AMATA Song Khoai Industrial Park

AMATA SONG KHAI INDUSTRIAL PARK - QUANG NINH PROVINCE

INDUSTRIAL PARK HAS BIG POTENTIAL IN FUTURE INDUSTRIAL CITY

Amata Ha Long project has been approved by Quang Ninh province with the entire master plan with a total area of 5,789 hectares to develop an integrated industrial city towards a smart city in the future. This project is divided into 3 development phases with a total investment capital of about 1.6 billion USD. Amata Ha Long smart city is expected to bring in revenue of USD 5 billion per year and 300,000 jobs for both locals and attract quality labor from localities, said Amata Vietnam General Director. other. This is an important strategic step of Amata in expanding to the North, and at the same time, the project also creates a driving force for Quang Ninh in promoting more FDI attraction in addition to its strength in tourism. Amata Group is currently implementing 3 projects in Quang Ninh province, focusing on infrastructure business, industrial parks and services with a total registered investment capital of 176 million USD. Among them, Amata Song Khoai industrial park is one of the most promising industrial zones, which is forecast to attract many FDI investors in the coming years.

I. OVERVIEW OF AMATA SONG KHOAI INDUSTRIAL PARK

1. Legal information and construction progress of the industrial park

Song Khoai Industrial Park was approved by the Prime Minister for investment policy in Decision No. 352/QD-TTg dated March 29, 2018, deployed on an area of 714ha in Quang Yen town (Song Khoai, Minh Thanh, Dong Mai, Republic). The project is invested and built by Amata Group in 5 phases, completed in 2026, with a total investment of over 155 million USD. This is one of the 5 industrial parks in Quang Yen town with the largest scale and investment area (714ha), which is identified as a place to attract and prioritize the development of the processing and manufacturing industry - one of the largest industrial parks in Vietnam. new growth drivers of Quang Ninh. The term of operation of the industrial park is until 2068.

Regarding the progress, Site clearance work is being carried out in phases. Phase 1, Quang Yen town has completed the site clearance of 123.09ha, handed over to the investor; phase 2, site clearance 120.08ha, handed over 52.87ha; phase 3 and 4, site clearance 200ha, tally 171.81ha, approved compensation plan of 8.67ha; Phase 5, clearance of 79.06ha, has finished counting all land and assets of households within the scope of land acquisition.

Invest in infrastructure, currently 63MW-110/22kV transformer station has completed the construction of main construction items, waiting for connection to the 110kV Cho Roc - Cat Hai transmission line, ready to power on at the end of June/ 2021. The clean water supply station with a capacity of 6,500m3/day is completing the basic construction and is expected to complete the installation of equipment in August 2021. Wastewater treatment station with a capacity of 4,000m3/day, expected to complete basic construction in June 2021, complete equipment installation in August 2021. Currently, there are 10 potential secondary investors from Japan, UK, China and Thailand who have committed to sign land lease contracts with the investor to carry out production and business projects.

2. Geographical location

Explaining the reason for choosing to invest in the construction of industrial park infrastructure near the sea instead of investing in the area around Hanoi, the investor gave three advantages of this area. Firstly, this is an area connecting to the new port logistics center Lach Huyen deep-water port, which is expected to reduce domestic logistics costs for export and import of goods. Secondly, this is the optimal location to transport goods to China due to the connection with the Chinese border. Third, the project is located in the Economic Zone, investors will enjoy the best tax incentives but still be located in an area well connected with social infrastructure.

In terms of traffic connections, the Industrial Park has a convenient traffic location by road, sea, railway and air:

- 130km from Hanoi capital;

- 20km from Ha Long City;

- 25km from Hai Phong city;

- 160km from the China Border;

- 160km from Noi Bai International Airport;

- 60km from Van Don International Airport;

- 25km from Cat Bi International Airport;

- 35km from Lach Huyen Deep Water Port;

- 20km from Cai Lan Deep Water Port;

- 10km from Uong Bi Station.

The convenient traffic connection to Hai Phong and Hanoi has created a great competitive advantage for the Industrial Park, especially suitable for companies with import and export requirements.

3. Labor resources

In addition, this is also an area located between two big cities, Ha Long and Hai Phong, which attracts many workers, both unskilled and high-quality workers. As of 2019, the number of workers over 5 years old in Quang Ninh province is 734,500 people, the rate of trained workers is 37.7%, the number of workers over 15 years old in Hai Phong city is 1,111,100 people in the year. that rate of trained workers is 31.6%. Particularly in Quang Ninh province, there are a number of training institutions in a variety of professions such as: Quang Ninh University of Industry, Ha Long University, Quang Ninh University of Foreign Trade, College of Foreign Trade. Vietnam Coal and Mineral Profession, Vocational College of Mechanical and Electrical Traffic, Vocational College of Construction and Industry, Quang Ninh Medical College,... Abundant labor force sufficient to meet the demand of universal labor information and trained workers of investors in the industrial park. The industrial park is still in the region with the minimum wage in Region 3 (VND 3,430,000/month), so investors can access an abundant labor source at a cheap price.

