Yen My Industrial Park

YEN MY INDUSTRIAL PARK - HUNG YEN

Hưng Yên is located in the Northern key economic zone, adjacent to Hanoi Capital. To promote its potential and advantages in the past, Hưng Yên province has accelerated investment in technical infrastructure, especially transportation, administrative reform in many aspects, and improved the investment and business environment... achieving many positive results, and a fast and sustainable economic development. In addition, improving the scores of criteria in assessing provincial competitiveness has also helped Hưng Yên build a good impression with investors. As a result, in recent years, Hưng Yên has attracted large investment resources both domestically and internationally, especially investment in industrial parks. As of May 2020, Hưng Yên province has 10 industrial parks with a total area of approximately 2,500 hectares approved for planning by competent authorities. Currently, seven industrial parks are in operation, receiving 435 domestic and foreign investment projects, with a total investment of over 25 trillion VND and 4 billion USD. Yen My Industrial Park is one of the new industrial parks put into operation and is an industrial park with great development potential in Hưng Yên province.

I. OVERVIEW OF YEN MY INDUSTRIAL PARK

1. Legal Information

On July 17, 2018, the Management Board of Industrial Parks of Hưng Yên province issued the Investment Registration Certificate to Viglacera Yen My Industrial Park Development Joint Stock Company - Hưng Yên for the project "Investment in construction and business of infrastructure of Viglacera Yen My Industrial Park, Hưng Yên province". Accordingly, the project "Investment in construction and business of infrastructure of Viglacera Yen My Industrial Park, Hưng Yên province" has a land use area of: 280ha, with a total investment capital of: 2,348 billion VND. Of which, the contributed capital to implement the project is: 352 billion VND, accounting for 15% of the total investment capital. The objective of the project is: To invest in the construction and business of industrial park infrastructure. Location of the project: In Tân Lập and Trung Hòa communes, Yen My district, Hưng Yên province; project operation term: 50 years, from May 30, 2018. Viglacera Yen My IP Development JSC - Hưng Yên is a subsidiary of Viglacera Corporation, established in April 2019. The company is responsible for investing in a synchronous industrial park infrastructure system according to the approved plan; monitoring and supervising project investors in Yen My Industrial Park to comply with the provisions of law on investment, construction, environmental protection and relevant legal regulations.

2. Geographical Location

Hưng Yên is a province in the Red River Delta, located in the center of the Northern Delta and in the Northern key economic region (Hanoi - Hưng Yên - Hai Duong - Hai Phong - Quang Ninh). It borders Bac Ninh province to the North; Hanoi Capital to the Northwest; Hai Duong province to the East and Northeast; Hanoi and Ha Nam to the West. These are all provinces with impressive industrial development in recent years. Therefore, when investing in Hưng Yên, investors will benefit from being close to major economic centers.

Yen My Industrial Park is located on National Highway 39A, between National Highway 5A and the Hanoi - Hai Phong Expressway, in addition to inheriting the advantages of the geographical location of Hưng Yên province, Yen My Industrial Park also has a synchronous transport network, including road, rail, river, sea, and air. Specifically:

- 32km from Hanoi Capital;

- 90km from Hai Phong City;

- 50km from Noi Bai International Airport;

- 100km from Cat Bi International Airport;

- 170km from Van Don International Airport;

- 12km from Lac Dao Station;

- 35km from Hanoi Station;

- 75km from Hai Phong Port;

- 120km from Cai Lan Port

Convenient transportation connections to provinces and cities in the key economic center of the North are a great advantage for investors in Yen My Industrial Park, not only reducing freight costs but also attracting abundant labor resources from neighboring provinces and cities.

3. Labor Resources

According to preliminary statistics up to 2019, Hưng Yên province has 726,800 workers over 15 years old, of which the rate of trained workers is 25.3%. Due to its location in the center of the Red River Delta, Hưng Yên has the ability to attract a large number of workers from provinces and cities in the Red River Delta region. The labor force over 15 years old in the Red River Delta region is 12,438,200 people, of which trained labor accounts for 32.4%.

The average income per capita of Hưng Yên province as of 2018 is approximately 2,000 USD/year. The average salary of workers is about 230 USD/month. Specifically:

- The minimum wage is 3,920,000 VND, equivalent to 169 USD/person/month (According to Decree No. 90/2019/ND-CP)

- Engineer/Technician/Office staff: 300 - 500 USD/person/month

- Department Head/Chief Accountant/Foreman: 600 - 1,000 USD/person/month

- Director 1,200 - 1,700 USD/person/month

In the province and surrounding areas, there are 28 universities, colleges, vocational colleges and 10 vocational secondary schools providing vocational training. Such training potential can meet the labor requirements of all enterprises investing in the industrial park, both general labor and high-quality labor.

II. INFORMATION ABOUT INDUSTRIAL PARK INFRASTRUCTURE

1. Infrastructure

In addition to grasping the advantages of geographical location and abundant human resources of the locality, the industrial park's infrastructure is comprehensively and modernly invested to meet the business needs of investors, ensuring that the operation of enterprises is stable and long-term.

Regarding the power supply in the industrial park, the power is supplied by Vietnam Electricity Group. Electricity is connected from the national grid to the industrial park's own substation. The substation has a voltage of 110/22KV with a capacity of 7×63MVA, ensuring a stable power supply, meeting the production needs of businesses in the Industrial Park.

Regarding the water supply in the industrial park, the Investor of Yen My Industrial Park built a water plant with a capacity of 10,000 m3/day and night to serve the clean water needs of factories in the area. The water supply pipe is designed with pipes from D150mm - D400mm, ensuring timely and convenient water supply to each factory.

