Phu Vinh Industrial Park - Ha Tinh Province

Overview of Phu Vinh Industrial Park – Ha Tinh Province:

On October 1, 2010, the People’s Committee of Ha Tinh Province approved the construction and operation project of Phase 1 infrastructure of Phu Vinh Industrial Park with an initial total investment of 23 million USD, covering an area of approximately 207 hectares, and a 50-year operating period.

Phases 2 and 3 are planned to expand an additional 450 hectares, with a total estimated expansion area of 1,500 hectares.

An overview perspective of Phu Vinh Industrial Park – Ha Tinh Province – TTTFIC Group

Geographical location:

Phu Vinh Industrial Park is located in Vung Ang Economic Zone, Ky Anh Town, Ha Tinh province.

Ha Tinh is the nearest and most convenient sea exit for Laos and the northeastern provinces of Thailand. Vung Ang Economic Zone is one of the five coastal economic zones selected by the Government for concentrated investment. It will be the center of the steel industry, supporting industries, thermal power, and deep-water seaport for the Central and nationwide regions, serving as one of Vietnam’s three international seaports.

Ha Tinh province in general, and the location of Phu Vinh Industrial Park in particular, have strategically important positions, with good advantages in economic, cultural, scientific, and technological exchanges with neighboring provinces, special economic development regions in the North, Central regions, other regions nationwide, Laos, Thailand, and international countries.

Connectivity:

Roads:

Ha Tinh has a convenient transportation system with highways like National Highway 1, 1B, and provincial roads. These roads provide direct connections to Vinh, Dong Hoi Airports, and Vung Ang seaport.

In the future, the province will have two expressways. One is the East-West North-South Expressway running for 108 kilometers through the province, with investments planned from 2021 to 2025. The other is the Vung Ang Expressway, which will connect the Vung Ang Economic Zone to the Cha Lo border gate in Quang Binh and Laos and other countries in the region. This expressway is expected to be invested in after 2030.

Railway:

The Vientiane (Laos) – Vung Ang railway line will directly connect the commodity markets of Laos, Thailand, and Myanmar with Vung Ang port.

Vung Ang is a strategically located port, an important commercial gateway between Vietnam and neighboring countries, enhancing regional and international connectivity.

Seaport:

Vung Ang International Port, located 15 kilometers from Phu Vinh Industrial Park, is the only international gateway for Laos and the northeastern provinces of Thailand to the world.

Master plan map of Phu Vinh Industrial Park – Ha Tinh Province – TTTFIC Group

Overall assessment:

Ha Tinh, located in the North Central region, is a central hub for import-export activities. It is considered a major gateway for key economic regions in Laos and Northeast Thailand. The investment environment in Ha Tinh is highly esteemed due to its well-connected transportation infrastructure to neighboring areas. The province offers favorable policies for investors, creating an attractive business climate. Additionally, Ha Tinh boasts abundant labor resources to support industrial and economic development.

Taking advantage of these superior strengths, Ha Tinh continuously promotes various investment promotion support policies and remains one of the most attractive localities for foreign direct investment (FDI) nationwide.

The infrastructure of Phu Vinh Industrial Park – Ha Tinh Province:

Phu Vinh Industrial Park has the most complete and synchronized infrastructure in Vung Ang at present.

Roads, electricity, and telecommunications system:

• The main road axis is 60m wide, and the branch roads are 30m wide. All roads within the industrial zone feature durable concrete construction, capable of withstanding heavy loads and providing long-lasting durability. Furthermore, high-pressure street lighting is installed along the roads to ensure proper illumination.
• Investors have invested and built electricity supply and telecommunications infrastructure up to the perimeter of the industrial park. Ensuring sufficient and stable supply for the production needs of businesses 24/7.
• The communication system synchronizes with high-speed and modern connectivity, meeting international standards.
• The industrial zone has implemented a fire alarm and firefighting system that strictly complies with the regulations set by the Vietnamese government.

Water supply and wastewater treatment system:

• The industrial zone receives a clean water supply 24/7 from the clean water center of the Vung Ang Economic Zone. Additionally, the industrial zone has a water storage system with a capacity of 3,000 m3, supplying the perimeter of businesses.
• The investor has synchronously built a wastewater treatment system with a treatment capacity of 15,000 m3/day according to the development plan.

Investment-attracting industries of Phu Vinh Industrial Park – Ha Tinh Province:

Phu Vinh Industrial Park orients its development towards diverse industries, including:

• Manufacturing and processing of steel and mechanical products.
• Electrical and mechanical engineering, assembly of automobiles, motorcycles, and electric vehicles.
• Electronics, telecommunications, information technology.
• Construction materials industry, green energy.
• Textiles, garments, footwear, printing.
• Metallurgy, supporting industries, new materials.
• Processing and preservation of agricultural products, food, beverages, dairy products, etc.

Phu Vinh Industrial Park – Ha Tinh Province – TTTFIC Group

Tax incentives of Phu Vinh Industrial Park – Ha Tinh Province:

Corporate income tax:

• Eligible businesses enjoy a corporate income tax rate of 10% for 15 years from the start of commercial operation.
• They are exempt from corporate income tax for the first 4 years of taxable income and receive a 50% reduction in tax payable for the following 9 years.
• High-tech industries receive a preferential tax rate of 10%.

Import tax:

• Exemption from import tax for 5 years on machinery and equipment used for fixed assets and on raw materials used for production that are not yet produced in Vietnam.

Investor support policies:

• The province provides budget support of 1,000,000 VND per 40-foot container and 700,000 VND per 20-foot container for container ships imported or exported through Vung Ang port.

Labor source and costs of Phu Vinh Industrial Park – Ha Tinh Province:

At the local level:

• As of 2020, the population of Ha Tinh province is 1.47 million, Ky Anh Town has over 280,000 people, and Cam Xuyen District has 149,000 people. The working-age population is 695,257 people, accounting for 47.3%.
• Ha Tinh has 24 vocational training centers. These include 4 vocational colleges, 5 vocational high schools, and 1 university. There are also several smaller vocational training centers. These institutions cooperate with labor supply sources. They aim to provide quality personnel for the workforce.
• Phu Vinh Company collaborates with educational institutions within the province to support labor training and provide a high-quality labor supply.

In the region:

• Phu Vinh Industrial Park is strategically located, connecting with neighboring provinces such as Nghe An, Quang Binh, and Quang Tri.
• There is an abundant internal labor force, along with a readily available labor supply from neighboring provinces to meet the needs of businesses in the industrial zone.

Labor costs:

• The minimum wage in the industrial park falls under Zone 3, which is 3.64 million VND (equivalent to 158.2 USD).