The expanded Quang Chau Industrial Park:
The Prime Minister approved Decision No. 1320/QD-TTg on November 4, 2022, endorsing the investment plan for the expanded Quang Chau Industrial Park (IP) in Bac Giang province. Saigon-Bac Giang Industrial Park Joint Stock Company (SBG), a subsidiary of Kinh Bac Urban Development Corporation (KBC), received approval as the investor.
The project covers a 90-hectare land area in Quang Chau commune, Viet Yen district, Bac Giang province, with a total investment capital of 996 billion Vietnamese dong. Its operational period starts from the investment approval date and lasts until February 5, 2057.
Quang Chau IP is a modern architectural complex consisting of an industrial zone, an urban area, and a utility and service area. The expansion approved in 2022 increased the park’s total area from 426 to 516 hectares. The existing 426-hectare IP is fully occupied by industrial land, attracting 41 investment projects, including 37 FDI projects and 4 domestic investment projects, with a total investment capital of 2.8 billion USD. These projects have created job opportunities for around 67,000 workers. Renowned corporations such as Foxconn, Luxshare-ICT, JA Solar, Siflex, Samkwang, Crystal Martin, and Lens have made notable investments.
The recent expansion, covering over 90 hectares, has attracted significant interest from major investors. The anticipated occupancy rate is over 90%, with many parties conducting surveys and registering for lease agreements. Foxconn Group, a prominent subsidiary of Apple, conducted site surveys and signed a Memorandum of Understanding with SBG in August 2022 to lease 50.5 hectares of land for an investment project focused on producing Apple products in Bac Giang province, Vietnam. The project’s investment capital exceeds 300 million USD. This project holds great importance for both Vietnam and Bac Giang province.
Overview of The expanded Quang Chau Industrial Park – TTTFIC Group
Geographical location of the expanded Quang Chau Industrial Park:
The expanded Quang Chau Industrial Park is located within the boundaries of Quang Chau commune, Van Trung commune, and Nenh town in the Viet Yen district.
It is delimited as follows:
- to the north, it borders agricultural land in Van Coc hamlet, Van Trung commune;
- to the south, it borders Dong Tien and Nam Ngan hamlets, Quang Chau commune;
- to the east, it borders Thong Quang Bieu hamlet, Quang Chau commune, and Trung Dong hamlet, Van Trung commune;
- to the west, it borders the Hanoi – Lang Son Expressway.
Distances:
– 16 km from the center of Bac Giang city.
– 47 km from the center of Hanoi.
– 48 km from Noi Bai International Airport.
– 145 km from Hai Phong port.
– 128 km from Huu Nghi border gate.
Infrastructure:
- The Hanoi – Bac Giang expressway has a width of 89m-97m, including the carriageway, median strip, shoulders, and sidewalks.
- Roads within the industrial zone have varying widths, carriageways, and sidewalks.
- The foundation in the low-height industrial zone ranges from +4.0m to +4.5m based on the existing elevation.
- The stormwater drainage system is separate from the wastewater drainage system.
- Rainwater in the existing industrial zone is collected and discharged into canals and pumping stations.
- Expanded project areas collect rainwater through culverts and discharge it into improved canals.
- Circular culverts with diameters from D600 to D1800 are used, along with inspection chambers.
- Wastewater from factories is treated before being discharged into the common system and the Quang Bieu canal.
- The wastewater drainage network utilizes circular pipes with diameters from D300 to D600.
- The water supply comes from the Quang Chau Industrial Park water treatment plant and backup sources.
- The pipeline network is designed in a loop configuration with various pipe diameters.
- Firefighting water supply uses hydrants on D110 HDPE pipes with a distance of 150-200m between each.
- The power supply comes from the Quang Chau 110kV substation, with plans for an additional substation.
- The 22kV power grid uses overhead cables and various types of foundations for distribution transformers.
- Factories must comply with waste collection, classification, and disposal regulations.
