Sài Gòn Chân Mây Industrial Park - Thua Thien Hue province

SAIGON CHAN MAY INDUSTRIAL PARK AND FREE TRADE ZONE - THUA THIEN HUE PROVINCE

(Planning of Industrial Park and Free Trade Zone Sài Gòn Chân Mây)

I. OVERVIEW OF SAIGON CHAN MAY INDUSTRIAL PARK

1. Legal information

Chan May - Lang Co Economic Zone was established under Decision No. 04/2006/QD-TTg dated January 05, 2006 of the Prime Minister, with defined geographical boundaries, including: Lang Co town and Loc Thuy, Lộc Tiến, Lộc Vĩnh communes of Phú Lộc district, Thua Thien Hue province. The total area of the economic zone is 27,108 ha; including: functional areas, technical and social infrastructure works, service works and public utilities with preferential policies, incentives, long-term stability and transparent management mechanisms, creating favorable conditions for domestic and foreign investors to feel secure in investing in the development of production, business of goods and services within the current and increasingly complete legal framework.

The non-tariff - industrial - port service area is planned to be located in the area from Chan May Dong cape to Bu Lu river, with a scale of about 1540 hectares. Saigon-Chan May Industrial Park is located in Chan May - Lang Co Economic Zone with an actual area of 659.06 hectares, of which industrial land for lease accounts for 513.04 hectares, which is assigned to Saigon - Hue Investment Joint Stock Company to invest in construction and business of industrial park infrastructure.

The industrial park focuses on attracting clean industries, assembly industries (automobiles, large televisions, computers), projects in the field of supporting industries, production of new technology building materials, production of components, medical machinery and pharmaceuticals. Currently, 04 companies have invested in the industrial park, reaching an occupancy rate of 7%.

2. Geographical location

The IP is located in Chan May - Lang Co Economic Zone, Loc, in the area of Lộc Tiến commune, Lộc Vĩnh commune, Phú Lộc district, Thua Thien Hue province. The industrial park has a convenient transportation network, easily accessing key locations by road, rail, sea, air and inland waterway. Specifically: 03 km from Chan May seaport, 42 km from Phu Bai International Airport, 59 km from Hue City Center, 38 km from Da Nang International Airport, 39 km from Da Nang City, 47 km from Tien Sa Port (Da Nang), 78 km from La Son - Tuy Loan Expressway, 140 km from Da Nang - Quang Ngai Expressway, adjacent to the East-West Economic Corridor.

Located in a densely populated area of Thua Thien-Hue province, adjacent to Da Nang city, the IP has the advantage of attracting a large local labor force. The population of Thua Thien Hue province is 1.2 million people and the population of Da Nang city is 1.1 million people with a labor scale rate of 70%. Within a radius of 20km of the IP, there are 150,000 residents.

II. INFORMATION ABOUT SAIGON - CHAN MAY IP INFRASTRUCTURE

Saigon - Chan May Industrial Park is invested with synchronous and modern infrastructure, ensuring the production and business needs of enterprises in the industrial park.

Regarding internal traffic, the internal traffic system is designed with a main axis road of 36m wide and an internal axis road of 23.5m wide. The internal road is designed in a grid pattern, ensuring easy access to each land plot in the industrial park.

Regarding power supply, power is supplied from the national grid through a 110/22KV transformer station with a capacity of 2x80 MVA, medium voltage 22 KV transmission lines are installed along the internal roads in The power line system is fully invested to ensure connection to each factory in the industrial park.

Regarding water supply, the clean water supply capacity of the industrial park is 11,000m3/day and night to serve businesses in the industrial park. The water supply network ensures supply to the fence of businesses.

Regarding wastewater treatment, due to the good terrain and synchronous investment, it can be confirmed that Da Nang city's drainage system is the best compared to cities across the country. The IP is designed with 2 separate drainage systems for industrial park wastewater and rainwater. Rainwater flows naturally into the collection wells according to the drainage ditch system leading to the river. Industrial wastewater is treated at level 1 at factories, then led through pipelines to the treatment area. The entire IP has 1 Wastewater Treatment Station with a capacity of 4,900 m3/day and night.

Regarding telecommunications system, telephone and ADSL lines are ready to be provided and connected to each business. Internet services are provided by leading domestic network operators, ensuring transmission quality for manufacturing enterprises in the industrial park.

(Factory under construction in the industrial park and free trade zone Sài Gòn Chân Mây)

III. RENTAL COSTS AND INVESTMENT INCENTIVES

1. Rental costs

- Infrastructure rental price: 38USD/m2 (land lease term until January 11, 2078)

- Factory rental price: 3USD/m2/month

- Infrastructure management and maintenance fee: 0.4 USD/m2/year

- Annual raw land rent: apply the rate according to the regulations of the People's Committee of Thua Thien-Hue province

- Electricity price: From 1,044 VND/kWh – 3,076 VND/kWh depending on the time of electricity use

- Water supply price: 13,653 VND/m3

- Wastewater treatment fee: 6,200 VND/m3 (wastewater volume is calculated as 80% of water consumption)

2. Investment incentives

Regarding corporate income tax, because it is located in an economic zone, investment projects in Saigon - Chan May IP will enjoy very large corporate income tax incentives:

+ Tax rate: A preferential tax rate of 10% is applied for 15 years

+ Being exempt from rent for the first 04 years, being reduced by 50% of the tax payable in the next 09 years

+ Time of application: From the first year of generating taxable income or from the fourth year of operation, whichever comes first

Regarding import tax, businesses are exempt from import tax on goods that create fixed assets for the project, including: Equipment, machinery; Specialized transport vehicles in the technology chain and transport vehicles for transporting workers; Components, details, separate parts, spare parts, jigs, molds, accessories accompanying equipment, machinery, specialized transport vehicles; Raw materials and supplies used to manufacture equipment and machinery in the technology chain or to manufacture components, details, separate parts, spare parts, jigs, molds, accessories accompanying equipment and machinery; Building materials that have not been produced domestically.

Regarding labor, Thua Thien Hue province supports training costs of 1,000,000 VND/labor for businesses with more than 200 employees and allocates free land to build houses and apartments for workers and experts.

To update information about Saigon-Chan May IP in particular and IPs in the Central provinces in general, please contact KLAND for more details:

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