Tan Thoi Hiep Industrial Park - Ho Chi Minh City

Home|INDUSTRIAL PARKS IN VIETNAM|Tan Thoi Hiep Industrial Park – Ho Chi Minh City
Information
Operating time: 1997 - 2047
Total Area: 215,4 ha, phase 1: 28,41 ha
Infrastructure investors: TAN THOI HIEP CO., LTD
Price: 150 USD/m2
Building density: 60%
Occupancy: 100%
Address: Hiep Thanh Ward, District 12, Ho Chi Minh City, Vietnam

Tan Thoi Hiep Industrial Park, established in 1997 in Ho Chi Minh City, attracts domestic and foreign investors with its modern, eco-friendly development and diverse industries. Over 22 years, it has significantly contributed to local and national industrial growth, occupying its entire phase 1 area of 28,41 hectares. The park aligns with Ho Chi Minh City’s vision to become a leading economic, cultural, and technological hub in Southeast Asia.

I. Overview of Tan Thoi Hiep Industrial Park – Ho Chi Minh City:

Tan Thoi Hiep Industrial Park was established by Tan Thoi Hiep Industrial Park Infrastructure Investment Co., Ltd., according to its Decision No. 480 BXD/KTQH dated October 18, 1997, by the Ministry of Construction and has been invested and constructed since 1999.

Domestic and foreign investors find Tan Thoi Hiep Industrial Park an attractive destination due to its modern and environmentally friendly development, as well as its diverse industries.

Over the past 22 years of development, the industrial park has made a significant contribution to the industrial development of the local area and the country as a whole.

The total planned area of the industrial park is 215,4 hectares, of which the area of phase 1 is 28,41 hectares. Currently, the entire area of Phase 1 has been filled 100%.

Tan Thoi Hiep Industrial Park, belonging to Ho Chi Minh City, is a dynamic and innovative industrial park that always takes the lead in social movements. It was the first in the country to be recognized for achieving universal secondary education.

With a leading role in the strategic polygon of economic and social development, Ho Chi Minh City has become a major economic, cultural, tourism, education, science, technology, and healthcare center of the country. In the future, the city will develop strongly in all aspects, with a modern industrial and agricultural structure, advanced culture, and science, and become a modern civilized city with regional significance in Southeast Asia.

The industrial park land structure:

On December 8, 2009, the People’s Committee of Ho Chi Minh City issued Decision No. 5619/QD-UBND, approving adjustments to the detailed construction plan at a 1/2000 scale for Phase 1 of Tan Thoi Hiep Industrial Park located in District 12. This decision authorized land usage in the following categories:

1. Land for factory and industrial facilities: 198.127 m2 (69,73%)
2. Warehouse and open space: 11.784 m2 (4,15%)
3. Land for administrative and service purposes: 9.612 m2 (3,38%)
4. Land for technical infrastructure: 3.735 m2 (1,31%)
5. Land for transportation: 40.993 m2 (14,43%)
6. Green space: 19.881 m2 (7%)

The total area approved for development amounts to 284.132 m2.

Wellcome gate of Tan Thoi Hiep Industrial Park - Ho Chi Minh City - TTTFIC Group
Welcome gate of Tan Thoi Hiep Industrial Park – Ho Chi Minh City – TTTFIC Group

II. Geographic Location of Tan Thoi Hiep Industrial Park – Ho Chi Minh City:

The industrial park is located in Hiep Thanh Ward, District 12, Ho Chi Minh City, Vietnam.

The industrial Park possesses a strategic location, being less than 11 km from the center of Ho Chi Minh City and adjacent to Tan Son Nhat Airport. This grants it advantages in transportation, modern infrastructure, and ease of import and export activities with quick and efficient results.

Boundary scope:

  • East: borders Thoi An Ward.
  • West: borders Tan Chanh Hiep Ward.
  • South: borders Dong Hung Thuan Ward and Go Vap District.
  • North: borders Hiep Thanh Ward.

Distances:

  • 7 km from National Highway 1A.
  • 11 km from the center of Ho Chi Minh City.
  • 16 km from Tan Son Nhat International Airport.
  • 17 km from Saigon Port, and 28,1 km from Cat Lai Port.
  • 17 km from Saigon Railway Station.
  • 26 km from Saigon – Long Thanh Expressway.

With such an advantageous location, this place enjoys benefits in transportation, leading to significant cost savings and attracting a large labor force to the area.

