Vietnam - Singapore 2A Industrial Park (VSIP2A)

VSIP II – A Industrial Park (VSIP II – A IP) in Binh Duong province represents phase 2 of the VSIP II Industrial Park project. This development is situated in Tan Uyen City, Bac Tan Uyen district, Binh Duong province. Comparable to VSIP I and II Industrial Parks, VSIP II – A Industrial Park has managed to attract a substantial number of investment projects, achieving full occupancy. Let’s delve deeper into this Industrial Park in the following article!

I. Overview of VSIP II – A Industrial Park

VSIP II-A Industrial Park is the brainchild of the investor, Vietnam – Singapore Industrial Park Joint Venture Company Limited. This endeavor constitutes phase 2 of the VSIP II Industrial Park project, aimed at expanding the park’s scope to cater to the investment requirements of numerous large enterprises in the Binh Duong province market.

In 2008, VSIP undertook the expansion of the VSIP II project to encompass 1,700 hectares, designating it as VSIP II-A Industrial Park. This expansion includes 100 hectares dedicated to industrial park development and 700 hectares allocated for town development. The total investment capital for this project amounts to 3.7 billion USD.

Investment status in VSIP II – A Industrial Park

Up to this point, VSIP II – A Industrial Park is in no way inferior to its “big brothers” when it comes to an impressive investment status. VSIP II – A has successfully attracted 225 investment projects, with a total investment capital exceeding 5 billion USD, and its industrial land area is fully occupied. Notably, the major corporation P&G completed the construction of its factory and began operations here in September 2010. Additionally, numerous large companies from the US and Japan, specializing in packaging and food production, have constructed and operated factories here since 2012.

Much like VSIP I Industrial Park, VSIP II Industrial Park, and VSIP II Industrial Park – A, VSIP II – A also emphasizes diversifying industries, consolidating production, and prioritizing environmental sustainability. This strategy aids Binh Duong in developing more multi-industry industrial clusters, services, and towns rather than single-industry clusters. Situated in Tan Uyen district, VSIP II – A has contributed to the rapid urbanization of the area and is poised to soon achieve its goal of becoming a Type 1 urban area in South Binh Duong.

II. Location of VSIP II Industrial Park – A Binh Duong

VSIP II – A is situated in Vinh Tan Ward, Tan Uyen City, and Tan Binh Commune, Bac Tan Uyen District in Binh Duong Province, Vietnam. This location is strategically positioned in an economically developed area, drawing the attention of both domestic and foreign investors.

The prime location has significantly enhanced the park’s connectivity potential, providing optimal support for trade and the transportation of goods.

Connectivity Potential From VSIP II – A, individuals and businesses can readily access the following locations:

• Thu Dau Mot City – Binh Duong: 18.2km
• Bien Hoa City – Dong Nai: 34.3km
• Ho Chi Minh City center: 48.4km
• Tan Son Nhat International Airport: 46km
• Long Thanh Dong Nai International Airport: 68.9km
• Tan Cang Port – Cat Lai: 51.7km
• Tan Cang – Cai Mep Port: 94km
• Saigon Station: 48km
• Song Than Station: 33.4km

Thanks to its advantageous geographical location, VSIP II – A Industrial Park has evolved into a compelling investment destination for numerous businesses aiming to grow and expand their commercial production activities. Not only that, VSIP II – A Industrial Park also streamlines import-export operations and labor movement.

III. Infrastructure of VSIP II – A industrial park

The infrastructure of an industrial park is invariably the most pivotal factor directly influencing business investment decisions. Developed by a “pioneer” in the field of industrial park investment, VSIP II – A boasts a complete, fully-fledged infrastructure that empowers land-lease entities and operating businesses to gain a competitive edge in production. Notably, VSIP II – A is modeled after the successful frameworks of VSIP I and VSIP II, earning recognition for its industrial park infrastructure.

Social Infrastructure

The management board of VSIP II – A Industrial Park consistently delivers optimal convenience and conditions for investors. This includes round-the-clock, 24/7 security services throughout the park’s operation. Furthermore, the Binh Duong provincial government actively supports business development.

The vicinity surrounding VSIP II – A Industrial Park features modern design elements, offering a range of diverse amenities such as markets, schools, hospitals, and green parks, among others. These facilities cater to the essential needs of both workers and residents in the area.

