Tan Duc Industrial Park - Long An

Tan Duc Industrial Park (Tan Duc IP) is a pivotal addition to the landscape of Long An province and the broader Southwest region. Beyond its identity as an industrial park, Tan Duc embodies a comprehensive complex that seamlessly integrates industrial, service, and urban zones. Boasting a state-of-the-art and interconnected infrastructure, coupled with its strategic location, Tan Duc IP holds the promise of offering numerous opportunities and conducive conditions for businesses to thrive in the future.

I. Overview of Tan Duc Industrial Park

Tan Duc IP, established under Decision No. 591/CP-CN by the Prime Minister and Decision No. 90/QD-UB of Long An Provincial People’s Committee, came into existence on May 6, 2004. It operates under a 50-year term in accordance with legal provisions.

1. General Information

• Industrial Park Name: Tan Duc Industrial Park.
• Address: Binh Tien 1 Hamlet, Duc Hoa Ha Commune, Duc Hoa District, Long An Province.
• Investor: Tan Duc Investment Joint Stock Company, a member of the Tan Tao Group.
• Area: 545 hectares.
• Use Period: 50 years, from 2004 to 2054.
• Scale: Includes a complex of multiple projects:
  • Industrial Park (area: 545 hectares),
  • E-city Urban Area (area: 387 hectares),
  • Sports and Entertainment Complex (area: 107 hectares),
  • Tan Tao University (area: 103 hectares).
• Rental Price: 120 USD/m2.
• Total Investment Capital: VND 1.684 billion.
• Occupancy Rate: 90%.
• Construction Density: 70%.

2. Industrial Park Investor:

• Tan Duc IP is backed by Tan Duc Joint Stock Company, a member of the renowned Tan Tao Group, known for its investments and management of industrial parks. Tan Duc Group oversees several large and well-known industrial parks in the country, including:
  • Tan Tao Industrial Park, Binh Tan, Ho Chi Minh City, spanning 422 hectares.
  • Tan Duc IP, Long An, with a total complex project scale of 1.524 hectares.
  • Nhon Hoi Industrial Park, Binh Dinh, covering 630 hectares.
  • Nhon Trach Industrial Park, Dong Nai, with a scale of 184 hectares.
• Tan Duc IP operates in two phases: Phase 1 covers an area of 273,39 hectares, and Phase 2 encompasses 262,24 hectares. Despite being operational since 2004, Tan Duc IP remains a formidable competitor with recently established industrial parks in Long An province, such as Viet Phat Industrial Park, Hai Duong Industrial Park, Thinh Phat Industrial Park, and more.

Planning map of Tan Duc industrial park

II. Geographical Location of Tan Duc Industrial Park

Tan Duc IP is situated at Binh Tien 1 Hamlet, Duc Hoa Ha Commune, Duc Hoa District, Long An Province. This industrial park is part of a modern architectural complex featuring prominent projects such as the Industrial Park, E-city Urban Area, Tan Tao University, and the Sports and Entertainment Complex. It stands as the first large-scale advanced complex with modern facilities and high-quality standards in the Southern Key Economic Region.

1. Well-Located

Tan Duc IP boasts a convenient location, ample space, and excellent regional connectivity, offering significant advantages to investors. Key roads surrounding the industrial park include:

• 1A highway,
• Route across Asia,
• Saigon – Trung Luong Expressway,
• Provincial Road 830 to Ben Luc district and the Mekong Delta region,
• Provincial Highway 824 to Cu Chi, Tay Ninh, and National Highway 22 leading to Ho Chi Minh City,
• Provincial Road 825 to Provincial Road 10 into Ho Chi Minh City.

2. High Area Connectivity

Furthermore, the industrial park maintains high connectivity with neighboring key areas, enhancing convenience for traffic and goods transportation. Distances to key areas and routes from Tan Duc IP are as follows:

• Approximately 40 km from Tan An city, Long An.
• Only about 15 km from Ben Luc district.
• Proximity to Provincial Road 10, Provincial Road 830, Provincial Road 824.
• Merely about 1 km from National Highway 12A, around 22 km from National Highway 20.
• Approximately 30 km from the center of Ho Chi Minh City.
• Roughly 25 km from Tan Son Nhat airport.
• Only about 25 km from Saigon station.
• Close to Vam Co Dong river.

III. Infrastructure at Tan Duc Industrial Park

Tan Duc IP is recognized as one of the large-scale industrial parks in Long An province with state-of-the-art infrastructure in the Southern region. Despite its years in operation, the infrastructure system continues to ensure efficient services for the production and transportation activities of businesses and investors.

1. Transportation System

• Tan Duc IP features a comprehensive transportation system with multiple main and central roads. The entire transportation network is concrete-based, ensuring quality and heavy load capacity. Additionally, coconut palm trees and areca palm trees line the roadsides for landscaping and air purification. The industrial park boasts 11 major roads, including a main road with a width of 30 m and 4 lanes, as well as branch roads that are 25 m wide with 2 lanes, suitable for cars and trucks. Tan Duc IP also houses a large, modern container port system on the Vam Co Dong River to support waterway transport.

