

Internal transportation:

• The internal road system is constructed with a reasonable cross-section, ensuring easy and convenient access for vehicles to each factory.
• The lighting system is installed along the roadways.

Electricity system:

• A continuous and stable power supply is provided through two 110/22KV transformer stations with a capacity of 4x63MVA.

Public lighting system:

• The street lighting network is designed separately with a power supply system and is arranged along the traffic axes.

Water system:

• The industrial park has built a water plant with a capacity of 15,000 m3/day-night, and the water supply system connects to each enterprise within the perimeter.

Wastewater and rainwater drainage system:

• The industrial park plans and builds a separate wastewater and rainwater drainage system that runs along the internal roadways. This system ensures the collection of all rainwater and wastewater from the factories in the park.

Waste treatment:

• Investors will sign service contracts with licensed professional waste treatment units by regulations.

Wastewater treatment:

• The industrial park built the wastewater treatment plant with a total capacity of 6,000 m3/day-night, utilizing a biological treatment system.

Communication information system:

• The telecommunications system meets international standards and is always available to meet communication and high-speed data transmission needs, as well as domestic and international postal services.
• The underground fiber optic cable system is directly connected to each enterprise within the perimeter.

Investment-attractive industries in Pho Noi A Industrial Park- Hung Yen:

• Manufacturing and assembling electronic components, electrical equipment, refrigeration equipment, optics, telecommunications, products from new technologies, and high-tech engineering.
• Mechanical engineering; manufacturing and assembling automobiles, motorcycles, medical equipment, and other motorized machinery and equipment; manufacturing products from precast metals, and precious metals; producing sheets, aluminum, and steel.
• Food processing (excluding cassava flour production, dong vermicelli, MSG, sugar from sugarcane; aquaculture, seafood processing; livestock and poultry slaughter), beverages.
• Manufacturing paper products, wood products (excluding wood processing, wood chips from natural wood), plastic (excluding plastic scrap recycling), rubber, plastics, and leather.
• Pharmaceutical production, cosmetics, packaging, labels; producing construction materials (excluding cement, clinker, bricks, tiles), composite materials, artificial flooring, durable and lightweight materials; industrial gas production.
• Logistics services, rental factories.

The acceptance of investment projects in the industrial zone must comply with the investment attraction orientation of Hung Yen province at different times.

Investment incentives in Pho Noi A Industrial Park – Hung Yen:

Corporate income tax:

• The tax rate is 10% for 15 years. Tax exemption is granted for 4 years. A 50% reduction in tax payable for 9 years follows, for income from new investment projects. This applies to certain specially incentivized sectors as per corporate income tax laws.
• Investors in sectors like high-end steel production, energy-saving product manufacturing, and machinery manufacturing can enjoy the following tax benefits:
  • A tax rate of 17%.
  • Exemption from tax for 2 years.
  • A 50% reduction in tax payable for the next 4 years.
• Exempt from corporate income tax for 2 years and enjoy a 50% reduction in tax payable for the following 4 years for enterprises implementing new investment projects in the industrial zone.

Import tax:

• According to the provisions of the Law on Export and Import Taxes, the industrial zone grants import tax exemptions on imported goods used for fixed assets in investment projects.

Investment situation in Pho Noi A Industrial Park – Hung Yen :

• The industrial zone has received 215 investment projects (94 FDI projects and 121 DDI projects) with a total registered capital of approximately 1.192 billion USD and 22,196 billion VND.
• Many projects are from investors from countries such as Japan, South Korea, and the United States, including Canon Electronics INC, Hyundai, Lixil, Dorco, Cargill…

Labor force and costs:

• Hung Yen province has around 400,000 people of working age. It has numerous vocational training schools, colleges, and universities. These educational institutions can provide thousands of highly skilled workers. The labor force in Hung Yen is abundant and capable of meeting businesses’ needs. Every year, businesses in the area can benefit from this skilled workforce.
• Therefore, the industrial park benefits from a plentiful, healthy, and skilled labor force, which helps accelerate the production process.