Regarding drainage, waste and wastewater treatment, separate rainwater and wastewater drainage systems are built. The diameter of the underground rainwater drainage culvert is D800mm - D1250mm based on the principle of gravity flow. - Wastewater treatment plant with a capacity of 8,000 m3/day and night (The amount of wastewater is calculated as 80% of the amount of water supplied). Drainage culvert diameter D300mm - D600mm. Solid waste from factories will be sorted, collected and transferred to the concentrated landfill of Hưng Yên province for treatment.

Regarding fire prevention and fighting in the industrial park, in addition to ensuring that the basic infrastructure meets the production needs of factories in Yen My Industrial Park, investors also pay attention to investing in a fire fighting system, ensuring timely handling of fire incidents in the industrial park. The fire water supply system is arranged along all internal roads. The distance between fire hydrants is 120m - 150m. Fire hydrant diameter D125mm.

Regarding the environment and green trees, investors are also interested in investing in green landscapes and water surfaces. The area of green trees, water surface and technical infrastructure accounts for 28%. The green tree area is arranged along the internal roads and land plots, contributing to creating a green landscape for the industrial park.

2. Social infrastructure and services

Yen My Industrial Park with its convenient geographical location near residential areas has made the most of the advantages of social infrastructure and services of Yen My district. This helps ensure the essential needs of working and living for workers. Therefore, workers tend to have long-term attachment to businesses in the industrial park, ensuring a stable labor supply for businesses in the industrial park.

Regarding the Customs authority, the Customs authority has its headquarters in Pho Noi, 4km from the industrial park. All technical procedures such as sealing are carried out right at the factories in the industrial park, creating favorable conditions for businesses engaged in export and import activities.

Regarding banks, major banks such as Joint Stock Commercial Bank for Foreign Trade of Vietnam, Bank for Industry and Trade, and Bank for Investment and Development of Vietnam all have branches and transaction offices located near the industrial park.

Regarding the post office, the Post Office branch is located in the center of Yen My district, providing essential telecommunications services such as data transmission, Internet, IP phone, and video conferencing. Ensuring that the basic needs of businesses in the area are met.

Regarding the bus system, with the advantage of being near Hanoi, Yen My Industrial Park takes advantage of the Hanoi - Hưng Yên bus route. The bus runs with a frequency of 10 minutes/trip, operating from 5:00 am to 8:00 pm, with a ticket price of 30,000 VND/person.

Regarding security and order in the area, there is a police team and a fire fighting team in the industrial park to be ready to solve incidents of unsafety and fire risks in the area. In addition, the industrial park has arranged a security team to ensure security and order in the area.

Regarding the hospital, Pho Noi General Hospital is 3km from the industrial park, meeting the basic medical examination and treatment needs of workers in the industrial park. In addition, there are many quality general clinics near the industrial park.

Regarding training and vocational training schools, Hưng Yên Technical Pedagogy University in My Hao district trains thousands of bachelors, colleges and technicians every year; Yen My Industrial College, located in Yen My district, trains 4000 workers each year to supply to industrial park enterprises.

III. INFRASTRUCTURE LEASE COSTS AND INVESTMENT INCENTIVES

1. Costs

- Land rental price with infrastructure: 130 USD/m2. Minimum rental area is 1ha

- Land rent: according to the decision of the People's Committee of Hưng Yên province issued annually.

- Management fee: 0.7 USD/m2/year, paid annually

- Water price: According to the decision of the People's Committee of Hưng Yên province

- Wastewater treatment fee: According to the regulations of the providers at the time of use

- Telephone, Internet and other service costs according to the regulations of the providers at the time of use.

The above costs do not include VAT and are subject to change, please contact KLAND to receive the most accurate quote.

2. Industries with investment incentives

Yen My Industrial Park focuses on attracting industries such as: Electrical and electronic industry, high-tech industries, construction materials and mechanical engineering, pharmaceuticals, cosmetics, food, light industry, consumer goods,...

3. Investment incentives

- Corporate income tax: enterprises pay tax at a rate of 20% and are entitled to a tax exemption for the first 2 years, and a 50% tax reduction for the next 4 years. Corporate income tax incentives are applied continuously from the first year that the enterprise has taxable income from the investment project; in case the enterprise does not have taxable income in the first 3 years from the time of revenue from the investment project, the tax exemption and reduction period is calculated from the fourth year.

- Import tax on machinery and equipment (only applicable to industries with investment incentives as stipulated in Decree 134/2016/ND-CP supplemented by Decree 18/2021/ND-CP): Import tax exemption for goods to create fixed assets, Import tax exemption for raw materials and supplies imported to produce export goods, Import tax exemption for raw materials for production within 05 years from the start of production, if the enterprise invests in a project under the list of projects with special investment incentives.

- Tax on profit repatriation: Completely exempt from tax on profit repatriation.

- Value added tax: Exempt from Value Added Tax for exported goods.

4. Industrial park investment support

Investors are guided and supported free of charge from Viglacera on procedures for applying for investment licenses and post-licensing procedures in a timely manner:

- Procedures for applying for an investment license

- Procedures for personnel registration

- Procedures for registering and engraving seals

- Procedures for registering Tax Identification Number

Yen My Industrial Park with its great investment advantages in terms of location and labor force has attracted many businesses to invest in the area. Although it has just been put into operation, the occupancy rate is high. This proves the investment attractiveness of the industrial park. This is an ideal industrial park for businesses to operate stably and long-term.

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