Bai Ba - Dong Thanh Industrial Cluster

I. OVERALL INFORMATION OF BAI BA - DONG THANH INDUSTRIAL CLUSTER

1. Legal information

Bai Ba - Dong Thanh Industrial Cluster was approved under the Detailed Plan Project pursuant to Decision No. 1844/QĐ-UBND dated September 23, 2016, issued by Thanh Ba District People’s Committee. The investment policy was approved under Decision No. 2480/QĐ-UBND dated September 26, 2018, issued by the Phu Tho Provincial People’s Committee. The investor responsible for the development and operation of the industrial cluster’s technical infrastructure is Tu Lap Construction Co., Ltd.

According to the plan, Bai Ba Industrial Cluster has a total area of 745,580 m2 (74.55 hectares), of which approximately 56.08 hectares are designated for rental factories and warehouses. The cluster is approved to operate until September 26, 2067.

Bai Ba - Dong Thanh Industrial Cluster is a centralized hub for small and medium-sized enterprises specializing in the production of industrial goods. It prioritizes projects with modern, high-tech, and clean production lines, while avoiding polluting sectors and leveraging the locally trained workforce. This integrated industrial cluster is designed to attract investments in various industrial sectors and small-scale industries—excluding the production of hazardous chemicals and other highly polluting industries with adverse environmental impacts—such as the processing of agricultural and forestry products for domestic use and export; light textile technology; production of bio-fertilizers; construction materials like premium ceramic tiles and sanitary ceramics; as well as other supporting industries.

2. Geographical location

Bai Ba - Dong Thanh Industrial Cluster is located in Dong Thanh Commune, Thanh Ba District, Phu Tho Province. It borders Tham Forest to the north, residential areas to the south, lowland hilly terrain to the west, and the Son Cuong - Dong Thanh inter-commune road to the east. Situated adjacent to a residential area, Ba Ba - Dong Thanh Industrial Cluster is well-positioned to utilize the local trained workforce efficiently.

The industrial cluster boasts a convenient transportation network, offering easy access to key locations via road, rail, and inland waterways. Specifically:

+ 2km from Chi Chu Railway Station

+ 2.5km from the Red River

+ 5km from IC9 Interchange on the Noi Bai – Lao Cai Expressway

+ 105km from Ha Noi (approximately 1 hour and 40 minutes by car)

+ 81.1 km from Noi Bai Airport

Additionally, Bai Ba - Dong Thanh Industrial Cluster is located in a densely populated area, making it easy to recruit labor at low labor costs.

(Gate of Bai Ba Industrial Cluster - Dong Thanh)

II. INFORMATION OF INFRASTRUCTURE AT BAI BA - DONG THANH INDUSTRIAL CLUSTER

Bai Ba - Dong Thanh Industrial Cluster is equipped with synchronized and modern infrastructure, meeting the production and business needs of enterprises.

Regarding internal transportation, the road system within Bai Ba Industrial Cluster is built in a synchronized manner and capable of handling heavy loads. The main roads inside the cluster are 20m wide, while internal roads are 9m wide, with 3-meter-wide sidewalks lined with green trees on both sides, creating a cool and eco-friendly environment. The entire road network within the cluster is connected in a grid layout, allowing vehicles to circulate continuously without the need for turning around, completely eliminating the risk of traffic congestion during peak hours.

Regarding the power supply, electricity for the Bai Ba Industrial Cluster project is sourced from a 35kV transmission line with a total capacity of 140kW/h, ensuring sufficient power for the project’s needs, smooth operation, and future development. The investor is constructing a 35kV medium-voltage branch line from the connection point to the planned area and building a new substation to supply power for public lighting, the administration building, etc. Additionally, the investor will develop a 110kV substation (already integrated into the planning by Northern Power Corporation) along with a 22kV power grid system dedicated to the industrial cluster.

Regarding the water supply, clean water filtered from the Red River is provided by Phu Tho Water Supply Joint Stock Company - Thanh Ba Branch, through a D400 pipeline running along the main road of the industrial cluster to ensure a stable water supply for the operations of factories within the cluster.

Regarding wastewater treatment, the industrial cluster is equipped with a centralized and synchronized drainage system for collecting wastewater, meeting the maximum capacity requirements of the factories. The wastewater treatment plant has a processing capacity of 1,500 m3/day and night. A contingency reservoir with a total storage capacity of up to 3,000 m3 is built at the centralized treatment area to store excess water in case of system overload during peak hours. The wastewater treatment plant uses environmentally friendly biological treatment technology, ensuring thorough treatment of wastewater to meet Grade A standards according to QCVN40:2011 before being discharged into the centralized reservoir system of Thanh Ba District. The plant is equipped with an online monitoring system, allowing complete and timely transmission of all post-treatment water quality results to the Phu Tho Department of Natural Resources and Environment. Therefore, all treated wastewater must consistently meet environmental standards.

Regarding the telecommunications system, telephone lines and ADSL are readily available and can be connected directly to each enterprise. Internet services are provided by leading domestic telecom operators, ensuring high-quality connectivity for businesses operating within the industrial cluster.

Current situation:

As of January 2021, Bai Ba Industrial Cluster had initially completed part of its technical infrastructure construction and started attracting investment, with 26 hectares of industrial land already leased (occupancy rate of 46%).

(Internal road of Bai Ba Industrial Park - Dong Thanh)

III. LEASING COSTS AND INVESTMENT INCENTIVES

1. Leasing costs

- Infrastructure rental price: 45–50 USD/m2 (land lease term until 2067)

- Annual raw land rental fee: Applied according to the regulations of Phu Tho provincial People’s Committee

- Reference electricity price: From 0.03 USD/kWh to 0.1 USD/kWh depending on the time of usage

- Reference water supply price: 0.4 USD/m3

- Reference wastewater treatment fee: 0.28 USD/m3 (wastewater volume is calculated as 80% of water consumption)

Note: The above prices are exclusive of VAT and are subject to change without prior notice.

2. Investment incentives

Regarding corporate income tax, since Bai Ba Industrial Cluster is located in an area with difficult socio-economic conditions, investment projects in Bai Ba Industrial Cluster will enjoy significant corporate income tax incentives:

Particularly:

+ Tax rate: Entitled to a preferential tax rate of 17% for 10 years.

+ Tax exemption: Exempt from corporate income tax for the first 2 years, and entitled to a 50% reduction in payable tax for the following 4 years.

+ Application timing: The incentives apply from the first year of generating taxable income or from the fourth year of operation, whichever comes first.

Regarding import tax, enterprises are exempt from import duties on goods used to create fixed assets for the project, including: Equipment and machinery; Specialized transportation vehicles used in technological production lines and vehicles used for transporting workers; Components, parts, detachable parts, spare parts, fixtures, molds, and accessories accompanying the equipment, machinery, and specialized transportation vehicles; Raw materials and supplies used for manufacturing equipment and machinery in the technological production line or for producing components, parts, detachable parts, spare parts, fixtures, molds, and accessories accompanying the equipment and machinery; Construction materials that cannot be produced domestically.

3. Incentives and support of the investor

When investing in the Industrial Cluster, enterprises will be exempt from annual land rental fees for 11 years, with the rental rates applied in accordance with decisions issued by the People’s Committee of Phu Tho Province. Additionally, the infrastructure investor offers a 1-year service fee exemption for investors who implement their projects in Bai Ba Industrial Cluster.

For land lease inquiries at Bai Ba – Dong Thanh Industrial Cluster, please refer to the detailed contact information below!

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