Vietnam-Singapore 1 Industrial Park (VSIP 1)

VSIP I Industrial Park ( IP ) is a renowned, extensive industrial park located in Binh Duong Province. This is an industrial park project backed by VSIP, one of the foremost investors in industrial land development in Vietnam. Covering an impressive 500 hectares, VSIP I Industrial Park is home to a multitude of companies and enterprises, attracting hundreds of thousands of engineers, experts, and skilled workers. In this article, let’s delve deeper into the VSIP I Binh Duong industrial park in partnership with TTTFIC.

I. Overview of VSIP I Industrial Park

VSIP 1 Industrial Park – Binh Duong Province – tttfic.com

Information about VSIP I Industrial Park

VSIP I Industrial Park is an industrial park in Binh Duong Province that was established under Decision No. 870/TTg dated November 18, 1996. The project investor is the Vietnam – Singapore Joint Venture Industrial Park Company Limited (VSIP). VSIP I Industrial Park is situated at No. 8, Huu Nghi Avenue, Binh Hoa Ward, Thuan An City, Binh Duong Province.

VSIP, the investor of the VSIP I IP project, is the leading developer of industrial parks in Vietnam. As of 2019, this entity has developed nine industrial parks across the country, spanning a total area of up to 8,600 hectares, offering industrial, urban, and service land.

VSIP I Industrial Park was one of the first industrial park projects undertaken by VSIP. This project has presented investment opportunities for numerous domestic and foreign enterprises, resulting in job creation for hundreds of thousands of engineers, workers, and skilled laborers.

With its myriad advantages, VSIP I Industrial Park rightfully claims the position of a leading model industrial park in Vietnam. The park currently maintains an occupancy rate of 100%, hosting 231 projects with a total investment capital exceeding 3.2 billion USD. Moreover, VSIP I Industrial Park generates 95,000 job opportunities, making a significant contribution to the industrial development of the province.

The scale of VSIP I Industrial Park

VSIP I covers an area of 500 hectares, comprising:

• Factory and warehouse land: 376 hectares
• Service land: 3.15 hectares
• Green land: 35 hectares
• Technical infrastructure land: 5 hectares
• Traffic land: 45 hectares

II. Location of VSIP I Industrial Park in Binh Duong

The location of VSIP I Binh Duong IP is a key advantage. The project is strategically positioned, in proximity to two major roads, National Highway 13 and DT743. This location serves as the central hub for the southern key economy, with National Highway 13 being a vital route connecting Binh Duong Province to Ho Chi Minh City and the Central Highlands provinces.

Thanks to this prime location, VSIP I Industrial Park benefits from convenient infrastructure and support services inherited from Ho Chi Minh City, the country’s leading economic center. Consequently, businesses and factories within this Industrial Park can access and transport goods efficiently, resulting in cost savings for import and export activities.

Linkage Potential of Industrial Parks

• Thu Dau Mot City – Binh Duong Province: 10km with a 20-minute commute
• Ho Chi Minh City: 25km with approximately a 40-minute commute
• Bien Hoa City – Dong Nai: Approximately 20km
• Tan Son Nhat International Airport (HCMC): 20km with about a 30-minute commute
• Long Thanh International Airport (Dong Nai): 54km
• Tan Cang – Cat Lai Port: 31.3km with approximately a 40-minute commute
• Tan Cang – Cai Mep Port: 72.4km
• Gia Saigon: 25km with about a 40-minute commute

III. The infrastructure of VSIP I Industrial Park

One of the reasons that helped VSIP I Industrial Park become the leading Industrial Park in Binh Duong province with an occupancy rate of up to 100% is the modern infrastructure system, which meets the standards and production requirements of businesses. Factories, land lease facilities, and businesses operating in VSIP I Industrial Park are guaranteed favorable and quality conditions by investors to help businesses and production achieve the highest productivity.

Some highlights of the infrastructure at VSIP I include:

Traffic System

The convenient transportation system has created favorable conditions for the smooth and rapid transportation of goods. It’s important to mention that the planning includes spacious main roads, which are 64 meters wide, and internal roads, which are 24 meters wide.

Power Grid System

VSIP I has a stable power grid system, directly connected to the national power grid through its transformer station. The electrical capacity is up to 141 MVA, ensuring sufficient electricity supply for factories, workshops, and land lease facilities in the Industrial Park. Medium voltage transformer stations of 110KV and 220KV, as well as transformer stations for projects and factories, are scientifically and effectively arranged.

Water Supply and Wastewater Treatment Systems

In addition to the electrical system, the water supply and wastewater treatment system at VSIP I IP receives substantial investment. This is crucial for ensuring production activities. The clean water supply system has a maximum capacity of 40,000 m3/day and night. Additionally, the wastewater treatment system is designed with a maximum capacity of 30,000 m3/day and night. A rainwater drainage system along the roads minimizes flooding. Professional management of the water supply and drainage system helps VSIP I Industrial Park ensure environmental protection.

