Van Trung Industrial Park

VAN TRUNG INDUSTRIAL PARK (IP) - BAC GIANG

40 km North of Hanoi, Bac Giang province is one of the provinces that many domestic and foreign investors have expressed great interests. The most distinctive point of Bac Giang is its superior location that can satisfy all means of transportation and logistic needs.

Van Trung Industrial Park is located on Highway no. 1A routing to national border Vietnam-China, and is within the administrative boundary of Viet Yen and Yen Dung districts of Bac Giang province.
- Distance from Ha Noi: 40 km
- Distance from Noi Bai airport: 45km
- Distance from Hai Phong sea port: 110 km
- Distance from deep sea port Cai Lan (Quang Ninh province): 110 km
- Distance from national border of Vietnam-China: 110 km
Total area of Van Trung Industrial Park: 425.6 ha
Area of Phase I (within pink boundary line): 150 ha
Area of Phase II (within blue boundary line): 100 ha
Van Trung Industrial Park is developed by KCT Engineering Corporation, Ltd （Vietnamese subsidiary of Hon Hai Precision Industry Co., Ltd – Taiwan）with a total area of 425.6 ha and its Phase I is about 150 ha and Phase II is 100 ha. All types of industry such as electronic manufacturing, pulp and paper industry and other industries are encouraged and warmly welcomed to come to Van Trung IP.

A MODERN INDUSTRIAL PARK WITH HIGH QUALITY INFRASTRUCTURE

Infrastructure of Phase I of Van Trung Industrial Park is been developed in a synchronizing way. Land clearance and earth-work are completed, and other systems such as power supply, water supply, wastewater treatment facility, telecommunication, fire safety/prevention, lighting, and transport systems are also done accordingly.

Construction Regulations in the Industrial Park:
Minimum height of factory’s ground above sea water level：4.0m - 4.5m.
Area for building/factory：≤ 60% total leased land
Factory fence’s height：2m – 2.2m
Minimum distance from fencing wall to buildings：6m

Power supply system:

Electricity is supplied by a 22kV substation of Bac Giang Power Company.

Water supply system: 18,000 m3/ day

Phase I: 6,000 m3 / day

Phase II: increase 12,000 m3/ day

Factory of wastewater treatment: 15,000 m3/ day

Phase I: 5,000 m3/day

Phase II: increase 10,000 m3/ day

Transportation System:

Main roads: 33m/25m, 4 car lanes and Extra roads: 18m, 2 car lanes

Telecommunation:

Digital signal transmission, the whole area is equipped with telecommunications cable system; ADSL, fiber in cooperation with VNPT, Viettel… to supply telecommunication services to factories in the Industrial Park

Fire safety system: Fire hydrants are installed along internal roads in the Industrial Park, about 150m apart

Lighting system: Lighting cables are installed under ground. Light poles are installed 38m apart, height of 10m

ADVANTAGES OF VAN TRUNG IP

Management and policies of Van Trung IP are refining gradually. Low worker’s salary, abundant labor force, adequate electricity and water supply.

Advantage 1: Electric power, waters is adequate and stable

Splitting power supply from the 22kV substation of Bac Giang Power Company into many substations to ensure adequate electricity supply.

The water resource of Van Trung IP is in-take from Cau River. The IP is equipped with pump station and water reservoir, and is able to supply 6,000 m3 of water in phase I and will increase 12,000 m3 in phase II. Therefore, water supply is relevantly stable and abundant.

Advantage 2: Low worker’s salary, abundant labor force

Van Trung IP is located in Bac Giang province, a province which is categorized as the 3rd class region in minimum salary regulation. Therefore, its minimum salary is equaled to 77% of minimum salary of Hanoi. Bac Giang is rich in labor supply with 1,574,300 people of which 60% are within working age tier.

Advantage 3: Convenient traffic

Bac Giang is a province that has 3 types of diversified transport system: Sea Route, land transport and air route. It is ready and easily to establish trading with other key economic regions both domestically and internationally.

