Rang Dong Textile & Garment Industrial Park - Aurora

The Rang Dong Textile and Garment Industrial Park (Aurora IP) is a specialized industrial real estate project directly invested, developed, and distributed by Cat Tuong Group (under the legal entity of Rang Dong Infrastructure Development Investment Joint Stock Company) in an area of 519,6 hectares. It focuses on attracting the textile and garment support industry, especially the dyeing segment. With the mission of laying the foundation for sustainable development in one of the industries historically considered an environmental burden, Aurora IP is oriented to become a smart and eco-friendly textile and garment industrial park. It aims to transform Nam Dinh into a textile and garment hub in Northern Vietnam, contributing to the overall stability and development of the textile and garment industry in Vietnam during the industrialization and modernization process.

I. Overview of Rang Dong Textile and Garment Industrial Park – Aurora IP

The Cat Tuong Group Joint Stock Company (under the legal entity of Rang Dong Infrastructure Development Investment Joint Stock Company) invests in, develops, and directly distributes the specialized industrial real estate project known as Rang Dong Textile and Garment Industrial Park (Aurora IP). This project covers an area of 519,6 hectares.

It focuses on attracting textile and garment support industries, particularly in the dyeing and printing segment.  It aims to contribute to making Nam Dinh a textile and garment center in the Northern region and to the overall stable development of Vietnam’s textile and garment industry in the process of industrialization and modernization.

Geographical location

Aurora IP is located in Rang Dong town, Nghia Hung District, Nam Dinh, Vietnam; within the Ninh Co Economic Zone. Aurora IP is on the waterway connection system with Hai Thinh Port (10km); Hai Phong Port (140km), Cai Lan deep sea port (200km); connecting roads of 50km to Nam Dinh city center, 130km to Hanoi city center, 40km to Ninh Binh city center, 75km to Thai Binh city center, 150km to Noi Bai airport – Hanoi, 145km to Cat Bi airport – Hai Phong. The period of 2019 – 2021 is targeted with the completion of the road connecting the North-South highway from Cao Bo intersection, the coastal highway connecting the six northern provinces, the Thinh Long bridge route crossing Ninh Co River, Ninh Binh – Nam Dinh – Thai Binh Expressway and the establishment of the second city of the province, taking the industrial park as a hinge position.

General assessment

Aurora IP, positioned as a core product of Cat Tuong Group, receives comprehensive investment and development. This includes planning, design, construction, and supervision of all components. It encompasses internal transportation and infrastructure systems, energy, clean water supply, wastewater treatment, solid waste management, emissions control, noise reduction, and telecommunication connectivity.

The supporting infrastructure includes logistics services, labor resources, and residential areas for experts/workers. Investment incentives and accompanying utility services are also provided, along with reasonable land lease pricing. The industrial park offers streamlined one-stop investment procedures and legal, financial, and customs support. It operates within an industrial ecosystem and utilizes an optimized digital operating process. The focus is on time and cost efficiency, aiming to create a pleasant experience for any investor.

An overview perspective of Rang Dong Textile & Garment Industrial Park – Aurora IP – TTTFIC Group

Industrial park planning

Above all, Aurora IP is where Cat Tuong Group commits to carrying out its sustainable mission towards the environment and the community. It leverages value for the real estate product chain, including residential, industrial, and commercial sectors, in the new decade of the corporation. Aurora IP is expected to be a convergence of modern and sustainable thinking, human values, positive emotions, and the synergy that generates overall benefits.

Total Scale: 2.044,6 hectares

Phase 1: 519,6 hectares. The Investor started infrastructure construction on April 18, 2017, and anticipates completing it within 5 years. Total area: 520 hectares

Commercial area (factory construction): 320 hectares. Land lease term: 50 years, from June 30, 2015, to June 30, 2065.

• Phase 2: 850 hectares
• Phase 3: 675 hectares

The goal is to create a specialized environment for medium and large-scale FDI enterprises. This environment targets the dyeing and textile support industries. The aim is to foster joint ventures and partnerships with Vietnamese enterprises. The target is to achieve domestic production of 1 billion meters of fabric by 2025. The intention is to pioneer contributions to the development of the Vietnamese textile industry. Ultimately, the objective is to drive local and national economic growth.

II. Investor of Rang Dong Textile and Garment Industrial Park – Aurora IP

Rang Dong Infrastructure Development Investment Joint Stock Company (RDIP) is the investor of Rang Dong Textile and Garment Industrial Park.

