WHA 1 Industrial Zone - Nghe An

Approved in 2017, WHA 1 Industrial Zone – Nghe An is a key project covering 498 hectares. With an investment of 2,056.5 billion VND, it includes Phase 1 (143.5 hectares) completed in 2020. WHA is progressing towards Phase 2 and designing Phase 3, aiming for a 2023 completion. This development will establish a premier industrial park in Vietnam’s North Central region, connecting production and distribution for domestic and global markets. Led by WHA Industrial Development PLC in Vietnam, the project is a pioneering initiative in the country.

I. Overview of WHA 1 Industrial Zone – Nghe An:

In 2017, the WHA 1 Industrial Zone – Nghe An project was approved by the Prime Minister in Decision No. 681/QD-TTg dated May 22, 2017. The project aims to invest in the construction of infrastructure for an industrial park, a high-tech industrial zone, and an urban area. It is one of the key projects in Nghe An province.

The planned area of the project is 498 hectares, with a total investment of 2.056,5 billion VND (equivalent to 92,2 million USD). From 2017 to 2020, the investors implemented the construction and completed Zone 1 with an area of 143,5 hectares.

WHA is coordinating with the Management Board of the Southeast Economic Zone, departments, and Nghi Loc district to carry out land clearance for Phase 2 of the project, covering an area of 354,5 hectares.

According to WHA Group’s leadership, if the land handover progress follows the plan, Phase 2 can be completed by the end of 2023. Currently, the investor is also proceeding with the design of Phase 3 and proposing investment for Phase 4, covering the total project area of 1.850 hectares.

Upon completion, WHA 1 Industrial Zone – Nghe An will become a large industrial park with international standard infrastructure in the North Central region of Vietnam, connecting production, manufacturing, and distribution centers to serve the domestic and international markets.

WHA Industrial Development PLC in Vietnam (a leading company in real estate and industrial utilities with international standards in Thailand) is the investor and the first project of its kind in Vietnam.

II. Geographical location:

WHA 1 Industrial Zone is strategically located in the Southeast Economic Zone, adjacent to National Highway 1A, the North-South Expressway, and Highway 7C. It has easy access to Vinh International Airport, Cua Lo seaport, and a wide-ranging railway network.

• Phase 1: WHA 1 Industrial Zone – Nghe An Phase 1 is located in Nghi Thuan and Nghi Long communes, Nghi Loc district, Nghe An province, Vietnam.
• Phase 2: WHA 1 Industrial Zone – Nghe An Phase 2 is located in Nghi Hung and Nghi Dong communes, Nghi Loc district, Nghe An province, Vietnam.

The objectives of Phase 2 of the project have been adjusted from investing in the construction and business infrastructure of a high-tech industrial zone and an urban area to investing in the construction and business infrastructure of an industrial park. On March 23, 2021, the project officially received the amended investment registration certificate.

When the project is completed, it will create jobs for approximately 30.000 workers and make a significant contribution to the economic development of Nghe An province in the 2021-2025 period and the years to come.

III. Infrastructure of WHA 1 Industrial Zone – Nghe An:

WHA 1 Industrial Zone  – Nghe An develops a comprehensive infrastructure and industrial utilities in Vietnam to meet the growing production demands and minimize initial investment costs for investors.

Internal road system:

• The main road system features a 67m wide road strip with 4 concrete lanes.
• The secondary road system consists of a 30m wide road strip with 2 asphalt concrete lanes.

Water supply system:

• The industrial zone’s water supply is provided by WHAUP Nghệ An Joint Stock Company with a capacity of 5,000 – 20,000 m3/day (expandable).
• The water source is from the Cam River.

Electricity supply by EVN:

• Two dedicated 22kV power lines from Cua Lo Substation with a capacity of 65 MVA.
• A 110kV power line will be supplied by EVN upon request.

Wastewater treatment plant:

• Primary and secondary aeration ponds (AL) and an artificial waterlogged soil system with a capacity of 3,200 – 9,000 m3/day (expandable).
• Wastewater treatment is provided by WHAUP Nghệ An Joint Stock Company.

Drainage and flood prevention system:

• A 4.3-meter high flood control embankment equipped with drainage pumps.
• Internal drainage system, culverts, and water conduits to receive discharge from land areas.

Telecommunication system:

• Stable telephone line system.
• Fiber optic network with high-speed internet transmission.
• Wireless network with various mobile service packages.

Firefighting system:

• Fire hydrant system with a spacing distance of 150 meters between hydrants.
• Large-capacity fire water storage reservoir.

IV. Investment-attracting industries of WHA 1 Industrial Zone – Nghe An:

Industrial sector:

• Automobile manufacturing
• Plastics
• Light metals
• Textiles and garments (excluding dyeing)
• Construction materials

Consumer goods:

• Food processing
• Beverages
• Value-added agricultural products
• Fast-moving consumer goods (FMCG)
• Electrical appliances

Technology:

• Electronics
• Medical device assembly
• Software
• Smartphones
• Telecommunications

Logistics:

• Cold storage
• Inland container port
• Modern warehouse system
• Sea freight transportation and delivery.

V. Investment incentives in WHA 1 Industrial Zone – Nghe An:

To create investment opportunities in Vietnam, the government has issued investment incentives to attract domestic and foreign investment. Tax incentives include exemption and reduction of corporate income tax (CIT) and import duties when investing in Vietnam’s Southeast Economic Zone, where WHA 1 Industrial Zone – Nghe An is located.

Corporate Income Tax:

Special tax rate: 10% for 15 years. Specifically:

• Corporate income tax is exempted for the initial 4-year period.
• 50% reduction of corporate income tax for the following 9 years.

Please take note that the period of tax exemption and reduction will be determined based on either the first year of profit generation or the fourth year of revenue generation, whichever occurs earlier.

Import Tax:

•  Exemption of import duties on imported machinery and equipment for fixed assets.
• 5-year exemption of duties for domestically non-manufactured raw materials, supplies, and components.

Investment procedure support:

• One-Stop Service at the Southeast Economic Zone Management Board of Nghe An.

VI. Labor supply and costs in WHA 1 Industrial Zone – Nghe An:

Labor supply:

• Nghe An is the fourth most populous province in Vietnam with a population of 3,37 million, of which the labor force is 2 million.
• In addition to approximately 24.000 graduates from 7 universities, 9 colleges, 9 vocational schools, and 19 vocational training centers annually, the province also supports laborers returning from other localities to stabilize their lives and find employment.
• With an abundant young labor force, investors in this area not only have favorable conditions for labor recruitment and training but also can save on labor costs and enjoy affordable services.

Costs associated with labor:

• WHA 1 Industrial Zone is located in Nghi Loc district, Nghe An province, in Region III.
• Hence, the prevailing monthly minimum wage in Region III stands at 3.430.000 VND.