Yen Son - Bac Lung Industrial Park - Bac Giang

I. Overview of Yen Son – Bac Lung Industrial Park – Bac Giang:

The Prime Minister approved the addition of Yen Son – Bac Lung Industrial Park to the development plan of industrial parks in Bac Giang province, as stated in Official Letter No. 216/TTg-CN dated February 23, 2021. Situated within the territories of Yen Son commune and Bac Lung commune, Luc Nam district, Bac Giang province, the industrial park covers an estimated area of about 300 hectares.

The People’s Committee of Bac Giang province approved Yen Son – Bac Lung Industrial Park on July 16, 2021, for the 1/2000 scale construction zoning plan outlined in Decision No. 712/QD-UBND. The approved plan includes a total planning area of 309.16 hectares, consisting of 300 hectares designated for the industrial park and 9.16 hectares allocated for road construction from provincial road TL293 to the industrial park. The total area of industrial land (including factory construction and logistics land) for lease is 202.36 hectares, accounting for 67.45% of the planned area.

When Yen Son – Bac Lung Industrial Park becomes operational, the objective is to implement the development orientation of the industry in Bac Giang province and the approved regional planning of Luc Nam district. It serves as a legal basis for implementing technical infrastructure, investment, construction, and management of projects within the Industrial Park according to the plan.

Yen Son – Bac Lung Industrial Park is located in Yen Son commune and Bac Lung commune, Luc Nam district, Bac Giang province.

The investor of the Industrial Park is Foxconn Group (FuGiang Limited Company).

The project is located in an area where important transportation routes such as TL293, QL37, railways, and Belt Road 5 (which runs adjacent to the project in the west) pass through. It provides significant advantages for businesses investing in this area.

Master plan map of Yen Son – Bac Lung Industrial Park – Bac Giang – TTTFIC Group

II. Geographic location of Yen Son – Bac Lung Industrial Park – Bac Giang:

Situated in a favorable transportation location, Yen Son – Bac Lung Industrial Park is adjacent to National Highway 37, National Highway 18, and National Highway 1A, providing flexible and rapid connectivity to other localities and economic regions in the northern area. This allows for the maximum utilization of potential in industrial production and supporting services.

The boundaries include:

• The northern part borders agricultural land, the Kiều hamlet, the Hai Long hamlet, and the Chản irrigation system.
• The southern part borders residential areas, the Quynh Do hamlet and agricultural land.
• The eastern part borders agricultural land and railways.
• The western part borders agricultural land and existing villages.

The location connects with major areas such as:

• 90km from Cai Lan Port, and 83km from Hai Phong Port.
• 76km from Noi Bai International Airport, and 86km from Cat Bi International Airport.
• 70km from the capital city of Hanoi, 27km from Bac Giang City, and 20km from Bac Ninh City.
• 129km from the Tan Thanh border gate, and 266km from Mong Cai international border gate.
• 25km from Bac Giang railway station.

III. Infrastructure of Yen Son – Bac Lung Industrial Park – Bac Giang:

Power supply system:

• The current electricity supply for Yen Son – Bac Lung Industrial Park is taken from the temporary 110kV transformer in Luc Nam.
• In the future, the power supply will be replaced by the electricity source from the temporary 110kV Bac Lung.
• It has a capacity of 2×63 MVA and can be further supplemented by the 110kV Bac Lung 2 transformer station.
• The 110kV Yen Son transformer station also has a capacity of 2×63 MVA.
• Therefore, the industrial park can ensure the power supply even in cases of increased electricity demand.

Water supply system:

• Yen Son Industrial Park is planned to have a dedicated water treatment plant with a design capacity of 24,600 m3/day and night to serve production, domestic, and firefighting activities.

Wastewater treatment system:

• The plant treats all wastewater in Yen Son – Bac Lung Industrial Park locally. Then it undergoes further treatment at the centralized wastewater treatment station of the industrial park to meet Type A standards before the discharge into the environment.