Security and Communication Systems

The security and communication systems at VSIP I Industrial Park are modern and comprehensive. This includes fire hydrants installed along the main and internal roads for safety. To ensure communication and connectivity for businesses in the area, the Industrial Park has invested in a fiber optic transmission system with a maximum bandwidth of up to 2GB, along with more than 6,000 phone lines.

Support Services

Businesses and land leasing establishments at VSIP I Industrial Park also receive support through diverse services, including banks and administrative offices, enhancing the convenience of production and business by providing a range of essential services.

IV. Industries Attracting Investment in VSIP I Industrial Park

With its numerous advantages, particularly well-developed infrastructure and comprehensive planning, VSIP I Binh Duong Industrial Park garners significant attention from domestic and foreign businesses. The park hosts a variety of industries and notable fields, including:

• Manufacturing and assembling auto parts
• Electrical and electronic industry
• Textile production
• Mechanical engineering
• Pharmaceuticals and Healthcare
• Food and beverage production
• Supporting industry
• Other areas…

Diagram of VSIP 1 Industrial Park – Binh Duong Province – tttfic.com

V. Investment Incentives of VSIP I Industrial Park

In addition to its well-developed infrastructure, VSIP I Industrial Park also offers investment incentives to attract domestic and foreign businesses. Specifically:

Land Rent

• Exemption from land and water surface rent for infrastructure construction projects for common use in industrial parks and industrial clusters as per the plan.
• Exemption from land rent and water surface rent for three years is granted to projects in the list of industries eligible for investment incentives. This includes new production and business establishments of economic organizations either relocated per the plan or due to environmental concerns.
• Exemption from land and water surface rent for 11 years for investment projects in fields with special investment incentives.

Corporate Income Tax

• Preferential tax rate of 10% for a 15-year period.
• Tax exemption for four years.
• 50% reduction in tax payable for the next nine years.

Support for Market Development

The Provincial People’s Committee consistently extends maximum support to businesses in VSIP I Industrial Park to engage in provincial and national trade promotion programs. Additionally, the province aids in brand registration costs and funds for participation in domestic and international fairs and exhibitions to access market information.

VI. Investment Costs at VSIP I Industrial Park

Considered an attractive destination for many businesses, VSIP I Industrial Park promises to create numerous appealing investment opportunities with substantial development potential. Below is some information about investment costs and utilities at this industrial park:

• Land rental price with existing infrastructure: Minimum 200 USD/m2 (for areas of 1000 m2 or more)
• Water cost: 0.5 USD/m3 (subject to Binh Duong Provincial People’s Committee regulations)
• Labor costs: Ranging from 250 to 500 USD per person per month (Refer to recruitment salaries in Binh Duong and Ho Chi Minh City in 2019)
• Electricity cost: 0.05 USD/kWh (subject to Binh Duong Electricity regulations)
• Wastewater treatment fee: 0.28 USD/m3 (as per Industrial Park Management Board regulations)
• Management fee: 0.4 USD/m2/month

VII. Labor Resources and Labor Costs

VSIP I Industrial Park, with a 100% occupancy rate, hosts numerous businesses and production facilities, providing employment to a significant number of people in Binh Duong, as well as various provinces and cities throughout the country. With labor costs ranging from 250 to 500 USD per person, VSIP I Industrial Park enjoys advantages in recruiting and retaining high-quality employees.

In Binh Duong, the growing source of skilled labor from other regions creates conditions for businesses to ensure smooth production progress, facilitating stable business operations. With its large scale and ongoing development, it is expected that the number of workers coming to live and work in VSIP I Industrial Park, as well as in Binh Duong province as a whole, will further increase in the future.

VIII. Economic Value of VSIP I Industrial Park

When discussing VSIP I, it is immediately associated with a large-scale, leading industrial park in Binh Duong and the country as a whole, presently hosting more than 230 investors from around the world, providing employment for over 95,000 workers, and attracting more than $3 billion in investments. These figures attest to the success and strength of VSIP I Industrial Park.

But the achievements of VSIP I go beyond these numbers. It serves as a model for the region and the development of industrial parks. The growth of VSIP I Industrial Park has contributed to making Binh Duong a renowned industrial hub in the country. Additionally, it has successfully established multifaceted projects encompassing Trade Centers, Services, and Housing, creating integrated living, recreational, and working environments.

With its accomplishments, VSIP I Binh Duong Industrial Park has amplified its influence in attracting investments and invigorating economic development. The success of VSIP I Industrial Park sets the stage for this industrial development corporation to launch VSIP II and VSIP III industrial parks in the province, reaffirming Binh Duong’s status as the industry capital.

Conclusion

After over two decades of operation, VSIP I has succeeded in drawing investments, generating sustainable employment, and fostering real estate development around the industrial park.

We trust that the information in this article has enriched your understanding of VSIP Industrial Park and the potential and economic value it offers. It undoubtedly stands as a thriving investment destination for many domestic and foreign businesses.