Following the series of articles on industrial zones in Ho Chi Minh City, as we mentioned earlier, this article shall provide investors with more insights into locations for considering when planning to invest in Vietnam, specifically Binh Duong province. Binh Duong is one of the fastest-growing provinces and has the third-largest GDP in Vietnam. A bunch of industrial clusters and parks were built, contributing to the socio-economic development of the whole country in general and the southern region in particular. Industrial parks in this area also enjoy incentive policies by the Government. These incentives aim to attract investment capital from domestic and foreign investors. Therefore, the following article shall analyze the characteristics and advantages of large industrial zones in Binh Duong province.
 Please refer to the articles: https://plf.vn/overview-of-industrial-parks-export-processing-zones-and-high-tech-parks-in-ho-chi-minh-city-part-1/
Located in the center of a key economic region in the southern part of Vietnam i.e Binh Duong province, VSIP 1 industrial park is one of the most interesting and attractive for foreign investment in industrial parks in Binh Duong province.
The scale of the park: VSIP 1 was established in 1996 by Vietnam – Singapore Industrial Park Joint Venture Company Limited. The industrial park is spread over a total area of 500 hectares with an investment capital of over 3.5 billion USD.
Geographical location: VSIP 1 is located at No. 8, Huu Nghi Avenue, Vietnam – Singapore Industrial Park, Binh Hoa Ward, Thuan An City, Binh Duong Province. This industrial park offers a convenient location which is 16 km from Ho Chi Minh City (about 40 minutes by car), making it easy for investors to access the infrastructure, utilities and other services in Ho Chi Minh City. In addition, VSIP is also near Tan Son Nhat International Airport (20km) and large ports (25km, 40-45 minutes by road).
Attractive investment business lines: Manufacturing, assembly & auto parts, power electronics, mechanical, textile, pharmaceutical & healthcare, food & beverages, supporting industries & other industries.
Investment incentives: Investment activities in VSIP 1 industrial park include exemption from CIT for 2 years and reduction in CIT by 50% for the next 4 years for investors implementing new projects.
At the same time, VSIP 1 is designed as an industrial park with modern and complete infrastructure that includes electricity, water, waste treatment, communication and even a power generation plant serving more than 200 projects with more than 90 thousand employees. In addition, this industrial park has Vietnam Singapore Technical College, which provides young and qualified human resources suitable for the development of the industries in this area.
Typical enterprises in VSIP 1 include AVON Cosmetics Co. Ltd. (Vietnam), Sin Young Electronics Co. Ltd., Sinwah Apparel Co. Ltd., Well Electronic Co. Ltd., Yamato Protec Vietnam Co. Ltd.
In general, VSIP 1 is considered a pioneer and leading industrial park in Binh Duong province. According to the latest statistics of the Management Board of Industrial Parks, there no available land area for lease in this park. Therefore, investors need to check the statistics of the authority before making decisions about investments in this area.
Vietnam – Singapore Industrial Park II (VSIP 2) has investments from the same entity as VSIP 1 and was established in 2006 over an area of 2045 hectares in 2 phases:
Phase 1: 345 hectares with a total investment capital of 1.3 billion USD
Phase 2: 1,700 hectares with expected investment capital of 2 billion USD
In phase 1, the statistics of the Management Board of Industrial Parks in September 2020 illustrate that the industrial park has no more land available for lease (occupancy rate reached 100%). Therefore, before deciding to invest in this industrial park, investors need to contact the relevant authority to determine the occupancy rate in this industrial park first.
Geographical location: VSIP 2 Industrial Park is located at Thong Nhat Boulevard – Tran Quoc Toan – Le Loi, in Tan Uyen Ward, Binh Duong City, Binh Duong Province. This industrial park is next to My Phuoc 1-2-3 Industrial Park and Dong An Industrial Park. Besides, it is about 40 km from the center of Ho Chi Minh City, about 39 km from Tan Son Nhat International Airport, 45 km from Saigon Thong Nhat Station and about 47 km from Saigon Port.
Business lines: Manufacturing, assembling & auto parts, power electronics, mechanical, textiles, pharmaceutical & healthcare, food & beverages, supporting industries & other industries.
