Song Lo 1 Industrial Park - Vinh Phuc

I. Overview of Song Lo I Industrial Park – Vinh Phuc:

According to the Prime Minister’s Official Letter No. 1581/TTg-KTN dated September 3, 2009, the Prime Minister approved the inclusion of Song Lo I Industrial Park in the industrial park planning of Vinh Phuc province. The industrial park is estimated to have a planned area of 200 hectares.

The Prime Minister approved the investment project for the construction and operation of technical infrastructure in Song Lo I Industrial Park in Decision No. 387/QD-TTg on March 17, 2021.

The objective of the project is to invest in the construction and operation of infrastructure and industrial structures within the industrial park. The investor of the project is Song Lo Infrastructure Development Investment Limited Company.

With a land area of 177.36 hectares, the implementation of the project takes place in Tu Yen commune, Dong Thinh commune, and Duc Bac commune, all located in Song Lo district, Vinh Phuc Province.

The total investment capital of the project is 1,253.716 billion VND, of which the investor’s capital contribution is 188.0574 billion VND.

Song Lo I Industrial Park – Vinh Phuc is a large-scale industrial park built with comprehensive and modern infrastructure. With its vast area and strategic geographical location, this industrial park attracts numerous businesses for investment and economic development.

With abundant labor resources and reasonable land leasing prices, Song Lo I Industrial Park provides a favorable environment for businesses to expand and grow their manufacturing activities.

Therefore, it is an attractive destination for businesses and plays a significant role in the economic development of Vinh Phuc province.

II. Geographical Location of Song Lo I Industrial Park – Vinh Phuc:

Song Lo I Industrial Park is located in Song Lo district, Vinh Phuc province, with an area of 177.36 hectares. It is situated close to the Noi Bai – Lao Cai expressway, providing convenient transportation between Hanoi and the border province of Lao Cai.

• Distance to Viet Tri City: 13km
• Distance to Vinh Yen city: 29km
• Distance to Noi Bai International Airport: 52km
• Distance to Hanoi city: 80km
• Distance to Thai Nguyen city: 83km
• Distance to Hai Phong port: 172km, Cai Lan port: 188km
• Distance to Viet Tri Station: 20km.

III. Infrastructure of Song Lo I Industrial Park – Vinh Phuc:

Internal transportation system:

• The internal transportation system is designed with comprehensive and modern main and secondary road axes.
• The main road axis is 31m wide with 4 lanes, and the secondary road axis is 15m wide with 2 lanes, ensuring uninterrupted transportation of goods in and out of Song Lo I Industrial Park.

Power grid system:

• The park utilizes a 110/35/22 KV power source with a capacity of 40 MVA directly supplied from the provincial power source.
• Additionally, the power system is connected to each plot of land, ready for use, and capable of meeting the production needs of the factories.

Water and waste treatment system:

• Song Lo I Industrial Park has a separate system for wastewater and rainwater drainage.
• It is locally treated at individual plants before being directed to the centralized treatment system with a capacity of 20,000 m3/day and night.

Clean water system:

• Phuc Yen Industrial Park sources clean water from a dedicated water treatment plant to ensure water supply for the factories.
• The maximum capacity is 100,000 m3/day and night.

IV. Main industries attracting investment in the industrial park:

The industrial park attracts investment in various sectors, including:

• Building materials production, mechanical engineering, precision engineering
• Electrical equipment manufacturing
• Consumer goods production, textile industry
• Automotive and motorcycle parts
• Electronics and refrigeration
• Construction machinery and equipment
• Food processing
• Medical equipment and pharmaceuticals.

V. Land Rental Costs in the Industrial Park:

• Investment cost: Rental prices with infrastructure range from $100 to $155 per square meter per year.
• The expected raw land rental price is $0.21 per square meter per year.
•  Management fee: $0.4 per square meter
• Electricity price: $0.1 per kilowatt-hour
• Water price: $0.4 per cubic meter
• Wastewater treatment: $0.3 per cubic meter

VI. Labor Force in the Industrial Park:

By 2025, the district projects an average annual increase of 22% in industrial production value, which will create employment opportunities for over 10,000 workers.
From 2017 to the present, the district has been annually training an average of 830 workers, achieving a training rate of over 60.7%.

The population of Song Lo district is 98,738, and the population of Vinh Phuc province is about 1.23 million. This provides an abundant labor force, along with workers from neighboring provinces, to meet the needs of businesses in the industrial park within Vinh Phuc province.

• Minimum wage (Zone 3): 3,640,000 VND/month ($156)
• Actual wage: 5,500,000 VND/month ($235)

VII. Investment Incentives of the Industrial Park:

• Investment incentives: 2 years of exemption and 50% reduction for the following 4 years.
• 17% tax reduction for the next 10 years from the date of tax liability.
• The province invests in infrastructure and utilities up to the company’s fence, including transportation, power supply, telecommunications, water supply and drainage, and wastewater treatment.
• Lease contracts for up to 50 years.
• Support for labor training and recruitment for businesses.
• Import tax exemption for creating fixed assets in investment projects in eligible sectors as defined by investment incentive regulations.

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