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Tony Milton MRICS

BSc (Hons) Est Man
MRICS
APREA (CREIF)

Industrial - South
Monday, 16 March 2009

 

The Southern Key Economic Region (SKER)

 

 

 

Ho Chi Minh City

 

Tan Binh:- Located about 10km north-west of the city center, Tan Binh is situated on Highway 1a (HCMC beltway) and Highway 22 (Trans Asia Highway) near to the airport. Tan Binh is the only urban IP and has a total planned area of 133 hectares including 91 hectares for industrial land and 14 hectares for auxiliary facilities. Because of it inner city location, the first phase sold out quickly. Despite the high demand, the second phase has had to be scaled back because of land compensation problems and government re-zoning. Tenants include EZ Korea, Ichiban, Saigon Packaging, Sahadharawat Cans, Saigon Diamond and Tango Candy.

 

Tay Bac Cu Chi:- Located about 30km from the city center in Hoc Mon District, the 550 hectare park is a part of a large $1.52 billion urban and industrial complex covering 6,000 hectares. Local authorities are seeking the PMs permission to add 170 hectares at $18 million as the developer has leased out 90% of the 220 hectare 1st phase to over 40 investors with a total registered investment capital of about US$250 million. There are also proposals to invest $400 million in a car and truck assembly plant and a European group has registered interest to lease 200 ha to build factories for European businesses. Tenants include Bestfoods Vietnam, Aroma American, Fuji, Elida P/S, Pacific Elevators, SG Kimdan, Lever Viso, and Vinapet Plastic.

 

Hiep Phuoc:- Located in Nha Be District bordering Long An Province on the Soai Rap river, the park is about 20 km from central HCM City. The park is part of a large 2,000 hectare industrial complex that will also include a 23-30 hectare deep water port capable of receiving ships of up to 50,000 dead weight tones, leased in early 2005 to Australia’s P&O Ports for 50 years. The river is about three times wider than the Saigon River and so navigable for heavy tonnage vessels. The first phase of the park has an area of 332 hectares (Section A : 106 ha, Sections B & C: 226 ha). Over 85 projects have been licenced with a total foreign capital of over US$550 million and local capital of $285 million licensed, cov­ering 90% of the initial area. In mid 2004 a New York based business group has submitted plans to develop infrastructure on 600 hectares for exclusive use by American investors. Tenants include Southern Fertiliser Company, Vietnam Antiseptic Production Company and Vietnam Petroleum Company. In mid 2005 PetroVietnam Gas announced an acceleration of plans to complete the 30km Phu My-Nhon Trach-Heip Phuoc pipeline to provide HCMC with a steady supply of low cost fuel gas and in October 2006 PetroVietnam signed a $65 million engineering agreement with Nacap Asia Pacific of Malaysia, a subsidiary of the Dutch-based KOOP Group. The Phu My-HCMC gas pipeline will be operational by March 2008 and will transport gas tapped from Cuu Long and Nam Con Son basins to supply power plants in Hiep Phuoc in HCMC and Nhon Trach in Dong Nai Province, and industrial premises along the line with an annual transport capacity of 2 billion cubic meters of gas per year.

 

In late 2008, the government approved t 2nd Phase of the IP covering 97 hectares and worth about USD$114 millon and ex­pected to be operational by 2015. The developer is Tan Thuan Indus­trial Development Company.

 

Tan Thuan EPZ:- Located only 4km from central HCMC in District 7, next to Districts 4, 5 and Nha Be, just north of Phu My Hung’s Saigon South (a new town which is under construction), and adjacent to the USD$115 million bridge that will link Districts 7 & 2, TTZ is situated on a peninsula surrounded by the Saigon River covering 300 hectares. TTZ was the first EPZ in Vietnam and has previously been selected by the UK based magazine Corporate Location as the best EPZ in the Asia Pacific region. Since inception in 1991, the park has attracted over 160 enterprises with a registered investment capital of over $750m. Tenants include Thuan Xuong, Sankei, Kyoshin, Hoang Viet, Gia Phu, ACT, Daiwa Lance International & Daiwa Plastics, KTC, Dat Viet, Japan Paper Technology (JPT), Great Knife and Matai.