• Established in 2015, RDIP has extensive experience in infrastructure construction for urban areas, industrial zones, and real estate businesses.
• RDIP aims to provide comprehensive solutions for integrated urban-industrial complexes, including international master planning, sustainable infrastructure, and attracting foreign investors.
• It encourages the development of high technology and aims to generate higher value-added production.
• We prioritize green, clean, and sustainable development as we strive to create an ideal living and working environment for workers, technicians, engineers, managers, and experts.

The major shareholder of RDIP is Cat Tuong Group

• Cat Tuong Group, a renowned real estate developer in the south, has nearly a decade of experience. They specialize in comprehensive planning, land preparation, and infrastructure development. Their expertise lies in transforming raw land into expansive urban areas.
• Cat Tuong Group specializes in providing real estate solutions to maximize benefits and investment efficiency for customers.

The transportation of Rang Dong Textile & Garment Industrial Park – Aurora IP – TTTFIC Group

III. Transportation System of Rang Dong Textile and Garment Industrial Park – Aurora IP

The transportation system surrounding the Rang Dong Textile and Garment Industrial Park includes both existing and planned roads that connect to the industrial park. Below is the information regarding the current and upcoming road networks:

A. Existing Road Network connecting to the Industrial Park

• Provincial Road 490C from Do Quan Bridge to Nam Dien Commune: It is 55,2 km long from Do Quan Bridge to the industrial park. The road is fully paved and meets the standards of Grade III roads in the Delta area, with a roadbed width of 12m, 2 lanes, and a design speed of 80km/h.
• The bridge connecting Thinh Long in Hai Hau District and Nghia Hung District in Nam Dinh Province: The bridge has a deep foundation of 27m and a maximum load capacity of 60 tons. It was invested in by Korean ODA funds. Thinh Long Bridge intersects with National Highway 21 at kilometer 202+400 (in Hai Chau Commune, Hai Hau District) and intersects with Provincial Road 490C (in Nghia Binh Commune, Nghia Hung District). The bridge is 988m long with 19 spans, and a road width of 12m, including two lanes for motorized vehicles and two lanes for non-motorized vehicles. The design speed of the bridge is 80km/h. The project commenced construction in October 2018 and the official operation was initiated on May 28, 2020.

B. Planned Road Network connecting the Industrial Park to other provinces

Road connecting from the Hanoi – Ninh Binh Expressway to the Industrial Park

• The connection point is at the Cao Bo interchange in Y Yen District, Nam Dinh Province.
• The relevant parties are currently inspecting Phase 1 of the project before it is officially handed over upon completion.
• The road connecting from the Industrial Park to Thinh Long Bridge is 9,6km long, with a roadbed width of 32,5-34,5m and 6 lanes.
• The section from Thinh Long Bridge to the Cao Bo interchange is 36,4km long and meets the Grade II standards of the Delta area, with a roadbed width of 24m, 4 lanes, and a design speed of 100km/h.
• The relevant parties are currently inspecting Phase 1 of the project before officially receiving its completion.

Coastal economic road connecting provinces from Thanh Hoa to Quang Ninh

• This is a national key project. The government has approved and allocated the budget to the provinces for implementation.
• According to reports and press releases, the section from Thanh Hoa to Ninh Binh and the section from Quang Ninh to Hai Phong have been completed.
• The section passing through Thai Binh is 50% completed. The section passing through Nam Dinh Province is currently under construction.
• It is 65,58km long, of which 50,98km is invested in construction (38,02km of road renovation, 12,96km of road expansion and upgrade, and 14,6km overlapping with National Highway 37B and National Highway 21 that will not be invested in construction). It is expected to be completed by 2024.

Bridge across the Day River connecting to Ninh Binh Province

• The project is currently in the bidding process.
• The 9km section connecting to Thinh Long Bridge is undergoing land clearance, mainly involving upgrading the existing roadbed and expanding the adjacent drainage system.
• According to the provincial authorities, the road will be open to traffic by 2023.

Coastal expressway connecting provinces from Ninh Binh to Hai Phong

• The National Assembly Delegation of Nam Dinh Province proposes to the National Assembly and the Government.
• They suggest considering the investment and construction of the Ninh Binh – Nam Dinh – Thai Binh – Hai Phong expressway.
• This proposal is part of the Financial and Monetary Policy Proposal.
• It aims to contribute to the Economic and Social Development Recovery Program from 2022.

V. Infrastructure of Rang Dong Textile and Garment Industrial Park – Aurora IP

Water Supply System

– Total capacity: 170.000m3/day and night
– Water source: Surface water from the Day River and Binh Hai Canal
– Utilizing advanced and sustainable technology, meeting environmental standards, ensuring post-treatment water quality complies with current state regulations, and meeting the secondary investor’s water usage requirements for production activities.
– Post-treatment water quality standards: Comply with the national technical standards for clean water for domestic use at the time of effective implementation, QCVN 01-1:2018/BYT.

