Tan Hung Industrial Park - Bac Giang

Tan Hung Industrial Park – Bac Giang, located in the Bac Giang province of Vietnam, spans an area of 105,3 hectares. Positioned strategically and committed to sustainability alongside a business-friendly environment, Tan Hung Industrial Park – Bac Giang is driving regional development and offering significant opportunities for investors and businesses seeking prospects in Vietnam’s industrial sector.

I. Overview of Tan Hung Industrial Park – Bac Giang

Information about the industrial park

Tan Hung Industrial Park – Bac Giang was approved to be included in the province’s industrial park development plan by the Prime Minister in Official Letter No. 216/TTg-CN on February 23, 2021.

The Bac Giang Provincial People’s Committee approved Decision No. 715/QD-UBND, approving the detailed construction plan of Tan Hung Industrial Park at a 1/500 scale on July 16, 2021.

On November 23, 2021, the investment project for infrastructure construction and operation of Tan Hung Industrial Park was approved by the Prime Minister in Decision No. 1971/QD-TTg, with infrastructure investment by Lideco 1 Joint Stock Company.

The total investment capital for the Tan Hung Industrial Park project is 1.185 billion VND, with an operational period of 50 years (2021-2071).

The industrial park covers a total area of 105,3 hectares, with industrial land accounting for 73,61 hectares (approximately 69,91% of the planned area), divided into two phases:

• Phase 1: Construction of Tan Hung Industrial Cluster with an area of 49,7 hectares and a factory construction density of 65%. The construction began in May 2020, and they expect it to be operational in the first quarter of 2021.
• Phase 2: Expansion to become Tan Hung Industrial Park with a total area of 105,3 hectares, aiming to attract investment capital to Bac Giang province.

Competitive advantages

Located near Hanoi, Bac Ninh, and other important logistics hubs, situated in the Nam Ninh (China) – Lang Son – Hanoi – Hai Phong economic corridor, and adjacent to key economic regions in the north.

• Tan Hung Industrial Park’s strategic location provides convenient transportation access to Hanoi, Bac Ninh, and Noi Bai International Airport through the Bac Giang – Lang Son expressway and National Highway 1A.
• The area is home to many large FDI manufacturing enterprises such as Foxconn, and Luxshare-ICT (13km), facilitating domestic and international goods transportation.
• High-quality infrastructure, flexible scale, and well-developed integrated infrastructure systems.
• International operational management and competitive rental rates.
• Abundant labor resources with competitive wages.
• Numerous investment incentives for businesses.

Investor Information

Investor: Lideco 1 Joint Stock Company
Address: 2nd Floor, NV1-14 Residential Area, Dai Mo Ward, Nam Tu Liem District, Hanoi City, Vietnam.

Master plan map of Tan Hung Industrial Park – Bac Giang – TTTFIC Group

II. Geographical Location of Tan Hung Industrial Park – Bac Giang

Tan Hung Industrial Park is located in Tan Hung and Xuong Lam communes, Lang Giang district, Bac Giang Province, Viet Nam.

Borders:

• The north borders the Tan Hung Industrial Cluster.
• The south borders residential areas and agricultural land.
• The east borders agricultural land and transportation routes.
• The Bac Giang – Lang Son expressway forms the western border.

In terms of regional connectivity, Tan Hung Industrial Zone is adjacent to the Bac Giang – Lang Son expressway and has the following distances:

• 14 km from Bac Giang city.
• 83,8 km from the center of Hanoi.
• 66 km from Noi Bai International Airport.
• 166 km from Hai Phong port.
• 106 km from the Huu Nghi International border gate (Lang Son province).

III. Infrastructure of Tan Hung Industrial Park – Bac Giang

Power supply system

• The production power supply in Tan Hung Industrial Park originates from 35kV lines that connect to the 110kV/35kV transformer station in Lang Giang via Road 374E7.13 along Provincial Road 295.
• The industrial park will construct a 110kV/35kV/22kV transformer station with a capacity of 36 MVA in the long term.

Water supply system

• Clean water for production is obtained from the Huong Son clean water plant, which has a water supply capacity of 2.400 m3/day and night for the project.
• Water is delivered through an underground D355 water supply pipeline located beneath the sidewalks, ready to connect to each plot of land.

