Thach That - Quoc Oai Industrial Park - Ha Noi

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Information
Operating time: 2007 - 2057
Total Area: 155 Ha
Infrastructure investors: Ha Tay Investment Development Joint Stock Company
Price: 100<span class="nc-unit"> USD/m<span class="nc-unit-pus">2</span></span>
Building density: 60%
Occupancy: 100%
Address: Quoc Oai town and Phung Xa commune, Thach That district, Hanoi City, Vietnam.

The Thach That – Quoc Oai Industrial Park in Hanoi is one of the city’s exemplary industrial zones. It was established to attract both domestic and foreign investors, providing employment opportunities for the residents. Below are some key points to consider when exploring this industrial park.

Due to its advantageous geographical location, extensive space, well-equipped infrastructure with modern machinery, excellent support services, and an abundant labor force, the Thach That – Quoc Oai Industrial Park is an ideal destination for the development of various industrial sectors.

I. Overview of Thach That – Quoc Oai Industrial Park – Ha Noi

On November 30, 2007, the Chairman of the People’s Committee of Ha Tay Province (now Hanoi) issued Decision No. 2266/QD-UBND on the detailed construction plan at a scale of 1/2000 for Thach That – Quoc Oai Industrial Park. The Chairman of the People’s Committee of Ha Tay Province (now Hanoi) established Thach That – Quoc Oai Industrial Park under Decision No. 2500/2007/QD-UB dated December 21, 2007. The establishment was based on the merger of two industrial clusters: Phung Xa (Thach That district) and Quoc Oai town (Quoc Oai district), resulting in a total area of 155 hectares. The industrial park is set to operate until 2057.

In 2017, Decision No. 7190/QD-UBND approved partial adjustments to the detailed construction plan at a scale of 1/2000 for Thach That – Quoc Oai Industrial Park. The adjustments were made in areas marked KT1 and RT, situated in Phung Xa commune (Thach That district) and Sai Son, Tien Son communes, Quoc Oai town (Quoc Oai district), Hanoi.

As a result of the adjustment, approximately 40.569 square meters of land were converted from storage and waste concentration areas to industrial land. This adjustment aims to develop an eco-friendly, clean, high-tech industrial park. It produces valuable products and meets Vietnamese standards and regulations.

This multi-sector industrial park is strategically located near the center of the capital, with minimal environmental pollution, ensuring economic development without affecting the livelihood of the residents in the surrounding areas.

Thach That - Quoc Oai Industrial Park - Ha Noi - TTTFIC Group
Thach That – Quoc Oai Industrial Park – Ha Noi – TTTFIC Group

Investment Status

Currently, 70 enterprises are investing in production in the industrial park, with 33 in the Phung Xa industrial cluster and 37 in the Quoc Oai industrial cluster. Ha Tay Investment and Development Joint Stock Company undertakes the investment, construction, and management of the infrastructure of Thach That – Quoc Oai Industrial Park.

With its favorable geographical position and convenient transportation system, it has attracted numerous reputable investors from Japan, South Korea, Singapore, Hong Kong, and other countries.

Some prominent investors include Meiko Electronic, Young Fast, URC, Hanoi Confectionery Company, Hanoi Soap Company, and Hanoi Beer-Alcohol-Beverage Corporation (HABECO).

Information about the investors of the Industrial Park

The investor of the Industrial Park is Ha Tay Investment Development Joint Stock Company.

Main headquarters address: Ngo Sai Hamlet, Quoc Oai Town, Quoc Oai District, Hanoi City, Vietnam.

Master plan map of Thach That - Quoc Oai Industrial Park - Ha Noi - TTTFIC Group
Master plan map of Thach That – Quoc Oai Industrial Park – Ha Noi – TTTFIC Group

II. Geographical Location of Thach That – Quoc Oai Industrial Park – Ha Noi

The industrial park is located in Quoc Oai town and Phung Xa commune, Thach That district, Hanoi City, Vietnam.

The industrial park is adjacent to the Lang-Hoa Lac expressway, the most important and modern expressway in Hanoi, and is close to modern residential areas and the Hoa Lac high-tech zone, providing convenient transportation for goods. With its strategic location, and favorable transportation system, Thach That – Hanoi Industrial Park is a prime location for business development.

Scope and Boundaries:

  • North: Adjacent to residential areas in Phung Xa commune.
  • South: Adjacent to the Lang Hoa Lac expressway.
  • East: Defined by the boundary of the industrial park.
  • West: Adjacent to the inter-district road.

Distances to the Industrial Park:

  • 44 km from Noi Bai International Airport.
  • Approximately 24 kilometers away from the heart of Hanoi.
  • 148 km from Hai Phong Port.
  • 178 km from Quang Ninh – Cai Lan Deep-water Port.
  • 19 km from Yen Nghia Railway Station, and 24 km from Hanoi Railway Station.
  • 1,5 km from Thang Long Boulevard.

III. Infrastructure in Thach That – Quoc Oai Industrial Park – Ha Noi

Internal Transport:

The industrial park boasts a modern internal road system designed to facilitate easy and convenient transportation for vehicles to each plot of land.

  • Main road system: 36 meters wide.
  • Branch road system: 22,5 meters wide.

Electricity System:

  • Hanoi’s high-voltage power lines provide a continuous and stable power supply, with a total capacity of approximately 60MVA for the entire area.
  • The electricity grid is provided along the internal transport routes within the industrial park.
  • Each enterprise invests in and constructs a low-voltage power substation based on its consumption capacity.

Public Lighting System

  • High-pressure streetlights are installed on both sides of the roads.

Water System

  • A clean water supply system is connected to each enterprise’s perimeter fence, providing a capacity of 19.000m3 per day and night.

