Ba Thien I Industrial Park

I. LEGAL INFORMATION AND LOCATION OF BA THIEN I INDUSTRIAL PARK

Ba Thien Industrial Park (or Ba Thien I Industrial Park) was approved to be included in the plan of industrial parks of Viet Nam, with the vision toward 2020, under the Decision No. 1107/QĐ-TTg on August 21, 2006 issued by the Prime Minister, with the projected planned area of 327 hectares. On November 09, Ba Thien Industrial Park was approved for its detailed plan with a scale of 1/2000 under the Decision No. 3283/QĐ-UBND issued by Vinh Phuc provincial People's Committee. After that, Ba Thien Industrial Park was approved for its detailed plan at a scale of 1/500 under the Decision No. 187/QĐ-UBND on June 19, 2008, issued by Vinh Phuc provincial People’s Committees.

On December 18, 2007, the Management Board of Industrial Parks of Vinh Phuc issued Investment Registration Certificate No. 192043000068 for the investment project on construction and infrastructure development of Ba Thien Industrial Park. The project was assigned to Compal Viet Nam Infrastructure Management and Development Co., Ltd. as the investor, with the expectation that Ba Thien Industrial Park would become a key economic driver for the province. However, after many years of implementation, the project remained stagnant and behind schedule. Despite being granted an extension until July 30, 2013, the investor failed to carry out the project. Consequently, on November 02, 2015, the Management Board of Industrial Parks of Vinh Phuc issued Decision No. 1111/QD-BQLKCN to revoke the previously issued Investment Registration Certificate for Compal and requested the company to complete dissolution procedures and return the certificate. At the time of revocation, Ba Thien I Industrial Park had attracted investment for a number of projects, with approximately 247 hectares of land allocated for development still undeveloped.

On February 29, 2016, Vinh Phuc provincial People’s Committee approved the land auction for the remaining area of Ba Thien Industrial Park with the land use term of 49 years under a one-time land lease payment scheme. Through the auction Housing Development and Trading Joint Stock Company (HDTC) won the bid, as confirmed by Decision No. 3160 /QĐ-UBND dated on December 20, 2018 issued by Vinh Phuc provincial People’s Committee.

On April 06, 2021, the Prime Minister officially approved the investment policy for Ba Thien Industrial Park - Subdivision I under Decision No. 547/QD-TTg. Accordingly, the project for the construction and operation of infrastructure in Ba Thien Industrial Park - Subdivision I covers an area of 247.357 hectares, with a total investment capital of 2,500 billion VND and an operation term of 49 years starting from December 20, 2018, as per Decision No. 3160/QD-UBND. On August 17, 2021, Ba Thien Industrial Park - Subdivision I was officially established under Decision No. 2253/QD-UBND of the People’s Committee of Vinh Phuc.

After the land auction and official establishment, Ba Thien Industrial Park underwent two adjustments of its detailed plan at a scale of 1/500 under Decision No. 3073/QĐ-UBND dated December 03, 2019, and under Decision No 168/QĐ-UBND dated January 24, 2022 issued by Vinh Phuc provincial People’s Committee. According to the latest description, Ba Thien Industrial Park has a total area of 25.75 hectares, including 247.357 hectares in Subdivision I (invested and managed by HDTC) and 78.393 hectares in Subdivision II, managed by Vinh Phuc Industrial Parks Management Board. The total leased industrial land of both subdivisions is 216.52 hectares (with 152.677 hectares in Subdivision I), accounting for 66.47% of the total area. The planned place of the industrial park is located within the administrative boundary of Ba Hien Town, Thien Ke Commune, Binh Xuyen District and Vinh Phuc.

(Overall perspective image of Ba Thien Industrial Park)

In terms of nature, Ba Thien Industrial Park is a centralized industrial zone designed to attract modern industries that do not cause environmental pollution. It primarily focuses on attracting sectors such as electronics manufacturing, mechanical engineering and fabrication, consumer goods production, building materials technology, pharmaceutical and chemical industries, logistics, among others. The park restricts the development of industries involving hazardous chemicals, textile dyeing, radioactive materials, and explosives manufacturing.

