Industrial Park and Khu phi thuế quan Xuân Cầu

I. LEGAL INFORMATION AND LOCATION OF XUAN CAU INDUSTRIAL PARK AND FREE TRADE ZONE

The industrial park and Khu phi thuế quan Xuân Cầu are planned to be located on Cát Hải Island, which belongs to Dinh Vu - Cát Hải Economic Zone, and was approved for detailed planning at a scale of 1/2000 by the People's Committee of Hải Phòng on June 28, 2016. The industrial park is adjacent to international gateway port industrial parks (DEEP C3), Lach Huyen 1 IP, Lach Huyen 3 IP, and Lach Huyen 4 IP.
On April 1, 2021, the investment project for construction and business of industrial park infrastructure and Khu phi thuế quan Xuân Cầu was approved for investment policy by the Prime Minister in Decision No. 535/QD-TTg. Accordingly, the project has an investor, Xuan Cau - Lach Huyen Investment Joint Stock Company, with a land use scale of 752 hectares, a total investment of VND 11,100 billion, and an operating term of no more than 50 years from the date of the investment policy decision (from 2021-2071). The project location is the Lach Huyen International Gateway Port area, belonging to Zone 4 of the detailed planning project 1/2000 of Cát Hải Island area, belonging to Dinh Vu - Cát Hải Economic Zone, Hải Phòng city.

(Overall plan of the industrial park and Khu phi thuế quan Xuân Cầu - Hải Phòng city)

On December 7, 2021, the project was granted an investment registration certificate by the Hải Phòng Economic Zone Management Board with the name Lach Huyen Free Trade Zone - Logistics & Industry. Accordingly, the project has a scale of 752ha including 369ha of industrial land, 172ha of logistic warehouse land and 43ha of commercial service land, expected to be implemented in 03 phases, respectively in 2025, 2030 and 2033. On April 8, 2022, the project was approved by the Management Board of Hải Phòng Economic Zones for a detailed construction planning project at a scale of 1/500 in Decision No. 1068/QD-BQL on an area of 751.96ha.
Regarding its nature, the industrial park and Khu phi thuế quan Xuân Cầu are oriented as an industrial park and port logistics service, directly serving Lach Huyen International Deep-Water Port, focusing on attracting investment projects in the fields of clean industry, consumer electronics industry, supporting industry, export manufacturing, logistic services, warehouse construction, bonded warehouses and tax-suspension warehouses, and other projects suitable for the free trade zone.
Regarding regional connectivity, Xuan Cau Industrial Park has a 6 km border adjacent to Lach Huyen deep-water port, so it has extremely convenient sea transport connections and:
- 27km from the center of Hải Phòng city, 25km from Cat Bi International Airport
- Adjacent to Tan Vu Lach Huyen road directly connecting to Hanoi - Hải Phòng and Hải Phòng - Mong Cai expressway
- 130km from the center of Hanoi city, 150km from Noi Bai International Airport
- 5km from Vinfast automobile factory

II. XUAN CAU INDUSTRIAL PARK INFRASTRUCTURE SYSTEM

Land leveling: the entire area of the industrial park and free trade zone is leveled with a minimum elevation of +5.50m, ensuring the ability to prevent flooding even in cases of storms and floods. Due to its location adjacent to the sea, the industrial park is also building dikes and embankments to prevent flooding.
Internal traffic road system: the main road of the industrial park has a cross-sectional width of 45-50m and is designed with 06 lanes. Internal roads have cross-sectional widths from 20m-40m, in which the road width is from 10m-21m. The traffic routes are arranged according to a chessboard model with a full system of green trees, sidewalks and lighting systems.

Power supply system: the power source for the industrial park and Khu phi thuế quan Xuân Cầu can be taken from 02 110kV power lines from Hải Phòng and Quang Ninh through 02 substations in the area with a capacity of 5*63 MVA and 4*64 MVA. The investor arranges 22kV underground lines along the planned roads to connect to the land plot as required by the investor.

Water supply system: the water source for production in the industrial park is taken from Dinh Vu and Hải Phòng city along 03 water supply pipelines, with a total capacity to serve the entire Cát Hải island area of more than 97,648 m3/day and night, ensuring good response capacity for the industrial park.

Wastewater treatment system: production wastewater at Xuan Cau industrial park is collected and treated at a centralized wastewater treatment station before being discharged into the environment. The industrial park's WWTP system has a total treatment capacity of 9,500 m3/day and night, including 02 stations, station No. 01 has a capacity of 2,500 m3/day and night, station No. 02 has a capacity of 7,000 m3/day and night.

Other infrastructure utilities: The rainwater collection and drainage system is arranged independently of the production wastewater collection and treatment system; Communication system; Green system; Lighting system; Accident lake with a total capacity of 19,000 m3; Hazardous waste storage.

(Overall perspective of Xuan Cau industrial park infrastructure)

III. LAND LEASE COSTS AND INVESTMENT INCENTIVES AT XUAN CAU IP

Land lease costs at Xuan Cau industrial park: Currently, the industrial park is in the process of infrastructure construction, and the lease price will be accurately determined at the time of completion of infrastructure construction.
Investment incentives at the Industrial Park and Khu phi thuế quan Xuân Cầu:
Regarding corporate income tax: A preferential tax rate of 10% is applied for the first 15 years of the project. At the same time, 100% of CIT is exempted for the first 04 years and 50% of CIT is reduced for the next 09 years.
Regarding import-export tax and VAT: enterprises investing in free trade zones are exempt from import-export tax and enjoy VAT at 0% according to Vietnamese tax law regulations.
Regarding special consumption tax: special consumption tax is exempted in the case of purchasing goods from domestic or importing goods from abroad into the free trade zone (except for some types of goods)
In addition, investment projects in the industrial park are also supported by the investor in procedures for applying for investment licenses, construction permits and relevant agencies to quickly complete investment procedures.

IV. CURRENT INVESTMENT STATUS AT XUAN CAU IP AND FREE TRADE ZONE

On May 13, 2023, the Industrial Park and Khu phi thuế quan Xuân Cầu was officially started construction with the participation of Prime Minister Pham Minh Chinh and government leaders with the expectation that phase 1 of the project will be completed by mid-2025. Due to its location as reclaimed land, the construction of the project still faces many difficulties and so far only a few initial construction and leveling activities have been carried out. However, due to its location adjacent to Lach Huyen International Deep-Water Port, the industrial park is currently receiving a lot of attention and investment inquiries from domestic and foreign investors who are units that need to transport goods with large volumes that can take advantage of the seaport.

(Groundbreaking ceremony and construction progress of the industrial park and Khu phi thuế quan Xuân Cầu)

The latest information about the project will continue to be updated by KLAND in the near future. For all land lease needs at the industrial park and Khu phi thuế quan Xuân Cầu, please contact us according to the following contact information!

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