III. Infrastructure at Tan Thoi Hiep Industrial Park – Ho Chi Minh City:

Internal transportation:

The entire 10km of roads, which have been fully paved with a minimum width of 16m, allow large containers with loads of up to 40 tons to move smoothly.

Electrical system:

The national power grid with a capacity of 65 KVA-43.8 MW operates in parallel with the 15 KV Lora of the Industrial park.

Public lighting system:

  • The residential power supply system is separate from the street lighting network, and the latter is arranged along the traffic routes.
  • Over 12% of the total area of the industrial zone is dedicated to green trees along the roadways.

Water system:

The Industrial Park Water Supply Station treats and supplies clean water meeting the standard for domestic use from its groundwater source, with a capacity of 3.000 m3/day in phase 1.

Wastewater and stormwater drainage system:

  • Within the Industrial park, the construction of the stormwater drainage system is separate from the wastewater drainage system.
  • The diameter of the stormwater drainage pipes ranges from D600 to D1500, operating on the principle of automatic drainage.

Waste disposal:

The investor will contract with licensed professional waste disposal units according to regulations.

Wastewater treatment:

The wastewater treatment system has a capacity of 10.500 m3/day and is a modern, complete system connected to each enterprise.

Communication system:

The telecommunications system meets international standards and is ready to fulfill high-speed communication and data needs.

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IV. Key Industries at Tan Thoi Hiep Industrial Park – Ho Chi Minh City:

Tan Thoi Hiep Industrial Park is a multi-sector industrial park, primarily attracting various industries, including:

  • Mechanical engineering, machine manufacturing, electrical appliances, and industrial & civil electrical parts production.
  • Electronics, information technology, and telecommunications industry.
  • Light industries such as garment, footwear, textile, jewelry, ceramics, glass, etc.
  • Fine arts and interior decoration, rubber, plastics industry.
  • Automobile manufacturing, agricultural machinery, motorcycles, transportation vehicles, and replacement parts.
  • Food processing and household utensil production.
  • Construction steel, steel pipes, steel components.
  • Environmentally friendly or environmentally restricted industries.

V. Investment Costs at Tan Thoi Hiep Industrial Park – Ho Chi Minh City:

  • Land lease price: 150 USD/m2
  • Factory lease price: 4 USD/m2
  • Wastewater treatment cost: 0,3 USD/m3.
  • Land lease rate: 100% utilized
  • Electricity price: 0,07 USD/KWh
  • Water price: 0,4 USD/m3
  • Management fee: 0,35 USD/m2/yearly

VI. Labor Source and Costs at Tan Thoi Hiep Industrial Park – Ho Chi Minh City:

Human Resources:

Ho Chi Minh City, in general, and District 12, in particular, have a well-developed education system attracting a large workforce for study and employment. As a result, they can effectively meet both the quantity and quality demands of investors.

Currently, the labor force in Tan Thoi Hiep Industrial Park is approximately 10.000 workers. The majority of the labor force comes from District 12, but the zone is also attracting workers from neighboring areas such as Binh Tan District, Binh Thanh District, Go Vap District, and even Thuan An City in Binh Duong Province.

With diverse industries operating in the area, especially those that require a large workforce to support their production processes.

Labor costs:

  • The Industrial Park is located in Ward Hiep Thanh, District 12, Ho Chi Minh City, falling within Region I.
  • In Region I, the present minimum wage stands at 4.680.000 VND per month.

VII. Investment Incentive Policies at Tan Thoi Hiep Industrial Park – Ho Chi Minh City:

The standard corporate income tax rate currently applied is 25%.

However, depending on the industry and incentives provided by the law to encourage investment, investors can enjoy the following preferential income tax rates:

  • Various incentive levels: from 10% to 20% (applied for 15 to 30 years or the project implementation period).
  • Tax exemption period (corporate income tax): maximum 4 years.
  • Tax reduction period (50%): maximum 9 years.

For sectors such as education, vocational training, healthcare, culture, sports, and the environment: The tax rate is 10% applied to the operating income of active enterprises.

For industries such as software production, high technology, investment in water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airport terminals, and infrastructure projects: A preferential tax rate of 10% is applied for 15 years.

Regarding import taxes: Investors are considered for import and export tax exemption for goods imported as raw materials or machinery to create fixed assets that are not domestically produced.

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The land for lease that belong to Industrial Park has run out of stock. Only the land and warehouse has been re-invested by individual investor that still available

TTTFIC Group: Guide to Industrial Real Estate in Vietnam


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