Tan Tao Industrial Park: A Catalyst for Ho Chi Minh City’s Industrial Economy
Tan Tao Industrial Park (Tan Tao IP) emerged as one of the largest industrial parks in Ho Chi Minh City in 1996, significantly impacting the city’s industrial landscape. This industrial park has played a pivotal role in the city’s development, contributing to its transformation into the largest industrial center in the country.
I. Overview of Tan Tao Industrial Park – Ho Chi Minh City
While smaller in scale compared to contemporaneous Ho Chi Minh industrial parks like Northwestern Cu Chi Industrial Park and Hiep Phuoc Industrial Park, Tan Tao IP stands out and attracts businesses due to its strategic location and the potential to leverage various city policies for the economic development of the Northwest region of Ho Chi Minh City.
1. Information about Tan Tao Industrial Park
Tan Tao IP, spanning 343,9 hectares, is a multi-industry industrial park established on November 30, 1996, under Decision No. 906/TTg of the Prime Minister. Decision No. 1566/QD-UBND, signed on April 1, 2013, facilitated adjustments to the park. Its significance extends to the socio-economic development of Binh Tan District in Ho Chi Minh City.
2. Current Investment Status of Industrial Parks
As of 2020, Tan Tao IP reported net revenue of 648,8 billion VND, with a profit after tax reaching 179,1 billion VND. The accumulated profit after tax and capital surplus as of December 31, 2020, amounted to 1.341 billion VND. With an impressive occupancy rate of 97,41%, the park has attracted substantial investment, with over 20% of businesses being major international players from countries such as Korea, Taiwan, Hong Kong, China, USA, UK, etc. Notable companies in the park include Southern Battery – Battery Joint Stock Company, Akira VH Electrical and Electronics Co., Ltd., Metal Packaging and Metal Printing Manufacturing Co., Ltd., and more.
3. Information on Industrial Park Investors
Tan Tao IP is developed by Tan Tao Investment and Industry Joint Stock Company (ITACO). Established on December 4, 1996, as Infrastructure Investment – Construction – Trading Company Limited, it later became Tan Tao Investment Group – ITA Group on June 30, 2007. With a charter capital of 600 billion VND, ITA Group is recognized as one of the nine leading enterprises in Vietnam, selected to join the Russell Global Index securities. It also stands among the top 10 companies with large capitalization and excellent liquidity in Vietnam.
Map of Tan Tao Industrial Park – HCMC
II. Location of Tan Tao Industrial Park – Ho Chi Minh
Tan Tao IP is situated in Tan Tao A ward, Tan Binh District, Ho Chi Minh City, approximately 12 km from the city center. It boasts a highly convenient transportation system, strategically positioned in the key industrial region in the southern part of the country:
Located on the highway connecting the southwestern provinces.
Connected to the Trans-Asia road for trade with the Southeast provinces.
15 km from Saigon Port.
12 km from Tan Son Nhat International Airport.
14 km from Saigon Station.
This strategic location facilitates the movement of workers and the transportation of goods for businesses to consumer markets or other industrial zones both within and outside Ho Chi Minh City.
III. Infrastructure System of the Industrial Park
As one of the rapidly growing and robust industrial parks in Ho Chi Minh City, Tan Tao IP boasts an exceptionally modern and comprehensive infrastructure system that meets international standards, making it a preferred choice for many investors.
1. Traffic System
The internal road system has been heavily invested in to cater to the needs of workers and businesses. All roads are asphalted, capable of bearing heavy loads, and equipped with a lighting system. Specifics include:
The main roads are 30 m wide.
Internal roads are 20 m wide.
Additionally, Tan Tao IP possesses a modern and convenient transportation system outside the area, with key traffic works in close proximity.
2. Power Supply System for Industrial Park
The industrial park draws power directly from the national grid, supplied through the 110/15 22 (KV) – Phu Lam transformer station, ensuring a stable and ample power supply for businesses.
3. Water Supply System
Water needs for the entire Tan Tao IP are met through the city’s water supply system, with a capacity of 10.000 m3/day and night. Backup water sources from underground water treatment plants, with a capacity of 5.000 m3/day and night, are also in place.
4. Industrial Wastewater Treatment Plant
To prevent environmental pollution, industrial wastewater from the factories undergoes concentration and treatment in compliance with legal regulations. The wastewater treatment system has a capacity of 10.500 m3/day and night, meeting type A output standards.
5. Communication Systems
A fully operational telecommunications system caters to the IT and communication needs of businesses and workers. Services include cheap international and long-distance calling, Internet access, and business management applications.
6. Fire Protection System
A modern fire protection system, upgraded to meet Vietnamese regulations, is in place to prevent fire and explosion incidents. Trained firefighters are equipped to handle emergencies and safeguard workers and business assets.