Within a mere radius of 5-7km, inhabitants gain access to all amenities in the heart of Binh Duong New City. Hailed as one of the most advanced urban areas in Vietnam, this modern and sophisticated location hosts prominent government agencies, commercial and entertainment establishments, financial and banking hubs, healthcare facilities, international-standard schools, commercial zones, ecological lakes, golf courses, and more.

With an outstanding social infrastructure, residents, workers, and experts operating at VSIP II – A are assured of an excellent quality of life.

Technical Infrastructure

In addition to social infrastructure, the technical infrastructure at VSIP II – A constitutes another of its strengths. VSIP II – A is enveloped by major road networks such as DT724, DT741, My Phuoc – Tan Van Expressway, and Ring Road 4, fostering seamless connectivity across the area.

• Power grid system: Tapping into the national power grid through an exclusive transformer station, the park boasts a capacity of up to 3x6MVA, guaranteeing a reliable power supply for factories and land-lease facilities in the Industrial Park.
• Clean water supply system: The park has a capacity of 20,000 m3/day and night for phase 1, which is set to increase to 50,000 m3/day and night for phase 2.
• Wastewater treatment system: The system currently has a capacity of 6,000 m3/day and night, with plans for expansion reaching up to 40,000 m3/day and night in the next phase.
• Communication and telephone system: With a capacity of 2,000 lines, the park is expected to reach 10,000 lines for phase 2.

The existing social infrastructure and modern, diverse technical infrastructure position VSIP II – A Industrial Park as an appealing destination for both domestic and foreign investors. This environment offers an ideal setting for business and production activities, serving as a foundation for businesses to grow and develop in the future.

IV. Industries Attracting Investment in VSIP II – A Industrial Park

At VSIP II – A, businesses currently operate in a wide range of industries. Among them, the following key industries are prioritized for investment:

• Production and assembly of auto parts
• Power Electronics
• Mechanical engineering
• Textiles
• Pharmaceuticals and Healthcare
• Food and beverages
• Supporting industries, among others

V. Investment Incentives of VSIP II – A Industrial Park

Just like VSIP I and VSIP II Industrial Parks in Binh Duong, businesses in VSIP II – A also enjoy numerous investment incentives provided by the Industrial Park management board and the Binh Duong provincial government. These incentives are as follows:

Land Rent:

• Exemption from land and water surface rent for projects aimed at constructing infrastructure for common use in industrial parks and industrial clusters.
• Land and water surface rental exemption for 03 years for projects in the list of investment incentive industries.
• Exemption from land and water surface rent for 11 years for investment projects in special fields.

Corporate Income Tax:

• A preferential tax rate of 10% for a period of 15 years.
• Tax exemption for 04 years.
• 50% reduction in tax payable for the subsequent 9 years.

Market Development Support:

Enterprises in VSIP II – A Industrial Park receive extensive support from the Provincial People’s Committee throughout their operations. Specifically, businesses receive assistance in participating in trade promotion programs organized by provinces and countries, support for brand registration costs, and opportunities to join domestic and international fairs. This support aims to assist businesses in accessing market information and obtaining guidance for production and development.

IV. Investment Costs at VSIP II – A Industrial Park

Investment costs at VSIP II – A are a crucial consideration for many businesses. Here is a table providing investment cost information in this industrial park for businesses to reference and make informed choices.

VII. Labor Resources and Labor Costs

Binh Duong is currently a province with rapid economic development, ranking among the top provinces with a developed industry. As a result, labor resources from across the country are flocking here in search of job opportunities and stable lives.

VSIP II – A Industrial Park leverages its advantageous geographical location and exceptional regional connectivity potential, effectively attracting workers from numerous provinces and cities. Moreover, the competitive labor costs in VSIP II – A contribute to the retention of a skilled workforce.

Thanks to these factors, businesses operating in VSIP II – A Industrial Park in Binh Duong have fewer concerns about labor shortages from their home province and neighboring provinces. However, businesses can concentrate on enhancing their production and operations.

In Conclusion

Given its many advantages, including its strategic geographical location, well-developed social and technical infrastructure, competitive rental costs, and various investment incentives offered by the province, VSIP II – A Industrial Park presents itself as an exceptionally promising investment destination for businesses. We hold the belief that in the coming years, VSIP II – A Industrial Park will continue to flourish, making significant contributions to the economic development of Binh Duong province.

We trust that the information presented in this TTTFIC article has provided investors with a comprehensive understanding of VSIP II – A Industrial Park, thereby facilitating well-informed decision-making.