Vietnam - Singapore 3 Industrial Park (VSIP3)

VSIP III Industrial Park is the latest project developed by the investor VSIP. It follows the successful footsteps of the previous two industrial parks, VSIP I and VSIP II. With careful investment and comprehensive infrastructure, VSIP III is expected to become a significant contributor to the economic growth of the region, particularly in Binh Duong province.

I. Overview of VSIP III Industrial Park

VSIP III is the third industrial park in the VSIP series, established in Binh Duong, following the successful models of VSIP I and VSIP II. On March 19, the groundbreaking ceremony for VSIP III took place in Hoi Nghia ward, Tan Uyen town, marking the initiation of the 11th project by VSIP, a leading brand in industrial park investment in Vietnam.

Compared to other industrial parks in Binh Duong, VSIP III is of a significant scale, covering an area of 1,000 hectares, and is master-planned, divided into two phases:

Phase 1

This phase encompasses an area of 196.45 hectares. During this stage, the project successfully obtained the Green Mark certification from the Singapore Building and Construction Authority (BCA) for Industrial Parks. This certification solidifies VSIP III’s status as a project developed by a leading company in industrial park investment, committed to creating a sustainable and environmentally friendly working environment.

Using land structure

• Total area: 196.45 hectares (100%)
• Factory and warehouse land: 127.95 hectares (65.13%)
• Administrative and service land: 17.37 hectares (8.8%)
• Green trees and water surface: 19.87 hectares (10.11%)
• 110kV line safety corridor: 3.52 hectares (1.8%)
• Technical infrastructure area: 1.98 hectares (1.01%)
• Internal traffic: 25.76 hectares (13.15%)

Phase 2

Phase 2 of VSIP III Industrial Park will be implemented when Phase 1 leases 60% of the industrial land area and is approved by the Provincial People’s Committee to allocate or lease the land. The master plan for phase 2 of VSIP III is 803.55 hectares. It is estimated that phase 2 will create 33,000 – 35,000 jobs. VSIP III is also an industrial park with a diversity of career fields, especially high-tech and service-connected industries.

Project investors

VSIP III is also invested by VSIP – a joint venture between Becamex IDC Vietnam Group and Singaporean investors. VSIP is the abbreviation of Vietnam Singapore Industrial Park. The company is located at No. 8, Huu Nghi Avenue, VSIP, Binh Hoa Ward, Thuan An City, Binh Duong.

After more than 15 years of formation and development, VSIP has created a leading brand in the field of developing industrial park chains, and industrial-urban-integrated service complexes. Not only Binh Duong, but VSIP also successfully implemented many projects in other provinces such as Nghe An, Quang Ngai, Nghe An, and Binh Dinh…

Investment status at VSIP III

Like VSIP I, VSIP II, VSIP III Industrial Park also aims to be a smart, sustainable industrial park, designed to integrate smart technology. The outstanding differences of VSIP III include:

• Wastewater and garbage treatment technology, traffic management, and security
• Real-time monitoring and analysis using remote devices
• The 50-hectare solar farm aims to provide stable electricity for businesses
• …

The Danish company LEGO is the first customer to approach the solar farm, with an expected investment capital of up to 1.3 billion USD. This is a famous plastic toy manufacturing company worldwide. In addition, the Danish company Pandora is also investing more than 100 million USD to build a jewelry manufacturing facility here.

It can be seen that, although not yet officially put into operation, VSIP III still receives a lot of attention from many large businesses. This is proof of the success of products from VSIP Group.

II. Location of VSIP III industrial park – Binh Duong

The VSIP industrial park projects have consistently received praise for their strategic locations, and VSIP III is no exception. VSIP III Industrial Park is situated in Hoi Nghia Ward, Tan Uyen Town, and Tan Lap Commune, Bac Tan Uyen District, Binh Duong Province. Precisely, the project encompasses 196 hectares in Hoi Nghia Commune and 804 hectares in Tan Lap Commune.

The geographical location of VSIP III Industrial Park has it bordering:

• East: Residential land adjacent to Tan Lap Commune
• West: Rubber plantation owned by Phuoc Hoa Rubber Joint Stock Company
• South: Adjacent to Ring Road 4 planning in Ho Chi Minh City
• North: DT 746 Road and existing residential land in Hoi Nghia Ward, Tan Lap Commune.

Analyzing the location of VSIP III Industrial Park, numerous investors and real estate experts believe it holds a strategic position, with easy access to major roads. Consequently, businesses operating in VSIP III have the potential to attract a large number of domestic and foreign investors.

Potential for connecting the VSIP III region

VSIP III boasts a highly convenient location, as it is adjacent to Binh Duong New City Center, Ring Road 4 (a planned route spanning 197.6km across 5 provinces). The completion of Ring Road 4 is expected to contribute significantly to the socio-economic development of Binh Duong province. Furthermore, the VSIP III region has remarkable connectivity potential:

• 50km from Ho Chi Minh City’s administrative center
• 35km from Bien Hoa City – Dong Nai
• 114km from Vung Tau City
• 54km from Cat Lai Port
• 94km from Cai Mep Port
• 35km from Song Than International Container Port
• 45km from Tan Son Nhat International Airport
• 69km from Long Thanh International Airport

Notably, VSIP III Industrial Park also benefits from Tan Uyen district’s focus on developing multiple large industrial parks. Notable among these are VSIP II Industrial Park, Nam Tan Uyen Industrial Park, and Tan Lap Industrial Park.

