Song Than 1 Industrial Park - Binh Duong

When discussing prominent industrial parks in Binh Duong province, particularly in the Southern region, it is impossible to ignore Song Than I Industrial Park. This industrial park occupies an extremely significant location and serves as a key hub for trade and connectivity with other provinces and cities across the nation.

I. Overview of Song Than Industrial Park I

General Information about the Industrial Park

Song Than I Industrial Park is strategically located in Binh Duong province, an area experiencing rapid economic development. This growth has led to the robust development of industrial parks as well as economic zones that support the local population. Additionally, Song Than I is one of the largest industrial parks in Di An City and is effectively fulfilling its role as a prominent industrial park in the Southern key economic region.

With substantial development potential, Song Than I Industrial Park is attracting significant investment from both domestic and foreign sources. This investment is contributing to the improvement of the economic and commercial value of the industrial sector, benefiting not only the park but also the entire Binh Duong Province. Moreover, the construction of the Song Than I Industrial Park project has improved access to major arterial roads leading to Thu Dau Mot City in Binh Duong Province, offering convenience to the local population.

With a highly systematic and impressive investment in the park’s infrastructure, Song Than I Industrial Park is set to play a pivotal role in driving the economic growth of Binh Duong Province and the entire country in the near future.

Legal Basis

The establishment of Song Than I Industrial Park is based on Decision No. 577/TTg, dated September 16, 1995, by the Prime Minister. Subsequently, the People’s Committee of Binh Duong Province issued a decision on May 12, 2008, making adjustments to the park’s planning, as specified in Decision No. 1444/QD-UBND.

Industrial Park Scale

Song Than I Industrial Park encompasses a total industrial land area of 178.1 hectares, with specific areas allocated for different land uses, including:

Song Than 1 Industrial Park – Binh Duong Province – tttfic.com

Information about the Investor

Song Than I Industrial Park is backed by THALEXIM Joint Stock Company, which operates under the full name Thanh Le Import-Export Corporation. THALEXIM Joint Stock Company also serves as the investor for significant industrial parks in Binh Duong, including the Binh Duong Industrial Park.

II. Geographical Location of Song Than I Industrial Park

Song Than I Industrial Park is strategically situated at Street 9, Di An Town, Binh Duong Province. Its location holds immense strategic importance because it shares proximity with Ho Chi Minh City, the largest economic, cultural, and social center in Vietnam. This strategic location allows businesses operating in Song Than I Industrial Park to engage in trade and goods exchange seamlessly and to efficiently connect with nearby airports, train stations, and ports without wasting time.

To provide specifics, the distances from Song Than I Industrial Park to key strategic areas are as follows:

• Approximately 17.6 km from the center of Ho Chi Minh City and about 18 km from Thu Dau Mot City.
• Convenient access to Song Than Station, located just 3.6 km away.
• Approximately 21.9 km from Tan Cang – Cat Lai Port and about 19 km from Tan Cang – Phu Huu Port.
• Swift access to Tan Son Nhat International Airport, situated at a distance of only 16.4 km.
• Easy connection to the adjacent Song Than II Industrial Park.

III. Infrastructure of Song Than I Industrial Park

The infrastructure in Song Than I Industrial Park receives significant attention from investors to ensure it is the most comprehensive and systematic. Notable elements of the infrastructure system in the industrial park include:

Transportation System

The transportation system is a major focus of the construction efforts, featuring a primary road system with four separate lanes, each 28 meters wide. Within Song Than I Industrial Park, the internal transportation system comprises two separate lanes with a width of up to 18 meters, ensuring smooth transportation within the park.

Song Than 1 Industrial Park – Binh Duong Province – TTTFIC GROUP

Power System

The electrical system within Song Than I Industrial Park maintains a consistently stable voltage level of 110/22KV, effectively meeting the electricity demands of businesses operating in the area, as well as serving the needs of residents living and working nearby.

Water Supply System

Song Than I Industrial Park boasts a high-capacity water supply system, guaranteeing 50,000 m3/day. Furthermore, the water supplied here undergoes comprehensive treatment, adhering to WHO standards. This ensures that all production activities within the industrial park remain stable and uphold hygiene and safety standards.

