Van Trung Industrial Park - Bac Giang

I. Overview of Van Trung Industrial Park – Bac Giang

Information about the industrial park

Van Trung Industrial Park – Bac Giang was established in December 2007. The industrial park was assigned to Fugiang Company Limited, a member of Hong Hai Science and Technology Group (Taiwan), as the investor responsible for infrastructure construction and business operations. It covers an area of 433,28 hectares.

Kim Xuong Tri Construction Company Limited (established in Vietnam by Hong Hai Science and Technology Group – Taiwan) and Rowi Investment Private Limited (Singapore) have formed a joint venture called Fugiang Company Limited.

According to Decision No. 138/QD-UBND of Bac Giang Province dated February 8, 2022, which partially adjusts the detailed construction planning of Van Trung Industrial Park with infrastructure investment by FuGiang Company Limited, has reduced its area to 238,3 hectares.

Van Trung Industrial Park covers an area of 350,7 hectares and is developed and operated by two investors responsible for constructing and managing the infrastructure.

• The area developed by Fugiang Company Limited is 238,3 hectares, with 150 hectares for Phase I development and 88,3 hectares for Phase II development.
• The area developed by S&G SJC is 112,4 hectares.

As of the present time, Van Trung Industrial Park has achieved a 100% occupancy rate for industrial land.

The land lease period consists of two stages:

• Stage 1: Land use term until December 6, 2057 (depending on the location of the land plot).
• Stage 2: Land use term until November 12, 2065 (depending on the location of the land plot).

Investment situation in the industrial park

Currently, Van Trung Industrial Park has attracted approximately 120 businesses with 43.781 workers participating in production, achieving a 100% occupancy rate. The industrial park hosts significant projects such as:

• SJ Tech Vietnam
• Sunrise Technology
• Hana Micron Vina
• Lian Tech…

The Van Trung Social Housing Project covers an area of 16,7 hectares with a total investment capital of over 166 million USD. It consists of 22 high-rise buildings, 72 five-story townhouses, and two 15-story commercial residential buildings, along with accompanying facilities such as shopping centers, cultural centers, healthcare centers, and schools.

The project aims to create a modern and synchronized social housing area with social and technical infrastructure, attracting workers to Van Trung Industrial Park and surrounding industrial park. It contributes to the socio-economic development of the province, enhances operational efficiency, and addresses housing issues, especially for industrial zone workers.

Transportation of Van Trung Industrial Park – Bac Giang – TTTFIC Group

II. Geographical location of Van Trung Industrial Park – Bac Giang

Van Trung Industrial Park is located in Van Trung, Tang Tien, Hoang Ninh communes of Viet Yen district, and Noi Hoang commune of Yen Dung district, Bac Giang province, Viet Nam.

It is situated approximately 50km north of the capital city, Hanoi. Bac Giang is one of the provinces highly regarded by both domestic and foreign investors. The most notable feature of Bac Giang is its strategic location, providing convenient transportation options.

Bac Giang has a diverse transportation system with three main types: roads, waterways, and airways, which are reasonably distributed. From Bac Giang, it is easy to establish trade connections with key economic regions domestically and internationally.

• Waterways: There are daily departures of the Trung-Viet shipping route (Haiphong – Hong Kong) with a transport time of 3-4 days.
• Roads: The entire Vietnam-China highway route (Bac Giang – Shenzhen) spans 1.300km with a transport time of 1-2 days.
• Airways: Daily flights from Hanoi to Hong Kong with a transport time of 1 day.

Van Trung Industrial Park is located on National Highway 1A, leading to the Vietnam-China border, within the administrative boundaries of Viet Yen and Yen Dung districts, Bac Giang province.

• Distance to the center of Hanoi: 50km
• The distance from Van Trung Industrial Park to Noi Bai International Airport is 45 kilometers.
• Distance to Hai Phong port: 110km
• Distance to Cai Lan deep-water port (Quang Ninh province): 110km
• Distance to the Vietnam-China border: 110km
• Distance to Samsung Bac Ninh: 21km
• Distance to Samsung Thai Nguyen: 48km

III. Infrastructure of Van Trung Industrial Park – Bac Giang

Investors have comprehensively invested in the infrastructure of Van Trung Industrial Park, including land clearance and complete ground leveling. It includes a power supply system, water supply system, water treatment plant, telecommunication system, fire protection system, lighting system, and road system.

