Song Binh Industrial Zone - Binh Thuan

Song Binh Industrial Zone – Binh Thuan is Vietnam’s largest and only industrial park specializing in the deep processing of titanium. It is located approximately 50 kilometers from the center of Phan Thiet city and 60 kilometers from the Vinh Tan Deep-Water Port in Tuy Phong. It is strategically situated near a significant source of titanium ore.

I. Overview of Song Binh Industrial Zone – Binh Thuan

Information about industrial zone

On October 21, 2013, the provincial People’s Committee issued Decision 2568/QD-UBND approving the detailed construction plan of Song Binh Mineral Processing Industrial Park in Bac Binh district, Binh Thuan Province. Rang Dong Group is the investor. The planned area is bordered by Lam Nghiep Company to the North, residents’ production land to the South, and Forestry Company’s land to the East and West. It covers a total area of 305 hectares.

The industrial zone specializes in titanium processing, focusing on three main product groups: titanium slag, artificial rutile, fine and ultra-fine zircon; pigments (titanium dioxide), and zircon compounds (such as zircon oxychloride); and foamed titanium, metallic titanium, and titanium alloys.

On April 16, 2018, the provincial People’s Committee issued Decision 693/QD-UBND to adjust the specific planning of the Song Binh Titanium Processing Industrial Zone in Bac Binh district, with the following details:

• Total area: 300 hectares
• Factory and warehouse land: 202,32 hectares (67,44%)
• Technical area: 13,91 hectares (4,64%)
• Transportation land: 32,26 hectares (10,75 percent)
• Administrative and service area: 13,54 hectares (4,51%)
• Greenery area: 37,97 hectares (12,66%)

These changes are aimed at enhancing the efficiency and development of the titanium mineral processing industry in the region.

Information about the Investor

The project’s investor is the Rang Dong Group.
Address: Cluster 1, Phuc Tho Town, Phuc Tho District, Hanoi City, Vietnam.
Rang Dong Group was established in 1991 with over 30 years of experience and takes pride in delivering high-quality projects, constructions, and products that contribute to the sustainable development and prosperity of the community.
Rang Dong Group is a diversified private conglomerate primarily engaged in the following sectors: Investment and Construction; Metallic Minerals; Commerce, Services, and Building Materials.
In particular, Rang Dong Group has marked a significant milestone with the establishment of more than 15 subsidiary companies and a workforce of over 4,000 dedicated employees who continuously contribute their strength, intelligence, and talent to ensure quality and beauty in each product, construction, and investment project.

II. Geographical location

Song Binh Industrial Zone is located in Song Binh commune, Bac Binh district, Binh Thuan Province, Vietnam. It enjoys the advantage of convenient access to major transportation routes:

• 700m from National Highway 28B
• 0,5 km from North-South railway
• 10 km from National Highway 1A
• about 50 km from Phan Thiet city center
• and 60 km from Vinh Tan Deep-water Port (Tuy Phong)

The planned area is surrounded by Lam Nghiep Company’s land to the North, residents’ production land to the South, and Lam Nghiep Company’s land to the East and West.

Regarding climate conditions, the average rainfall is 1.024 mm, with an average temperature of 27°C and relative humidity of 79%. The area is less affected by storms and other natural disasters.

The flat terrain and stable geological conditions are advantageous for industrial construction.

III. Infrastructure of Song Binh Industrial Zone – Binh Thuan

The technical infrastructure of Song Binh Industrial Zone is being developed comprehensively to meet modern industrial park standards.

Regarding transportation, the main road has a wide running section of 19m with 6 lanes. Internal roads have a 12m wide running section with 4 lanes. The road system is planned in a rectangular form, with a main route connecting National Highway 28B to various functional areas. The main route connects to other roads, creating a smooth transportation network with a total length of 17,51 km.

In terms of electricity, a 110KV/22KV substation has been installed on Road D3, connected to the 110KV Dai Ninh – Phan Ri power line, providing electricity for the industrial zone. The total capacity in two phases is 126 MVA (63 MVA up to 2015 and 63 MVA from 2016-2020). The 22KV power lines run along the internal roads of the industrial zone, supplying electricity to the factories.

A water treatment plant capable of processing 30,000 m3/day and night is currently under construction for water supply purposes. The HDPE pipes with diameters of 150cm and 100cm will reach every plot within the industrial zone to meet the needs of secondary investors.

The communication system will become part of the provincial telecommunication network, establishing connectivity through the local postal system to deliver communication services to every factory within the industrial zone.

Regarding wastewater treatment, the plant meets the QC40:2011/BTNMT standards, treating up to 10.000 m3/day and night. Currently, the treatment capacity is 5.000 m3/day and night in phase 1.

IV. Investment-Attractive Industries of Song Binh Industrial Zone – Binh Thuan

The development objectives for the Song Binh Industrial Zone are to establish a multi-sector industrial zone equipped with advanced technologies.

The planned industries include:

• chemical production
• focusing on sulfuric acid
• hydrochloric acid
• sodium hydroxide
• fertilizer production
• ink production
• artificial fibers
• and plastic manufacturing.

Additionally, metal production will encompass:

• titanium slag
• foamed titanium
• metallic titanium
• as well as the processing of cast iron
• steel
• and non-ferrous metal alloys.

The industrial zone will also house paper production facilities, manufacturing paper pulp, paper, and paper-based packaging materials.

Furthermore, non-iron metal ore exploitation will involve the enrichment of ilmenite, rutile, zircon, and other non-iron metal ores.

Moreover, the zone will support the production of non-metallic mineral products, such as:
pigment, gypsum products, heat-resistant materials, ceramic products, and more.

V. Investment Costs of Song Binh Industrial Zone – Binh Thuan

Infrastructure maintenance and management fee: 0,4 USD/m2/year. Annual payment for infrastructure maintenance and management.

Electricity usage fee: As per EVN rates (approximately 0,08 USD/KWh).

Telecommunication network usage fee: According to the service provider’s pricing for each plot with fiber optic installation.

Clean water usage fee: 0,4 USD/m3.

Wastewater treatment fee: 0,5 USD/m3.

Land price:
– Lease price until 2065 starting from 40 USD/m2.
– Lease area subject to negotiation.

VI. Investment incentives of Song Binh Industrial Zone – Binh Thuan

• Corporate Income Tax: Enjoy a reduced tax rate of 17% for 10 years, tax exemption for 2 years, and a 50% reduction for the next 4 years.
• Import Tax: Exemption for machinery and equipment used for fixed assets; exemption for imported goods used for export production.
• Depreciation: Accelerated depreciation, increasing deductible expenses for taxable income.
• Other incentives: Specific incentives based on the invested industries, as per regulations.