On June 4, 2007, the Prime Minister of Vietnam’s Government issued Decision No. 676/TTg-CN, marking the establishment of VSIP-Bac Ninh Industrial Park. In this document, the Prime Minister approved the Vietnam-Singapore Limited Liability Joint Venture Company as the developer of the industrial, residential, and service area with a total area of approximately 700 hectares, including 500 hectares for industrial purposes and 200 hectares for residential and service purposes. In addition, the Prime Minister stated in Decision No. 1107/QD-TTg (dated August 21, 2006) that the Vietnam-Singapore Industrial Park in Bac Ninh Province, covering an area of 500 hectares, would be included in the list of prioritized new industrial parks to be established by 2015.
In November 2007, the construction of VSIP-Bac Ninh Industrial Park commenced. Singaporean architects master-planned the industrial park, ensuring it adheres to international standards. The park emphasizes environmental protection, aiming to create a clean and green industrial park and a modern urban area in the northern part of Hanoi. With a top priority on the environment, advantages in terms of land area, a strategic location close to Hanoi, and convenient transportation routes, VSIP quickly became a clean industrial park with environmental and advanced production technology standards, attracting a series of large-scale projects.
Vietnam-Singapore Industrial Park (VSIP) – Bac Ninh
Developer: Vietnam-Singapore Limited Liability Joint Venture Company
Location: Phu Chan Commune, Tu Son District, Bac Ninh Province
Scale: 500 ha IP, 200 ha C&R
The panorama of VSIP – Bac Ninh Industrial Park – TTTFIC Group
II. GEOGRAPHIC LOCATION:
VSIP-Bac Ninh Industrial Park is located adjacent to National Highway 1A and Provincial Road 295, connecting to the national transportation network and near important arterial roads.
Approximately 16km from the capital city, Hanoi.
Approximately 110km from Hai Phong Port.
Approximately 55km from Noi Bai International Airport.
Approximately 140km from Cai Lan Port, Quang Ninh.
Approximately 135km from the Vietnam-China border crossing (Lang Son).
Map of VSIP – Bac Ninh Industrial Park – TTTFIC Group
III. INFRASTRUCTURE:
Power supply system:
The national grid directly supplies power to the industrial park. The design and arrangement of low-voltage power lines to the factories are underground. Within the industrial park, the implementation of the underground design encompasses the low-voltage power and lighting system. This power system guarantees an ample supply for both production and daily activities carried out in the industrial park.
Clean water supply system:
The water supply for Phase I of the industrial park originates from a water treatment plant with a capacity of approximately 10,000 m3/day and night, while Phase II possesses a capacity of 13,000 m3/day and night. The design of the water supply system follows a loop network plan.
Wastewater treatment system:
The industrial park has a wastewater treatment plant located in the southeast of the project area. The wastewater drainage system is completely independent of the stormwater drainage system. Factories and plants within the industrial park are responsible for treating their wastewater to meet Class B standards before they can discharge it into the centralized wastewater treatment system. The collection of domestic wastewater is conducted through main sewer lines, which transfer the wastewater to the wastewater treatment plant located within the park. The industrial park utilizes three pumping stations to transport all wastewater to the park’s treatment plant, with an average capacity of around 5,600 m3/day and night.
Transportation system within the park:
The central road axis in the industrial park is 34 meters wide with 4 to 6 lanes. The main roads within the industrial park measure 23 meters in width and consist of 2 lanes. Additionally, street lighting is installed along these road axes.
Communication system:
The industrial park utilizes a synchronized fiber optic cable communication system. The installation of communication cables is done underground. Power supply is provided by the telecommunications and television infrastructure within the area.
Fire protection system:
Fire hydrants are installed along the roads within the industrial park according to legal standards.
Stormwater drainage system:
The designed gradient of the foundation at the industrial park is 0.4%. The planning for the stormwater drainage area is carried out separately. The arrangement of the network of stormwater drainage pipes follows a gravity flow system along the transportation routes. The collection of stormwater takes place through direct catch basins, and the Tri Phuong pumping station is responsible for discharging the collected stormwater into the Huc and Duong rivers.
IV. LAND LEASING COST AND INVESTMENT INCENTIVES:
Land leasing cost with infrastructure: $200/m2 (depending on the location of each plot).
Annual land leasing fee: According to the decision of the People’s Committee of Bac Ninh Province.
Clean water supply cost: According to the regulations of the service provider.
Wastewater treatment fee: Both the People’s Committee of the province and the Industrial Park Management Board establish the regulations that determine the wastewater treatment fee.
Labor cost: Reference price of $100-500/person/month.
Transportation of VSIP – Bac Ninh Industrial Park – TTTFIC Group
V. INVESTMENT INCENTIVES:
Tax incentives: 100% exemption of corporate income tax for the first 2 years and a 50% reduction in corporate income tax for the following 4 years.
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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Industrial real estate in industrial zones, Vietnam
