Thang Long III Industrial Park - Vinh Phuc

I. Overview of Thang Long III Industrial Park – Vinh Phuc:

Thang Long III Industrial Park – Vinh Phuc is included in the planning of Vinh Phuc province’s industrial zones, based on the separation from Binh Xuyen II Industrial Park.

Specifically, on October 13, 2015, in Document No. 1815/TTg-KTN, the Prime Minister approved the adjustment of the area of Binh Xuyen II Industrial Park, reducing it to 393 hectares and splitting it into two industrial zones: Thang Long III Industrial Park with an area of 213 hectares and Binh Xuyen II Industrial Park with an area of 180 hectares.

The scale of Thang Long III Industrial Park is 213 hectares, with an industrial land area of 170.4 hectares, divided into 2 phases:

Phase 1: 104 hectares
Phase 2: 109 hectares

The People’s Committee of Vinh Phuc Province granted an investment certificate to the Sumitomo Corporation for Thang Long Vinh Phuc Industrial Park in October 2015. The registered investment capital for the project is over 135 million USD, with an operational duration of 50 years.

Construction of Thang Long Vinh Phuc Industrial Park officially commenced on September 21, 2017. The park has achieved partial completion and began operations in 2019.

Thang Long III – Vinh Phuc Industrial Park is the third industrial zone undertaken by the Sumitomo Corporation in Vietnam, following Thang Long I – Hanoi (1996) and Thang Long II – Hung Yen (2006) Industrial Park.

Investment situation:

Currently, Thang Long Vinh Phuc Industrial Park has completed infrastructure construction and is in operation, attracting investments that occupy 82% of the total industrial land area with major projects, including:

• BAMBI (VIETNAM)’s metal strap production project.
• DAIWA Plastic Thang Long’s household appliance and motorcycle spare parts production project.
• FAINDSOOC Co., Ltd.’s automation equipment production project.

II. Geographical location of Thang Long III Industrial Park – Vinh Phuc:

Thang Long III Industrial Park is located in Thien Ke Commune and Tam Hop Commune, Binh Xuyen District, Vinh Phuc Province.

The industrial park has convenient transportation connections:

• 9 km from Vinh Yen city center
• Approximately 22 km from Noi Bai International Airport
• 44 km from Hanoi city center
• 186 km from Hai Phong port
• Near the Hanoi – Lao Cai expressway
• Near major industrial zones such as Ba Thien I, Ba Thien II, Binh Xuyen I, Binh Xuyen II…

Thang Long III Industrial Park has a highly advantageous location for transporting goods to neighboring areas by road, rail, and air, saving time and costs for businesses.

III. Infrastructure of Thang Long III Industrial Park – Vinh Phuc:

Internal transportation system:

• The main roads of Thang Long III Industrial Zone are constructed with cross-section widths of 40m, 59m, and 62m, ranging from 4 to 6 lanes, with median strips and landscaped water channels in between, creating a spacious environment.
• Branch roads within the zone have cross-section widths ranging from 24m to 26m with 4 lanes, ensuring smooth traffic flow within the industrial zone.

Power supply system:

• The electricity supply for production in Thang Long Vinh Phuc Industrial Zone is provided from the national grid through an internal 110/22kV transformer station with a capacity of 4*40 MVA, built and operated by the investor.
• Among these, the power supply capacity for Phase 1 is 2*25 MVA.

Water supply system:

• It is connected to the premises of each operating factory within the industrial zone.

Wastewater treatment system:

• Thang Long III Industrial Park has invested in a centralized wastewater treatment system with a maximum designed processing capacity of 9,000 m3/day and night.
• Currently, the completed Phase 1 of the wastewater treatment plant has a capacity of 3,000 m3/day and night. It can treat wastewater to meet Class A standards according to Vietnam’s environmental technical standards.

Firefighting system:

• Thang Long Vinh Phuc Industrial Park has a 24/7 firefighting team with high expertise and modern equipment, ensuring timely response to any fire incidents within the industrial park.

IV. Attractive investment sectors:

Thang Long III is oriented as a multi-sector industrial zone utilizing advanced and modern technologies that comply with international standards and are environmentally friendly. It is expected to attract investment in sectors such as:

• Manufacturing of construction materials, mechanical engineering, precision engineering, and electrical equipment.
• Production of consumer goods, textiles, motorcycle parts, automobiles, and other electronic devices.
• Processing and manufacturing of medical equipment, pharmaceuticals, etc.

V. Investment Costs in Thang Long III Industrial Park – Vinh Phuc:

• Infrastructure usage fee: 100 – 155 USD/m2 for the entire lease period, subject to variation depending on the location of the leased plot.
• Management fee: 0.45 USD/m2/year.
• Annual land rental fee: Currently, the industrial zone is exempt from annual land rental fees. Once the incentive period expires, the land rental fee will be
• determined by the decision of the People’s Committee of Vinh Phuc province.
• Wastewater treatment fee: Starting from 0.3 USD/m3, depending on the quality of the incoming wastewater.
• Electricity tariff: Applied according to the electricity tariff rates of EVN (Electricity of Vietnam).
• Water tariff: 0.4 VND/m3.

VI. Investment Incentives:

Corporate income tax:

• Vinh Phuc has implemented a corporate income tax rate of 10% for 15 years. This applies to high-tech enterprises. It also applies to income tax from newly invested projects. These projects are in the research and development fields.
• Other enterprises are subject to a corporate income tax rate of approximately 22%. Additionally, they can benefit from tax exemptions and reductions for 2 to 4 years. Furthermore, there is a 50% reduction in tax payment for the following 4 to 9 years. The specific duration of tax incentives depends on the industry of the registered investment project.

Land and water rental exemptions and reductions:

• Land and water rental fees are exempted during the basic construction period according to the approved project.
• After the exemption period, land and water rental fees are waived for 11 years.
• The industrial park also applies a support policy for land clearance with compensation not exceeding 15% according to the approved plan and 100% funding in case of compulsory acquisition.

VII. Labor Source and Costs in Thang Long III Industrial Park – Vinh Phuc:

Labor source:

• The average population of Vinh Phuc province as of 2019 is about 1.231 million people.
• The working-age population accounts for 70%, and the proportion of trained workers with degrees and certifications is 65%.
• Vinh Phuc province has 4 universities 13 colleges, and vocational schools, providing skilled labor with quality skills to meet the needs of the workforce.
• Ensuring an adequate supply to meet the requirements of each enterprise.

Costs:

• Thang Long III Industrial Zone is located in Binh Xuyen district, Vinh Phuc province, belonging to Zone II.
• Therefore, the minimum wage in Zone II at that time was 3,920,000 VND/month.