 

Tan Tao:- Put into operation in 1997 and situated 12km from HCMC on the ring road in Binh Chanh Distrtict, the 442 hectare $88 million park has proved very successful in attracting over 210 investors – 80% of whom are local – with a registered capital of over $340m, employing over 20,000 workers. There are also plans to install an ICD (Inland Container Depot) at the park; a 40 hectare software industrial park; and to invest $6 million in building a modern information technology infrastructure with high ­speed transmission lines. Tan Tao Industrial Park currently ranks first among the country's industrial parks in attraction of local investment; first in HCMC in attraction of investment capital and services for investors; and first in social activities. In 2004 it became the first IP in the country to gain an ISO 9001:2000 certificate. In late 2004 the developer submitted plans to construct apartments for the over 20,000 workers and build a mixed use residential / commercial Tan Tao Plaza. Heavy (polluting) industries will be considered. Tenants include American Window Systems, Rossano, Chotoworld, IFC Wood Furniture Company, Lamberet, Lexor, Scansia Pacific Sofa, Scaviwood, Supersoft, SPM Pharmaceuticals, Tom Boy and Zuelling Pharma.

 

Linh Trung 1 EPZ:- Situated alongside the Trans Asia Highway and close to Song Than railway station in Thu Duc District, 16 km from HCMC, the 52 hectare EPZ & 10 hectare IP is a 1995 Chinese JV. It has leased its land to over 30 enterprises with a combined investment capital of over $215 million, providing over 26,500 jobs. Tenants include Megawell Industries, Toshiba, Upgain, Theodore Alexander, Nissei Electric and Fuji.

 

Linh Trung 2 EPZ:- Located in Binh Chieu Ward, Thu Duc District, 15 km from HCMC, 2.5km from the Trans Asia Highway and 7km from Linh Trung EPZ1, the park (formerly known as Tam Binh IP) has leased its land to over 39 enterprises with a combined investment capital of over $76m. Established in 2000 with a total land area of 60 hectares, in 2004 the HCMC government approved the parks expansion by 62 hectares to 122 hectares. Tenants include Domex, Freetrend, Impulse, James Most, Kachibushi, Latex, Colan and Seiko. Note- Linh Trung 3 EPZ is in Tay Ninh province.

 

Tan Thoi Hiep:- situated 15km from HCMC in Hiep Thanh Ward of District 12. Although originally designed to have an area of 215 hectares (with a 29 hectare first phase), in 2004 the HCMC authorties decided to reduce the land area to only 58 hectares. According to the Government's development planning, road and rail branches of the Trans-Asia highway will run alongside the park in a north-west to south-east direction. Tan Thoi Hiep IZ has attracted over 30 projects, including 10 by foreign investors from Singapore, Taiwan, Malaysia, Australia, and South Korea. These projects are involved in ceramics, garments, packaging, food processing, and refrigeration. Tenants include Total Power, Well Glass, Nobland, Orsan Vietnam, Northern Viking Technology, and Konam Apparex.

 

Le Minh Xuan:- Located in Binh Chanh District, 6 km from National Highway 1a and less than 18 km from downtown HCMC. The park’s first phase has been leased to 87 domestic, 26 foreign and 8 JV companies with a combined investment capital of $47.5 million, mostly operating in garments, plastics, weaving and dyeing, food processing, and mechanical production. The total number of projects is over 155 of which 128 are operational. The park was the main beneficiary of the local government reallocation and rezoning of industrial land in 2004, increasing in size from 100 hectares to 432 hectares. There is now new talk of plans to construct a food processing park on 97 hectares of adjacent land. Le Minh Xuan has been awarded the ISO 9002:1994 certified by the Swiss certifying agency SGS. Heavy (polluting) industries will be considered. Tenants of the initial design phase include Daehan, Fong Tai, Galaxies Enterprises, Lawnyard, Kingvic International, Legamex, Mandarin Foundry, Si Yang and Strongway Vietnam. Waste water pollution has become an issue.

 

Vinh Loc:- Situated in Binh Hung Hoi Ward, Binh Chanh District 20km from HCMC, in 2004 the local authorities agreed to increase the total area from 207 hectares to 267 hectares. The first phase has been largely leased out to over 29 foreign and 68 local companies, with combined capital of over $42 million and $150 million respectively. The government has chosen the park as one of those designated to relocated inner city (polluting) factories. To avoid confusion, note that the Vinh Loc 2 IP will be constructed in Ben Luc Dist, Long An Province.

