Viet Kieu Industrial Park - Dong Nai

I. Overview of Viet Kieu Industrial Park – Dong Nai

Information about the Industrial Park

Legal Information of Viet Kieu Industrial Park

Viet Kieu Industrial Park is located within the Tan Khai Industrial Park, approved by the Dong Nai Provincial People’s Committee in detailed planning decision No. 624/QD-UBND dated April 2, 2008, with infrastructure investment by Minh Khang Development and Investment Joint Stock Company.

Industrial Park Scale

Information about the Investor

II. Geographical Location of Viet Kieu Industrial Park – Dong Nai

Regional Connectivity

• Eastern border: Residential and planned residential land;
• Western border: Rubber plantation land of Binh Long Rubber Corporation;
• Southern border: Asphalt road connecting to National Highway 13 and the 45-hectare Tan Khai Industrial Park;
• Northern border: Residential and residential land.

Distances

• Approximately 110 kilometers away lies Ho Chi Minh City.
• Distance to Tan Son Nhat International Airport: 100 km;
• Distance to Thanh Phuoc River Port: 80 km;
• Distance to Saigon Port: 102 km;
• Distance to Song Than Station: 81 km;
• Distance to National Highway 13: 33 km.

III. Infrastructure of Viet Kieu Industrial Park – Dong Nai

Internal Road System

The internal road system of the industrial park is arranged along the land lots and connected to the external traffic system, including:

• Main Road Axis D1: runs through the industrial Park from North to South, connecting with external traffic roads, with a width of 42 meters.

The remaining road axes run parallel and perpendicular to the main road axis:

• Roads D2 and D4 have a width of 33 meters.
• Road D3 has a width of 32 meters.
• They have used hot asphalt to pave all roads, adhering to Vietnamese standards. Pedestrian sidewalks, median strips, streetlights, and planted green trees adorn these roads.

Electricity Supply

• The national power grid is connected to a 110kV power substation, ensuring a continuous 24/7 supply of 22kV power to secondary investors.

Water Supply

• The industrial zone sources its clean water system, capable of supplying 4.000m3/day and night, from Dong Nai Province’s water supply.

Information System

• A comprehensive communication system ensures all communication needs, including landline and mobile phones, domestic and international communication, high-speed internet (ADSL), and more.

Fire Prevention System

• Fire stations are strategically located along roadways and intersections, with an average distance of 150m per station.
• Fire extinguishers and fire alarm systems are equipped in each factory.
• A 24/24 security force is ready to respond swiftly to emergencies.

Wastewater Treatment and Environmental Sanitation System

Wastewater Treatment System

• To support diverse industries, the Overseas Vietnamese Industrial Park invests in a closed-loop wastewater treatment system with high capacity and modern technology, ensuring environmental safety for production.
• The production reuses treated wastewater, which meets Class A standards.
• The designed capacity of the wastewater treatment system is 3.000m3/day, expandable to 6.000m3/day in phase 2.

Environmental Sanitation

• A common waste disposal site collects and transports household and industrial waste, including both non-hazardous and hazardous materials.
• Proper procedures ensure environmental protection through the management, transportation, and processing of industrial waste.

IV. Key Investment Attraction Industries in Viet Kieu Industrial Park – Dong Nai

Viet Kieu Industrial Park prioritizes the development of industries for rubber processing, wood processing, electronics, lighting and electronics equipment, textiles, and food processing. The industrial zone is planned and divided into clusters based on industry groups:

• Clusters A, B, E, F: Processing of vehicle tires and inner tubes, production of rubber mattresses from pre-processed rubber; beverage production; agricultural product processing; plastic and plastic packaging production; …
• Clusters C, D, G: Electric and electronic industry; textile and garment industry; wood and construction material processing; pharmaceutical production; production of paper packaging, paper production; …
• Clusters E, F: Various food processing industries.

V. Investment Costs in Viet Kieu Industrial Park – Dong Nai

The lease price for fully equipped land is $65/square meter. The lease term extends until 2058, with annual payment.

The warehouse rental fee is $3/square meter per month.

Management fee within the Industrial Park is $0,4/square meter per year.

Electricity costs are calculated based on different timeframes:

Peak hours: $0,1/KWh/month
Normal hours: $0,05/KWh/month
Off-peak hours: $0,03/KWh/month

Clean water supply is provided by government-approved suppliers at a rate of $0,4/cubic meter per month.

Wastewater treatment fee: $0,22/cubic meter per month.

VI. Investment Incentive Policies at Viet Kieu Industrial Park – Dong Nai

Corporate Income Tax Incentives at Dong Nai’s Viet Kieu Industrial Park

As outlined in Resolution No. 01/2022/NQ-HDND released on March 31, 2022,Dong Nai province extends its assistance by granting a 4-year exemption from corporate income tax, followed by a 50% reduction for the subsequent 9 years. Additionally, a favorable 10% tax rate applies during the initial 15 years, exclusively to designated investment sectors.

Enterprises outside the favored investment sectors will enjoy less attractive incentives, which include 2 years of corporate income tax exemption, a 50% reduction in tax for the following 4 years, and a 15% tax rate for the first 10 years.

Incentives for Favored Investment Sectors in Dong Nai

By Clause 9, Article 3, Chapter I of Resolution No. 01/2022/NQ-HDND dated March 31, 2022, regarding the issuance of regulations on encouragement, incentives, and investment support within Dong Nai province, it is stipulated as follows:

“Projects within favored investment sectors implemented in economically and socially disadvantaged areas of Dong Nai shall enjoy investment incentives as prescribed for projects in areas with particularly difficult economic conditions.”

The tax incentive rates in areas with particularly difficult economic conditions in Dong Nai are as follows:

• Tax Rate: 10% for the first 15 years, 20% for the remaining period.
• Tax Exemption and Reduction: Exemption for 4 years, 50% reduction in tax for the following 9 years.
• Tax Exemption and Reduction Period: Calculated continuously from the first year of taxable income. In cases where there is no taxable income in the first three years, the exemption and reduction period starts from the year of first revenue from the new investment project, with the period commencing from the fourth year.

Corporate Income Tax Incentives for Sectors Not Included in Favored Investment Sectors in Dong Nai

Based on Clause 2, Article I, Annex V of Resolution No. 01/2022/NQ-HDND dated March 31, 2022, tax incentives for enterprises not included in the Favored Investment Sectors are stipulated as follows:

• Tax Rate: 17% for the first 9 years, 20% for the remaining period.
• Tax Exemption and Reduction: Exemption for 2 years, 50% reduction in tax for the following 4 years.
• Tax Exemption and Reduction Period: Calculated continuously from the first year of taxable income. In cases where there is no taxable income in the first three years, the exemption and reduction period starts from the year of first revenue from the new investment project, with the period commencing from the fourth year.

Export-Import Tax Incentives

• The Government, through the regulations of Law No. 107/2016/QH13 on export-import taxes dated April 6, 2016, and Decree No. 134/2016/ND-CP dated September 1, 2016, provides detailed guidance on certain provisions and measures for the implementation of the Law on export-import taxes and existing regulations, resulting in the waiving of import duties on machinery and equipment used for creating fixed assets.