Quang Chau Industrial Park – Bac Giang:
The Prime Minister approved the construction of Quang Chau Industrial Park through Document No. 1673/TTg-CN on October 31, 2005. Later, on April 25, 2006, the Prime Minister issued Document No. 637/TTg-CN, allowing the establishment and investment in Quang Chau Industrial Park, Bac Giang province. Saigon-Bac Giang Industrial Park Joint Stock Company (SBG), a subsidiary of Kinh Bac Urban Development Corporation, was assigned as the investor responsible for developing the park’s infrastructure. SBG has experience in developing industrial parks in Vietnam, attracting major international corporations.
On April 26, 2006, the People’s Committee of
Bac Giang Province released Decision No. 598/QD-UBND, establishing the industrial park and approving the investment project for its infrastructure. Quang Chau Industrial Park will cover an area of 426 hectares, with 293.93 hectares dedicated to factories and warehouses, accounting for 69% of the park’s total area.
Quang Chau Industrial Park is a diversified industrial park, attracting various sectors, with a preference for high-tech industries that have minimal environmental impact. The industrial park is valid until April 25, 2056.
The transportation of Quang Chau Industrial Park – Bac Giang – TTTFIC Group
The geographic location of Quang Chau Industrial Park:
Quang Chau Industrial Park is strategically located in Quang Chau commune, Van Trung commune, and Nenh town, Viet Yen district. Its favorable location provides excellent connectivity to transportation hubs, facilitating efficient cargo transportation. Moreover, the prime location attracts strong investment and development from businesses.
It shares boundaries with:
- To the north, agricultural land in Van Coc village, Van Trung commune.
- To the south, Dong Tien village, Nam Ngạn, Quang Chau commune.
- To the east, Quang Bieu village and Trung Dong village, Quang Chau commune, and Van Trung commune.
- To the west, the Hanoi – Lang Son Expressway.
The distances from Quang Chau Industrial Park to various locations are as follows:
- 16 km from the center of Bac Giang city.
- 47 km from the center of Hanoi.
- 49 km from Noi Bai Airport.
- 145 km from Hai Phong Port.
- 128 km from the Huu Nghi border gate.
Infrastructure of Quang Chau Industrial Park:
Transportation:
- The Hanoi – Bac Giang Expressway serves as the main external road, with a width of 89m-97m.
- Internal roads within the industrial park have varying cross-sections and sidewalk widths.
- The foundation levels range from +4.0m to +4.5m.
Drainage:
- Stormwater and wastewater drainage systems are separate.
- Rainwater in the existing industrial park area is collected through a round concrete drainage system.
- Expanded areas utilize modified earth ditches for rainwater collection.
- Wastewater is treated locally before being discharged into the common drainage system.
Water Supply:
- The industrial park receives water from the Quang Chau water treatment plant.
- The water supply network is designed in a looped configuration.
- Firefighting water supply is available with designated hydrants and underground pipes.
Power Supply:
- Electricity is currently provided by the 110kV Quang Chau substation.
- The industrial park will also be supplied by the Quang Chau 2 substation.
- The power grid utilizes overhead power cables.
Solid Waste:
- Factories are responsible for proper waste collection, sorting, and contracting with authorized waste treatment units.
An overview perspective of Quang Chau Industrial Park – Bac Giang – TTTFIC Group
Investment-Attractive Industries:
Quang Chau Industrial Park is planned as a multi-sector industrial park, attracting diverse industries, with a focus on high-tech sectors that have minimal environmental impact.
Investment Costs:
Rental price for land (excluding VAT, non-agricultural land use tax, and annual land rent):
Infrastructure management and maintenance fee:
- $0.5/m2/year (excluding VAT)
Standard factory rental price:
- $3.5/m2/month (excluding VAT)
Electricity price:
(The prices may vary according to the provider’s regulations)
- Normal hours: 1,405 VND/KW
- Off-peak hours (22:00 – 4:00): 902 VND/KW
- Peak hours (9:30 – 11:30 & 17:00 – 20:00): 2,556 VND/KW
Clean water price:
- 10,000 VND/m3 (excluding VAT)
Wastewater treatment cost:
- 9,400 VND/m3 (excluding VAT and coefficient K)
Additional service fees (telephone, fax, internet):
- Subject to the regulations of the service provider at each specific time.
Quang Chau Industrial Park – Bac Giang – TTTFIC Group
Investment incentives:
Tax Incentive Policies:
Corporate Income Tax:
Investment projects in Quang Chau Industrial Park:
Tax rate: 20% (as regulated)
Exempt from tax for the first 2 years and a 50% reduction in tax payable for the following 4 years.
1. Projects in high-tech fields, research and development, investment in water plants, wastewater systems, and software production:
- Apply a tax rate of 10% for the first 15 years.
- Exempt from tax for 4 years and a 50% reduction in the tax rate for the next 9 years.
2. Investment projects in the socialization sector (approved by the Prime Minister) in education, training, vocational training, healthcare, culture, sports, and the environment:
- Apply a tax rate of 10% for the entire project duration.
* Note:
- Duration of tax rate incentives, exemptions, and reductions:
- The duration of tax rate incentives is calculated continuously from the first taxable activities eligible for tax incentives.
- The duration of tax exemption is calculated continuously starting from the first taxable income year of the investment project. In cases where the enterprise does not have taxable income in the first three years from the year of the first revenue, the exemption and reduction period will start from the fourth year.
Import and Export Tax Exemption:
- For export processing enterprises (EPEs)
- Machinery, equipment (accessories), and specialized transport vehicles are not available domestically and are required to be imported into the technological chain and construction materials.
- Encouraged investment projects, component and technical spare part projects, and electrical, and electronic products are exempt from raw material import tax for the first 5 years from the start of production and business.
- Imported raw materials, accessories, and materials for manufacturing export products.
Value Added Tax (VAT) Exemption:
- For export processing enterprises (EPEs)
- Machinery, equipment, and special-purpose vehicles used in the technological chain are not domestically produced and required to be imported.
Support from the Infrastructure Development Company in the Industrial Park:
- Assistance with investment certificate application procedures.
- Support with post-investment procedures (seal and tax registration, recruitment, etc.).
- Assistance with land use right certificate application procedures.
- Support with worker recruitment and management registration.
Labor source and cost:
Local labor:
- The population of Bac Giang province: is 1,600,000 people, of which:
- Working-age population: 63%
- Population of Bac Ninh province: 1,100,000 people
- Working-age population: 60%
Salary levels (reference figures, may vary depending on each enterprise):
- General Labor: minimum wage: 2,900,000 VND/person/month (approximately 140 USD)
- Actual average salary: 170-200 USD/person/month
- Engineers/office staff: 250-350 USD/person/month
- Management personnel: >350 USD/person/month
Insurance:
- Social insurance: 26% (Employer: 18%, Employee: 8%)
- Health insurance: 4.5% (Employer: 3%, Employee: 1.5%)
- Unemployment insurance: 3% (Employer: 1%, Employee: 1%, State support: 1%)
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
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