Wastewater treatment system

• A centralized wastewater treatment plant with a capacity of 1.700 m3/day and night collects and treats all wastewater within Tan Hung Industrial Park.
• The treated water meets Type A standards before being discharged into the environment.

Internal road transportation system

• The main axis of Tan Hung Industrial Park has a cross-sectional width of 50,5 meters, with a road width of 12,5 meters * 2 = 25 meters.
• Branch roads within the industrial zone have cross-sectional widths ranging from 15 meters to 18 meters, 22,5 meters, 29,5 meters, 32 meters, and 34 meters.
• The road width varies from 10,5 meters to 12,5 meters.
• The industrial park equips all roads with sidewalks, drainage channels, and landscaping along the roadways.

Communication system

• Communication cabinets connect fiber optic cables to each plot of land within the industrial park.

Other infrastructure facilities

• The industrial park installs firefighting and fire prevention systems with fire hydrants along the transportation routes, serving within a radius of 150 meters.
• Landscaping and greenery system.
• Separate the stormwater drainage system from the wastewater system.

IV. Attractive Investment Sectors in Tan Hung Industrial Park – Bac Giang

Tan Hung Industrial Park is a multi-sector industrial zone with synchronized, modern infrastructure, and it attracts investment projects in various fields:

• Agro-forestry processing.
• Food processing.
• Mechanical engineering, electronic components, packaging, and environmentally friendly supporting industries.

V. Expected Investment Costs of Tan Hung Industrial Park – Bac Giang

• Land rental price: 130 USD/m2 for the entire project operation period. The rental price may vary depending on the area and location of the leased land.
• The fee for infrastructure management and maintenance is 0,5 USD/m2/year.
• Land lease payment: The lessee leases the land for 50 years with a one-time payment, and the infrastructure usage fee already includes the land lease payment.
• Electricity price: Applied according to EVN’s electricity tariff. Reference prices: Peak hours: 0,12 USD/KWh. Normal hours: 0,064 USD/KWh. Off-peak hours: 0,042 USD/KWh (excluding VAT).
• Water price: 0,57 USD VND/m3, calculated based on actual water usage.
• Wastewater treatment fee: 0,4 USD/m3 (excluding VAT).
• The calculation of the treated wastewater fee is based on 80% of the clean water input.
• Telephone, fax, and other expenses: Based on the rates provided by the service providers.

Transportation connectivity to Tan Hung Industrial Park – Bac Giang – TTTFIC Group

VI. Investment Incentives in Tan Hung Industrial Park – Bac Giang

Land rental

• Free land rental for the first 7 years and subsequent years will follow the regulations stipulated by the law.

Corporate income tax

• 17% for 10 years
• Specifically, tax exemption for the first 2 years and a 50% reduction in tax for the following 4 years.
• The tax exemption or reduction period is calculated continuously from the first year of taxable income. In case there is no taxable income in the first 3 years after the year of generating revenue from the project, the period will be calculated from the fourth year.

Import tax exemption for fixed assets

• According to the regulations of the law.

VII. Labor Source and Costs in Tan Hung Industrial Park – Bac Giang

Labor Source

• Bac Giang is a province with over 1,8 million people. It is ranked 12th in the country in terms of population. The working age group in Bac Giang comprises over 1,1 million people, accounting for 61,2% of the population.
• Currently, there are nearly 7.000 active businesses in the province. These businesses employ around 275.000 workers. Among them, there are 383 businesses located in industrial zones. These industrial zone businesses employ around 165.000 workers.
• The province has one university, three colleges, four vocational schools, and 41 vocational education institutions that meet the demand for high-quality vocational training for workers.
• Annually, vocational education institutions enroll a scale of 35.550 individuals. The enrollment includes over 1.600 individuals at the college level.
  Additionally, there are over 5.500 individuals at the intermediate level. Moreover, there are over 28.300 individuals at the elementary level. The total number of licensed training occupations is 109, including 24 at the college level, 59 at the intermediate level, and 58 at the elementary level.

Costs

• Tan Hung Industrial Zone is located in Tan Hung and Xuong Lam communes, Lang Giang district, Bac Giang province, classified as Zone III.
• The minimum wage for Zone III is 3.430.000 VND.