Viet Phat Industrial Park (Viet Phat IP) stands out as the economic powerhouse of Long An province, boasting a thriving industry and a dense population. This ambitious project is spearheaded by Tan Thanh Long An Investment Joint Stock Company, which has adopted a modern planning approach, combining industrial functionality with urban development. This innovative model aims to establish a robust and sustainable investment destination. To delve deeper into the features and advantages of this industrial park, please continue reading below!
I. Overview of Viet Phat Industrial Park
Viet Phat IP commenced construction in May 2020, with Tan Thanh Long An Investment Joint Stock Company as the investor. Positioned strategically in the southern key economic zone of Vietnam, its proximity to the economic center and a well-connected transportation system to major trade areas has propelled the Industrial Park to make significant strides in the economy.
The project investor has collaborated with world-leading partners in planning, development, and infrastructure acquisition, such as Surbana Jurong Limited Liability Company (Singapore) and Jones Limited Liability Enterprise Lang LaSalle (JLL).
Scale of Industrial Park:
Total land area for investment in infrastructure and urban areas: 1.800 hectares.
Viet Phat Industrial Park: 1.200 hectares.
Residential areas: Over 625 hectares.
II. Geographical Location of Viet Phat Industrial Park – Long An
Viet Phat Industrial Park is situated in Tan Long commune, Thu Thua district, Long An province – the province adjacent to Ho Chi Minh City. Therefore, the Industrial Park is considered the main and only trade gateway between the Southern key economic region and the Mekong Delta key economic region.
Located in a favorable geographical location, Viet Phat IP plays a crucial role in Vietnam’s economic development strategy, easily connecting with key economic regions:
50 km from Ho Chi Minh City center.
45 km from Tan Son Nhat airport.
28 km from Saigon – Trung Luong Expressway.
Less than 60 km from Saigon Port Container Center.
Additionally, the Industrial Park is located on the vital traffic route National Highway N2 (Western North-South Expressway), passing through 8 provinces, including Binh Phuoc, Binh Duong, Tay Ninh, Long An, Dong Thap, Can Tho, Kien Giang, Ca Mau. Surrounded by large canal systems in the area such as Rach 1 canal (Duc Hue – Thu Thua), Rach 2 canal (Ben Luc – Thu Thua), Bo Bo canal, T6 canal, the Industrial Park has created favorable conditions for the smooth, rapid, and flexible transportation of goods between areas. This, in turn, improves the efficiency of production and export of goods, contributing to the economic growth of Viet Phat IP and industrial parks in Long An province.
Viet Phat Industrial Park plays a particularly important role in Vietnam’s economic development strategy
III. Infrastructure of Viet Phat Industrial Park
Viet Phat IP, already benefitting from a prime location, convenient transportation, and proximity to large canals and neighboring countries, continually enhances its marketplace position through comprehensive and highly connected infrastructure. Key components include:
Traffic System:
Road Traffic: The industrial park boasts a modern, synchronized road system with widths ranging from 26m to 77 m, all covered with hot asphalt.
Waterway Transportation: Plans include an 8.350 m long waterway connecting Bac Ranh canal with Vam Co Dong river, accommodating 1.000 DWT barges.
Water Supply System:
Utilizing new technology, the water supply system ensures water quality adheres to Ministry of Health regulations.
The clean water plant has a capacity of 29.315 m3/day.
Power System:
Supplied by the 110kV/22kV -40 +40 MVA Thanh Hoa power station.
A 110/22kV power station is planned for long-term investment.
Wastewater Treatment System:
The industrial park has its wastewater treatment system, meeting Vietnam’s environmental protection standards.
Factories follow a two-level treatment process before discharging wastewater into the general network.
Security & Fire Protection System:
Professional security guards with experience and practical training.
A 24/7 on-duty security team, equipped with modern firefighting tools and regular drills.
Communication Systems:
Designed for smooth communication, covering fixed and mobile subscriptions, internet networks, managed by specialized post and telecommunications units.
IV. Industries Attracting Investment in Viet Phat Industrial Park
Viet Phat IP, strategically positioned for both road and waterway transportation, and close proximity to key industrial parks and Cambodia, attracts investments across various industries. Notable sectors include:
Electronics, telecommunications, and optical manufacturing.