In terms of regional linkage, Ba Thien Industrial Park is located adjacent to Ha Noi’s Ring Road 4, Provincial Road 310B, near Hanoi - Lao Cai Expressway and:

- 23 km from Noi Bai International Airport

- 50 km from Ha Noi city center; 15 km from Vinh Yen city center

- 150 km from Dinh Vu Hai Phong Port; 180 km from Cai Lan deep-water Port

- 6 km from Ha Noi - Lao Cai Expressway interchange

II. INFRASTRUCTURE SYSTEM AT BA THIEN INDUSTRIAL PARK - SUBDIVISION 1

Power supply system: The power supply for Ba Thien Industrial Park is sourced from the Thien Ke 110/22kV substation, which has a capacity of 2×63 MVA. Electricity is distributed via overhead 22kV transmission lines that are connected directly to each land lot within the industrial park.

Water supply system: Ba Thien Industrial Park has invested in the construction of a water treatment and supply plant with a capacity of 14,000 m3/day and night. The water supply system is designed to run along the internal roads of the industrial park, utilizing HDPE pipes with diameters ranging from D110 to D280mm, which are connected directly to the perimeter walls of each factory within the park.

Wastewater treatment system: All industrial wastewater generated within Ba Thien Industrial Park is collected and treated using technologies appropriate to the specific production characteristics, at a centralized wastewater treatment plant. The treated water meets Standard A in accordance with Vietnam’s environmental regulations before being discharged into the environment. The centralized wastewater treatment plant has a designed total capacity of 15,000 m3/day and night, implemented in three phases, with Phase 1 providing a capacity of 5,000 m3/day and night.

Internal traffic system: The main arterial road within the industrial park is a dual carriageway with a width of 40 m, while the internal branch roads have widths ranging from 12 to 25 m. All roads are constructed with asphalt pavement and are equipped with a lighting system, sidewalks, and green landscaping along both sides.

Fire fighting and prevention system: The main arterial road within the industrial park is a dual carriageway with a width of 40 m, while the internal branch roads have widths ranging from 12 to 25 m. All roads are constructed with asphalt pavement and are equipped with a lighting system, sidewalks, and green landscaping along both sides.

Telecommunication system: The fiber optic network in the industrial park is fully connected and supplied by multiple providers such as VNPT, Viettel, and FPT. The cabling is installed underground through technical conduits running along the sidewalks of all internal roads and can be connected directly to each land lot based on investors’ requirements. The total projected number of communication lines is over 2,300 lines.

Other infrastructure facilities: The industrial park is equipped with a comprehensive infrastructure system, including a street lighting system, operation center, landscaped green areas, parks, and water surfaces, as well as parking lots. The rainwater drainage system is designed separately from the wastewater drainage system, ensuring effective and independent operation of both systems.

(Image of infrastructure of Ba Thien Industrial Park)

III. LAND LEASING COSTS AND INVESTMENT INCENTIVES AT BA THIEN INDUSTRIAL PARK - SUBDIVISION 1

Infrastructure usage fee: 170 USD/m2/entire leasing term, which includes the one-time land lease payment.

Management and maintenance fee: 0,4 USD/m2/year

Land leasing price: The land rental is paid in a one-time lump sum, already included in the infrastructure leasing price.

Electricity supply price: Applied according to EVN's electricity tariff, ranging from 1,555 VND to 2,871 VND/kWh

Water supply price: 14,000 VND/m3, subject to change based on decisions of the Vinh Phuc Provincial Authority

Wastewater treatment fee: 0,4 USD/m3, subject to change based on decisions of the Vinh Phuc Provincial Authority.

Note: The above rates do not include VAT and are subject to change without prior notice

Investment incentives at Ba Thien Industrial Park

Corporate income tax incentives: 100% tax exemption for the first 2 years, and a 50% reduction of payable tax for the following 4 years.

Import duty incentives: Exemption from import duties for goods listed in the preferential tariff schedule that are imported for the purpose of creating fixed assets for the enterprise.

IV. STATUS QUO OF ATTRACTING INVESTMENT AT BA THIEN INDUSTRIAL PARK

Ba Thien Industrial Park’s infrastructure has been fully completed. Approximately 34% of the total area consists of projects that had been in operation before the park was reclaimed from Compal. As for Ba Thien Industrial Park - Phase 1, the investor has completed the infrastructure construction and is actively seeking to attract new investment. Currently, Ba Thien I Industrial Park hosts around 20 registered projects, including notable ones such as: the computer and peripheral equipment manufacturing project of Compal Vietnam Co., Ltd.; the electronic components manufacturing project of Daeduck Vietnam Co., Ltd.; the printing project of Minh Duc Electronics Printing Co., Ltd.; and the electronic components manufacturing project of CAMMSYS Vietnam Co., Ltd.

(Image of some projects operating in Ba Thien 1 Industrial Park)

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