VSIP Hai Duong Industrial Park

VSIP Hai Duong is the 6th project of the VSIP Group. Officially established in April 2015, VSIP Hai Duong has successfully converted and developed 150 hectares of agricultural land into industrial development land, with infrastructure and service quality meeting international standards. To date, VSIP Hai Duong has fully occupied 100% of Phase 1 and continues to roll out subsequent phases.

I. Overview of VSIP Hai Duong Industrial Park

Information about the industrial park

VSIP Hai Duong Industrial Park, also known as Cam Dien – Luong Dien Industrial Park, was approved for detailed planning at a 1/2000 scale by the People’s Committee of Hai Duong Province in November 2007. The planned area of the industrial park is 205,28 hectares, with 183,96 hectares designated for industrial land for lease.

Phuc Hung Company Limited established Cam Dien Luong Dien Industrial Park on June 9, 2008, according to Decision No. 1957/QD-UBND issued by the People’s Committee of Hai Duong Province. The project is set to last for 50 years.

After facing difficulties in implementation and experiencing delays due to challenges in compensation and land clearance work, Phuc Hung Company transferred the Cam Dien Luong Dien Industrial Park project to a new investor, VSIP Hai Duong Company Limited, in 2014. On April 20, 2015, VSIP Hai Duong Company Limited was officially granted an investment certificate for the development and infrastructure business of the industrial park. Since then, Cam Dien Luong Dien Industrial Park has been commonly referred to as VSIP Hai Duong Industrial Park. After the transfer, in October 2015, the park’s area was adjusted to 149,31 hectares, reducing it from 205,28 hectares (a reduction of 55,97 hectares in Phase 1).

VSIP Hai Duong Industrial Park has fully leased 100% of the industrial land area for lease in Phase 1, with notable projects including:

• The elastic webbing production project by Best Pacific Vietnam Company Limited.
• The production and processing of diamond-embedded grinding stone products project by EHWA Global Company.
• The production of spare parts and auxiliary components for automotive engines project by A-Tech Automotive Vietnam Company.

Information about the investor

The project’s investor is Vsip Hai Duong Co., Ltd.
Address: Cam Dien Commune, Cam Giang District, Hai Duong Province, Vietnam.
Vsip Hai Duong Co., Ltd is a subsidiary of VSIP Group. The VSIP industrial park system currently operating in Vietnam is managed by a joint venture investment comprising companies under the Sembcorp Industries group (formerly known as Sembcorp Parks Holdings) – Singapore and Becamex IDC Corp – Vietnam.
Established in 1996, the VSIP Group has, to date, developed a chain of 13 industrial parks, townships, and services covering an area of over 10,362 hectares. Vietnam-Singapore industrial parks have been implemented in various provinces and cities such as Hai Phong, Hai Duong, Bac Ninh, Nghe An, Quang Ngai, Binh Dinh, and Can Tho.
VSIP provides manufacturing infrastructure to 882 customers from 30 countries and territories, with a total investment capital of 18 billion USD, creating employment for 288.300 domestic and foreign workers.

II. Geographic location of VSIP Hai Duong Industrial Park

VSIP Hai Duong Industrial Park is located in Luong Dien and Cam Dien communes, Cam Giang district, Hai Duong province, Viet Nam.

Regarding transportation connectivity and regional linkages:

• The industrial park is adjacent to National Highway 5, an important transportation route connecting northern provinces in the Red River Delta region.
• It is approximately 66 km away from Hai Phong Port.
• It is approximately 60 km away from Noi Bai International Airport.
• It is approximately 43 km away from the center of Hanoi.

It can be seen that The Industrial Park is strategically located in the central area with convenient connectivity to important maritime and air transportation routes. It also benefits from easy access to major economic and political centers in the northern region.

III. Infrastructure of VSIP Hai Duong Industrial Park

Internal transportation

• The central road axis within the industrial park is planned to have a width of up to 56m.
• There are 4 to 6 lanes for vehicle traffic.
• The main road within the industrial park has a width of 23m with 2 lanes.

Power system

• The industrial park receives its power supply from the national grid system through 110KV and 22KV power lines.
• Subsequently, it directs the power to the 63MVA internal transformer station and distributes it to each transformer station of the factories within the industrial park.

Water system

• The industrial park has a built-in water supply system with a designed capacity of 12.000m3/day and night for clean water.

Wastewater and rainwater drainage system

• The rainwater drainage system flows naturally along the road routes into channels arranged around the industrial park.
• It then discharges into channels and rivers in the area.
• The industrial park arranges the wastewater drainage system along the road routes and centralizes it at the treatment station.

Waste management

• Solid waste from the factories within the industrial park is classified, collected, and transported to the centralized landfill of Hai Duong City.

Wastewater treatment

• The industrial park has invested in building a wastewater treatment plant that meets the standards set by the Ministry of Natural Resources and Environment, with a capacity of 5.500 m3/day and night.

Communication system

• The infrastructure includes 3.000 dedicated telephone lines, broadband ADSL, and fiber optic cables.

IV. Industries attracting investment in VSIP Hai Duong Industrial Park

• Electrical, electronic, high-tech, and clean technology industries.
• Warehousing and logistics.
• Precision mechanical engineering.
• Electrical and refrigeration industries.
• Medical equipment and healthcare supplies industry.
• Pharmaceutical and beauty care products industry.
• Food and beverage industry.
• Packaging industry.
• Supporting industries.
• Automation.
• Specialized materials and construction.
• Software park.
• High-end garment and footwear industry, textile industry.

V. Cost and Investment Incentives of VSIP Hai Duong Industrial Park

Costs

• Infrastructure usage fee: 125 USD/m2 until the end of the lease term (The minimum leased area is 7.000m2).
• Industrial park management and maintenance fee: 0,7 USD/m2/year.
• Wastewater treatment fee: 0,45 USD/m3.
• Electricity rate: As regulated by EVN (Vietnam Electricity). Reference price: 0,05/kWh.
• Water rate: Applied by the pricing decision of the supplying entity. Reference price: 0,4 USD/m3.
• Solid waste and wastewater treatment fees: as regulated by the People’s Committee of the province and the Industrial Park Management Board.

Please note that the prices mentioned above do not incorporate VAT and are subject to potential changes without prior notification.

Incentives

• Investment incentives at The Industrial Park: 100% exemption from taxes for the first 2 years; 50% tax reduction for the following 4 years.
• Additionally, the industrial park’s investors will assist the investors in obtaining investment licenses and business registration when leasing land to implement projects at The Industrial Park.

VI. Labor Source and Costs at VSIP Hai Duong Industrial Park

Labor source

• The population of Hai Duong Province is approximately 2.460.000 people, with 70% of the population being of working age.
• Hai Duong Vocational College, Vocational College No. 20 under the Ministry of Defense, and schools at all three levels (primary, secondary, and high school) are located near the industrial park.

Costs

• The Industrial Park is located in Cam Giang District, which belongs to Zone III.
• The present monthly minimum wage in Zone III stands at 3.430.000 VND.