Tay Bac Ga Industrial Park

I. GENERAL INFORMATION

Scale

- Tay Bac Ga industrial park period 2 was licensed since 2010.

- Total area of Tay Bac Ga industrial park period 2: 50.2 hactares

Legal documents

- Investment license number 26221000086 granted December 11, 2010 about Tay Bac Ga industrial park construction and investment project period 2 – Thanh hoa City and Phuc Hung architecture corporation is permited as the investor.

- Decision number 1600/QĐ-UBND granted May 14, 2010 about approving detailed planning scale 1/500 Tay Bac Ga industrial project Phase 2.

Project implementation period

- 50 years (from 2010 to 2060)

Main investment fields:

- Agricultural processing - forestry product industry

- Home appliance, handicraft manufacturing industry

- Hi-tech, repairing, erection industry

- Packaging, apparel industry.

Leasing method:

- Leasing the land with existing infrastructure.

II. LOCATION AND NEIGHBORHOOD RELATIONSHIP

Traffic

- Tay Bac Ga industrial park phase 2 is on Dong Son Commune, Thanh Hoa City, 2km away to the city center, in the North of 1A highway, close to North South railway.

- Route: Hanoi - Hà Nội - Tay Bac Ga industrial part phase 2.

1) 1A Highway (Being circulated)

2) Hanoi – Cau Gie Highway (Being circulated)

3) Ninh Binh – Cau Gie Highway (Being circulated)

4) North South Highway (Being circulated)

- Railway: The industrial park is close to North South railway.

Sea Port

- Hai Phong Sea Port: 150 km (Road No 10)

- Deep Sea Port: 45 km.

Airport

- Thanh Hoa airport, Thanh Hoa Province.

- From Tay Bac Ga industrial park phase 2 to Thanh Hoa airport: About 38km.

Railroad

- Hanoi – Tay Bac Ga industrial park phase 2 Railroad: 156 km.

III. INFRASTRUCTION

Internal traffic

- Industrial park’s main road: Dimension: 2x10.5m. Tree line in the middle: 4m; trees and lane for walking: 2x8m where is equipped with the underground power, water supply, drainage, sewage, communication systems and the lighting devices fitted along the roads.

- Shortcuts: 2x8m, trees and road for walking: 2x8m, whereit is equipped with the underground power, water supply, drainage, sewage, communication systems and the lighting devices fitted along the roads.

- The industrial park is circulated with 1A and North South highways.

Power supply system

- The power is supplied from national power network, fulfill the necessary conditions to operate.

Water supply system

- Water treatment plant with capacity of 8.400m3 / day (water supply pipe diameter is D100mm - D200mm). The average thickness of the pipe is 0,7-1.5cm. The water is supplied directly from the Tay Bac ga water supply company.

- The water supply system is connected directly to the fence of Enterprises.

Drainage system

Water drainage system is separated from wastewater drainage system. Water from the rain accumulates through underground piping system and discharged into the rivers in the region. Drainage pipe diameter D600mm - D800mm and drainage system that is automated.

Waste water and sewage treatment

- Wastewater treatment plant with a capacity of 8,400 m3 / day.

(Industrial waste water is equavalent to 80% of the original water supply.)

- Water drain pipe D350mm - D750mm

- Wastewater from the factories in the industrial park will be classified immediately at those factories and are concentrated in the central processing region of Tay Bac Ga Industrial Park Station.

Communication System

- Modern communication system meets international standards and ready to meet the demand for national and international communications services. (ADSL Internet, available communication system)

Fire protection

- Modern water supply system with fire fighting equipments is placed along the roads in the industrial park. The distance between the pillars from 100m-150m with D100mm diameter.

- Fire Station will be completed in 2011.

Environment and green trees

- Green trees and common spaces occupy 7.24% of the land area.

