Thanh Liem Industrial Park - Ninh Binh

I. Overview of Thanh Liem Industrial Park – Ninh Binh

On April 3, 2017, the Prime Minister approved the inclusion of Thanh Liem Industrial Park- Ninh Binh in the development plan for industrial zones in Ninh Binh province. This approval was stated in letter No. 469/TTg-CN. The industrial park was formed through the merger and renaming of Liem Phong Industrial Zone and Kien Khe I Industrial Cluster. The planned area of Liem Phong Industrial Zone was 200 hectares, added to the plan according to letter No. 1350/TTg-KTN dated August 15, 2008, by the Prime Minister. The area of Kien Khe I Industrial Cluster was 150 hectares.

Thanh Liem Industrial Zone, when included in the industrial zone plan, has an expected area of 293 hectares. On May 11, 2018, Thanh Liem IP had its detailed construction plan at a scale of 1/2000 approved by the Ninh Binh Provincial People’s Committee through Decision No. 750/QD-UBND.

Detailed planning:

The total area of 292.99 ha and divided into 2 phases:

• Phase I: An area of 150.86 hectares (previously the Kien Khe I Industrial Cluster area) has been fully occupied.
• Phase II: The planned location for Chau Son Industrial Park covers an area of 142.13 hectares. It is situated within the administrative boundaries of Thanh Tuyen Ward, Phu Ly City. The park also extends into the communes of Thanh Thuy, Thanh Phong, Thanh Ha, and Kien Khe Town. These areas are part of Thanh Liem District in Ninh Binh Province.

On March 14, 2019, Phase II of Thanh Liem Industrial Zone received investment approval. The Prime Minister approved it through Decision No. 281/QD-TTg. The investor for this phase is Capella Real Estate Joint Stock Company. The total investment capital for the project is over 942 billion VND.

Ninh Binh Province officially established Thanh Liem Industrial Park on May 4, 2019, through Decision No. 718/QD-UBND. The project has two infrastructure investors: the Management Board of Ninh Binh Industrial Zones (Phase I) and Capella Real Estate Joint Stock Company (Phase II). The operational term for licensed projects is until 2067 (according to letter No. 469/TTg-CN) or until 2069 (for projects licensed after Decision No. 281/QD-TTg).

Thanh Liem Industrial Zone is a multi-sector, environmentally friendly industrial park. It has a comprehensive and synchronized technical infrastructure system. The park focuses on attracting industries like electrical and electronic industry, information technology, and mechanical engineering. The industrial park encourages the consumer goods industry, materials industry, chemical industry, warehousing, and goods storage.

II. Geographical location of Thanh Liem Industrial Park – Ninh Binh

Thanh Liem Industrial Zone has a highly advantageous location for business development, located right next to National Highway 1A.

Situated in the planned capital region, it serves as the southern gateway of the province and the Red River Delta region. The industrial park is located along National Highway 1A, with two national routes (21A and 1A) nearby.

Moreover, it benefits from the presence of the Day River running alongside the highway. The province boasts a convenient transportation network, comprising roads, railways, and waterways. In addition, there are numerous universities and colleges in the area, ensuring a plentiful labor force.

III. Infrastructure of Thanh Liem Industrial Park – Ninh Binh

Internal transportation system:

• The internal roads of Thanh Liem Industrial Park are designed in a grid pattern.
• The main axis has a width of 48 meters, while the branch roads within the industrial zone have widths ranging from 20.5 meters to 28 meters.
• According to high construction standards, the industrial park constructs these roads to meet the traffic demand in terms of volume and cargo load.

Power supply system:

• An internal 110/22KV transformer station with a capacity of 363 MVA ensures the electricity supply for production in Thanh Liem Industrial Park Phase II.
• The power supply branches out to each land plot within the industrial park.

Water supply system:

• The clean water supply for Thanh Liem Industrial Park is sourced from the Song Hong Clean Water Plant (with a total water supply capacity of 250,000 m3/day and night).
• The supply capacity for Thanh Liem IP is 50,000 m3/day, with the ability to increase capacity according to the actual operational needs of the enterprises in the industrial park.

Wastewater treatment system:

• The Industrial Park has invested in a centralized wastewater treatment system with a processing capacity of 7,500 m3/day and night.
• The system is capable of treating wastewater from Column B to Column A according to Vietnam’s environmental technical standards before discharge into the external environment.

Firefighting and prevention system:

• The industrial park arranges the firefighting system with fire hydrant pillars positioned at a distance of 150 meters from each other. This ensures the ability to respond to fire incidents at any point in the park.

Communication system:

• Each land plot within the industrial zone readily connects to high-speed telecommunications and internet systems.
• This connection is achieved through underground technical conduits and cables.
• The industrial zone establishes the connections based on the investors’ requirements.

Stormwater drainage system:

• The 110KV substation is designed independently from the wastewater drainage system.
• It consists of open channels and box culverts measuring 2.5m*5m.
• This design ensures the ability to prevent flooding in the industrial park.

IV. Land rental costs of Thanh Liem Industrial Park – Ninh Binh

Infrastructure Usage Fee: 78 USD/m2 for the entire lease term, subject to change depending on the location and size of the rented land plot.

Management Fee: 10,000 VND/m2/year.

Annual Land Rental Fee: Applied based on the land price table determined by the People’s Committee of Ninh Binh province at each specific period.

Electricity Tariff: Applied according to the electricity tariff rates set by EVN (ranging from 1,007 VND to 2,871 VND per kWh).

Water Tariff: 11,500 VND/m3, subject to change based on the decision of the People’s Committee of Ninh Binh province.

Wastewater Treatment Fee: 11,000 VND/m3 (calculated based on 80% of the clean water usage).

Note: The above prices do not include VAT and are subject to change without prior notice.

V. Investment Incentives in Thanh Liem Industrial Park – Ninh Binh

Corporate Income Tax Incentive: New investment projects in Thanh Liem Industrial Park are exempt from 100% of corporate income tax for the first 2 years and enjoy a 50% tax reduction for the following 4 years.

Annual Land Rental Fee Incentive: Land rental fees are waived for 14 years starting from 2019.

Import Tax Incentive: Exemption from import tax for imported goods used to establish fixed assets in investment projects.

Please note that the regulations of the People’s Committee of Ninh Binh province govern these incentive policies. It is advisable to examine them in detail for each specific project and period.