Wastewater Treatment System

Recognizing the significance of wastewater treatment prior to discharge from the industrial park, Song Than I Industrial Park is presently implementing a wastewater treatment plant with a capacity of up to 12,000 m3/day and night. This ensures thorough treatment of wastewater sources, fully complying with regulations stipulated by the state.

Fire Protection System

The construction of a modern fire protection system is a pivotal aspect of every industrial park in Binh Duong province, including Song Than I Industrial Park. Therefore, the industrial park features an exceptionally comprehensive fire-fighting system, with multiple water columns positioned along the main and branch roads. Additionally, a team of highly experienced technical staff for fire prevention and fighting is on duty around the clock, prepared to handle and address emergencies promptly.

Telecommunications System

Given the substantial demand for telecommunications and information systems by businesses within Song Than I Industrial Park, the park has invested in a telecommunications system encompassing IDD, ADSL, 6,000 numbers, and a maximum bandwidth of 2GB to meet all business requirements.

IV. Industries Attracting Investment in Song Than I Industrial Park

With its robust infrastructure and favorable geographical location, Song Than I Industrial Park serves as an ideal destination for both domestic and foreign investors. It has attracted investors from a variety of key industries, including:

• Light industries such as textiles, fashion item production, and household appliances.
• Electrical, mechanical, and electronic industries, encompass the manufacturing of machinery and equipment and assembly of transportation means.
• Production of construction materials and construction machinery.
• Reinforced concrete production and construction.
• Agricultural, forestry, and seafood processing industries, including grain processing, coffee, animal feed, fish, and shrimp processing.

V. Investment Costs at Song Than I Industrial Park

For businesses considering investment in Song Than I Industrial Park, it is essential to understand the associated investment costs. The following table summarizes the investment costs at Song Than I Industrial Park as compiled by TTTFIC. Overall, these costs are relatively reasonable.

VI. Investment Incentives in Song Than I Industrial Park

Song Than I Industrial Park currently offers several attractive investment incentives to encourage investors to establish factories within the park. These incentives are based on the following government decrees:

1. Land Rent:

   • Exemption from land rent and water surface rent for infrastructure construction projects within industrial parks for the entire land lease period.
   • Exemption from land rent and water surface rent for projects in the investment incentive list according to Decree No. 118/2015/ND-CP dated November 12, 2015 of the Government within 3 years from the project’s completion. This exemption also applies to new production and business establishments of economic organizations that are relocated according to planning or due to environmental pollution.
   • Exemption from land rent and water surface rent for a period of 11 years for investment projects in the list of special investment fields eligible for investment incentives, as prescribed in Decree No. 118/2015/ND-CP dated November 12, 2015, of the Government.

2. Corporate Income Tax:

   • A preferential corporate income tax rate of 10% for 15 years.
   • Corporate income tax exemption for 4 years.
   • A 50% reduction in corporate income tax payable for the next 9 years.
   • This tax rate applies to new investment projects in the fields of scientific and technological research and development, production of composite materials, rare materials, clean energy, renewable energy, biotechnology, and other specified industries.

3. Import Tax:

   • Import tax exemption for fixed imported goods that are eligible for incentives under investment law, including assets such as machinery, equipment, components, and spare parts used for assembling or operating machinery or materials used in machinery and equipment production.

VII. Labor Resources and Labor Costs

With the significant investment made by businesses in Song Than I Industrial Park, the demand for labor resources in the area remains high. As a result, not only residents of Binh Duong province but also individuals from neighboring provinces seek job opportunities within the park. Labor costs in Song Than I Industrial Park are reasonable, ranging from $250 to $500 per person per month.

Workers in the park receive comprehensive training in work techniques to meet the labor productivity requirements of the businesses operating there. In the near future, Song Than I Industrial Park is expected to attract even more workers seeking employment and stable social security due to its advantages. This, in turn, promises to bring substantial economic value to Di An city and Binh Duong province.

Song Than I Industrial Park is consistently expanding its scale to improve the efficiency of production and business activities across various industries. Being a prominent and extensive industrial cluster in Di An City, it attracts significant foreign direct investment (FDI) capital and is unquestionably a location that investors should not disregard.