Suoi Tre Industrial Park

Suoi Tre Industrial Park (IP) is located in Long Khanh commune, Dong Nai province. It began operations in 2012 and has a lifespan of over 50 years. It enjoys numerous advantageous features, including its proximity to crucial transportation infrastructure and its nearness to air and waterway projects. Suoi Tre IP holds the promise of stimulating substantial economic development in Dong Nai province.

I. Overview

1. About the Industrial Park

Suoi Tre Industrial Park is located in Long Khanh Town, Dong Nai Province, covering an area of approximately 150 hectares. This industrial park is exceptionally well-situated thanks to its favorable geographic location. It is adjacent to major roadways and neighboring industrial park projects like Long Khanh Industrial Park.

Suoi Tre Industrial Park was formed by successfully merging three small industrial clusters: Suoi Tre 1, Suoi Tre 2, and Bao Vinh. The investor, Sonadezi An Binh Joint Stock Company, carried out the merger in compliance with the government’s directives, as stated in document No. 964/TTg-KTN dated June 17, 2009.

Specifically, during the merger process, Suoi Tre 1 Industrial Cluster, which spans about 50 hectares, had completed technical infrastructure construction and started attracting investments. Suoi Tre 2 Industrial Cluster, also covering approximately 50 hectares, was in the process of land compensation and site clearance. Lastly, Bao Vinh Industrial Park, covering approximately 47,13 hectares, was in the investment phase for technical infrastructure and a central wastewater treatment facility.

2. About the Investor

Sonadezi An Binh Joint Stock Company, abbreviated as SZA, is the investor behind Suoi Tre IP. Previously, this company was an Industrial Construction Enterprise under the Dong Nai Department of Industry. Subsequently, the enterprise merged with Bien Hoa Industrial Park Development Company in 1992. Presently, Sonadezi An Binh Joint Stock Company is a professional contractor engaged in various sectors, with notable involvement in the construction of industrial and civil zones, trading construction materials, and leasing construction equipment and fixed assets.

II. Geographical Location

1. General Information about the Location

Suoi Tre Industrial Park is situated in Suoi Tre and Bao Vinh Communes, Long Khanh Town, Dong Nai Province, Vietnam. This area has gained recognition for its fertility in recent years. Long Khanh Town has attracted significant interest from various investors due to its exceptionally convenient access to numerous external amenities.

It can be affirmed that Suoi Tre IP benefits from an incredibly advantageous location, facilitating connections to cultural and economic centers for trade and goods transportation. This strategic geographical location provides a solid foundation for businesses in the industrial park to develop rapidly and maintain long-term sustainability.

2. Regional Connections

Specifically, the distances from Suoi Tre Industrial Park to surrounding areas are as follows:

• It’s only 500 meters from the main national highway 1A and 6 kilometers from the Ho Chi Minh City – Long Thanh – Giau Day highway.
• 42 kilometers from Bien Hoa city, 70 kilometers from Ho Chi Minh City (when traveling on National Highway 1A), and 50 kilometers (when using the Ho Chi Minh – Long Thanh – Giau Day highway).
• Convenient access to major port clusters in the Southern region is available. This includes 48.6 kilometers from Dong Nai port, 60 kilometers from Go Dau port, 66.6 kilometers from Cat Lai port, 61.1 kilometers from Phu My port, and 70 kilometers from Cai Mep port.
• Furthermore, there is easy connectivity to major international airports in the southern region. Long Thanh international airport is located approximately 38 kilometers away, and Tan Son Nhat international airport is about 78.3 kilometers from the industrial park.
• In addition, there is quick access to railway lines, with Bien Hoa station located around 49,4 kilometers away and Song Than station at 60.8 kilometers.

These outstanding advantages greatly facilitate trade and logistics in Suoi Tre Industrial Park, resulting in significant cost savings for investors.

III. Infrastructure

Suoi Tre Industrial Park has received substantial attention from the investor for the development of modern, comprehensive infrastructure. The industrial park also features a green tree system covering the entire area and modern electrical, water supply, and wastewater treatment systems that meet international standards.

1. Traffic System

The transportation system within Suoi Tre IP includes a major road with a width of 40 meters, directly connecting to National Highway 1A. The park’s internal roads clearly divide into four lanes, with secondary roads measuring 22 meters in width and dividing into two lanes. The industrial park paves all road systems with hot asphalt concrete, meeting Vietnam’s H30 standards.

