Yen Phong I Industrial Park - Bac Ninh

I. Overview of Yen Phong I Industrial Park – Bac Ninh:

Information about the industrial park:

Yen Phong I Industrial Park – Bac Ninh was approved as an addition to the Vietnam Industrial Park Master Plan according to Official Letter No. 303/TTg-CN dated June 20, 2006, by the Prime Minister, with a planned area of 351 hectares for phase 1.

On June 21, 2007, the People’s Committee of Bac Ninh province approved the detailed construction plan at a scale of 1/2000 for Yen Phong I Industrial Park, covering an area of 344.81 hectares, including 244.02 hectares of industrial land. The People’s Committee of Bac Ninh province issued Decision No. 50/QD-UBND on January 16, 2013, adjusting the industrial land area to 246.32 hectares (accounting for 71.44%).

Subsequently, on October 20, 2011, the People’s Committee of Bac Ninh Province approved the detailed construction plan for the expansion of Yen Phong I Industrial Park at a scale of 1/2000, with an area of 313.9 hectares, including 189.91 hectares of industrial land.

Therefore, after the expansion, Yen Phong I Industrial Park has a total area of 658.71 hectares, with 436.23 hectares of industrial land.

• Phase 1: 344.81 hectares (Project duration: 2005 – 2055), groundbreaking in February 2006 with a total registered investment capital of 989.70 billion VND. Occupancy rate: 100%.
• Phase 2: 313.9 hectares (Project duration: 2016 – 2066). Occupancy rate: over 90%.

Currently, the industrial park has a well-established and modern infrastructure system. In addition to the industrial area, there is a residential area covering 51.6 hectares, providing housing for over 20,000 domestic and foreign workers and experts working in Yen Phong I Industrial Park.

Investment situation:

After 15 years of construction and operation, Yen Phong I Industrial Park has achieved 100% occupancy for the industrial area and over 90% occupancy for the expanded area, with a total registered investment capital of over 10 billion USD from both foreign direct investment (FDI) and domestic sources.

It can be said that Yen Phong I Industrial Park is one of the best-performing industrial parks in Vietnam, and its achievements have contributed to Bac Ninh Province consistently ranking among the top provinces attracting the largest FDI capital in the country. Yen Phong I Industrial Park itself has also received prestigious awards such as the Best Industrial Park Developer in Vietnam in 2013 and the High-Quality Construction Project Award in 2014.

Notable projects in Yen Phong I Industrial Park include Samsung Display Bac Ninh, Mobase Vietnam, User Interface project, and more.

II. Geographical Location of Yen Phong I Industrial Park – Bac Ninh:

Yen Phong I Industrial Park is located in Yen Trung, Thuy Hoa, Dung Liet, and Tam Da communes, Yen Phong district, Bac Ninh province.

The industrial park is situated at a convenient transportation hub, adjacent to National Highway 18, and connected to Highway 18 by four entry roads, including three interchanges. Major arterial roads such as National Highway 18A, National Highway 5A, National Highway 5B, Bac Giang Expressway, and Thai Nguyen Expressway either pass through or provide easy access to Yen Phong Industrial Park.

As a result, transportation of goods from Yen Phong to Noi Bai International Airport takes approximately 20 minutes, while transportation of goods to the inner city of Hanoi takes around 45 minutes.

Yen Phong I Industrial Park strategically positions itself as a central link between Hanoi and Bac Ninh, adjoining important transportation routes and facilitating convenient movement to economic and political centers in the region, enhancing regional connectivity. Specifically, Yen Phong I Industrial Park:

• Is located 35 km (45 minutes’ drive) from the center of Hanoi.
• Yen Phong Urban Area is located 10 km (a 20-minute drive) from Bac Ninh city.
• Is approximately 22 km (20 minutes’ drive) from Noi Bai International Airport.
• Is 110 km (2 hours’ drive) from Hai Phong Port.
• Is 130 km from Lang Son Border Gate (Vietnam-China).
• Is around 130 km (via National Highway 18) from Cai Lan Port (Ha Long City).

III. Infrastructure of Yen Phong I Industrial Park – Bac Ninh:

Technical Infrastructure:

Internal Transport:

• The internal roads in the industrial park are designed in a grid pattern. The main axis has a width of 80m, while the branch roads vary in width from 25m to 40m. This design ensures smooth connectivity to all areas within the industrial park.
• Moreover, each zone within Yen Phong I Industrial Park is equipped with dedicated parking lots to accommodate the needs of resting and cargo handling.

Power System:

• The industrial park has four 110/22KV power substations with a total capacity of 11×63 MVA.

Public Lighting System:

• The street lighting network is designed separately with a power supply system arranged along the roadways.

Water System:

• The water supply capacity of Phase 1 in the clean water plant is 36,000m3/day, and Phase 2 is 22,000m3/day.

