Phuoc Dong Business Park - Tay Ninh Province

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Information
Operating time: 2008 - 2058
Total Area: 2.191,97 Ha
Infrastructure investors: Sai Gon VRG Investment Corporation
Price: 90 USD/m²
Building density: 60%
Occupancy: 55%
Address: Phuoc Dong commune, Go Dau district, Tay Ninh province

Phuoc Dong Industrial Park (Phuoc Dong IP) is an industrial park project located in Go Dau district and Trang Bang town, Tay Ninh province. This industrial park is situated within the Phuoc Dong – Boi Loi Industrial – Urban – Service Complex project. With the advantage of a prime location, Phuoc Dong IP plays an important role in the economic connection between Tay Ninh Province and Ho Chi Minh City.

I. Overview of Phuoc Dong Industrial Park

Phuoc Dong IP is known as the largest industrial park project in the Southeast, with an area of up to 2.190 hectares. The prime project location is a great advantage for Phuoc Dong IP as it is situated in two localities with developing industrial economies: Go Dau district and Trang Bang town. In Trang Bang town alone, there are two large industrial park projects in operation: Linh Trung III Export Processing and Industrial Park, Thanh Thanh Cong Industrial Park, and Trang Bang Industrial Park.

Phuoc Dong Business Park - Tay Ninh Province - TTTFIC Group
Phuoc Dong Business Park – Tay Ninh Province – TTTFIC Group

1. Information on the Formation of Phuoc Dong Industrial Park

Phuoc Dong IP was established under Decision No. 1477/QD – UBND of the People’s Committee of Tay Ninh Province. The project has a scale of 2.191 hectares, located in a large complex with a total area of 3.285 hectares. The industrial park is built on flat terrain, and hard soil, 12-17 meters above sea level.

The total project investment capital is 5.000 billion VND.

2. Land Use Structure in Phuoc Dong Industrial Park

With a scale of 2.190 hectares, the land use structure in Phuoc Dong IP is detailed as follows:

  • Land for factory construction accounts for 64,72%
  • Warehouse and ICD port land accounts for 4,85%
  • Land for construction works and technical infrastructure accounts for 1,48%
  • Land for service operations centers accounts for 2,3%
  • Green land and water account for 14,81%
  • Traffic land accounts for 11,84%

3. Project Investors

The investor of the Phuoc Dong IP project is Saigon VRG Investment Joint Stock Company. This is a member of the Vietnam Rubber Industry Group – a unit with large financial potential and many years of experience in diverse fields such as exploiting, growing, and processing rubber latex; banking and finance; infrastructure development; and energy mining.

Phuoc Dong IP plays an important role as a bridge between two economic and cultural centers in Vietnam and Cambodia, Ho Chi Minh City, and the capital Phnom Penh. Located in Tay Ninh, businesses in Phuoc Dong IP also have great advantages when easily accessing the Cambodian and Thai markets through the Moc Bai International border gate and other national border gates.

Possessing many outstanding advantages in geographical location and infrastructure, Phuoc Dong IP has become an ideal investment destination for many domestic and foreign corporations.

II. Location of Phuoc Dong Industrial Park – Tay Ninh

Phuoc Dong IP, situated in Go Dau district and Trang Bang town, Tay Ninh province, earns high appreciation for its central location in Tay Ninh province. The location holds great potential in connecting Ho Chi Minh City and the capital, Phnom Penh (Cambodia). Additionally, Phuoc Dong IP is surrounded by an outstanding transportation system and infrastructure, including:

  • Ho Chi Minh road
  • Highway 22 – Trans Asia
  • Moc Bai Expressway – Ho Chi Minh City
  • Provincial road 787, 782
  • Huong Lo 2
  • 1A highway

From the Phuoc Dong IP project, businesses and workers can conveniently connect to key amenities and areas. Specifically:

  • 10 km from Thanh Phuoc transit port
  • 10 km from Xuyen A road
  • 20 km from the Moc Bai International Border gate
  • 35 km from Tay Ninh city center
  • 60 km from Ho Chi Minh City center
  • 60 km from Tan Son Nhat International Airport
  • 80 km from Cat Lai port
  • 59,4 km from Saigon station
  • 65 km from Song Than station
Phuoc Dong Business Park - Tay Ninh Province - TTTFIC Group
Phuoc Dong Business Park – Tay Ninh Province – TTTFIC Group

Other industrial parks in Tay Ninh province

With a strategic location, businesses and investors in Phuoc Dong IP will have advantages in goods trade and regional connectivity. This will help businesses save shipping costs and reduce product costs, thereby increasing revenue and profits.

III. Infrastructure of Phuoc Dong Industrial Park

Phuoc Dong IP is a commercial complex and industrial park, so it is thoroughly invested in technical infrastructure to meet the increasingly demanding needs of businesses and investors.

1. Traffic System

  • Main road: 6 lanes, 60 m wide road
  • Internal road: 2-4 lanes, road surface width from 18-29m
  • The project investor will also open additional roads when businesses need them.