IV. SOCIAL INFRASTRUCTURE AND OTHER SERVICES

Customs

- Thanh Hoa Customs office will be located in the center of the industrial park, all sealing procedures and customs declarations are made promptly at the enterprises in the industrial park.

Bank

- Vietin Bank, BIDV, Sacom Bank, VP Bank, Agri-Bank

Post office

- Thanh Hoa Post Office is 800m away from Tay Bac Ga Industrial Park phase 2 800m with a modern information technology system to serve multi-media services such as data transmission, telephone, Internet industrial park, and video conferencing and so on ...

The human condition

- There is an abundant labor force in the neighborhood of the Tay Bac Ga Industrial Park phase 2. According to the Provincial People"s Committee’s planning, residence in the neighborhood is zoninged with a big scale.

Hospital

- Hong Duc General Hospital (400m away from the IP).

- Thanh Hoa General Hospital (400m away from the IP)

- The health clinics will be built

High School

- There are 14 high schools in Thanh Hoa province

V. PRICE AND COST

The minimum land area for lease

- 2000 m2

Charges for the usage of infrastructure and the lease include:

1) Charges for usage of infrastructure

2) Land lease.

- "Contact us for details!"

Industrial service and infrastructure maintenance charges

- 0.35 USD / m2 / year - annualy payment

The fee of electricity consumption

- (From 22KV to under 110KV) (under the provisions of the State)

(1) - Normal hours: 1.243VND / Kwh

- From Monday to Saturday: 4h - 9:30 h, 11:30 h - 17 h and 20 h - 22 h / Sunday: 4h - 22h

(2) - Night Time: 783 VND / kWh

- Daily from 22h to 4 h

(3) - Rush hour: 2,263 VND / kWh

- From Monday to Saturday: 9.30h - 11:30 h and 17:00 h - 20:00 h / excluding Sundays

The fee of water

8,000 VND / m3 - Monthly payment.

The fee of phones, Internet and other services

- Depending on usage.

Note: All prices do not include VAT in accordance with State regulations.

VI. INVESTMENT INCENTIVES

Imported machineries and equipments

(1) - Imported machinery tax exemption to create fixed assets:

+ Equipment and machinery.

+ Imported materials, raw materials for equipment and machinery production in technological lines or equipments, spare parts, molds and accessories accompanying with equipments, machineries.

+ Special vehicals in technological lines, picking up workers (over 24 seats).

+ Construction materials are not produced locally.

+ The equipments, spare parts, molds and accessories accompanying with equipments, machineries, vehicles and special vehicles.

(2) - Export tax exemption for raw materials and imported materials for production of export goods

(3) - Export tax exemption for raw materials for production of the goods are in the list of special projects is encouraged for investments in five years since the start of production (If enterprises invest in the projects are in the list of special projects are encouraged for investment or invest in production of spare parts, or mechanical, electronics ...)

Taxes are paid abroad

- Tax exemption for money transfers abroad

VAT

- VAT exemption for imported goods including raw material for production, processing of exported goods under processing contracts signed with foreign partners.

Corporate Income Tax (CIT)

- The tax rate of income tax enterprises is 25%

- For new established enterprises in the IP has hi-tech projects in accordance with the law, the software projects are applied with tax rate of 10% in 15 years, the tax exemption for 04 years and 50 % lower in the next 09 years.

- For hi-tech, large-scale projects require more investments, the preferential tax rate of 10% may be prolonged but must not exceed over 30 years. After the above period, the applicable enterprise income tax is 25%.

- Preferential tax rate are calculated from the first five years of enterprises has taxable income. If the business has no taxable income in the first three years from the first year but gained profit then the tax exemption or reduction is calculated from the fourth year.

VII. INVESTING SUPPORT

Supporting procedures before and after getting the investment certificate

FUHUCORP JSC Architecture Corporation is willing to guide and help all investors to complete the necessary procedures as soon as possible:

- Procedures for granting investment certificates

- Procedures to apply for land use rights

- Procedures for personnel registration

- Registration and seal procedures

- Procedures for registration of tax code

VIII. HUMAN RESOURCE

Local workforce

- Thanh Hoa Population: About 3.4 million people (over 60% of the population are in working age).

