Dung Quat Industrial Park

DUNGQUAT-IP-QUANGNGAI

The map of Dung Quat industrial Park.

Dung Quat Industrial Town has been invested over 2,000 billion dong by Hoang Thinh Dat Corporation (Investment License no 7020466318) in Phase I. This project is expected to be a breakthrough in infrastructures of Dung Quat Economic Zone and North Quang Ngai ‘s urban. Moreover, it shall enlarge on Chu Lai Economic Zone and South Quang Nam where local government is planning urban area.

Dung Quat Industrial Town Project is oriented in the total area developing of 1,303 ha in which there are two main phases: Phase I: 319ha, Phase II: 984 ha. Specific positions were agreed by the Management Board of Dung Quat Economic Zone (Document No. 895 / MB-QLQH & XD July 7, 2016).

Currently, Hoang Thinh Dat Corporation puts forward to focus on Phase I with a scale of 319 ha in order to develop industrial and service parks. These next Phase will carefully be analyzed and concretely proposed before implementing.

In comparion with previous years, the overview of investment picture of Dung Quat EZ and Quang Ngai IPs this year has changed dramatically. One of the most significant project was Hoa Phat Dung Quat Integrated Iron and Steel Complex with a total registered capital of VND 60 trillion and capacity of 4 million tons per year. The products are mainly construction steel, rolled steel. At present, the first phase is being implemented in 21 months, and the entire project will be completed by the end of 2019.

In 2017, the significant investment of FDI projects into Dung Quat EZ and Quang Ngai IPs was considered to be a vibrant year, with a total investment capital of over US $ 385.5 million.

In 2018, Dung Quat Economic Zone and Provincial Industrial Parks Authority (DEZA) aims to attract US $ 120-150 million investment capital; continue to promote and exploit existing potentials and advantages, such as: deep sea-port system, infrastructure system, and land fund for industrial development.

In the coming time, DEZA will continue to: improve competitiveness in attracting investment through accelerating reform of administrative procedures; review all existing plan to timely adjust and supplement to suit the reality and requirements set in the development process; act as the focal point and promote the formation of the container line at Dung Quat port in order to reduce transportation’s costs and time and contribute to attracting investment into Dung Quat EZ and Quang Ngai IPs; speed up the investment in infrastructure works in economic zones, step by step complete the infrastructure to attract investment; to focus on supporting investors to implement large projects: Hoa Phat Dung Quat Integrated Iron and Steel Complex, the project of the upgrade and expansion of the Dung Quat Oil Refinery, Dung Quat industrial park; closely coordinate with Quang Nam Province, Ministries, central agencies and project investors to bring gas to shore from the Blue Whale gas field; prepare conditions for the implementation of gas-fired power projects in Dung Quat EZ; at the same time concentrate on attracting the industries and domains which Dung Quat EZ and Quang Ngai IPs have comparative advantages, especially those related to the use of deep-water seaports, heavy industry, Infrastructure investment in industrial zones , etc and closely cooperate with VSIP Quang Ngai and Hoang Thinh Dat Group to focus on attracting light FDI projects.

Project"s durationg :

Duration of project activities is 50 years since the Investment Certificate is granted

This project is divided into two main stages of development in a specific schedule is as follows:

+ Phase IA: Develop approximately 166 hectares of industrial land,: Implementation of infrastructure construction the entire 166 hectares of industrial land; Construction Phase 1 wastewater treatment plant with a capacity of 25,000 CMD and clean water plant with a capacity of 31,000 CMD;

+ Phase IB: Develop 153 hectares of industrial space; Investment in the construction of Phase II of the wastewater treatment plant with a capacity of 25,000 CMD, and clean water plant with a capacity of 31,000 CMD;

It is the only concept of time when mentioning about the division of the project into the different development phase. In fact, when the Phase IA has developed and filled about 60% of the area, we will immediately invest in the construction of Phase IB project.

Investment attaction"s field :

Manufacture and assembly of electrical, electronic and telecommunication equipment;

Manufacture and assembly of automobile and aircraft components;

Production of Medicine, pharmaceutical chemistry and pharmaceuticals;

Manufacture of chemicals and chemical products;

Producing and processing foodstuffs, beverages;

Wastewater treatment and management;

Textile industry;

Leather production and related products;

Mechanical (including plating which is a key stage of the product);

Manufacturing industry;

Light industries and supporting industries;

All occupations are prohibited by Vietnamese laws.

Strategic advantages :

Location advantages: the Total scale of Dung Quat Industrial Town Project stays in Binh Son district, Quang Ngai Province which belongs to Dung Quat Economic Zone. The boundaries of 319 ha area of Phase I as below:

Project’s area has the most convenient transportation in Dung Quat economic zone:

5km from Chu Lai airport;

3km from Dung Quat seaport;

1km from Da Nang – Quang Ngai highway;

East is adjacent to Tra Bong river and Thanh Nien street;

North is adjacent to Chu Lai Airport;

South is adjacent to Doc Soi – Dung Quat street;

West is adjacent to Land of Phase II area.

Utinity:

- Tax and other policies’ advantages: Tax rate of 10% corporate income in 15 years since the company had revenue from Project, 04-year tax exemption, reduction of 50% of the tax payable in the next 09 years since taxable income is applied. For large-scale and important projects, the Prime Minister is allowed to apply the preferential tax rate of 10% within 30 years

- Import Duty: Duty-free for special equipment, machinery, and materials (non-production in Vietnam) constituting fixed assets of the project which invests in preferential import tax fields. Exemption of import tax for 05 years for production of materials and components which cannot be produced in Vietnam and must be imported for production of projects investing in special investment encouragement field.

- Export Duty: Apply only for limited natural resources.

- Value added tax: VAT applied differently to the professions: 0%, 5%, and 10%

- Personal income tax: Apply for Vietnamese who earns 9 million VND/ month and 50% reduction of tax payable on high-income earners (including Vietnamese and foreigners) working in Dong Nam Economic Zone

- Other Priority policies: Quang Ngai also has many policies to support such as employee training, trade promotion, implementation of administrative procedures, etc.

Key infrastructure system advantage:

– Infrastructure electrical engineering and communication Systems will be invested and supplied to the fence of project’s area by Quang Ngai

About supplying of clean water and wastewater treatment, Hoang Thinh Dat proactively invested in wastewater treatment plant with a capacity of 51,000 CMD and 50,000 CMD clean water supply plant with raw water from the Thach Nham B3 canal in order to meet the demand for clean water for production activities of investors

Human resource advantage:

- Quang Ngai Province has a population of over 1.3 million people, the labor force accounted for 53.8% of the population of working age. Currently, there are 8 Colleges and Universities around this area. Every year, nearly 30,000 graduated students from high schools, professional schools, colleges, universities; besides, Quang Nam , Komtum, Binh Dinh province with a population of 3.5 million people ( in which 50% to 58.8% in the working age) shall ensure adequate supply of quality human resources for businesses.