2. Electric Supplying System

At Phuoc Dong IP, the production power system is stably supplied from 4 internal stations. The system is operated and maintained by Saigon VRG to ensure power supply for factories and businesses operating in production. Electrical capacity is up to 500 MVA.

3. Clean Water Supply System

An internal water plant at Phuoc Dong IP facilitates the provision of clean water, with a capacity of up to 120.000 m3/day and night, meeting water quality standards. The plant receives raw water from the East canal, which has a capacity of 220.000 m3/day and night.

4. Waste Water Treatment System

In order to ensure the landscape and environment, the management board and investors of Phuoc Dong IP pay great attention to the wastewater treatment system. The Industrial Park collects and centrally treats wastewater at an internal station with a capacity of 160.000 m3/day and night. Meeting class A standards according to QCVN 40:2011/BTNMT before discharging into Ba Tuoi and Cau Duc streams.

5. Other Services and Facilities

Phuoc Dong IP also has other supporting services, including:

  • Customs authorities in the area
  • Inland customs clearance port
  • Banks, supermarkets, restaurants, commercial buildings, hospitals, schools, dormitories, markets, residential areas…

IV. Industries Attracting Investment in Phuoc Dong Industrial Park – Tay Ninh

Trang Bang and Go Dau are known as two localities with many industrial parks and the highest foreign investment (FDI) in the province. Specifically, Trang Bang town has 203 projects, and Go Dau district has 67 projects. Special industries attracting investment in Phuoc Dong IP include:

  • Precision engineering
  • Processing mechanical details and steel structures
  • Assembling cars, motorbikes, and bicycles
  • Machinery and equipment for industry and agriculture
  • Production of concrete tools, sports equipment, production of cabinets, beds, tables, chairs, production of chemicals, chemical products
  • Cables and telecommunications materials
  • Assembling electronic components, computers, semiconductors
  • Production of metal products, pharmaceuticals, and cosmetics
  • Producing plastic products, household appliances, accessories, paper production
  • Food processing, wood processing
  • Glass production, construction materials, textile production
  • Production of tobacco products, collection and treatment of waste
  • Metal production

VI. Investment Costs in Phuoc Dong Industrial Park

Compared to other industrial park projects in Tay Ninh province, Phuoc Dong IP has lower land rental prices. This is a great advantage for businesses to save costs on production and investment activities.

Currently, Phuoc Dong IP has an occupancy rate of 55%, and still has 45% vacant land. Investors and businesses, if needed, can refer to some additional costs of electricity, water, and management fees before making a decision.

Land rents
  • 90 USD/m2 (excluding VAT)
  • The lease term until December 29, 2058
  • The minimum rental area is 1 hectare
Maintenance and public utility fees0.45 USD/m2/year
Electricity costs
  • Electricity price: 0,076 USD/kWh
  • Peak hour: 0,12 USD/kWh
  • Off-peak hours: 0,065 USD/kWh
  • Normal hours: 0,042 USD/kWh
  • Unit price is according to the price list announced by Vietnam Electricity Group at the time of use. Plus 5% maintenance fee.
Clean water costs0,33 USD/m3/month
Wastewater treatment costs0,33 USD/m3/monthInput processing standards: Meet industrial park standards

Output processing standards: Comply with current state regulations

Waste treatment costs11,47 USD/m3

VII. Labor Resources and Labor Costs

Tay Ninh province has the advantage of location, situated between key economic regions, making it easy to attract a large labor force. Therefore, businesses can rest assured that there will be an abundant labor supply to meet production needs, even during peak times.

Furthermore, the management board and investors of Phuoc Dong IP, along with the Provincial People’s Committee, always create favorable conditions and support social security issues to retain workers.

Phuoc Dong Business Park - Tay Ninh Province - TTTFIC Group
Phuoc Dong Business Park – Tay Ninh Province – TTTFIC Group

VIII. Economic Value of Phuoc Dong Industrial Park

When discussing key industrial zones in Tay Ninh, we cannot ignore Phuoc Dong IP, as this industrial park plays a crucial role in the economic development of the province and the region. In stable operation, Phuoc Dong IP will create job opportunities for tens of thousands of local workers and those from neighboring provinces. The establishment of Phuoc Dong IP has reduced the unemployment rate to below 2%.

In the coming future, Phuoc Dong IP will continue to develop phase 2, creating a premise to attract investment capital into the Industrial Park. From there, it will contribute to promoting the economy and society of Tay Ninh province in a comprehensive and sustainable way.

Currently, Phuoc Dong IP is an ideal investment destination for many domestic and foreign businesses. With a convenient location, possessing a diverse transportation system including roads, waterways, railways, and complete investment infrastructure, we are confident that Phuoc Dong IP will grow even stronger. Promisingly, Phuoc Dong IP will maximize the ability to develop production for investors with high efficiency and low cost.

The above is the information about Phuoc Dong IP that TTTFIC has compiled and shared. Hopefully, this article will help investors and businesses determine whether this is an investment destination suitable for production and business needs.

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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