Viet Han Industrial Park - Bac Giang

I. Overview of Viet Han Industrial Park – Bac Giang:

The Prime Minister approved the addition of Viet Han Industrial Park to the list of prioritized industrial parks for establishment, with an area of 200 hectares by 2015 and a vision towards 2020, according to Document No. 920/TTg-KTN dated June 20, 2008.

Bac Giang province issued Decision No. 285/QD-UBND, establishing Viet Han Industrial Park on February 27, 2009, with an initial area of 101.53 hectares in Tang Tien and Hong Thai communes, Viet Yen district, Bac Giang province.
According to Decision No. 337/QD-UBND dated June 20, 2018, the park’s area was subsequently adjusted to 197 hectares.
On February 22, 2021, the Prime Minister issued Decision No. 225/QD-TTg, approving the investment project for the construction and operation of infrastructure in Viet Han Industrial Park, with Fuji Phuc Long Development Co., Ltd. assigned as the investor.

On July 14, 2021, the Bac Giang province’s People’s Committee issued Decision No. 693/QD-UBND, approving the revised zoning plan for Viet Han Industrial Park.
Starting from the second quarter of 2021, the investor commenced land clearance and infrastructure construction for the industrial park. The project will operate for 50 years from the date of investment decision, until 2071.

Viet Han Industrial Park was established to develop clean industries, sustainable operations, and environmental friendliness. The prioritized industries for investment include the production of consumer electronics and electronic components, and automobile and motorcycle assembly. Investment priority is also given to light industrial manufacturing sectors in other fields. The park is home to numerous high-quality companies and is a destination for reputable businesses, ensuring high salaries.

The industrial park is located in Hong Thai, Hoang Ninh, and Tang Tien communes of the Viet Yen district.

Specifically:

• Tang Tien commune (64.44 hectares),
• Hong Thai commune (122.9 hectares),
• Hoàng Ninh commune (9.97 hectares).

The total area is 197.31 hectares, with an estimated investment capital of about 1,750 billion VND.

The first phase of the project will cover 50 hectares. The industrial park is currently progressing rapidly in land clearance work.

The industrial park will have synchronized and modern infrastructure, internal roads, stormwater drainage systems, wastewater collection, water and electricity supply systems, wastewater treatment plants, and other technical infrastructure facilities. After completion, it promises to be an ideal investment destination for domestic and foreign investors.

II. Geographical Location of Viet Han Industrial Park – Bac Giang:

Viet Han Industrial Park has a convenient geographical location and transportation connectivity. It connects to international transportation routes through its junction with the Hanoi-Bac Giang expressway, the intersection of National Highway 17 with National Highway 37, and provincial road DT295.

Planning boundaries:

• To the north and northwest, it borders farmland and residential areas of Hồng Thái commune.
• To the south, it borders the Hanoi-Lang Son expressway.
• To the east, it borders farmland and residential areas of Tăng Tiến commune.
• To the west and southwest, it borders Đình Trám Industrial Park and Mi Dien hamlet.

Distances:

• 13 km from Bac Giang City,
• 51 km from Ha Noi capital,
• 53 km from Noi Bai International Airport,
• 152 km from Hai Phong Seaport,
• 182 km from Quang Ninh Deepwater Port,
• 2 km from National Highway 1, 8 km from National Highway 1A.
• 12 km from Bac Giang Railway Station.
• 32 km from Kep Railway Station.
• Located at a distance of 120 kilometers from the Huu Nghi Quan Border Gate.

This is a concentrated, multi-sector industrial park with synchronized and modern technical infrastructure to attract domestic and foreign investments with advanced, environmentally friendly technologies.

III. Infrastructure of Viet Han Industrial Park – Bac Giang:

Internal transportation:

The main roads and branch roads divide the internal transportation system.

• The width of the main road system is 25 meters.
• The width of the branch road system is 17.5 meters.

Electricity system:

• The industrial zone takes the current power supply from the 22 kV power line running through it.
• A 110 kV substation will be built in the HTKT2 area for the planned industrial zone, and the power supply will be obtained from this substation.
• The 22 kV power grid is designed to be overhead for the industrial cluster.
• The lighting system uses 0.4 kV voltage, with a height of 9-11 meters.
• The power lines are arranged underground to ensure aesthetics.