II. INFORMATION ON INFRASTRUCTURE OF INDUSTRIAL PARK

Amata Song Khoai Industrial Park is an industrial park with a synchronous and modern technical infrastructure system, development goals associated with environmental protection and sustainable development. The industrial park focuses on attracting investment in industries with advanced and environmentally friendly technologies; flexibly meet the diverse needs of investors in terms of land use scale.

Regarding the power supply in the industrial park, the electricity system in the zone is provided by the Vietnam Electricity Company (EVN) with a current of 110 KV to the substation in the Industrial Park and operates the 189 MW substation with the network 22KV electricity to each factory. The power grid is enough to meet the needs of factories in industrial zones.

Regarding the water supply in the industrial park, the total water supply capacity in the industrial park reaches 27,000m3/day. The water supply limit calculated on the leased land and factory areas in the area is 50m3/ha/day and night. This limit can be increased if the enterprise needs to increase the capacity of water used, the additional water capacity is decided according to the agreement of the two parties.

Regarding wastewater treatment, currently, the wastewater treatment capacity of the industrial park is at 24,000m3/day, which can well meet the production needs of enterprises in the industrial park. The amount of wastewater is calculated as 80% of the monthly water consumption.

Regarding post and telecommunications, post and telecommunications services in the industrial zone are provided by Vietnam Posts and Telecommunications Group (VNPT). Fiber optic cable providing Internett service has been completed and installed to each plot of land.

The parameters and quality of infrastructure as listed above are the completion of phase 1 of the Industrial Park, the infrastructure of the industrial park will gradually improve to better meet the needs of investors. investment when building and operating in industrial parks.

The current infrastructure can meet the production requirements of a variety of industries. The industrial park is planned to attract the processing and manufacturing industries, including 23 industries according to the Prime Minister's Decision No. 10/2007/QD-TTg promulgating the system of economic sectors of Vietnam. Men and 40 high-tech industries according to Decision No. 66/2014/QD-TTg dated November 25, 2014 and Decision No. 13/2017/QD-TTg of the Prime Minister dated April 28, 2017.

III. INFRASTRUCTURE RENTAL COSTS AND INVESTMENT INVESTMENT INVESTMENTS

1. Expenses

- Land rental with infrastructure: 85 USD/m2

- Factory rental price: Negotiable with the corresponding area from 1000m2 to 5000m2. Minimum lease term 5 years.

- Raw land rental price: Unit price according to Decision of Quang Ninh Provincial People's Committee Quảng

- Management fee: 1 USD/m2/year

- Electricity price: Peak hour 0.111 USD/KWh, Normal hour 0.061 USD/Kwh, Off-peak hour 0.039 USD/kwh

- Price of clean water: 0.557 USD/m3

- Waste water treatment fee 0.35 USD/m3 (wastewater volume is calculated as 80% of water used)

2. Investment incentives

The investment environment of Quang Ninh province is highly appreciated by investors due to its timely and professional support policies. This is proven when Quang Ninh ranks first in the PCI report for 3 consecutive years (Provincial Competitiveness Report).

In addition, when investing in Song Khoai Industrial Park, because this is an economic zone, it will enjoy the highest tax incentives:

- The applicable corporate income tax incentives are calculated continuously from the first year the enterprise has taxable income from the investment project; in case an enterprise has no taxable income in the first 3 years since it has revenue from an investment project, the tax exemption or reduction period is counted from the fourth year. Enterprises enjoy the tax rate of 10% for 15 years, tax exemption for the first 4 years and 50% tax reduction for the next 9 years.

- Import tax: Exemption from import tax on goods creating fixed assets for the project (equipment, machinery; specialized means of transport in technological lines and means of transporting workers; components, details, separate parts, spare parts, jigs, molds and accessories accompanying specialized equipment, machinery and means of transport; Raw materials and supplies used to manufacture equipment and machinery are included in technological lines or to manufacture components, details, separate parts, spare parts, jigs, molds and accessories accompanying equipment and machinery; construction materials that cannot be produced domestically). Exemption of import tax for goods imported for processing for foreign parties.

Amata Song Khoai Industrial Park is a new and modern industrial park with synchronous investment, located in a key position in the Northeast of our country. In addition, the location of the industrial park facilitates access to many social infrastructure services to ensure stability and long-term investment. The biggest advantage of the Industrial Park is its large planning area with a total of 5 phases, attracting many types of industries, both conventional and high-tech manufacturing and processing. This is forecasted to be a bright spot in industrial investment in Quang Ninh in the coming years.

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