Land and factory rental price: The rental price of land with infrastructure is 85 USD/m2 with a minimum rental area of 5,000 m2. Factory rental price ranges from 5 to 8 USD/m2/month with a minimum rental area of 1,000 m2. During the land lease process, investors can sub-lease or re-transfer to other retail investors with the approval of the Management Board of the Industrial Park.
Investment incentives: Investment activities in VSIP 2 industrial park are exempted from CIT for 2 years and further reduction in CIT by 50% is applicable for the next 4 years for investors implementing new projects.
Infrastructure: The industrial park was designed with a modern model according to the common architecture with all available utilities such as markets, schools, hospitals, parks, etc. fully serving the essential needs of those residing and working there. Traffic, electricity, water supply, drainage systems and communication systems in this area not only help the exploitation and production efficiency but also meet the demand for quality of residents.
Some typical enterprises in the industrial park include Key Plastics Vietnam Co. Ltd., Viet Bokuto Co. Ltd., KinderWorld Construction and Consulting Co. Ltd., Takashima Co. Ltd. (Japan), Shang Wood Company Industries (Korea), and Wattens Vietnam Compa.
VSIP 2 makes an important contribution to promoting the economy of Binh Duong province by creating jobs for 10,000 experts, 15,000 officers and more than 42,000 workers in the area. At the same time, the operations in this industrial park attract strong investment helping Binh Duong become one of the leading investment markets in Vietnam.
This is the first industrial park in Vietnam to adopt a new construction model i.e to build a complex that not only attracts industrial production activities but also commercial services, urban and residential activities which ensure sustainable development and aims to build the northern region of Binh Duong into an industrial city.
Scale of the park: My Phuoc 1 Industrial Park was constructed in 2002 with an initial scale of 400 hectares. The total investment capital is more than 200 billion VND. The contractor of this project is Investment and Industrial Development Joint Stock Corporation (Becamex IDC). Until now, the leased land area in My Phuoc Industrial Park is 240.9 ha, reaching an occupancy rate of 87.19%.
Geographical location: My Phuoc 1 Industrial Park is in My Phuoc town, Ben Cat District, Binh Duong province. Located in the southern key economic quadrangle area (Ho Chi Minh City, Binh Duong, Ba Ria-Vung Tau and Dong Nai), 40 km from Ho Chi Minh City and 14 Km from Thu Dau Mot city to the North, My Phuoc Industrial Park has a favorable economic and geographical location close to seaports, international airports and other commercial service centers in HCMC (60 minutes by car). Further, it is located 32 km from Tan Cang, Saigon, VICT, ICD Phuoc Long ports and 42 km from Tan Son Nhat international airport. At the same time, this area is also next to National Highway 13, which has been upgraded and expanded with 06 lanes connecting Binh Duong province with neighboring provinces.
Infrastructure: My Phuoc 1 Industrial Park is equipped with a complete infrastructure system with electricity, water, post and telecommunications systems, wastewater treatment and fire protection.
Services in the park: Currently, the land rental price with infrastructure is 45 USD/m2/year. In addition, the industrial park also has a labor support and consulting center to assist investors in recruiting and consulting on labor policies and to promote labor recruitment programs, create jobs and favorable conditions for the workers in industrial parks.
Business lines: Electrical industry, manufacturing machinery, equipment and spare parts for industrial and household electricity, electronics, informatics and telecommunications industries, light industry, children’s toys, imitation jewelry, sewing, footwear, ceramic products, glass, crystal, funeral warehouse, processing consumer goods and exporting (food, instant noodles), mechanical processing industries such as manufacturing and assembling watches, optical devices and instruments, mechanical engineering manufacturing and repairing, construction mechanics, industry producing fine art wood for export, office equipment, hotels, interior decoration, plastic products, metal, and household tools.
Investment incentives: Investment activities in this industrial park include exemption from CIT for 2 years and reduction in CIT by 50% for the next 4 years for investors implementing new projects.
Some businesses operating in this industrial park include De Heus Co. Ltd., Grand Art Vietnam Wood Industry Co. Ltd., Vina Rong Hsing Co. Ltd., Dong Tam Nutrition Food Joint Stock Company (NUTIFOOD), and Tai Jaan (Vietnam) Plastics Industry Co. Ltd.
Scale of the park: My Phuoc 2 industrial park was expanded from My Phuoc 1 industrial park with a scale of 800 hectares and a total investment capital of 440.6 billion VND by Investment And Industrial Development Joint Stock Corporation (Becamex IDC).
