VSIP Hai Phong Industrial Park

VSIP Hai Phong is one of the key development projects in the city of Hai Phong, aiming to create a modern urban and industrial area with synchronized technical infrastructure that meets international standards and quality in Hai Phong City. Simultaneously, it fosters a cohesive and efficient environment for the business activities of investors and residents within the Industrial Park and the urban area of the project.

VSIP Hai Phong is built on a total area of 1.600 hectares, with 500 hectares allocated for clean industrial zones and 1.100 hectares designated for the urban area. The total investment capital for the project amounts to 1 billion USD. This project is invested in by the Becamex IDC Group (Vietnam) in collaboration with companies from the Sembcorp Development Group (Singapore).

I. Overview of VSIP Hai Phong Industrial Park

Information about the industrial park

VSIP Hai Phong Industrial Park, formally known as the VSIP Hai Phong Urban, Industrial, and Service Zone (formerly known as the Bac Song Cam Urban, Industrial, and Service Zone), was approved for investment by the Prime Minister and permitted by Hai Phong City to reclaim land since September 2007, according to Announcement No. 180/TB-VPCP on September 25, 2007, within the framework of implementing the Vietnam-Singapore Connectivity Framework Agreement.

On December 10, 2008, the People’s Committee of Hai Phong City approved the detailed 1/2000 scale plan for the VSIP Hai Phong Urban, Industrial, and Service Zone under Decision No. 2112/QD-UBND. Subsequently, the industrial park’s detailed plan was adjusted to a 1/2000 scale according to Decision No. 3251/QD-UBND on November 28, 2017, by the People’s Committee of Hai Phong City.

The objective of VSIP Hai Phong Industrial Park is to draw investments in environmentally friendly sectors such as information technology, electronics, and pharmaceuticals. The industrial park is a comprehensive complex that includes financial centers, commercial zones, shopping areas, hotels, and healthcare facilities.

VSIP Hai Phong is one of the key development projects in Hai Phong City. Its objective is to build a modern urban and industrial zone with synchronized technical infrastructure meeting international standards and quality in Hai Phong City. At the same time, it aims to create a cohesive and efficient environment for business activities of investors and residents within the industrial and urban zones.

VSIP Hai Phong Industrial Park attracts investments

Currently, as of 2023, after nearly 15 years of establishment and development, VSIP Hai Phong Industrial Park has developed over 70% of the planned area and attracted nearly 50 projects. The occupancy rate of the projects has reached over 76%, creating nearly 30.000 jobs and making significant contributions to the development of the Hai Phong economy and Vietnam as a whole.

Investors from South Korea, Singapore, Japan, Europe, and other regions have been drawn to VSIP Hai Phong Industrial Park. Notable multinational corporations investing in The Industrial Park include:

• Nipro Pharma Corporation, with a 250 million investment in a pharmaceutical manufacturing plant and medical equipment.
• Fuji Xerox Company invests millions of dollars in the production and business of multifunctional devices and printers.
• Up to this point, the cumulative investment capital in the VSIP Hai Phong Urban, Industrial, and Service Zone has reached 1 billion USD.

Information about the Investor

Investor: VSIP Hai Phong
Address: VSIP Hai Phong Operations Building, VSIP Hai Phong Industrial, Commercial, and Service Township, An Lu Commune, Thuy Nguyen District, Hai Phong City, Vietnam.

The Vietnam-Singapore Industrial Park (VSIP) has largely developed with significant support from the governments of Vietnam and Singapore. A joint venture investment between domestic and international partners in the construction and real estate sectors, including companies such as Sembcorp Development (Singapore) and Becamex IDC Corporation (Vietnam), was established to initiate and execute the VSIP project. It also stands as a robust symbol of collaboration between the two nations.

With its advantages, VSIP has implemented 09 projects across the country, covering a total area of 8.600 hectares, comprising industrial, urban, and service land. This widespread presence has made VSIP more widely recognized. Currently, it provides production infrastructure for hundreds of customers from 30 different countries, creating employment opportunities for over 250.000 workers.

II. Geographical Location of VSIP Hai Phong Industrial Park

VSIP Hai Phong, a residential, industrial, and service urban area, is located in Thuy Nguyen District, Hai Phong City, Vietnam.

It is situated at the northern gateway of Hai Phong City, less than 12km away from the city center, with flexible connections to the city’s major infrastructure projects through Dong Tay Boulevard (Ring Road 2) and the North-South axis (Nguyen Trai Bridge), along with modern national highway 10 and provincial road 359.

