Suoi Dau Industrial Park

Overview of Suoi Dau Industrial Park:

Suoi Dau Industrial Park officially began operating in 1998.

• On November 11, 1997, Khanh Hoa Trading and Investment Company made the initial investment in Suoi Dau Industrial Park with an area of 136.73 hectares, as stated in Decision No. 951/QD-TTG issued by the Prime Minister.
• On July 25, 2002, the Project Management Board of Suoi Dau Industrial Park was renamed as the Infrastructure Development Enterprise of Suoi Dau Industrial Park, and on May 31, 2008, the Infrastructure Development Enterprise of Suoi Dau Industrial Park was once again renamed as Suoi Dau Industrial Park Joint Stock Company.

Project location and planning:

Suoi Dau Industrial Park is located in Suoi Tan Commune, Cam Lam District, Khanh Hoa Province.

• With such a location, transportation for businesses becomes extremely convenient as it is close to National Highway 1A, providing easy connectivity to other provinces and cities.
• Therefore, The Industrial Park has attracted numerous businesses and investors since its establishment.

The planned total investment area of Suoi Dau Industrial Park is 136.73 hectares, of which nearly 93 hectares will be industrial land for lease. Investments will be made in planning and constructing other facilities within the industrial park using the remaining land.

The completion of the Suoi Dau Industrial Park planning process includes two main phases:

• Phase 1 with a scale of 76.2 hectares, completed infrastructure in 2002.
• Phase 2 with a total scale of 60.3 hectares, was accepted and put into operation in 2008.

After more than 20 years of construction and development, many investors have been attracted to The Industrial Park, making it the largest industrial park in Khanh Hoa Province. People highly regard The Industrial Park for its development potential, expansion capability, and significant contribution to regional economic development.

The infrastructure of Suoi Dau Industrial Park:

Internal transportation system:

• The main road axis has four lanes with a width of 50 meters.
• Additionally, the internal transportation system of The Industrial Park includes secondary roads with a width of 22 meters and two lanes.

Power supply system:

• The national power system provides power for the industrial park with a capacity of 110/22KV, with a power capacity of 25MVA.

Water supply system:

• The water production center of The Industrial Park has a capacity of 10,000 m3/day-night. This capacity ensures a sufficient supply of clean water for the production and daily activities of businesses within the industrial park.
• Suoi Dau Lake provides raw water for the industrial park.
• The industrial park closely monitors and regularly checks the quality of clean water according to the regulation QCVN 01:2009/BYT of the Ministry of Health.

Wastewater treatment system:

• The centralized wastewater treatment station of The Industrial Park receives wastewater from the wastewater treatment stations of each factory.
• The treatment capacity of the centralized station is 5,000 m3/day-night.
• The industrial park treats and strictly controls domestic and industrial wastewater.

Investment Attraction of Suoi Dau Industrial Park:

Current investment situation:

• After more than 20 years of completion and development, along with significant support from the provincial government, The Industrial Park has achieved many indicators that surpass previous expectations.
• The industrial park has attracted 55 projects with domestic and foreign investments.
• In 2019 alone, the businesses in the industrial park had a revenue of USD 419 million, a 3.4% increase, and exports reached over USD 394 million, a 3.8% increase compared to 2018.
• Employing nearly 13,000 workers (12,766 Vietnamese workers).
• The total area of land leased to businesses in the industrial park reached 85.92/92.8 hectares.

Industries attracting investment:

• Processing of fruits, and canned foods.
• Export-oriented seafood processing.
• Production of garments, footwear, plastic household goods, and children’s toys.
• Manufacturing of electrical, electronic, and high-precision mechanical products.
• Production of premium plastics and automotive glass.
• Processing of dried seafood products.
• Production of office supplies, musical instruments, sports equipment, and medical devices.

Incentive policies to encourage investment:

– Land incentive policy:

• Land users in the industrial park, including cases of land sublease, are granted Certificates of Land Use Rights.

– Import-export tax incentive policy:

• Investment projects in the industrial park are exempt from import taxes on specialized equipment, machinery, and vehicles in the technological chain. The exemption is applicable for the establishment of fixed assets of enterprises. Vehicles for the conveyance of workers that are not produced domestically or don’t meet quality requirements are also eligible for tax exemption. The import tax exemption applies to the expansion of project scale, technological replacement, and innovation.
• Raw materials, supplies, and components not yet produced domestically and imported for production are eligible for a five-year import tax exemption. The tax exemption applies from the start of production. This exemption excludes projects and goods specified in Decree No. 87/2010/ND-CP
• Import tax exemption for imported goods used to establish fixed assets of investment projects as specified in Decree No. 87/2010/ND-CP.
• Additionally, there are other incentives as stipulated by law.

– Corporate income tax incentive policy:

• For new projects in the industrial park, the tax authorities apply a corporate income tax rate of 20% for 10 years starting from the commencement of business operations. Additionally, a two-year corporate income tax exemption is granted from the taxable income date, and a 50% reduction in corporate income tax payment is applied for the following four years.
• If a company incurs losses during operations and settles with the tax authorities, it can carry forward the losses to the next year. The company can deduct the losses from the taxable income. Limit the time to carry over losses for 5 years. This period starts from the year following the year of loss occurrence.