Construction regulations within the industrial park are as follows

• Minimum factory foundation height above sea level: 4,0m – 4,5m
• Factory construction area: ≤60% of the total leased land area
• Factory fence height: 2m – 2,2m
• Minimum distance from the fence to construction areas: 6m

Power supply system

• Electricity is supplied from the 110KV transformer station of Van Trung Industrial Park to ensure a stable power supply.

Water supply system

• 18.000m3/day and night
• Phase I: 6.000m3/day and night
• Phase II: additional 12.000m3/day and night

Water treatment plant

• 15.000m3/day and night
• Phase I: 5.000m3/day and night
• Phase II: additional 10.000m3/day and night

Transportation

• Main roads: 33m/25m, 4 lanes
• Branch roads: 18m, 2 lanes

Telecommunication system

• Digital signal transmission, telecommunication cable system, ADSL, and fiber optic, in cooperation with Vietnamese telecommunication groups such as VNPT and Viettel to provide services to businesses.

Fire protection system

• Fire hydrants are installed along the roads within the industrial park, with a distance of 150m between each hydrant.

LED lighting system

• Lighting columns in the industrial park are installed underground, with a distance of 38m between each column and a height of 10m.

IV. Attractive Industries for Investment in Van Trung Industrial Park – Bac Giang

Van Trung Industrial Park primarily attracts industries including:

• Mechanical assembly
• Electronic product manufacturing
• Consumer goods and handicrafts
• Packaging industry and related sectors

The factory is located within Van Trung Industrial Park – Bac Giang – TTTFIC Group

V. Investment Costs in Van Trung Industrial Park – Bac Giang

• Land lease price with existing infrastructure: 58 USD/m2 ~ 120 USD/m2. It depends on the land location, remaining lease term, and agreement between the parties (One-time payment, price excluding VAT).
• Management fee: 0,55 USD/m2/year (Excluding VAT). The price undergoes adjustments every 2 years by the consumer price index, with a maximum increase of 10% compared to the previous adjustment.
• Electricity price: Based on the published price of Viet Yen Power Company (Customers directly sign contracts with Viet Yen Power Company). Reference electricity prices: Peak hours: 0,12 USD/KW. Off-peak hours: 0,064 USD/KW. Low-demand hours: 0,042 USD/KW (excluding VAT).
• Clean water price: 0,64 USD/m3 (excluding VAT).
• Wastewater treatment fee: 0,48 USD/m3 (excluding VAT).
• The calculation of the wastewater treatment fee is based on 80% of the volume of incoming clean water.
• Telephone, fax, and other expenses: Based on the supplier’s rates.

VI. Investment Incentives of Van Trung Industrial Park – Bac Giang

Van Trung Industrial Park offers attractive incentives such as tax benefits, land rental costs, and other service fees, contributing to its appeal.

For all businesses investing in the industrial park

• Corporate income tax rate: exempted for 2 years and reduced by 50% for the following 4 years.

For high-tech businesses

• Corporate income tax rate of 10% for 15 years, with a tax exemption for 4 years and a 50% tax reduction for the next 9 years.

Regarding enterprises that are 100% focused on exports (export processing businesses)

• Exempted from import tax and value-added tax (VAT) for imported materials, machinery, and equipment used for production.

For non-export processing and non-high-tech enterprises

• Exempted from import tax for 5 years for equipment and Vietnamese materials not yet produced domestically.

VII. Labor Source and Costs in Van Trung Industrial Park – Bac Giang

Labor Source

• Van Trung Industrial Park is located in Viet Yen district, designated as Zone 3, with labor costs only 77% of the labor costs in Hanoi.
• Viet Yen district has a population of over 200.000 people, known for their hardworking and eager-to-learn work ethic. Surrounding districts such as Yen Dung, Hiep Hoa, and Tan Yen provide abundant labor resources for the industrial park.
• Viet Yen district places great emphasis on training rural laborers, leading to an increasing quality of the workforce.

Costs

• Van Trung Industrial Park is situated in Viet Yen district, classified as Zone III.
• Consequently, the current minimum wage in Zone III is 3.430.000 VND/month.