Binh Xuyen II Industrial Park

I. LEGAL INFORMATION AND LOCATION OF BINH XUYEN II INDUSTRIAL PARK

On September 24, 2007, the Hong Hai Science and Technology Group (FOXCONN) was approved by Vinh Phuc provincial People's Committee for the research location to establish a detailed plan for Binh Xuyen Industrial Park. After that, Binh Xuyen II Industrial Park was approved to be added to the plan of industrial parks in Vinh Phuc according to Official Dispatch No. 1821/TTg-CN dated November 26, 2007 with an initial planned area of about 700 hectares.

On December 22, 2014, Industrial Park II was adjusted to reduce the planned area to 485 hectares (a reduction of 215 hectares compared to the initial planned area) according to Official Dispatch No. 2628/TTg-KTN issued by the Prime Minister. Binh Xuyen II Industrial Park was then further adjusted to reduce the planning area from 485 hectares to 393 hectares (a reduction of 92 hectares) and at the same time split into two industrial parks: Thang Long Vinh Phuc Industrial Park (area of 213 hectares) and Binh Xuyen II Industrial Park (area of 180 hectares).

Binh Xuyen II Industrial Park is built in 02 phases:

Phase 1: Covering an area of 42.2112 hectares, the detailed plan at a scale of 1/2000 was approved by Vinh Phuc provincial People's Committee under Decision No. 1775/QD-UBND dated June 05, 2008 and the detailed plan at a scale of 1/500 was adjusted under Decisions No. 3651/QD-UBND dated December 22, 2011; Decision No. 1174/QD-UBND dated April 25, 2014; Decision No. 3524/QD-UBND dated December 02, 2014.

Phase 2: With an area of 63.1139 hectares, the plan research location was approved under Document No. 4308/UBND-CN3 dated June 12, 2019, and the detailed plan was approved under Decision No. 1839/QD-UBND dated July 23, 2020 of Vinh Phuc provincial People's Committee on adjusting the detailed plan of Binh Xuyen II Industrial Park (4th time).

Thus, after the detailed plan was approved and adjusted many times, Binh Xuyen II Industrial Park has a total area of 105.3251 hectares (a decrease of more than 74 hectares compared to the original planned area of 180 hectares), of which the industrial land area for lease is 76.709 hectares (accounting for 72.83%).

(Image of Binh Xuyen II Industrial Park)

On February 2008, Fuchuan Co., Ltd (a subsidiary of Foxconn Group) was granted an Investment Registration Certificate by Vinh Phuc provincial People’s Committee for the development project of Binh Xuyen II Industrial Park and the construction project of mobile phone manufacturing plant within this site. However, since the investor was given permission, it has repeatedly delayed the implementation of the projects. As a result, Vinh Phuc provincial People’s Committee issued an announcement to inform the investor about the deadline of completing infrastructure of April 02, 2014, warning that failure to meet this deadline would result in project revocation. It was not until 2014 that Binh Xuyen II Industrial Park was partially completed and put into operation.

In terms of nature, Binh Xuyen II Industrial Park is planned as a concentrated industrial park with modern and synchronous technical infrastructure, meeting the needs of attracting investment in the fields of industrial production, warehousing and socio-economic development of the province. There are multi-sector industrial production industries with modern, advanced technology to protect the environment.

In terms of regional linkage, Binh Xuyen II Industrial Park is adjacent to Provincial Road 310B, Nguyen Tat Thanh Street and:

- 21 km from Noi Bai International Airport

- 48 km from Ha Noi city center

- 10 km from Vinh Yen city

- 166 km from Hai Phong port

II. INFRASTRUCTURE SYSTEM OF BINH XUYEN II INDUSTRIAL PARK

Power supply system: the power supply for production activities in Binh Xuyen II Industrial Park is sourced from the 110kV/22 KV Thien Ke transformer station with a capacity of 2*63 MVA. The 22KV lines are laid out on the sidewalk to each plot of land in the industrial park to serve factories and enterprises.

Water supply system: clean water for Binh Xuyen II Industrial Park is provided by Vinh Yen clean water plant with a water supply capacity of 61,000 m3/day and night through D300 pipeline to land lots in the industrial park, arranged to combine the goal of providing fire protection water for the site.

Wastewater treatment system: Binh Xuyen II Industrial Park has a centralized wastewater treatment system with a capacity of 1,800 m3/day and night, treating all wastewater generated in the industrial park to meet standards before discharging into the environment.

Internal traffic system: the main road of the industrial park is built with a cross-section width of 28.0m, in which the roadway width is 2*7.5m. Branch roads in the industrial park are from 9m to 25.0m wide, in which the roadway width is from 5m to 15m).

Telecommunication system: calculated to meet the needs of businesses operating within the industrial park.

Other infrastructure facilities: lighting system, green spaces, parking lot, detention basin, and other administrative and service buildings.

(Image of Binh Xuyen II Industrial Park infrastructure)

III. LAND LEASING COSTS AND INVESTMENT INCENTIVES AT BINH XUYEN II INDUSTRIAL PARK

Infrastructure usage fee: 100 USD/m2/entire lease term

Infrastructure management and maintenance fee: 0,35 USD/m2/year

Annual land leasing fee: applied according to the decision of Vinh Phuc provincial People's Committee

Power supply price: applied according to EVN power price list

Water supply price: 14,000 VND/m3

Wastewater treatment fee: 0,5 USD/m3, calculated at 80% of clean water used

Note: the above prices do not include VAT and are subject to change without prior notice.

Investment incentives at Binh Xuyen II Industrial Park

Corporate income tax incentives: 100% exemption from corporate income tax for the first 2 years, 50% reduction in tax payable for the next 4 years.

Import tax incentives: import tax exemption for goods on the tax incentive list, imported to create fixed assets for enterprises.

IV. STATUS QUO OF ATTRACTING INVESTMENT AT BINH XUYEN II INDUSTRIAL PARK

Currently, Binh Xuyen II Industrial Park has completed construction and leased 100% of the area in phase 1 with 18 investment projects, including typical projects such as: Electronic components manufacturing project of Young Poong Electronics Vina Co., Ltd. (Korea) and YINGTONG (Vietnam) Electronic Technology Co., Ltd.; Machinery and equipment manufacturing project of Sunshine Vietnam Electronics Co., Ltd...

For the area of phase 2, the investor is currently coordinating with competent authorities to complete compensation and site clearance procedures and is expected to complete construction in 2023.

(Image of some factories operating in Binh Xuyen II Industrial Park)

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