Wastewater and Rainwater Drainage System:

• The rainwater drainage system naturally flows along the access roads, which are arranged around the industrial park and discharge into channels and rivers in the area.
• The wastewater drainage system is arranged along the roads and directed to the Treatment Plant of the industrial park.

Waste Management:

• Solid waste from factories is classified, collected, and transported to centralized waste disposal sites as per the regulations of the town.

Wastewater Treatment:

• The wastewater treatment plant has a capacity of 28,000m3/day for Phase 1 and 12,000m3/day for Phase 2.

Nitrogen Supply Station:

• There is a nitrogen supply station within the industrial park with a capacity of 30 million m3/year.

Communication Information System:

• The industrial park is equipped with a modern postal and telecommunications network, providing a range of services to meet all domestic and international communication needs.

Service Infrastructure:

• The industrial park houses facilities such as police stations, multi-specialty clinics, banks, warehouses, fuel stations, and post offices.

Social Infrastructure:

• Yen Phong Urban Area is situated 1.5 km away from the industrial park. It spans 51 hectares and offers various facilities for industrial park workers. These amenities include housing areas for experts, dormitories for workers, and the Viglacera Vocational College.
• The workers’ housing area covers a total area of 20 hectares, located adjacent to Yen Phong I Industrial Park, providing over 2,000 apartments for workers within the industrial park.

IV. Investment-attractive industries in Yen Phong I Industrial Park – Bac Ninh:

Yen Phong I Industrial Park in Bac Ninh mainly attracts the following industries:

• High-tech sectors
• Electronic components
• Mechanical assembly for automotive and motorcycle parts manufacturing
• Food processing and pharmaceuticals

V. Investment costs in Yen Phong I Industrial Park – Bac Ninh:

• Infrastructure land leasing price: 160 USD/m2 for the entire lease term.
• Management fee: 0.5 USD/m2/year.
• Annual land rental fee: 0.2 USD/m2/year, subject to the regulations of the Bac Ninh Provincial People’s Committee.
• Electricity pricing: Based on EVN’s production electricity tariff (ranging from 0.043 – 0.12 USD/KWh).
• Water pricing: 0.42 USD/m3.
• Wastewater treatment fee: 0.309 USD/m3, calculated based on 80% of the clean water consumption.

VI. Investment incentives in Yen Phong I Industrial Park – Bac Ninh:

• Corporate income tax: Applied at a tax rate of 20%.
• Exempted from 100% of corporate income tax for the first 2 years and a 50% reduction in corporate income tax for the following 4 years.
• Import tax: Exempted for imported goods used to establish fixed assets for new investment projects.
• Investors in Yen Phong Industrial Park receive free support from the developer. This support includes free consultation for investment registration, business registration, and personnel information registration.

VII. The appeal of Yen Phong I Industrial Park – Bac Ninh:

Transportation advantages:

• Yen Phong I Industrial Park is a significant transit point connecting active logistics areas in Northern Vietnam. These areas include Hai Phong port, Quang Ninh, Lang Son border gate, Lao Cai, Noi Bai International Airport, and industrial clusters in Bac Giang, Bac Ninh, Vinh Phuc, Phu Tho, and Hanoi.

Advantages in attracting the electronics and supporting industries:

• Yen Phong I Industrial Park is the chosen location for Samsung Electronics, the world’s largest mobile phone manufacturer, in Vietnam.
• Global subsidiaries of Samsung, including Samsung Displays and Samsung SDI, have also invested in the park.
• This has attracted supporting businesses to Yen Phong I Industrial Park and nearby industrial parks.

The labor force offers the advantage of high quality:

• Bac Ninh province encourages the local young labor force to participate in vocational training programs. The province also attracts workers from other provinces to join these well-structured programs. This approach aims to enhance the quality of the workforce in the region.
• Furthermore, the developer, Viglacera, has established the Viglacera Vocational College. This institution offers annual training to more than 6,000 students and learners. The training is specifically designed for companies operating within the industrial park. Notable companies benefiting from this training include Samsung, Lock&Lock, and Canon.
• The combination of a young and skilled labor force becomes the foundation for investors to trust and decide to invest in Yen Phong Industrial Park.

Advantages in technical infrastructure and services:

• Viglacera Corporation, a reputable developer with over 20 years of experience in industrial parks, is the owner of Yen Phong Industrial Park.
• With a portfolio of 11 industrial parks in Vietnam and 1 economic zone in Cuba, Viglacera stands as a prominent developer in the industrial park sector.
• Currently, Viglacera has 38 subsidiary units with over 8,400 employees. The corporation’s products contribute over 30 million USD to annual export turnover and are present in 40 countries worldwide.

With these advantages, Yen Phong I Industrial Park continues to demonstrate significant attractiveness to investors.