Metal manufacturing, metallurgy, mechanics, machinery manufacturing.
Textile and textile manufacturing (excluding dyeing).
Chemical manufacturing, pharmaceuticals, cosmetics, and healthcare.
Paper, stationery, consumer goods, and printing.
Construction materials manufacturing, interior and exterior decoration.
Agricultural and aquatic product processing.
Wood processing, glassware, ceramics, jewelry, and gemstones.
V. Investment Incentives at Viet Phat Industrial Park
To encourage substantial investments and create a modern industrial environment, the investor of Viet Phat IP provides attractive incentives:
Tax Incentives:
Tax exemption for 2 years and a 50% reduction for the subsequent 4 years from the taxable income date.
Other Offers:
Competitive rental prices, fostering investment and job creation, benefitting both new and ongoing projects.
Viet Phat Industrial Park has offered many attractive investment incentives
VI. Investment costs at Viet Phat industrial park, Long An
Below, TTTFIC would like to send you the investment costs of Viet Phat IP, Long An province as follows:
Electricity price
Electricity prices at the Industrial Park are calculated over different time periods with:
Peak hours: 0,13 USD/KWh/month
Normal hours: 0,067 USD/KWh/month
Off-peak hours: 0,043 USD/KWh/month
Water price
Maintained at a price of 0,57 USD/m3/month.
Infrastructure management and maintenance fees
0,4 USD/m2/year. Payment upon request at the end of the month
Land rents
From 120 – 160 USD/m2. Lease term until 2056, annual payment.
Cost of wastewater treatment
0,42 USD/m3/month. Payment upon request at the end of the month
VII. Labor Resources and Labor Costs
Viet Phat Industrial Park enjoys strategic advantages, situated adjacent to the southern key economic region and major cities. Additionally, its location on National Highway N2 and proximity to major canals facilitate efficient transportation of goods and movement of people within the park. The constant innovation and modernization of infrastructure, including electricity and water supply, contribute to a safe and pristine working environment. This commitment to excellence establishes the industrial park as a trusted and preferred destination for investors and workers alike.
These strengths have propelled the continuous development of Viet Phat IP, generating employment opportunities for thousands and contributing significantly to the local economy. The positive impact extends to housing solutions, enhancing real estate value in the Long An area.
VIII. Economic Value at Viet Phat Industrial Park
The investor of Viet Phat Industrial Park has successfully raised VND 5.000 billion through individual non-convertible bonds, unsecured by warrants but backed by project-related assets. The bond, with a 5-year term expiring on May 20, 2026, features the following interest rates:
For the initial 2 interest periods, the rate is 10%/year.
From the 3rd interest period onward, the rate is 4.5%/year plus the reference interest rate, not falling below 10%/year.
The issuance aims to fund the development of the Viet Phat Industrial Park infrastructure project in Thu Thua commune, Long An province, with the real estate associated with the project serving as collateral.
Aligned with the post-Covid-19 global supply chain shifts, both the investor and the government have been proactive in supporting Viet Phat Industrial Park’s timely construction:
September 2021: Completion of technical infrastructure construction, providing space for secondary investors exceeding 100 hectares.
December 2021: Area for receiving investors expands to 160 hectares.
June 2022: Expected completion of technical infrastructure, qualifying for secondary investors on approximately 220 hectares.
December 2022: Anticipated expansion to 295 hectares for secondary investors.
This strategic approach positions Viet Phat Industrial Park as a promising venture, combining development potential, a prime location, convenient transportation, and transparent policies to foster the most advanced business environment in the country.
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
TTTFIC Group: Guide to Industrial Real Estate in Vietnam
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With over 20 years of experience in Design & Build for FDI projects of all scales. If you’re seeking industrial real estate in Vietnam, give us a call! With a team of experienced experts, engineers, and lawyers, we have assisted thousands in property buy, sell, M&A, and industrial real estate leasing (especially investors from the US, Germany, Denmark, Sweden, the UK, Korea, Japan, Taiwan, China, India, Singapore…).
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Industrial real estate in industrial zones, Vietnam