Wastewater Treatment System

– Total capacity: 110.000m3/day and night
– Advanced technology combined with sustainability criteria, ensuring the treatment of complex and fluctuating wastewater arising from dyeing and textile production activities, in compliance with safety and environmental protection standards.
– Post-treatment wastewater standards: Comply with QCVN 40:2011/BTNMT and QCVN 13-MT:2015/BTNMT standards.
– Methods of receiving wastewater: (1) direct reception of treated wastewater from the secondary investor’s factory, meeting the prescribed limits of the industrial park, or (2) receiving wastewater that has been treated to Type A standards according to QCVN 40:2011/BTNMT at the centralized technical land reception and monitoring system before discharging it into the environment.

Electrical System

– 110kV substation with a capacity of 2 x 63MVA; centralized steam boiler solution at 350T/h
– Supply voltage at 0.4kV or 22kV to the factory’s fence line, electricity prices following state regulations.

Other Sustainable Environmental Solutions

– Solid waste management
– Air pollution control
– Noise pollution control
– Renewable energy applications

Telecommunication System

– Fiber optic service
– Domestic and international Internet service
– Fixed-line telephone service, IP phone, international roaming
– High-speed 4G broadcasting points
– Cable television service

Logistics

The on-site dry port and direct connection to the seaport maximize cost-effectiveness in production for customers.

IV. Tax Incentive Policy of Rang Dong Textile and Garment Industrial Park – Aurora IP

According to the Corporate Income Tax Law No. 14/2008/QH12 dated June 3, 2008, amended and supplemented by Law No. 32/2013/QH13 dated June 19, 2013, and Law No. 71/2014/QH13 dated November 26, 2014:

Corporate income tax

• Enterprises implementing new investment projects in the production of industrial support products for specific sectors, including textile and garment, leather and footwear, electronics and information technology, automobile assembly, and mechanical engineering, are subject to a 10% tax rate. This tax rate applies for fifteen years. To qualify for this tax rate, the products must meet certain criteria. Starting from January 1, 2015, domestic production must either not include the products or ensure compliance with the technical standards of the European Union (EU) or an equivalent standard…
• The government specifies the list of priority industrial support products for development by Circular 111/2015/NĐ-CP.
• The income of enterprises from the aforementioned new investment projects is exempt from tax for a maximum of four years and reduced by 50% of the payable tax for a maximum of nine subsequent years.

Import Tax

• According to the provisions of the Import Tax Law, Export Tax Law under Article 16 of Decree 118/2016/NĐ-CP, and Article 14, Clause 1 of Decree 134/2016/ND-CP, the authorities grant preferential import taxes for imported goods.
• Second-tier investors are fully exempt from import taxes on machinery and equipment forming fixed assets. According to Article 11, Clause 16 of the 2016 Export Tax Law and Import Tax Law, the factory will receive an immediate refund of VAT upon commencing operations.
• Decision 68/QD-TTg, covering the period from 2016 to 2025, emphasizes the development of supporting industries. The focus is on components, spare parts, textiles and garments, leather and footwear, and high-tech industries. The total capital allocated for this endeavor is nearly 1,000 billion VND. Activities encompass various aspects such as connection, support, management, improving the quality of human resources, technology transfer and innovation, and the establishment of information systems.

Support training

• Decision 09/2017/QD-UBND, issued on April 11, 2017, by the People’s Committee of Nam Dinh Province.
• This decision determines the training costs and the level of support for primary-level and short-term training.
• It aligns with Decision No. 46/2015/QD-TTg, issued on September 28, 2015, by the Prime Minister.

V. Attractive Investment Sectors of Rang Dong Textile and Garment Industrial Park – Aurora IP

Textile and garment manufacturing, leather goods, bags, fiber production, textile printing and dyeing, accessory production, supporting industries, office services, etc.

VI. Investment Costs in Rang Dong Textile and Garment Industrial Park – Aurora IP

Infrastructure-inclusive rental price: 70 USD/m2.
Electricity rates: Peak hours: 0,1 USD/kWh; Normal hours: 0,05 USD/kWh; Off-peak hours: 0,03 USD/kWh.
Water rates: 0,4 USD/m3.
Labor costs: Range from 200 to 500 USD/person/month, depending on job position.
Infrastructure management & maintenance fee 0,45/m2/year.
Wastewater treatment fee: 0,28 USD/m3.