Public lighting system:

A separate power supply system is arranged along the transportation routes to design the street lighting network separately.

Water system:

• The water supply for the industrial zone will utilize the water supply pipeline with a diameter of D500 mm from DNP Infrastructure Development Joint Stock Company – Bac Giang, running along the highway Hanoi – Bac Giang.
• The organized water supply pipeline network within the planned area consists of a loop circuit and dead-end pipelines running to the base of the factory fence.

Wastewater and rainwater drainage system:

• The rainwater drainage system flows naturally along the road routes leading to the channels arranged around the industrial zone and discharges into the channels and rivers in the area.
• Wastewater drainage system: It is arranged along the roads and centralized to the treatment plant of the industrial zone.

Waste treatment:

The factories sort, collect and transport solid waste to centralized disposal sites according to the town’s regulations.

Wastewater treatment:

The wastewater treatment plant meets national standards with a capacity of 6,000m3 per day and night.

Communication information system:

A modern and versatile postal and telecommunications network that meets all communication needs within the country and internationally.

Fire protection and prevention system:

• The industrial zone has fire hydrants along the roads, at intersections, and at crossroads.
• Pipes with a diameter of ≥ D110 are used to arrange the fire water supply.
• The distance between fire hydrants is 100-120 meters to ensure service radius.

IV. Key investment-attractive industries in the Viet Han Industrial Park:

The Viet Han Industrial Zone primarily attracts industries including:

• Mechanical engineering
• Precision engineering
• Electrical equipment manufacturing
• Medical equipment manufacturing
• Consumer goods manufacturing

Other light industries that are environmentally friendly.

V. Land Rental Costs in Viet Han Industrial Park:

• Factory rental price: $3 per square meter.
• Infrastructure usage fee: $120/m2 until 2071. The infrastructure usage fee does not include VAT and may vary depending on the location and size of the leased land.
• Annual land rental fee: According to the decision of the Provincial People’s Committee of Phu Tho.
• Clean water supply price: $0.65/m3.
• Electricity supply price: According to the electricity tariff rates of EVN (ranging from $0.043 to $0.12/KWh).
• Wastewater treatment fee: $0.55/m3.

VI. Labor Force in Viet Han Industrial Park:

Abundant labor force:

• The industrial zone is located in the Viet Yen district, which is in Region 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 characteristics. Surrounding Viet Yen are districts with a high population, such as Yen Dung, Hiep Hoa, and Tan Yen. This provides an abundant labor force for the industrial zones.
• Viet Yen district places great emphasis on vocational training for rural labor, resulting in an increasingly skilled labor force.

Labor cost:

• Viet Han Industrial Zone is located in the Viet Yen district, which belongs to Region III.
• The current minimum wage in Region III is 3,430,000 VND per month.

VII. Investment Incentive Policies in Viet Han Industrial Park:

Land rental incentives:

• The rental price for investment projects in Bac Giang province is set at the lowest level within the current land rental price framework.
• Projects investing in the industrial zone will enjoy the lowest land rental price according to the approved land rental price framework by the Provincial People’s Committee.

Rent exemption and reduction incentives:

• Investors in Bac Giang province are eligible for a 15-year land rent waiver (including incentives and reductions provided by the Government) from the date of signing the land lease contract, with a 50% reduction applied for the remaining years of the project’s operation.
• Investments in districts such as Son Dong, Yen The, Luc Nam, and Luc Ngan are exempted from land rent during the project implementation period.

Support for land clearance compensation funds:

• Based on the approved plan by the authorized authorities, the consideration of partial or full support for land clearance compensation funds can depend on the specific project scale, industry, number of employed workers, and investment location.

Support for vocational training funds for local workers:

• The authorities will consider granting companies up to 50% support for short-term vocational training expenses for locally recruited workers, with a maximum amount not exceeding five hundred thousand Vietnamese Dong per worker.

Foreign-invested enterprises:

• The province allows foreign investors to choose the location for construction and business activities through its land use planning.
• A capital subsidy equal to 50% of the value-added tax paid to the provincial budget in the first two years from the start of production and business will be provided to them.

Newly established enterprises will receive the following budgetary support:

• 100% support for corporate income tax paid to the provincial budget in the first three years and 50% for the following three years from the start of profitable production and business.
• 50% support for value-added tax paid to the provincial budget in the first two years from the start of production and business.

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