The human resources from Hanoi, the capital and the nearby areas

- Hanoi - the largest training center in the North – Vietnam. There are many well-known universities, colleges and vocational training facilities, there are thousands of students who graduated from management and high technology major. These high skilled human resources are the strength to develop Tay Bac Ga with the reasonable distance, daily convenient travel from Hanoi – Tay Bac Ga IP.

Salary

(1) – Workers: Minimum wage 1,400,000 VND /monthly (about 67 USD/month)

- The actual average salary is paid to workers: 70-80 USD / month.

(2) - Engineers / Technicians / Office staffs: 200-250 USD / month.

(3) - Head / Chief Accountant / Managers: 300-350 USD / month.

Insurrance

- Social insurance: 22%

- Health insurance: 4.5%

- Unemployment Insurance: 2%

- Businesses pay 21% of gross wages of employees (17% social insurance, health insurance 3% and 1% unemployment insurance)

IX. PROVISIONS ON CONSTRUCTION MANAGEMENT

List of available work in the industrial park

- Manufacturing workshops, warehouses, operating offices, canteens for workers and sub-building, dormitory for the foreign worker.

- (Garage, guard - house, power transformer station, fire water tank).

List of construction projects are banned

- Houses, basements, tunnels

- Building density 60%

- Land use ratio: 1.4 times

- Maximum floors: 4 floors

- Green density: Over 2.5%

- Factories’ fences

X. REFERENCE

Price reference for warehouse building

- It may be cheaper to 15% (160-180USD) due to base-construction cost and cheap labors

Payment Method

20% (deposit)

- Payment: within 7 working days from the date of signing the contract

30% (1st Payment)

- Payment: within 7 working days from the date of issuance of investment certificate

- Completion: within 30 working days from the date of signing the contract

30% ( 2nd Payment)

- Payment: within 7 working days from the date of having red book.

- Completion: within 30 working days from the date of issuance of investment certificate

20% (Last payment)

- Payment: within 7 working days from the date of completion of the required technical infrastructure

- Completion: within 30 working days from the date of granting the Red Book

Penalty terms

After paying 20% (deposit)

In case it takes more than 30 working days to issue investment certificate:

- Number of late days x 0.1% x 20% (deposit) within 30 days

- In case, there is no issuance of investment certificate within the next 30 working days, the late days x 0.1% x 20% (deposit) and return 20%

After paying 30% (1st Payment)

- In case, it takes more than 30 days for granting Red Book

- Number of late days x 0.1% x 30% (1st Payment) within 30 days

- In the case, there is no issuance of investment certificate within the next 30 working days, the later days x 0.1% x 30% (1st payment) in 30 days

After paying 30% (2nd Payment)

- In case, it takes 30 working days to complete the required technical infrastructure

- Number of late days x 0.1% x 30% (2nd Payment within 30 days)

- In case, there is no issuance of investment certificate within the next 30 working days, the days x 0.1% x 30% (2nd payment) within 30 days

20% (Last payment) Not paying

Good conditions

a) Land is very hard so surface construction is saved about 15%. Morever, labor cost is cheap.

b) Cost of production labor is cheaper than other provinces and abundant labor resources.

c) There are bout 500,000 people in the working age around the IP

d) Residential area is very close to the IP so workers do not need dormitory.

e) Functional industrial park in the Tay Bac Ga Industrial Park is not developed so it is easier to recruit the abundant work force.

f) Due to the same reason, electricity and water is very convenient to get.

Nghi Son Economic Zone (is about 50km away from Tay Bac Ga IP) have been developed according to central policies. Therefore, the infrastructure will be developed rapidly such as highways and power plants.

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