Thai Hoa - Lien Son - Lien Hoa Industrial Park

I. Overview of Thai Hoa – Lien Son – Lien Hoa Industrial Park:

Thai Hoa – Lien Son – Lien Hoa Industrial Park was approved as an addition to the Phu Tho province’s industrial zone planning, according to Official Letter No. 1581/TTg-KTN dated September 3, 2009, by the Prime Minister of the Government, with an estimated planned area of 600 hectares.

The industrial zone has been approved by the People’s Committee of Phu Tho province for detailed planning on a total area of 498.95 hectares, including two sub-zones:

Zone 1:

• Detailed planning was approved at a scale of 1/2000 according to Decision No. 3424/QD-UBND dated November 26, 2013, by the People’s Committee of Phu Tho province.
• Covers an area of 283.37 hectares within the jurisdiction of Thai Hoa and Bac Binh communes, Lap Thach district, Phu Tho province.
• The project currently does not have infrastructure investors.

Zone 2:

• Detailed planning was approved at a scale of 1/2000 according to Decision No. 3425/QD-UBND dated November 26, 2013, and adjusted for sub-zone planning at a scale of 1/2000 (first adjustment) according to Decision No. 1280/QD-UBND dated May 21, 2021.
• The planned area is 281.2981 hectares, located within Hoa Son town, Lien Son, Lien Hoa, and Tu Du communes, Lap Thach district, Phu Tho province. Of which, the industrial land area is 215.58 hectares, accounting for 76.64% of the planned area.
• The first phase investment proposal was approved according to Decision No. 283/QD-TTg dated February 26, 2021, by the Prime Minister of the Government.
• The first phase of the project covers an area of 145.27 hectares, with an industrial land area of 108.6731 hectares. Of this, the land area in Hoa Son town is 64.3 hectares, Lien Son commune is 48.84 hectares, and Lien Hoa commune is 32.13 hectares.
• The project is invested by Amane Investment Joint Stock Company with a total investment capital of over 774 billion VND and an operational term of 50 years (2021-2071).

II. Geographical location of Thai Hoa – Lien Son – Lien Hoa Industrial Park:

Thai Hoa – Lien Son – Lien Hoa Industrial Park – Zone 2 is located within Hoa Son town, Lien Son, Lien Hoa, and Tu Du communes, Lap Thach district, Phu Tho province.
Boundaries:

• The northern boundary adjoins the Hoa Son town residential area and DT.307 road.
• The southern boundary adjoins the Lien Hoa commune residential area and a connecting road from Hop Chau – Dong Tinh road to Lap Thach town.
• The eastern boundary adjoins the Lien Hoa commune residential area, Hoa Son town, and the second belt road.
• The western boundary adjoins the Lien Son commune residential area, hills, and agricultural land.

Regarding regional connectivity:

The industrial zone is adjacent to the DT 307 road and National Highway 2C, and also:

• 46 km from Noi Bai International Airport.
• 74 km from the center of Hanoi.
• 24 km from the center of Vinh Yen city.
• 17 km from the Hanoi – Lao Cai Expressway.
• 190 km from Hai Phong Port.
• 15 km from the Van Quan interchange of the Noi Bai – Lao Cai Expressway.

Thai Hoa – Lien Son – Lien Hoa Industrial Park – Zone 2 has a favorable geographical location, facilitating trade connections, transportation of goods, and labor, which is a strength to attract investment to the industrial park.

III. Infrastructure of Thai Hoa – Lien Son – Lien Hoa Industrial Park:

Internal transportation system:

• The main road of The Industrial Park serves as a connection between DT 307 and National Highway 2C. It has a cross-sectional width of 36 meters and a road width of 2*10.5 meters.
• The branch roads of the industrial park have cross-sectional widths ranging from 19.5 meters to 24.0 meters, with road widths of 15-16.5 meters.

Power supply system:

• The industrial park receives its electricity supply for production from the Dao Tu substation, which operates at 110/35/22kV. This power is distributed through overhead 22kV power lines, ensuring connectivity to every plot of land within the industrial park.

Water supply system:

• Clean water for production in the industrial park is obtained from the Dong Tinh Water Plant.
• The plant has a capacity of 80,000 m3/day and night. The water is supplied through pipes that run along the transportation routes within the industrial park.

Wastewater treatment system:

• The industrial park is planned to have two centralized wastewater treatment plants located in the East and South areas, with a total processing capacity of 8,500 m3/day and night.
• The plants are capable of treating wastewater from Standard C to Standard A according to Vietnamese technical standards before discharging it into the environment.

Communication system:

• A standardized communication system is ready for connection according to the needs of investors.

Other infrastructure facilities:

• Independent stormwater drainage system.
• Lighting system.
• Landscaping and greenery system…

IV. Investment-attracting industries in Thai Hoa – Lien Son – Lien Hoa Industrial Park:

The industrial park attracts the following industries:

• Construction materials manufacturing.
• Precision mechanics.
• Production of consumer goods, garments (excluding dyeing and bleaching), and leather shoes.
• The processing of agricultural, forestry, and food items.

V. Investment costs:

• Land rental prices range from 100 to 155 USD/m2. Minimum lease term: 3/2070, depending on the location.
• Management fee: 0.66 USD/m2.
• Electricity prices:
  Peak hours: 1.1 USD/KW.
  Normal hours: 0.8 VND/KW.
  Off-peak hours: 0.6 VND/KW.
• Clean water price: 0.5 USD/m3.
• Wastewater treatment cost (per m3): 0.47 USD/m3. Input treatment standard: Column A for metal parameters and Column B for organic parameters according to QCVN40/2011/BTNMT.

VI. Investment incentives in Thai Hoa – Lien Son – Lien Hoa Industrial Park:

• The industrial park offers corporate income tax incentives. New investment projects in the park are eligible for a 100% exemption from corporate income tax for the first 2 years. Additionally, they receive a 50% reduction in tax payments for the following 4 years.
• Import tax incentives: Exemption from import tax for goods in the tax incentive list imported to establish fixed assets for businesses.

VII. Labor source and costs:

Labor source:

• The average population in 2021 of Phu Tho province is estimated at 1,191.8 thousand people. The estimated number of the working-age population (15 years and older) is 642 thousand people, with a labor force participation rate of 54%.
• In the past 5 years (2017-2021), Phu Tho has trained 142,226 people, including 5,764 with college degrees, 26,878 with intermediate degrees, and 109,584 with primary degrees. As a result, the proportion of trained labor increased from 74.2% in 2019 to 76.1% in 2020, with 33.4% of the labor force holding certificates.
• By 2025, Phu Tho aims to achieve a labor training rate of 82%, with 40% of trained laborers holding degrees or certificates. This is a condition to attract more investors to Phu Tho province as well as to The Industrial Park.

Costs:

• The Industrial Park is located within the administrative boundaries of Region II.
• Therefore, the minimum wage in Region II at present is 3,920,000 VND per month.