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Song Cong I Industrial Park - Thai Nguyen

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Information
Operating time: 1999 - 2049
Total Area: 195 Ha
Infrastructure investors: Infrastructure Development Company of Thái Nguyên Industrial Zones
Price: 100 USD/m²
Building density: 70
Occupancy: 50
Address: Bach Quang Ward, Thai Nguyen Province, Vietnam
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Song Cong I Industrial Park – Thai Nguyen

Decision No. 181/1999/QĐ-TTg on September 1, 1999, established Song Cong I Industrial Park, initially spanning 320 hectares. By 2014, the provincial People’s Committee had reduced its size to over 196 hectares through three adjustments. The Infrastructure Development Company of Thai Nguyen Industrial Zones is the investor of Song Cong I Industrial Park.

The Ha Noi – Hai Phong – Quang Ninh economic triangle, including the Hanoi Capital Industrial Zone and the Da Phuc, Đong Trieu, and Uong Bi industrial axis leading to Cai Lan Port, holds significant importance in the national industrial development strategy. Song Cong Industrial Park, situated within the Ha Noi Capital Industrial Belt, plays a special role in developing industrial zones in the northern region and acts as a transportation hub for Thai Nguyen and other provinces via the national highway network.
As the first concentrated industrial zone in Thai Nguyen Province, Song Cong Industrial Park benefits from a favorable location and stable wages, attracting a plentiful local workforce and laborers from neighboring provinces. It plays a crucial role in the province’s economic restructuring, contributing to economic growth and the realization of industrialization and modernization in the Thai Nguyen Province.
Master plan map of Song Cong I Industrial Park - Thai Nguyen - TTTFIC Group
Master plan map of Song Cong I Industrial Park – Thai Nguyen – TTTFIC Group

Current Status Song Cong I Industrial Park:

Over the past 22 years, Thai Nguyen Province has leased nearly 120 hectares of land in Song Cong I Industrial Park. However, only around 90 hectares have been developed out of the total planned area of 195 hectares. The delay in land clearance compensation and the dense population within the planned area has posed challenges in compensating for the remaining 105 hectares, especially the densely populated 54-hectare zone.
Investors from South Korea, China, and Vietnam have fully leased out the developed construction area of Song Cong I Industrial Park. It includes projects such as communication equipment repair, mechanical processing and metal plating, textile manufacturing, and metal forging.
To address the undeveloped areas, Thai Nguyen Province is actively seeking feedback from relevant departments, agencies, and residents. The goal is to adjust and reduce the planned area by excluding sections that are difficult to develop and require land clearance. Instead, these areas will be supplemented with easily implementable land resources.

Geographical location:

Song Cong I Industrial Park is located in Bach Quang Ward, Song Cong City, Thai Nguyen Province, Vietnam. Its advantageous position near the center of Thai Nguyen, only 13km away, enables the exploitation of Thai Nguyen’s potential in infrastructure, mineral resources, and skilled labor. The zone is part of Hanoi’s industrial belt, fostering a special relationship with the development of industrial zones in the northern region and the national highway network connecting Thai Nguyen and other northern provinces.

Specifically, Song Cong I Industrial Park has the following location details:

– Adjacent to National Highway 3.
– 18km away from Thai Nguyen City.
– 2.5km away from the Hanoi – Thai Nguyen expressway.
– 500m away from Luong Son station.
– 18km away from Da Phuc Port.
– 40km away from Noi Bai International Airport.
– 200km away from Hai Phong Port.
– Approximately 30km away from National Highway 18.
– 60km away from Hanoi (about 1-hour drive).

The infrastructure of Song Cong I Industrial Park:

The industrial park has a well-developed internal transportation system with a 42m-wide central road and 22.5m-wide branch roads.
A 130MVA transformer station operating at 110/22kV supplies electricity.
Public lighting is provided through a separate network along the traffic roads, independent of the residential power supply.
The water system has been designed to fulfill the quality and quantity requirements for production and daily activities. It can provide 10,000m3 of water per day and night.
The industrial park’s common drainage system receives and handles the discharge of wastewater and stormwater.
The environmental sanitation factory of Thai Nguyen province currently manages waste management through service contracts with professional waste treatment units…
The wastewater treatment plant has a capacity of 5,000m3 per day and night, ensuring that the treated water meets Class B environmental standards (TCVN 5945-2005) before being discharged.
The industrial park has invested in a modern communication system with advanced cable infrastructure and equipment. It adheres to international standards to provide high-speed connectivity.

Investment-Attractive Industries:

Song Cong I Industrial Park primarily attracts industries such as:
  • The electrical and electronics sector.
  • The automotive manufacturing and assembly sector.
  • The software industry.
  • Mechanical engineering and metallurgy industries.
  • Other advanced and modern industries.

Investment Costs:

  • Land lease price: According to the regulations of the Thai Nguyen Provincial People’s Committee, the industrial park land lease price is typically around 100 USD/m2.
  • Electricity price: The electricity price is based on the rates set by EVN (Electricity of Vietnam).
  • Water price: The water price is approximately 0.4 USD.
  • Environmental treatment fee: The reference price ranges from 0.25 to 0.3 USD per cubic meter.
  • Labor cost: For domestic enterprises, the minimum labor cost is around 200 USD per person per month. For foreign enterprises, it is approximately 500 USD per person per month.

Investment incentives:

Thai Nguyen Province provides special incentives and preferential treatment to attract investors to Song Cong Industrial Park. In addition to the state incentives, the province offers additional benefits according to the decisions: 3296/2000/QD-UB of the Provincial People’s Committee; 41/2012/QD-UB of the Provincial People’s Committee; Resolution 05/2012/NQ-HDND of the Provincial People’s Council; and Plan 238/DA-UBND to improve the investment environment.
The investment incentives are granted under the following conditions: filling the first 30 hectares of industrial land, exporting over 50% of the products, producing goods from local raw materials, making upfront payments of over 90% for land rent and infrastructure fees, and employing over 100 local workers.
If a project meets all five investment incentive conditions, it can enjoy a maximum of 50% land rent reduction for four years and an infrastructure fee exemption for seven years.
Financial support is provided for training expenses when employing local labor, with an amount of 1,750,000 VND per worker.
Assistance is given for relocation expenses and delayed tax payments for businesses moving into the industrial park.
Participants involved in attracting investments to the industrial park can receive commissions.
State management within the industrial park follows a one-stop mechanism through the coordinating agency, the Management Board of Thai Nguyen Industrial Parks. Central ministries and agencies are responsible for project appraisal, investment license issuance, business management, labor, and import-export activities within the industrial park. Streamlined inspection and auditing procedures are in place to prevent disruptions and obstacles to business operations.
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TTTFIC Group provides industrial investment intelligence, industrial real estate advisory, site selection, factory and warehouse solutions, and business advisory services for foreign investors seeking to establish, expand, relocate, acquire, lease, or invest in manufacturing operations in Vietnam.

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