Tan Thuan Export Processing Zone

Tan Thuan Export Processing Zone (Tan Thuan EPZ) is situated in District 7, Ho Chi Minh City, and stands as a pivotal project that holds great allure for foreign businesses and investors. As of now, Tan Thuan EPZ boasts 25 years of operation, having attracted 192 projects from 20 countries and territories. The operational statistics of factories and the total investment capital at Tan Thuan EPZ are benchmarks that many industrial parks aspire to achieve.

I. Overview of Tan Thuan Export Processing Zone – Ho Chi Minh City

Tan Thuan EPZ, located in District 7, was established in 1991 and has engaged in more than 30 activities to date. Formed concurrently with several major industrial park projects in Ho Chi Minh City, such as Hiep Phuoc Industrial Park, Tan Tao Industrial Park, Tan Binh Industrial Park, Tan Thuan EPZ has significantly contributed to the remarkable growth of Ho Chi Minh City’s economy, maintaining its prominent position throughout the first two decades of the 21st century.

In recent years, Tan Thuan EPZ has transitioned its planning towards an eco-industrial park, emphasizing green, clean, and aesthetically pleasing elements. The zone prioritizes environmental protection and places considerable attention on amenities for both investors and workers.

1. Investor of Tan Thuan Export Processing Zone

Tan Thuan EPZ is among the first two export processing zones in Vietnam invested by Tan Thuan Industry Promotion Company (IPC) and Central Region Trade Development Group. Tan Thuan Company Limited (TTC), a joint venture between IPC and Phu My Hung Asia Holding, directly manages and operates the export processing zone.

Since its establishment in 1991, Tan Thuan EPZ has been officially invested in by TTC. Over more than 30 years of operation and numerous remarkable achievements, this unit has become a member of the World Association of Export Processing Zones. Additionally, Tan Thuan EPZ has secured the top position in the ranking of the most attractive export processing zones in the Asia-Pacific region.

2. Scale of Tan Thuan Export Processing Zone

• Total area: 300 hectares
• Initial investment capital: $89 million

3. Investment Status

As of 2016, Tan Thuan EPZ in District 7 has attracted over 192 projects from 20 countries and territories, with 162 factories in operation and a total investment capital of up to $1,65 billion.

Presently, Tan Thuan EPZ is exploring a high-tech cluster model, a successful model in some Asian countries. This transformation aims to enhance land use efficiency and create high-quality jobs, attracting investments in technology and fostering a sustainable development environment.

While the city’s land resources are becoming increasingly scarce and opportunities to develop industrial parks are limited, Tan Thuan EPZ maintains its pivotal position in the industry. Undoubtedly, with systematic investment and research, Tan Thuan EPZ will continue to evolve in the future, becoming an even more ideal investment destination.

II. Location of Tan Thuan Export Processing Zone

The strategic location of Tan Thuan EPZ gives it a notable advantage not shared by all industrial park projects in Ho Chi Minh City. District 7, where the zone is situated, is undergoing rapid development and features well-planned and modern transportation infrastructure.

Tan Thuan EPZ enjoys a favorable location for the efficient transportation and exchange of goods. Positioned in an area with multiple arterial roads and an essential transportation infrastructure system, Tan Thuan EPZ stands out as a rare project situated in the city center. It boasts easy connectivity to districts and vital traffic hubs via road, waterway, and air.

1. Connection Potential of Tan Thuan Export Processing Zone

• 4 km from Ho Chi Minh City center
• 2 km from Phu My Bridge
• 2 km from Phu My Hung New Urban Area
• 1 km from Tan Thuan Port
• 4 km from Ben Nghe Port
• 8 km from Saigon New Port
• 11 km from Cat Lai Port
• 12 km from Tan Son Nhat Airport

Being located adjacent to the Saigon River provides Tan Thuan EPZ businesses with convenient access to the river network, offering alternative options for transporting goods by water. This strategic positioning contributes to significant cost savings in shipping.

III. Infrastructure of Tan Thuan Export Processing Zone

Tan Thuan EPZ boasts not only a convenient location but also a modern and well-coordinated infrastructure system. This infrastructure is designed to create favorable conditions for the production and business activities of various businesses and investors.

