Hòa Khánh Industrial Zone

HOA KHANH INDUSTRIAL PARK – DA NANG CITY

I. GENERAL INFORMATION OF HOA KHANH INDUSTRIAL PARK

1. Legal Information
Hòa Khánh Industrial Park was established under Decision 343/QD-TTg dated April 18, 1998, of the Prime Minister, as a part of the former Liên Chiểu - Hòa Khánh Industrial Park and was assigned to the Quang Nam - Da Nang Construction and Housing Joint Venture Company as the investor with a planned area of 423.5 hectares and a total investment of 49.956 million USD. In which, phase 1 was implemented with an area of 162 hectares, and an investment of 25.632 million USD. In 2000, the investment and business of industrial park infrastructure were transferred to Da Nang Industrial Zone Infrastructure Development and Exploitation Company as the investor. On March 11, 2002, Da Nang City People's Committee issued Decision No. 1675/QD-UB on land acquisition, allocating land for Da Nang Industrial Zone Infrastructure Development and Exploitation Company to lease land for investment in construction and business of technical infrastructure of Hòa Khánh Industrial Park phase 2 with an area of 111.5 hectares. On January 19, 2009, according to Decision No. 101/QD-TTg of the Prime Minister, the area of Hòa Khánh Industrial Park was adjusted down to 365 hectares. Currently, Hòa Khánh Industrial Park is planned with a total area of 395.72 hectares according to Decision No. 7161/QD-UBND dated September 18, 2009 of Da Nang City People's Committee.
Hòa Khánh Industrial Park prioritizes attracting mechanical, assembly, electronics, and garment industries; Processing agricultural, forestry and fishery products; Post-petrochemical products such as packaging and plastics; High-grade building materials with medium and small scale. Currently, the industrial park has attracted nearly 200 investment projects, of which foreign investment projects account for 26%, with total foreign investment capital of about 5,000 billion VND. The occupancy rate of Hòa Khánh industrial park reaches 100%.

(Land use map of Hòa Khánh Industrial Park

2. Geographical Location

Hòa Khánh Industrial Park is located in Hòa Khánh Ward, Liên Chiểu District, Da Nang City. It is bordered by a residential area and National Highway 1A to the North, a residential area to the South, the foot of Phuoc Tuong Mountain to the West, and National Highway 1A to the East. Hòa Khánh Industrial Park is located in the central area of Da Nang City, adjacent to residential areas, creating favorable conditions for transportation and taking advantage of the local labor force.

The industrial park has a convenient transportation network, easily accessible to key locations by road, rail, sea, air, and inland waterway. Specifically: 20km from Tien Sa seaport, 10km from Da Nang International Airport, 10km South from Da Nang City Center, 09km from the railway station, 13km from Han River port, 5km from Liên Chiểu port.

Located in the central district of Da Nang City, Hòa Khánh Industrial Park also takes advantage of the city's existing service infrastructure. Da Nang is currently the largest financial center in the Central - Central Highlands region, with 57 bank branches. In addition, Da Nang is also considered one of the 03 largest postal centers in the country with all modern and convenient services. Regarding healthcare, the Industrial Park is located near reputable medical facilities in Da Nang City, 9.5 km Southeast from Da Nang Hospital, and 1.1 km from the Liên Chiểu District Medical Center.

II. INFRASTRUCTURE INFORMATION OF HOA KHANH INDUSTRIAL PARK

Hòa Khánh Industrial Park is invested with synchronous and modern infrastructure, ensuring the production and business needs of businesses in the industrial park.

Regarding internal traffic, the internal traffic system is designed with a main road of 24.5m wide and internal roads with 2 types of 15m wide and 10.5m wide. The total number of kilometers of internal roads is 19.29km and roads connecting to national and provincial highways are 2.56km long. The internal road is designed in a grid pattern to ensure easy access to each plot of land in the industrial park.

Regarding power supply, power is supplied from the national power grid through the 500KV Hoa Cam substation, Cam Le District. The industrial park has 02 intermediate substations 110/22KV- 40MVA and 22KV/0.4KV- 0.23KV. The power line system is fully invested to ensure connection to each factory in the industrial park.

Regarding water supply, the Industrial Park uses clean water supplied from the Airport Water Plant with a capacity of 30,000m3/day and night to serve businesses in the industrial park. The water supply network ensures supply to the fence of each business.

Regarding wastewater treatment, due to good terrain and synchronous investment, it can be confirmed that Da Nang city's drainage system is the best compared to other cities in the country. The Industrial Park is designed with 2 separate drainage systems for industrial wastewater and rainwater. Rainwater flows into the collection wells through a system of ditches leading to the river. Industrial wastewater is treated at level 1 in factories to achieve type B quality, then is led through pipelines to level 2 treatment by biological clock to achieve type A quality before being discharged into the river. The entire Industrial Park has 1 wastewater treatment plant with a capacity of 5,000 m3/day and night, which has been put into operation since 2007.

Regarding telecommunications system, telephone lines and ADSL are ready to supply and connect to each business. Internet services are provided by leading carriers in the country, ensuring transmission quality for manufacturing businesses in the industrial park.

(Gate of Hòa Khánh Industrial Park)

III. RENTAL COSTS AND INVESTMENT INCENTIVES

1. Rental Costs
- Infrastructure rental price: 100 USD/m2 (land lease term until 2048)

- Infrastructure management and maintenance fee: 0.3 USD/m2/year

- Annual raw land rent: applying the rate according to the regulations of Da Nang City People's Committee

- Electricity price: From 0.03 USD/kWh – 0.1 USD/kWh depending on the time of electricity use

- Water price: 0.4 USD/m3

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

2. Investment Incentives

High-tech and supporting industry enterprises are entitled to corporate income tax incentives according to the law. Accordingly, the preferential tax rate is 10% for 15 years, exempt for 04 years, and reduced by 50% for the next 09 years. The incentive is applied continuously from the first year the enterprise has taxable income from the investment project; if the enterprise does not have taxable income in the first 3 years from the time it has revenue from the investment project, the tax exemption and reduction period is calculated from the fourth year.

Regarding import tax, enterprises are exempt from import tax on goods creating fixed assets for the project, including: Equipment, machinery; Specialized vehicles in the technological chain and vehicles transporting workers; Components, details, spare parts, accessories, jigs, molds, accessories attached to equipment, machinery, specialized vehicles; Raw materials and supplies used to manufacture equipment and machinery in the technological chain or to manufacture components, details, spare parts, accessories, jigs, molds, accessories attached to equipment, machinery; Building materials that have not been produced domestically.

To update information about Hòa Khánh Industrial Park in particular and Industrial Parks in the Central provinces in general, please contact KLAND for more detailed information:

VIEW MORE FULL INFORMATION DETAIL