Regarding regional connectivity

In terms of regional connectivity, the industrial park boasts convenient transportation links:

• It is situated 15 km away from Cat Bi International Airport.
• It is 38 km from Lach Huyen Port and 20 km from Dinh Vu Port.
• The Hanoi – Hai Phong expressway is just 20 km away.
• It is 112 km from the city center of Hanoi.
• The city center of Hai Phong is only 12 km away.

The distances from VSIP Hai Phong to various locations are as follows:

• 8km from Cat Bi International Airport
• 6,5km from AEON Mall Le Chan, the commercial center
• 6km from Vietnam Maritime University
• 5km from Viet Tiep Hospital
• 3km from Vinhomes Imperia
• 3km from the new administrative center
• 800m from VinWonders Vu Yen, the amusement park

VSIP Hai Phong is strategically located with convenient access to various transportation systems, including road, rail, air, and sea, facilitating transportation and logistics.

III. Infrastructure of VSIP Hai Phong Industrial Park

VSIP Hai Phong is one of the city’s key development projects, aiming to build a modern residential and industrial area with synchronized technical infrastructure that meets international standards and quality in Hai Phong City. It also creates a cohesive and efficient environment for the business activities of investors and residents within the industrial park and residential area of the project.

Internal Transportation:

• The internal transportation system consists of main roads and branches.
• Width of main roads: 80m, 90m. It includes two main axes, Dong Tay Boulevard, which is 6.1km long.
• Width of branches: 26m, 56m
• North-South Boulevard is 4,8km long, with a width of 80m.

Electricity System:

• The industrial park has a transformer station with a total capacity of 200 MVA.
• In phase 1, 54MVA ensures a stable and sufficient power supply 24/7 for the entire industrial park.

Water System:

• The industrial park has a water treatment plant with a capacity of 69.000m3/day and night, ensuring a stable and sufficient water supply for businesses within the industrial park.

Wastewater and Stormwater System:

• The wastewater and stormwater system is arranged along the roads and centralized to the industrial park’s treatment plant.

Waste Treatment:

• Solid waste from the factories is classified, collected, and transported to the city’s centralized landfill.

Wastewater Treatment:

• The wastewater treatment plant has a total capacity of 39.000m3/day and night.
• Phase 1 of the plant has a capacity of 4.500m3/day and night.

Communication System:

• The industrial park has an underground communication system provided by leading telecommunications companies such as VNPT, EVN-Telecom, and Viettel Telecom.
• It also has a separate FTTH (Fiber to the Home) system, ADSL, IP telephone exchange, etc.

IV. Investment-attracting industries in VSIP Hai Phong Industrial Park

VSIP Hai Phong Industrial Park welcomes investors in high technology, low pollution, and light industry sectors. The industrial park mainly attracts the following industries:

• Electronics manufacturing and assembly
• Precision mechanics
• Machinery and equipment manufacturing
• Automotive and motorcycle components
• Food processing
• Construction materials
• Medical instruments
• Transportation and warehousing

V. Investment costs

• Infrastructure-inclusive rental price: 80-100 USD/m2
• Electricity price: Peak hours – 0,1 USD/kWh, Normal hours – 0,05 USD/kWh, Off-peak hours – 0,03 USD/kWh.
• Water price: 0,4 USD/m3.
• Labor cost: The reference range is 200-500 USD/person/month, depending on the job position.
• Management fee: 0,5 USD/m2/year.
• Wastewater treatment fee: 0,3 USD/m3.
• Management fee: 0,4 USD/m2/year.

VI. Investment incentives policy

Due to its location within the Dinh Vu – Cat Hai economic zone, VSIP Hai Phong Industrial Park enjoys the highest level of corporate income tax incentives. Specifically:

• The preferential tax rate of 10% is applied for the first 15 years of the project (the standard rate is 20%).
• In addition, the enterprise is exempt from 100% of corporate income tax for the first 4 years and eligible for a 50% reduction in corporate income tax for the following 9 years.
• Furthermore, investors are also exempt from import tax for machinery and equipment listed in the tax incentive import list used for establishing fixed assets during the project construction period.

VII. Labor source and costs in VSIP Hai Phong Industrial Park

Labor source:

• Hai Phong has a labor force of 1,2 million, with 75% having received training.
• Hai Phong is the center of the Northern Coastal region, with a total population of over 20 million, providing abundant human resources.
• With a system of 4 universities, over 60 colleges, and vocational schools, Hai Phong has a high-quality labor force capable of meeting the requirements of high technology.

Costs:

• VSIP Hai Phong Industrial Park is located in Thuy Nguyen District, belonging to Zone I.
• The current minimum wage in Zone I is 4.420.000 VND/month.