1. Internal Transportation System

The internal transportation system in Tan Thuan EPZ is scientifically designed to ensure smooth and convenient movement. The internal roads within the export processing zone are spacious, of high quality, and capable of withstanding substantial loads. Additionally, Tan Thuan EPZ features a river port directly connected to the seaport, facilitating the transportation of goods.

2. Electric Supplying System

The electric supply system is designed to ensure an ample energy supply for the production activities of factories. Transformer stations strategically located within the export processing zone provide a stable and continuous power supply.

3. Clean Water Supply System and Wastewater Treatment

Tan Thuan EPZ ensures a sufficient supply of clean water for both daily life and production. The project’s investor places significant emphasis on the wastewater treatment system and environmental protection.

4. Other Amenities

Apart from technical infrastructure, Tan Thuan EPZ has invested in additional amenities. These include dining areas, rest zones, sports fields, medical centers, and support services catering to the needs of both workers and private investors. The investor of Tan Thuan EPZ proactively listens to feedback and invests in various amenities to meet the evolving needs of investors.

IV. Industries Attracting Investment in Tan Thuan Export Processing Zone

Tan Thuan EPZ focuses on various fields and industries, with a particular emphasis on attracting investment in the following sectors:

• Information technology, telecommunications, and mobile communications.
• Electronic manufacturing and assembly, including the production of electrical components, cabinets, and electronic devices.
• Textile, garment, and footwear, involving the production and processing of textile, garment, and footwear products for export.
• Production and processing of food for export.
• Chemicals and pharmaceuticals.

V. Investment Incentives of Tan Thuan Export Processing Zone

Investors who choose to invest in Tan Thuan EPZ receive numerous attractive incentives from the project management board and the city People’s Committee. These incentives include:

• Exemption from import tax on machinery, equipment, and raw materials.
• Tax-free export of products.
• 0% VAT (Value-Added Tax).

In addition to these tax incentives, investors in Tan Thuan EPZ receive various support services, particularly in logistics-related industries. The management board ensures that investors and businesses operating in Tan Thuan EPZ receive attention and assistance to address any challenges they may encounter.

VI. Investment Costs in Tan Thuan Export Processing Zone

Concerning investment costs, Tan Thuan EPZ has higher land rental prices compared to some industrial parks in Ho Chi Minh City. It ranks among the top three industrial parks with the highest rents, along with Hiep Phuoc Industrial Park and Vinh Loc Industrial Park.

Below is a table detailing the investment costs at Tan Thuan EPZ for investors to consider before making a decision.

VII. Labor Resources and Labor Costs

Tan Thuan EPZ benefits from its advantageous geographical location, adjacent to District 1, and boasts modern transportation infrastructure. This strategic positioning provides significant advantages in attracting highly skilled human resources. The project management board and investors are actively pursuing the goal of transforming Tan Thuan EPZ into a high-tech hub, contributing to the creation of an optimal working environment to attract top talents.

The favorable location and commitment to becoming a high-tech park have made Tan Thuan EPZ a magnet not only for human resources within Ho Chi Minh City but also from various provinces and cities across the country. As a result, businesses operating in the zone do not face significant challenges in sourcing human resources for their production activities, even during peak periods.

VIII. Summary

The highly regarded Tan Thuan EPZ, with its prime location and advanced technical infrastructure, is the preferred choice for both domestic and foreign businesses. Experts anticipate substantial foreign direct investment (FDI) capital inflow during the 2020-2025 period.

With a strategic focus on transforming into an ecological industrial park, Tan Thuan EPZ plans to diversify its production and trade models, incorporating elements such as banking, logistics, distribution centers, and healthcare services. Systematic and comprehensive investment in Tan Thuan EPZ is expected to connect and develop businesses, contributing to District 7 and Ho Chi Minh City’s overall economic structure.

The information compiled and shared by TTTFIC aims to assist businesses and investors in making informed decisions. This article serves as a comprehensive resource, providing insights into the strengths and opportunities offered by Tan Thuan EPZ.