2. Waste and Wastewater Treatment System

• All waste from the industrial park is collected and transported to a centralized treatment facility with a capacity of 20.000 m³/day and night, meeting the treatment needs of the entire industrial park. The investor ensures proper, safe, and secure waste and wastewater management in accordance with legal provisions.

3. Clean Water System

Tan Duc IP consistently provides sufficient clean water from diverse sources, including:

• • Industrial water supply plant with a capacity of 48.000 m³/day and night.
  • Long An underground water plant with a supply capacity of 15.000 m³/day and night.
  • Hoc Mon, Cu Chi underground water plant with a supply capacity of more than 10.000 m³/day and night.

4. Power System

• The industrial park features a 110KV/220KV power supply station system with a capacity of 2 x 36 MVA, directed directly to the factories’ fences. This setup facilitates convenient installation and meets the capacity requirements of businesses. With 8 3P-22V power lines directly connected to line 471 Duc Hoa, the power network is designed to fulfill the high and continuous demand of businesses in the industrial park.

5. Telecommunications System

• To meet the communication and exchange needs of domestic and foreign businesses and partners, Tan Duc IP has established a smooth and modern communication system. The entire industrial park boasts up to 5.000 domestic and international links, with a central switchboard featuring a capacity of 22.000 ports to facilitate various types of global telecommunications communications. Businesses can easily connect with customers and partners via phone, fax, email, and the internet.

Completed infrastructure at Tan Duc Industrial Park

IV. Industries Attracting Investment in Tan Duc Industrial Park

Tan Duc IP has the flexibility to host a wide array of industries. However, aligning with the policies of the Government and Long An province, priority sectors for investment attraction include:

• Electrical, Electronics, Telecommunications Industries:
  • Microelectronics, optoelectronics.
  • Telecommunications.
  • Industrial and household electricity.
• Auto Mechanics, Precision Mechanics, Robot Manufacturing:
  • Mechanical industry.
  • Machine manufacturing.
  • Medical instrument manufacturing.
  • Automobiles.
  • Mining service industry.
• Biological Occupations in Agriculture, Health, and Environment:
  • Pharmaceutical production.
  • Cosmetics.
  • Sports equipment.
  • Production tools.
  • Food processing.
  • Environmentally friendly industries.

Additionally, Tan Duc IP is diversifying into other sectors such as paper production, printed packaging, leather shoes, textiles, construction materials, paint, plastic, rubber production, food and beverage services, and restaurants. For precise information on permissible industries, business owners should directly contact the Management Board for assistance and guidance.

V. Investment Incentives for Tan Duc Industrial Park

Tan Duc IP not only captures investor attention due to its modern and integrated infrastructure within the industrial-urban-service park complex but also offers attractive preferential policies. Notable incentives for investment businesses include:

• Corporate Income Tax Exemption:
  • Tax exemption for the first 2 years from the year of taxable income.
• Low Income Tax Rates:
  • For the subsequent 4 years after tax exemption, businesses will benefit from a reduced tax rate of 8,5%.
  • In the subsequent 4 years, an income tax rate of 17% will be applied.
• Import Tax Exemption:
  • Applied in accordance with the Government’s Decree and other regulations of Long An province (if any).

VI. Investment Costs of Tan Duc Industrial Park

Compared to other industrial parks in Long An province, Tan Duc IP maintains lower investment fees for ongoing operations. Reduced capital contributions to investment facilitate quicker capital recovery, fostering faster profitability for businesses.

Investment Costs of Tan Duc IP are detailed in the following table:

VII. Labor Sources and Labor Costs of Tan Duc Industrial Park

Tan Duc IP strategically situated adjacent to Ho Chi Minh City and neighboring provinces enjoys a rich and ample labor pool. The workforce exhibits a relatively high level of qualification, effectively meeting the demands of businesses. Moreover, the province itself boasts a large and diverse labor source.

Recent investments in economic, industrial, and service development in Long An have led to increased conversion of land and agricultural occupations, resulting in a surplus labor force from agriculture. This surplus labor force serves as a crucial and substantial human resource for industrial parks.

The cost of hiring workers in Tan Duc IP is notably affordable, catering to the needs of businesses. Presently, the reference price for hiring workers ranges from approximately 100 to 300 USD per person per month. For highly skilled workers, the rental cost may rise to around 400 – 500 USD per person per month. Overall, the labor costs at Tan Duc IP are quite reasonable, contributing significantly to the revenue and profits of businesses operating within the park.

VIII. Summary

Tan Duc Industrial Park, a pioneer among industrial parks in Long An province, stands as a testament to longevity and modernity. Attracting over 100 domestic and foreign investors, the park maintains a high occupancy rate. Beyond offering a secure and convenient space for business and production, Tan Duc Industrial Park generates substantial economic value.

With enduring allure unaffected by time, coupled with a perpetually updated modern infrastructure and material system, TTTFIC envisions Tan Duc Industrial Park as a source of numerous benefits for businesses and investors. Additionally, amid the rapid growth of Long An province, Tan Duc Industrial Park holds ample opportunities for scale development and expansion. This presents prospects for business breakthroughs and enhanced efficiency for enterprises within the park.