III. Infrastructure of VSIP III industrial park

Although not yet completed, VSIP III has already garnered considerable attention from domestic and foreign investors. This is due to its excellent location as well as the substantial investment made in its infrastructure, aiming to provide an attractive business environment and professional customer support.

The social infrastructure of VSIP III Industrial Park

Investing in VSIP III provides businesses with the support of the Industrial Park Management Board and the provincial government. During their operation in this location, investors can expect modern and diverse facilities, including:

• Markets, schools, hospitals, and parks
• Utilities from Binh Duong New City, including government offices, commercial and entertainment facilities
• Banking and financial centers, medical facilities, and international standard schools, covering education from kindergarten to university
• Entertainment areas, ecological lakes, and central parks.
• …

These amenities will enhance the quality of life for residents and convenience for workers in the area.

VSIP III Technical Infrastructure

The technical infrastructure of VSIP III Industrial Park is an essential attraction for both domestic and foreign investors. It offers the following features:

• Transportation System: VSIP III is surrounded by arterial roads such as DT746, DT747, the My Phuoc – Tan Van Expressway, and Ring Road 4 which passes through the industrial park. This strategic location ensures easy and convenient connectivity to other areas in the region.
• Electrical System: The park is connected to the national grid through a separate transformer station with a capacity of up to 3x61MVA, ensuring a stable and sufficient electricity supply for factories and workshops.
• Clean Water Supply System: Phase 1 has a capacity of 20,000 m³/day and night, and Phase 2 has 50,000 m³/day and night, guaranteeing an ample supply of clean water.
• Wastewater Treatment System: The park has a wastewater treatment capacity of up to 42,000 m³/day and night.
• Telephone and Communication System: The park includes 10,000 – 20,000 lines, ensuring efficient communication.

With a modern and diverse infrastructure system, VSIP III is poised to become an attractive destination for both domestic and foreign investors.

IV. Industries Attracting Investment in VSIP III Industrial Park

Due to its attractiveness, VSIP III Industrial Park accommodates a wide range of industries, including but not limited to:

• Assembling auto parts
• Power Electronics
• Mechanical engineering
• Textile
• Pharmaceuticals and Healthcare
• Food and beverages
• Supporting industries and more

V. Investment Incentives at VSIP III Industrial Park

The Management Board of VSIP III Industrial Park, along with local authorities and the Binh Duong Provincial People’s Committee, consistently strives to create favorable conditions and support investors. Specific preferential investment policies at VSIP III Industrial Park include:

1. Land Rent:

   • Exemption from land and water surface rent for common infrastructure construction projects in industrial parks and industrial park clusters.
   • Exemption from land and water surface rent for a period of 3 years from the date of project completion and commencement of operation (for projects in the list of investment incentives; production facilities; new businesses of economic organizations that must relocate according to planning or relocate due to environmental pollution).
   • Exemption from land and water surface rent for a period of 11 years for investment projects in fields with special investment incentives.

2. Corporate Income Tax:

   • Preferential tax rate of 10% for a period of 15 years.
   • Tax exemption for 4 years.
   • 50% reduction in tax payable for the next 9 years.

3. Import Tax:

   • Exemption from import tax on imported goods for subjects enjoying incentives according to the law.

In addition, investors are also supported to participate in provincial or national economic and trade promotion programs, and they receive support for trademark business registration fees.

VI. Investment Costs at VSIP III Industrial Park

To make informed decisions about choosing VSIP III for production and business expansion, investors should also consider the investment costs. Below is an information table detailing the investment costs at VSIP III.

VII. Labor Resources and Labor Costs

VSIP III offers competitive labor costs, ranging from $250 to $500 per person per month. This affordability has attracted a substantial workforce from various provinces and cities. Additionally, the park’s strategic location enables workers to easily commute to neighboring areas.

The diversity of fields and industries within VSIP III has led to the creation of approximately 50,000 jobs, significantly contributing to keeping the unemployment rate in Binh Duong low. The emphasis on social security support policies for workers in Binh Duong makes it easier to attract workers from different regions. As a result, businesses can focus on improving product quality and productivity without major concerns about labor resources.

VIII. Summary

With a track record of successfully developing large-scale industrial parks in Vietnam, VSIP is confident in transforming VSIP III into one of the country’s pioneering industrial parks focused on smart and sustainable industry practices. The establishment of VSIP III is expected to have a positive impact on urban development, infrastructure, population, and real estate value in Binh Duong.

We hope the information shared by TTTFIC about VSIP III Industrial Park has assisted investors in evaluating whether this location is suitable for their investment and business development. If you have any further questions or need additional details, please feel free to ask.