Geographical location: My Phuoc 2 Industrial Park is located in My Phuoc town, Ben Cat District, Binh Duong province. This industrial park is situated in a convenient location close to My Phuoc 1 project which is 45 km from Ho Chi Minh City, 14 km from Thu Dau Mot town to the North, 32 km from Tan Cang, 42 km from Saigon, VICT, and ICD Phuoc Long and 42 km from Tan San Nhat airport.
Technical infrastructure: Currently, the industrial park has built a complete technical infrastructure with a centralized wastewater treatment plant with a capacity of 8000m3/day. In addition, according to the statistics of the Management Board of Industrial Parks, the leased area in My Phuoc 2 Industrial Park is 331.28 hectares, reaching an occupancy rate of 99.49%.
Business lines: Food processing industry, Agro-forestry product processing industry, clothing industry, textile dyeing industry, fine wooden furniture, electrical industry, industrial electricity and household electricity, construction machinery manufacturing industry, pharmaceutical, agricultural and aquatic medicine production industry, plastic manufacturing industry, leather shoe industry, paper and packaging industry (no pulp), sports equipment, optical instrument manufacturing, medical instruments, and construction material manufacturing industry. Currently, the rental for land with infrastructure is USD 45/m2 (one-time payment) and USD 0.20/m2/year (annual payment).
Investment incentives: Investment activities in this industrial park are exempted from CIT for 2 years and a further reduction by 50% is applicable for the next 4 years for investors implementing new projects.
Enterprises in the industrial park include Securenman Vietnam Co. Ltd., Saehwa – Bando Vina Co. Ltd., Dongil Rubber Belt Vietnam Co. Ltd., Tatung Vietnam Co. Ltd., and Jiu Yang Vietnam Co. Ltd.
Scale of the industrial park: Put into operation in 2007, My Phuoc 3 Industrial Park has a total investment capital of up to 1219 billion VND and is spread over an area of 2280 hectares. It was built by the Investment And Industrial Development Joint Stock Corporation (Becamex IDC).
Geographical location: My Phuoc 3 Industrial Park is located between Thoi Hoa commune and My Phuoc town in Ben Cat District, Binh Duong province. This industrial park is situated 45 km from Ho Chi Minh City and 14 km from Thu Dau Mot town to the North, 32 km from Tan Cang, 42 km from Saigon, VICT, ICD Phuoc Long and 42 km from Tan Son Nhat airport.
Land rental price: The land rental price with completed infrastructure is 35 USD/m2/50 years and factory rental price is 3 USD/m2/month. The leased land area is 333.23 hectares, reaching an occupancy rate of 50.82%. Hence, this industrial park still has available land for investors to rent.
Investment incentives: Investment activities in this industrial park include exemption from CIT for 2 years and further, reduction by 50% for the next 4 years for investors implementing new projects.
Business lines: Electrical industry, industrial electricity and household electricity, electronics, information technology, media, telecommunications and television, high technology, automobile, equipment and spare parts manufacturing, assembling spare parts, mechanical industry, precision mechanics, yarn, textile and garment industry, leather industry, imitation leather, leather shoes (not fresh tanning), plastic industry, ceramics, glass, crystal, food and food processing industry, agro-forestry processing, pharmaceutical, cosmetic, agro-pharmaceutical manufacturing, rubber, tire tattooing, high-tech rubber products (not processing fresh latex), industrial gases, furniture manufacturing, interior decoration, construction materials, construction steel, steel pipes, sports equipment, toys and jewelry, packaging, prepress, printing, paper industry (not producing pulp), optical instruments, and medical instruments.
Service utilities: This industrial park is located near the administrative center of Ben Cat District, Binh Duong province, and is close to trade center, sports center, service area, My Phuoc market, huge entertainment area for children and picnic parties, supermarkets, restaurants, hotels of international standards, Eastern International hospital, and My Phuoc hospital.
Typical enterprises in this industrial park include Midea Refrigeration Company Limited (Vietnam), Kumho Tire Company Limited Vietnam (Khv), King Jim Company Limited (Vietnam), Factory 45 Furniture Co. Ltd., and Heise Industries VN Limited.
The article is based on applicable law at the time noted as above and may no longer be appropriate at the time the reader approaches this article as the applicable law has changed and the specific case that the reader wishes to apply. Therefore, the article is only for reference.