Sea Route: Vietnam-China (Hai Phong – Hong Kong) ship everyday, transport time of 3- 4 days

Land Transport: Vietnam-China (Bac Giang – Shenzhen) land transport distance about 1,300km, transport time of 1-2 days;

Air route: Ha Noi-Hong Kong flight everyday, transport time of 1 day.

INCENTIVES

With many attractive incentives such as tax incentives, land leasing price or other fees have authenticated the attractiveness of Van Trung Industrial Park

Incentive 1: Tax incentive.

For enterprises in this IP: Since January 1st, 2016, the investment companies of the industrial zone, the business income tax rate is 20%; is exempted for 2 years and is reduced of 50% of payable tax in 4 consecutive years.

For high technology enterprises: Rate of enterprise income tax is 10% within 15 years and is exempted for 4 years and is reduced of 50% of payable tax in 9 consecutive years.

For enterprise which exports 100% its products:

Exemption of import tax and value added tax on materials and equipments imported for production.

For non-high technology enterprise or no 100% processing export enterprise in general corporate income tax: Exemption of import tax within 5 years for materials and equipments which Vietnam can not produce.

Incentive 2: Low land leasing price

Unit price : Upon request

Infrastructure maintenance fee: 0.2 USD/m2/year

(The lessee will pay this fee two times per year after signing Minute of land handing-over. This fee will be adjusted based on regulation of industrial park developer).

Management fee: 0.3 USD /m2/year

(The lessee will pay this fee two times per year after signing Minute of land handing- over. This fee will be adjusted based on regulation of industrial park developer).

Incentive 3: Other fees are regulated by relevant suppliers.

Power price: 22KV (not included value added tax - VAT)

* Working time: 1,518 VND/kWh

* Peaking time： 2,735 VND/kWh

* Off-peaking time：938 VND/kWh

Price of clean water：11,068 VND/m3 (not included VAT )

Fee of waste water treatment: 9,000 VND/m3 (not included VAT)

(waste water flow quantity equal to 80% of water flow to be used)

Tel, fax and other fees: in accordance with price of suppliers

Land Sublease

The unit price will be based on the agreement between the IP’s investor and the customers.

Subleasing time: until 6th December, 2057

Infrastructure facility maintenance fee: 0.2 USD/m2/year

(After signing the Land Hand-over, the lessee pay the maintenance fee twice a year, the fee may be adjusted by the regulation in the IP)

- Management fee: 0.3 USD/m2/ year

(After signing the Land Hand-over, the lessee pay the maintenance fee twice a year, the fee may be adjusted by the regulation in the IP)

Some criteria and regulation of construction related to the land for lease

Minimum height of factories’ground above sea water level：+ 4.0m - 4.5m ( with the height of the land at the IP, customers could conduct constructing immediately)

Factory building area：≤60% total leased land

Fence’s height around factory：2m – 2.2m

Minimum distance from fence to building site：6m

Minimum distance from internal roads to building site：6m

Factory Leasing

Customers can choose the options of leasing the land then building the factory for their own manufacturing and sublease the available factories in the IP. Presently, Van Trung IP has the project of FUHUA standard factories- the joint project between the IP investor- Fugiang Ltd.,Co and Hoa Viet Construction Inc.

Factory sublease price:

-Leasing price：will be discussed by the two parties.

- Management fee and infrastructure facility maintenance：0.5USD/m2/year (count on the used land)

Factory Buying

For the purpose of manufacturing and doing business, customers could choose the options of leasing the factory or buying the factory. If customers buy the factories, they will sign the agreement of factory assignment and the agreement of land sublease.

- Factory assignment price: If the customers buy the factories at the current time, the price will be discussed between the two parties.

- Land sublease unit price: Upon request.

If the customers lease the factory for a year and buy the factory one year later, the price of assigning the factory and land sublease will be discussed between the two parties.

- Land sublease unit price: Upon request.

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