2. Electricity Distribution System

Suoi Tre Industrial Park sources its power supply from a 22KV medium voltage system, which Long Khanh Electricity Company distributes via Line 476 from the 110/22KV 2x40MVA station. This ensures that businesses within the industrial park can maintain stable and uninterrupted production.

3. Water Supply System

The maximum water supply capacity at Suoi Tre Industrial Park is 3000 m³/day and night, provided by Long Khanh Water Supply Joint Stock Company. This extensive clean water system meets international standards and supplies businesses through a pipeline network.

4. Wastewater Treatment System

The centralized wastewater treatment plant at Suoi Tre Industrial Park has a maximum capacity of 5000 m³/day and night. Phase one guarantees a capacity of 1000 m³/day and night, with plans for future capacity upgrades. We assess wastewater treatment fees monthly and calculate them at 80% of the water volume supplied. Discharged wastewater must meet standards per QCVN 40:2011/BTNMT.

5. Communication Systems

Additionally, Suoi Tre Industrial Park boasts a modern communication system that includes services such as IDD phone, FAX, ADSL internet, and VoIP. This diversified telecommunications infrastructure ensures smooth communication between investors and businesses within the industrial park.

Furthermore, Suoi Tre IP not only invests in infrastructure but also focuses on creating green spaces, lawns, and lighting systems to provide the best possible environment for businesses during their production activities.

By the end of 2018, Suoi Tre Industrial Park constructed five additional ready-built factories to meet the rental needs of small and medium-sized domestic and foreign investors.

IV. Industries Attracting Investment

Currently, Suoi Tre Industrial Park is attracting investments across various fields and industries, including:

• Ceramic industry and plastic product processing.
• Wood processing and wood product manufacturing.
• Fashion, apparel, and footwear production.
• Manufacturing construction materials and household appliances.
• Processing of handicrafts and mechanical products.

Notably, Suoi Tre Industrial Park places a particular emphasis on the development of green and clean manufacturing industries. This approach aims to reduce the discharge of waste into water sources to minimize environmental pollution.

V. Investment Costs

Investment costs in Suoi Tre Industrial Park are of keen interest to many businesses contemplating investments in the area. Expert assessments indicate that investment costs and land rental prices in Suoi Tre Industrial Park are relatively low, making it an attractive option for businesses. This presents a significant advantage for businesses looking to make substantial investments. Detailed investment cost information will be provided by TTTFIC immediately below:

VI. Investment Incentives

Suoi Tre Industrial Park offers remarkable investment incentives for businesses. Notable tax incentives for businesses include:

• Corporate Income Tax: Normally, the standard corporate income tax rate is 22% from January 1, 2014, and 20% from January 1, 2016. However, all investment projects in industrial parks are eligible for a 2-year corporate income tax exemption, followed by a 4-year reduction by half.
• Overseas Remittance Tax: Businesses in Suoi Tre Industrial Park are completely exempt from remittance tax.
• Import Tax on Machinery and Equipment: Machinery, equipment, specialized vehicles for production, and construction materials not produced domestically are exempt from import and export taxes when listed as fixed assets or raw materials for the production of export goods. Goods produced for export in accordance with Decree No. 87/2010/ND-CP are also exempt from export tax.
• Value Added Tax (VAT): Businesses within the park are subject to varying VAT rates of 0%, 5%, and 10%. The 0% VAT rate applies to the export of specific goods and services, while the standard VAT rate applies to all goods and services consumed within Vietnam.

VII. Labor Sources and Labor Costs

Suoi Tre Industrial Park benefits from easy connectivity to surrounding areas, creating highly favorable conditions for production and business growth. Thanks to its well-planned, modern technical infrastructure investment, the industrial park efficiently connects to neighboring regions, promising significant future development potential.

Given this significant potential, the demand for labor resources in Suoi Tre IP remains consistently high. The local workforce is stable, providing employment opportunities for both local residents and those in nearby areas, ensuring social security. Furthermore, competitive labor costs and an ample labor pool make the industrial park an attractive destination for both domestic and foreign investors.

In summary, Suoi Tre Industrial Park has fully invested in high-quality technical infrastructure and strategically located itself for easy access to neighboring areas. This makes it an ideal choice for industrial and business activities. Moreover, it offers a highly favorable environment for both domestic and foreign investors in Dong Nai province.