Liên Chiểu Industrial Park

LIEN CHIEU INDUSTRIAL PARK - DA NANG CITY

I. GENERAL INFORMATION OF LIEN CHIEU INDUSTRIAL PARK
1. Legal information

Liên Chiểu Industrial Park was originally a part of Liên Chiểu - Hoa Khanh Industrial Park. On April 18, 1998, the Prime Minister issued Decision No. 344/QD-TTg officially establishing Liên Chiểu Industrial Park and assigning Construction Company No. 7 (now the Central Construction Corporation) as the investor to build and trade in the industrial park's infrastructure (Part of Liên Chiểu - Hoa Khanh Industrial Park was established as Hoa Khanh Industrial Park). By August 2004, Da Nang Industrial Park Infrastructure Development and Exploitation Company was assigned as the investor to build and trade in the industrial park's infrastructure. From June 2006 to now, the industrial park has been assigned to Saigon - Da Nang Investment Joint Stock Company for investment and management.

The initial planned area of the Industrial Park was 373.5 ha. In 2006, the City People's Committee issued Decision No. 2720/QD-UBND adjusting the overall detailed plan of Liên Chiểu Industrial Park, according to which the area after adjustment is 307.71ha. Currently, the City People's Committee has a decision to recover and convert a part of Liên Chiểu Industrial Park into a residential area, with a current planned area of 289.35ha.

Liên Chiểu Industrial Park is a concentrated industrial park attracting projects in heavy industries such as steel rolling, cement, rubber, chemicals, building materials with medium and large scale, building material products, and mechanical assembly. As of mid-2021, the industrial park has attracted nearly 30 domestic and foreign investment projects, reaching an occupancy rate of 75%.

(Land use map of Liên Chiểu Industrial Park)

2. Geographical location

Liên Chiểu Industrial Park is located in Hòa Hiệp Bắc Ward, Liên Chiểu District, Da Nang City. The industrial park is located north of the foot of Hai Van Pass, south of the Cu De River, east of National Highway 1A, and west of the foot of Phuoc Tuong Mountain.

The industrial park is located in a convenient traffic location, with easy connection to key locations by road, rail, sea, air, and inland waterway. Specifically: 20 km from Song Han Bridge; 25 km from Tien Sa Seaport; 18 km from Song Han Port; Located next to Liên Chiểu Seaport; 14 km from Da Nang International Airport; 15 km from Da Nang City Center; 19 km from Da Nang Station; 5 km from Liên Chiểu Station.

Located in the central district of Da Nang City, Liên Chiểu Industrial Park also takes advantage of the city's available service infrastructure. Da Nang is currently the largest financial center in the Central - Highlands region, with 57 bank branches. In addition, Da Nang is also considered one of the three largest postal centers in the country with all kinds of modern and convenient services. Regarding healthcare, the Industrial Park is located near reputable medical facilities of Da Nang city, 18.2 km from Da Nang Hospital to the Southeast, and 13.2 km from Liên Chiểu District Medical Center.

Liên Chiểu Industrial Park is invested with synchronous and modern infrastructure, ensuring the production and business needs of enterprises in the industrial park.

Regarding internal traffic, the internal traffic system is designed by the investor of Liên Chiểu Industrial Park with a main axis road of 15m wide and an internal axis road of 10.5m wide. The total number of km of internal roads is 4.15km and the road connecting with national highways and provincial roads is 1.63km 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, electricity is supplied from the national grid through the 500KV Hoa Cam substation, Cam Le District. The industrial park has built 02 intermediate transformer stations 110/22KV- 40MVA. The power grid system is fully invested to ensure connection to each factory in the industrial park.

Regarding water supply, the Industrial Park uses clean water from Hai Van Water Plant with a capacity of 5,000m3/day and night and Cu De River Water Plant (with a projected capacity of 120,000 m3/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 the good terrain and synchronous investment, it can be affirmed 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 park wastewater and rainwater. Rainwater flows into collection wells according to the drainage ditch system leading to the river. Industrial wastewater is treated at level 1 in factories to achieve class C quality (QCVN40-2011) before flowing into the industrial park's common sewer system and leading to the wastewater treatment station to be treated to standard B (QCVN40-2011) before being discharged into the river. The wastewater treatment system of Liên Chiểu Industrial Park is invested with a capacity of 2,000 m3/day and night, put into operation from November 2011.

Regarding the telecommunications system, telephone lines and ADSL are ready to be supplied and connected to each business. Internet services are provided by leading network operators in the country, ensuring transmission quality for manufacturing enterprises in the industrial park.

(Image of a factory in Liên Chiểu Industrial Park - Da Nang)

III. RENTAL COSTS AND INVESTMENT INCENTIVES

1. Rental costs
- Infrastructure rental price: 90 USD/m2 (land lease term until 2055)

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

- Annual raw land rental: apply 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 in accordance with 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 applicable incentive is calculated 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 date of revenue from the investment project, the tax exemption and reduction period shall be 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 technology line and vehicles for transporting workers; Components, details, separate parts, accessories, jigs, molds, accessories included with equipment, machinery, specialized vehicles; Raw materials and supplies used to manufacture equipment and machinery in the technology line or to manufacture components, details, separate parts, accessories, jigs, molds, accessories included with equipment, machinery; Building materials that have not been produced domestically.

To update information about Liên Chiểu Industrial Park in particular and Industrial Parks in the Central provinces in general, please contact KLAND for more details:

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