7. Security System
To ensure the overall security of the area, Tan Tao IP is equipped with surveillance cameras at control points and manufacturing plants, along with security posts and patrols 24/7.
8. Other Utility Systems
Various internal utilities enhance the well-being of workers, including a bank, insurance, fire prevention station, medical station, logistics center, transformer station, industrial waste treatment station, workers’ canteen, swimming pool, and tennis court.
Investing in and constructing such modern infrastructure systems reflects the project owner’s commitment to investors and the ongoing development of businesses within the park. This extensive system contributes significantly to the sustained development of Tan Tao IP, establishing it as one of the oldest and continuously growing industrial parks in Binh Tan District, Ho Chi Minh City.
Modern and synchronous infrastructure system
IV. Industries Attracting Investment in Tan Tao Industrial Park
With the ambition of becoming a multi-industry industrial park in Ho Chi Minh City, Tan Tao IP is actively attracting investment capital across various sectors. Key industries include:
Mechanical, electrical, and electronic industries,
Agricultural and seafood processing, along with food and beverage production,
Cosmetic and pharmaceutical processing and manufacturing,
Construction industries,
Production of construction materials, plastic, and rubber products,
Textile, printing, dyeing, and packaging,
Paper and stationery industries,
Exploitation and processing of wood, along with handicrafts,
Assembly, repair, and manufacturing of automobiles and motorcycles, etc.
V. Investment Incentive Policies in Tan Tao Industrial Park
To facilitate enterprises in production and business, reducing investment capital and accelerating payback periods, Tan Tao IP has proposed and implemented several preferential policies:
1. Corporate Income Tax Incentives
Tax Rate: 20% for the initial 10 years from the first year the project generates revenue, applicable to businesses operating in industrial parks established according to government regulations.
100% tax exemption for the first 2 years and a 50% reduction for the subsequent 4 years for businesses operating in industrial zones.
2. Incentives on Tax Exemption and Reduction Periods
The tax exemption and reduction period is calculated continuously from the first year an enterprise has taxable income from a new investment project enjoying tax incentives.
If an enterprise has no taxable income in the first three years, the tax exemption or reduction period starts from the fourth year of the new investment project generating revenue.
3. VAT Incentives
Value Added Tax (VAT) applies to goods and services consumed in Vietnam, with tax rates of 0%, 5%, and 10%.
A 0% tax rate applies to the export of specific goods and services, including those provided to industrial zones.
Additionally, businesses in Tan Tao IP receive free support from the project investor for legal procedures, including obtaining an Investment Certificate and Business Registration Certificate. The investor also assists businesses in the search and recruitment of human resources.
VI. Investment costs in Tan Tao Industrial Park
Some specific investment costs in Tan Tao IP for your reference are as follows:
Industrial land rental price
400 USD/m2The lease term is 50 years (until 2047).
Payment methods:
50% prepaid after signing the agreement
50% payment upon completion of investment procedures and contract signing. Or you can pay deferred within 5 years from signing the contract.
Infrastructure management fee
0,0175 USD/m2/month.
Infrastructure maintenance fees
10.018 VND/m2/year
Cost of wastewater treatment
Cost of wastewater treatment:
Type B: 3.500 VND/m3.
Type C: 6.200 VND/m3.
Water price
Water supply price:
Price of clean water for daily use: 15.000 VND/m3.
Production water price: 15.000 VND/m3.
Electricity price
Electricity prices are calculated according to the following time zones:
Peak hours (From 9:30 a.m. to 11:30 a.m.; 5:00 p.m. to 8:00 p.m.): 3.074 VND/Kwh.
Normal hours (From 4:00 a.m. to 9:30 a.m.; 11:30 a.m. to 5:00 p.m. from 8:00 p.m. to 10:00 p.m.): 766 VND/Kwh.
Off-peak hours (From 10pm to 4am): 1.152 VND/Kwh.
Phone and Internet prices
According to general regulations of VNPT telecommunications company
With the geographical location, infrastructure system and values that Tan Tao IP brings, this cost is considered reasonable by experts for businesses here.
VII. Labor Costs and Labor Resources
Businesses in Tan Tao IP need not worry about the labor force, as it is abundant and stable. Ho Chi Minh City, with 8.9 million people, has 5.6 million of working age, constituting 62.9% of the total population. Importantly, a significant proportion of these individuals are trained workers, making it easier for businesses to recruit skilled personnel to support production and economic development.
In addition to local labor, Tan Tao IP attracts workers from various regions, including Binh Duong, Ba Ria – Vung Tau, and others in the Central and Northern regions, due to its Ho Chi Minh City location. The city is a leading industrial center in Vietnam, experiencing remarkable growth compared to other major cities in the country.
This information provides a comprehensive overview of Tan Tao IP. For more valuable insights, please follow TTTFIC.
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