Wastewater and Rainwater System

  • Wastewater and rainwater (industrial and domestic wastewater) are separately collected and treated.
  • Rainwater is collected through a system and discharged into rivers in the area.
  • Wastewater is collected for treatment at the industrial park’s wastewater treatment plant.

Waste Treatment

  • The industrial park’s facilities will enter into contracts with waste classification, collection, and transportation units to transport waste out of the industrial park, avoiding environmental pollution.

Wastewater Treatment

  • Enterprises will treat all industrial and domestic wastewater to meet at least the Standard C water quality before discharging it into the common wastewater system of the industrial park.
  • Subsequently, the industrial park will continue to treat the wastewater to meet the regulations set by the Vietnamese government, with a treatment capacity of 3.000m3 per day and night.

Communication System

  • The telecommunication system, fully equipped to cater to all communication requirements, complies with global standards.
  • An underground fiber optic cable system is directly connected to each enterprise’s fence line.

Greenery System

  • The greenery system covers 10-12% of the entire industrial park area, combining concentrated green spaces with trees planted along the roads to create a pleasant landscape for the industrial park.

Fire and Safety System

  • Lessees are responsible for setting up and maintaining effective fire alarms and firefighting systems for each facility within their plot.
  • As per the design, every structure within the plot must have a proper lightning protection system installed.
A perspective on Thach That - Quoc Oai Industrial Park - Ha Noi - TTTFIC Group
A perspective on Thach That – Quoc Oai Industrial Park – Ha Noi – TTTFIC Group

IV. Main Investment-Attracting Industries in Thach That – Quoc Oai Industrial Park – Ha Noi

Thach That Industrial Park is a multi-sector industrial park with minimal environmental pollution, including the following main industries:

  • Electronic and electrical mechanical assembly industry
  • Light industry and consumer goods
  • Jewelry processing
  • Precision electronics component, motorcycle, and automobile manufacturing
  • Food processing
  • Household electrical appliances
  • Mechanical engineering, etc.

V. Investment Costs in Thach That – Quoc Oai Industrial Park – Ha Noi

  • Infrastructure-inclusive land lease price: 100 USD/m2.
  • Labor costs: Depending on the job position, the reference price ranges from 200 to 250 USD/person/month.
  • Industrial park management fee: 0,6 USD/m2/year. This cost will be paid annually in the first month of the year.
  • Electricity usage fee: Calculated according to EVN (Electricity of Vietnam). Reference prices: Peak hours electricity rate is 0,1 USD/kWh, normal hours rate is 0,05 USD/kWh, and off-peak hours rate is 0,03 USD/kWh. Average electricity price: 0,06 USD/kWh.
  • Clean water usage fee: As per current regulations of Hanoi City People’s Committee. Reference price: 0,49 USD/m3.
  • Wastewater and solid waste treatment fee: According to the current regulations of the Hanoi City People’s Committee and the Industrial Park Management Board. Reference price: 0,41 USD/m3.

VI. Labor Source and Costs in Thach That – Quoc Oai Industrial Park – Ha Noi

High-quality labor source:

  • Hanoi has a comprehensive education system that attracts labor from all regions of the North and Central regions for study and work. Therefore, it can well meet the demand for both quantity and quality of labor for investors.
  • According to statistics in 2019, Hanoi had 369 vocational education institutions, enrolling and training approximately 150.000-190.000 people each year.
  • To ensure a high-quality labor force, Hanoi has made billions in investments to construct Hanoi Industrial Vocational College, Hanoi High Technology Vocational College, and Vietnam – South Korea Hanoi Vocational College, all of which are renowned for providing high-quality vocational training.
  • These institutions have implemented training in key occupations according to international standards, attracting a large number of students. They will be a high-quality labor supply for industrial parks in the Hanoi area.

Labor costs:

  • Thach That Industrial Park is located in Thach That district, Hanoi, which is classified as Zone I.
  • The present minimum wage in Zone I stands at 4.420.000 VND per month.
A perspective on Thach That - Quoc Oai Industrial Park - Ha Noi - TTTFIC Group
A perspective on Thach That – Quoc Oai Industrial Park – Ha Noi – TTTFIC Group

VII. Investment Incentives Policy in Thach That – Quoc Oai Industrial Park – Ha Noi

Corporate income tax is currently subject to incentives as stipulated in Decree No. 218/2013/NĐ-CP and Decree No. 12/2015/NĐ-CP. Accordingly, businesses can enjoy a preferential tax rate of 10% for 15 years. Among them, there will be a tax exemption for 4 years and a 50% reduction in tax for the next 9 years for the following cases:

  • Enterprises with income from new investment projects in fields such as scientific research, technological development, application of high technology, and investments in important infrastructure such as water plants, power plants, bridges, roads, ports, airports, and other critical projects.
  • Enterprises manufacturing software products, composite materials, lightweight construction materials, renewable energy, clean energy, and biotechnology.
  • Enterprises implementing new investment projects in environmental protection fields, including manufacturing pollution treatment equipment, wastewater, gas, and solid waste treatment, recycling, and reuse of waste.
  • Enterprises implementing new investment projects in the production of products in the priority development industrial support list.

In addition, the initial corporate income tax rate was 22% from January 1, 2014, and reduced to 20% from January 1, 2016. Companies will enjoy a 2-year tax exemption and a 50% reduction in tax for the next 4 years after the tax incentive period.

Imported goods used to create fixed assets for businesses currently receive investment incentives as per the regulations of the investment law. This includes machinery, equipment, components, and materials used to manufacture machinery and equipment. Additionally, specialized transport vehicles used in technological lines and domestically unproduced construction materials also receive import tax exemptions as per Item 11, Article 16 of the 2016 Law on Export and Import Taxes.

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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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  • Area: 155 Ha

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