Phu Bai Industrial Park - Thua Thien Hue Province

Overview of Phu Bai Industrial Park – Thua Thien Hue Province:

To establish its brand, Phu Bai Industrial Park (Thua Thien Hue Province) focuses not only on the development of synchronized and complete infrastructure but also emphasizes the aspect of a green industrial environment. Phu Bai has become an attractive destination for many investors.

Phu Bai Industrial Park is divided into investment phases.

Phase I & II :

Phu Bai Industrial Park is the first industrial park in Thua Thien Hue Province, established according to Decision No. 1144/QD-TTg by the Prime Minister on December 22, 1998. It is a key project of Thua Thien Hue Province.

Phu Bai Industrial Park, including Phase I, Phase II, and expanded Phase II, covers a total area of 196.75 hectares, with the investment being undertaken by the Infrastructure Investment and Development Limited Company, an Industrial Park Infrastructure Development and Investment Company.

With a perfect combination of strategic location, comprehensive and complete infrastructure, along professional support services, Phu Bai Industrial Park’s Phase I and II have created a competitive advantage and differentiation compared to other industrial parks, attracting many foreign investors such as Carlsberg, Hanesbrands (HBI), Baosteel Can Making, Hanex, MSV, Takson, and more.

Phase IV – Stage 1:

Phu Bai Industrial Park’s Phase IV – Stage 1 received investment approval through the Prime Minister’s Decision No. 1836/QD-TTg on December 18, 2019.

The establishment of Phu Bai Industrial Park’s Phase IV – Stage 1 was authorized by the People’s Committee of Thua Thien Hue Province through Decision No. 2883/QD-UBND on November 9, 2021, with the Investment and Development Limited Company acting as the investor.

Phase IV – Stage 1 of Phu Bai Industrial Park covers an area of 85.86 hectares.

Geographical Location of Phu Bai Industrial Park:

Phu Bai Industrial Park is located in Phu Bai Ward, Huong Thuy Town, Thua Thien Hue Province.

Road transportation:

• It is traversed by National Highway 1A, which passes through Thua Thien Hue Province and serves as a major transportation route across Vietnam.
• Additionally, there is the Cam Lo – Tuy Loan Expressway, connecting the three provinces of Quang Tri, Thua Thien Hue, and Da Nang.

Maritime transportation:

• The deep-water port of Chan May is located within the province of Thua Thien Hue, serving as the nearest and most convenient gateway to the East Sea for the regions along the East-West Economic Corridor (connecting Central Vietnam with Northeastern Thailand and Laos).
• It is a major port on the sea route connecting Singapore, the Philippines, and Hong Kong (China). Chan May Deep-Water Port is one of the ten largest seaports in Vietnam, with significant advantages and great potential in international maritime transport and transshipment.
• The depth of the channel reaches -12.3 meters, capable of accommodating international vessels up to 50,000 DWT. It has a cargo clearance capacity of 5-6 million tons per year.

Air transportation:

• Phu Bai International Airport, located in Phu Bai Ward, Huong Thuy Town, Thua Thien Hue Province, plays an important role in contributing to the economic development of the province and the North Central Coast region.

Phu Bai Industrial Park is strategically located in Thua Thien Hue Province and the key economic region of Central Vietnam. It has direct connectivity to major provinces, airports, and seaports, facilitating transportation and trade with neighboring regions.

Infrastructure of Phu Bai Industrial Park – Thua Thien Hue Province:

Phu Bai Industrial Park is located on high land, free from flooding, with stable geological conditions. The technical infrastructure of Phu Bai Industrial Park is the most complete and synchronized in Thua Thien Hue Province. It includes electricity supply systems, water supply systems, a Customs Office within the industrial park, and a professional Firefighting and Rescue Brigade, among others. It meets the investment standards for medium and large-scale industrial production projects.

Internal transportation: Main arterial roads have a width of 31m to 54m, while internal roads and gathering roads have a width of 19.5m.

Wastewater treatment system: The centralized wastewater treatment plant has a capacity of 6,500 m3/day and night, complying with Vietnamese standards.

Fire protection system: There is a professional Firefighting and Rescue Brigade within the industrial park equipped with modern facilities.

Waste management: There is a waste collection and treatment team to ensure environmental hygiene.

Communication and information system: It has been invested in and completed, including network providers such as VNPT, Viettel, and Mobifone.

Clean water supply system: Phu Bai Water Plant has a capacity of 15,000 m3/day and night. There is a D50 water pipeline system serving the industrial park.

Power supply system: There are two transformer substations with a capacity of 110/22KV-25 MVA and a medium-voltage transmission line system.

Attracting Investment Sectors of Phu Bai Industrial Park – Thua Thien Hue Province:

• High-tech engineering, information technology: electrical, electronics, computer.
• Clean industry, supporting industries, machinery manufacturing, automobile and motorcycle assembly, beverage production, etc.
• Agro-processing, forestry, and aquatic product processing, textile and garment industry.

Investment incentives of Phu Bai Industrial Park – Thua Thien Hue Province:

Phu Bai Industrial Park attracts investors with its strategic location and developed infrastructure. It offers investment incentives, including preferential policies on Corporate Income Tax, land rental fees, and labor support.

Corporate Income Tax:

– Special investment incentives:

• Apply the corporate income tax rate of 10% for 15 years
• Tax exemption of 0% for the first 4 years and a 50% reduction for the next 9 years.

Preferred investment sectors:

• The Corporate Income Tax rate is 17% for 10 years.
• Tax exemption of 0% for the first 2 years and a 50% reduction for the next 4 years.

The list of preferred investment sectors is based on Appendix II of Government Decree No. 31/2021/ND-CP dated March 26, 2021.

Import Tax Incentives:

– Special investment sectors:

• Import duty exemption for imported goods used to create fixed assets of the investment project in the field enjoying import tax incentives.
• Raw materials, supplies, and components that are not yet produced domestically for production purposes of investment projects in the preferred investment sectors, high-tech enterprises, science and technology enterprises, and scientific and technological organizations are exempted from import tax for 5 years, starting from the production commencement date

– Preferred investment sectors:

• Import duty exemption for imported goods used to create fixed assets of the investment project in the field enjoying import tax incentives.

Human Resources and Labor Costs of Phu Bai Industrial Park:

Abundant and Qualified Human Resources:

• The population of Thua Thien Hue Province in 2020 was 1,356,600 people.
• Labor force: 773,300 people, accounting for 57% of the province’s population.
• The proportion of skilled labor through training accounts for 66% of the population.
• With 21 universities and colleges, 4 vocational schools, and 21 vocational education institutions, Thua Thien Hue Province is ready to provide a plentiful and skilled workforce for investors.

Labor Costs:

• Minimum wage: 3.09 million VND/month
• General Labor: 4.5 – 5.5 million VND/month
• Skilled labor: 6 – 8 million VND/month
• Management labor: 8 – 12 million VND/month
• Overtime costs: According to general regulations
• Social insurance: 25% (Employers contribute 17%, employees contribute 8%)
• Health insurance: 4.5% (Employers contribute 3%, employees contribute 1.5%)
• Unemployment insurance: 2% (Employers contribute 1%, employees contribute 1%)