Internal and external transportation network:

• Regarding external connectivity, Yen Son – Bac Lung Industrial Park has road connections to TL293 in the northeast-southwest direction and connects with Belt Road 5 in the southwest-northeast direction.
• Additionally, the construction of a bridge over the railway to connect with National Highway 37 is planned.
• Regarding internal infrastructure, the main axis of the industrial park has a width of 51m.
• The road width ranges from 20m to 30m. The internal branches have widths from 24m to 27m.
• The road width is 15m, including green spaces and sidewalks on both sides.

Other infrastructure facilities:

• Yen Son – Bac Lung Industrial Park has an independent stormwater drainage system separate from the wastewater drainage system.
• The landfill height of the industrial park ranges from +5.2m to +5.56m.
• It also includes a parking area of 7.76 hectares, along with a landscape greenery system, lighting system, communication system, and fire prevention and firefighting along the transportation routes within the industrial park.

Furthermore, the industrial park provides various amenities such as workers’ housing areas, recreational areas, shopping facilities, etc., to ensure the best quality of life for the workforce.

Transportation connectivity to Yen Son – Bac Lung Industrial Park – Bac Giang – TTTFIC Group

IV. Main industries of the Industrial Park:

• The industrial park attracts environmentally friendly investment in industries such as electronic and electrical equipment manufacturing, and refrigeration.
• Mechanical manufacturing, high-tech machinery, and equipment production.
• Environmentally friendly consumer goods production

(excluding projects in the textile, garment, and leather industries).

V. Investment Costs in Yen Son – Bac Lung Industrial Park:

• The expected rental price is around 100 USD/m2/lease term (50 years).
• Project duration: 50 years from the date of investment certificate issuance. Investors can choose to lease long-term, transfer, or invest. During the lease period, investors can sublease or transfer to other small-scale investors at market prices.
• The Phu Tho Province People’s Committee determines the annual land rental fee.
• Clean water supply price: 0.65 USD/m3.
• Electricity supply price: According to EVN’s electricity tariff (ranging from 0.043 USD to 0.12 USD/kWh).
• Wastewater treatment fee: 0.55 USD/m3.

VI. Labor Source and Costs in the Industrial Park:

The province currently has 1 university, 3 colleges, 4 vocational schools, and 41 vocational education establishments that meet the demand for high-quality vocational training for the workforce.

The total number of licensed professions is 109, including 24 at the college level, 59 at the intermediate level, and 58 at the elementary level.

Yen Son – Bac Lung Industrial Park is located in an area with abundant labor resources and relatively low labor costs.

According to statistics from the General Statistics Office, as of 2019, the population of Bac Giang province is approximately 1.85 million people, with about 200,000 people in the Luc Nam district. More than two-thirds of the population falls into the working age group. The labor force is projected to continue increasing in the coming years.

The target for 2025 is to achieve a proportion of 80% trained labor, including 27% with diplomas and certificates lasting for 3 months or more.

Over 90% of college graduates find employment after training. Over 85% of secondary school graduates find employment after training, and over 80% of elementary school graduates and vocational trainees under 3 months find employment after training.

Labor costs:

• Yen Son – Bac Lung Industrial Park is located in Luc Nam district, which belongs to Zone III.
• In Zone III, the current minimum wage amounts to 3,430,000 VND per month.

VII. Investment Incentives in the Industrial Park:

Tax incentives:

• For all businesses investing in the industrial park:
• Corporate income tax rate: exempt for 2 years and a 50% reduction in tax payable for the next 4 years.

For high-tech businesses:

The corporate income tax rate is 10% for 15 years, exempt for 4 years, and a 50% reduction in tax payable for the following 9 years.

For 100% export-oriented enterprises (manufacturing enterprises):

Import tax and VAT exemption for imported materials, machinery, and equipment used for production.

For non-manufacturing and non-high-tech enterprises:

Materials and equipment that have not been domestically produced are eligible for import tax exemption for 5 years.

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