Wastewater treatment plant of The expanded Quang Chau Industrial Park – TTTFIC Group
Investment-Attractive Industries:
The industrial zone attracts investment in various high-tech sectors such as clean technology, precision engineering, electronics, electrical appliances, automation, and automotive assembly.
Investment Costs:
The land rental price (excluding VAT, non-agricultural land use tax, and annual land rent) is $80/m2 until 2057.
The infrastructure management and maintenance fee is $0.5/m2/year (excluding VAT).
The standard factory rental price is $3.5/m2/month (excluding VAT).
Electricity prices vary based on time:
– Normal hours: 1,405 VND/KW
– Off-peak hours (22:00 – 4:00): 902 VND/KW
– Peak hours (9:30 – 11:30 & 17:00 – 20:00): 2,556 VND/KW.
The clean water price is 10,000 VND/m3 (excluding VAT).
The wastewater treatment cost is 9,400 VND/m3 (excluding VAT and coefficient K).
Additional service fees for telephone, fax, and internet are subject to the regulations of the service provider at each specific time.
Investment incentives for the expanded Quang Chau Industrial Park:
Tax Incentive Policies:
Corporate Income Tax:
Investment projects in the expanded Quang Chau Industrial Park benefit from the following tax incentives:
1. Tax rate of 20% (as regulated).
2. Exemption from tax for the first 2 years and a 50% reduction in tax payable for the following 4 years.
In specific cases:
1. High-tech, research and development, water plant, wastewater system, and software production projects:
– Tax rate of 10% for the first 15 years.
– Exemption from tax for 4 years and a 50% reduction in tax rate for the next 9 years.
2. Socialization sector investment projects (approved by the Prime Minister) in education, healthcare, culture, sports, and environment:
– Tax rate of 10% for the entire project duration.
Note:
– The duration of tax rate incentives is calculated continuously from the first taxable activities eligible for tax incentives.
– The duration of tax exemption starts from the first taxable income year, and if no taxable income is generated in the first three years, the exemption and reduction period starts from the fourth year.
Import and Export Tax Exemption:
– Export processing enterprises (EPEs) are exempt from import and export taxes.
– Machinery, equipment, specialized transport vehicles, and construction materials not available domestically are exempt from import taxes.
– Encouraged investment projects, component and spare part projects, and electrical/electronic products are exempt from raw material import tax for the first 5 years.
– Imported raw materials, accessories, and materials for manufacturing export products are exempt from import taxes.
Value Added Tax (VAT) Exemption:
– Export processing enterprises (EPEs) are exempt from VAT.
– Imported machinery, equipment, and special-purpose vehicles used in the technological chain are exempt from VAT.
Support from the Infrastructure Development Company in the Industrial Park:
– Assistance with investment certificate application procedures.
– Support with post-investment procedures such as seal and tax registration, recruitment, etc.
– Assistance with land use right certificate application procedures.
– Support with worker recruitment and management registration.
Wastewater treatment plant of The expanded Quang Chau Industrial Park – TTTFIC Group
Labor source and cost:
Local labor:
Bac Giang Province:
– Population: 1,600,000 people
– Working-age population: 63%
Bac Ninh Province:
– Population: 1,100,000 people
– Working-age population: 60%
Salary levels (reference figures, subject to variation):
– General Labor: Minimum wage of 2,900,000 VND/person/month (approximately 140 USD)
– Actual average salary: 170-200 USD/person/month
– Engineers/office staff: 250-350 USD/person/month
– Management personnel: >350 USD/person/month
Insurance:
– Social insurance: 26% (Employer: 18%, Employee: 8%)
– Health insurance: 4.5% (Employer: 3%, Employee: 1.5%)
– Unemployment insurance: 3% (Employer: 1%, Employee: 1%, State support: 1%)
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
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Industrial real estate in industrial zones, Vietnam
TTTFIC Group
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