Quan Ngang Industrial Park - Quang Tri Province

Overview of Quan Ngang Industrial Park:

The People’s Committee of Quang Tri Province established Quan Ngang Industrial Park in Quang Tri Province through Decision No. 17/2008/QD-UBND dated July 21, 2008.

The industrial park has a total planned area of 205 hectares, divided into two phases:

• Phase 1 of the project covers an area of 139 hectares.
• Phase 2 covers an area of 66 hectares.

Geographical location:

The planned location of Quan Ngang Industrial Park is within Gio Quang Commune, Gio Linh District, Quang Tri Province.

Boundary and scope:

• The northern boundary is adjacent to Gio Chau Commune.
• The southern boundary is adjacent to Highway 73 East.
• The western boundary is adjacent to the residential area of Gio Chau Commune, Gio Linh District.
• The eastern boundary is adjacent to the natural drainage channel of the area.

The Management Board of Quang Tri Industrial Parks is responsible for the construction and infrastructure development of Quan Ngang Industrial Park.

In 2016, in Document No. 2095/TTg-KTN sent to the Ministry of Planning and Investment and the People’s Committee of Quang Tri Province, the Prime Minister approved the adjustment and addition of Quan Ngang Industrial Park (Phase 3) with an area of 116.74 hectares to the Industrial Park Development Plan in Vietnam until 2020. Accordingly, the total planned area of Quan Ngang Industrial Park has been increased from 205 hectares to 321.73 hectares in three phases.

Quan Ngang Industrial Park, located in the Southeast Economic Zone (established in 2015), enjoys full investment incentives and policies for economic zones.

Furthermore, with the vision of developing Quan Ngang Industrial Park into one of the key industrial parks in Quang Tri Province, the People’s Committee of Quang Tri Province, along with the Management Board of the economic zone, always prioritizes the best opportunities for infrastructure development to serve Quan Ngang Industrial Park.

Infrastructure of Quan Ngang Industrial Park:

Quan Ngang Industrial Park investors have fully invested in and completed well-developed technical facilities and infrastructure to ensure the smooth implementation and operation of investment projects within the industrial park.

Internal transportation:

• Investors have comprehensively invested in and constructed the internal transportation system, ensuring a reasonable design, smooth traffic flow, and convenience.
• 2-meter-wide sidewalks are arranged along the roads, where underground technical corridors for electricity, water supply and drainage, and information systems are located.

Power supply system:

• The industrial park receives electricity from the 110 kV Quan Ngang substation with a capacity of 22,120 kVA.
• To ensure a stable and uninterrupted power supply, the Quang Tri Provincial Power Company has devised a plan to provide backup power connections from two substations: the E4 Dong Ha 110 kV substation and the E82 Vinh Linh 110 kV substation.

Public lighting system:

• The street lighting network is designed separately from the household power supply system and is arranged along the traffic routes.

Water supply system:

• The production water supply in Quan Ngang Industrial Park is provided by the Quang Tri Irrigation Works Management One Member Limited Liability Company.

Wastewater treatment system:

• The industrial park has a centralized wastewater treatment system for Phase 1, with a designed capacity of treating 3,000 m3 per day.

Communication system:

• The industrial park’s communication information center has installed telephone lines up to the boundary of the land parcels through its connectivity system, ensuring sufficient capacity without limitations.

Attracting investment in Quan Ngang Industrial Park:

Investment-attracting sectors:

Quan Ngang Industrial Park is a multi-sector industrial park, primarily attracting industries such as:

• Production of consumer goods
• Manufacturing of electronic and refrigeration equipment
• Mechanical engineering and repair of high-end equipment
• Processing of forestry products and production of handicraft wood items
• Food processing, agriculture, and forestry industries

Investment incentives:

Investors leasing land in Quan Ngang Industrial Park to implement investment projects will enjoy full investment incentives offered by the economic zone.

– New investment projects or expansions will be subject to a corporate income tax rate of 10% for 15 years.

• The authorities grant a corporate income tax exemption for the initial 4-year period.
• 50% reduction in the tax amount payable for the following 9 years.

– The incentive period starts when the enterprise generates taxable revenue or from the fourth year of project operation.

– Furthermore, the Quang Tri Provincial People’s Committee has introduced various policies to support and encourage investment, such as labor recruitment and favorable land lease rates.

Investment situation:

There are 15 registered investment projects in Quan Ngang Industrial Park, with a total investment capital of 3,120 billion VND, and an industrial land area of 95.219 hectares has been leased. Among them:

• 10 projects are already operational.
• Four projects have been allocated land and are currently in the construction phase.
• 1 project is undergoing investment registration procedures.

These figures are updated as of 2016.

Human resources and labor costs:

Human Resources:

– Local workforce: The total population of Gio Linh district is 75,902 people (as of December 31, 2020), including:

• Female: 38,304 people (50.46%)
• Male: 37,598 people (49.54%)
• Population density: approximately 190 people/km2
• Working-age population: 46,597 people (61.4% of the total population)
• Percentage of trained workforce: 53%

– Regional labor resources: Quan Ngang Industrial Park attracts workers from neighboring provinces such as Ha Tinh, Quang Binh, and Thua Thien Hue.

Labor costs:

Quan Ngang Industrial Park is located in Gio Linh District, Quang Tri Province, which falls under Zone IV. Therefore, the minimum wage in Zone IV is 3,000,000 VND per month.