 

Cat Lai:- Situated in Thanh My Loi Ward on the District 2 side of the soon to be constructed Thu Thiem bridge that will link Districts 7 & 2 on the Dong Nai river, the park is part of a 310 hectare urban port and 542 hectare residential area. The area is divided into four sections for environmentally friendly factories involved in light industry and a new port facility. Despite having been licenced in 1997 the park has made slow progress because of land compensation and clearance problems. In mid 2005, the HCMC based Invest­ment & Construction Development Company (Invesco), received approval to develop a 166 hectare resi­dential quarter in Cat Lai for relocating people affected by the larger scheme to develop Thu Thiem New Urban Area project.

 

Binh Chieu:- Situated in Thu Duc District about 15km from HCMC the park only has 27 hectares, which have all been leased. Tenants include Bachy Solentache, Carrier, Copper Kettle, Friedlender, Fuhsing, Lidovit, Logitem, Prezioso, SGE-Schindler and Toyo.

 

Nhi Xuan:- Since opening in 2006, the IP in Hoc Mon District has attracted over 20 investors of which about half have operational facilities. After the park is fully developed it will employ about 10,000 workers, including 5,000 recovering drug addicts, as part of a city social programme.

 

 

Binh Duong

 

Binh Duong province is one of the key economic areas in southern Vietnam and is rich in natural resources and is a transport gateway to its southern neighbour HCM City. The province grew by 15% last year and is poised to have 11-12% growth for the next few years. The province's centre is about 30 km from Tan Son Nhat Airport and Saigon Port in HCM City and is roughly 110 km from Vung Tau Port in Ba Ria - Vung Tau Province. A network of diversified rivers and canals provide navigation routes and irrigation for agriculture. These routes connect its natural resources including : forests spanning 18,500 ha and minerals such as kaolin, peat, clay, construction sand and stone. Reliable infrastructure, power, water, telecommunications, and well educated personnel resources will ensure its future growth.

 

Ø Land Area - 2,681 sq.km

Ø Climate - Two tropical seasons : rainy & dry

Ø Temperature - between 25 - 35C

Ø Rainfall - 1,500 - 2,700 mm

Ø Population - 770,000

Ø City & Districts - Thu Dau Mot Town, and its districts are : Dau Tieng, Ben Cat, Phu Giao, Tan Uyen, Thuan An and Di An.

 

In May 2006 the results of a research project coordinated between USAid and the VCCI (Vietnam Chamber of Commerce & Industry) into the competitiveness of provinces and cities in Vietnam was released and found that Binh Duong was top of the list of the 64 provinces scoring 76.82 points.

 

Binh Duong is consistently one of the most attractive investment destinations for Foreign Direct Investment with $3.04 billion to date (most of which goes into the industrial sector), and is the fourth most successful to date, behind only Ho Chi Minh City ($14.15 billion), Hanoi ($10.12 billion) and Dong Nai ($9.06 billion), and with double the amount of investment of the fifth placed province – Ba Ria-Vung Tau ($2.19 billion). In 2006 Binh Duong again placed fourth with $769 million in FDI, behind only Ba Ria-Vung Tau ($1.7 billion), Ho Chi Minh City ($1.2 billion) and Ha Tay ($805 million), but ahead of both Hanoi ($540 million) and Dong Nai ($275 million), in large part due to the success of the newly inaugurated My Phuoc Industrial Park which has attracted over 190 foreign invested projects in 3 years of operations with a combined pledged investment of 1.4 billion.

 

Enterprises in the southern province of Binh Duong's Industrial Zones posted a combined revenue of roughly US$2.2 billion in 2006, a year-on-year increase of 49%. Of the figure, the foreign direct­ invested sector contributed the most with $1.6 billion - up 63% over 2005.

 

Plans for two beltways linking Ho Chi Minh City with its neighboring provinces in the Southern Focal Economic Zone are now and the Transport Engineering Design Co (under the Ministry of Transport and Communications), has com­pleted the feasibility study for Beltways No. 3 & 4. The 83 kilometer Beltway No. 3, including bridges, is expected to open to traffic in 2015 and will go from Ho Chi Minh’s outlying district of Hoc Mon through Bung Town in Binh Duong Province to Bien Hoa City in Dong Nai Province. Construction of the 152 kilometer beltway No. 4 is expected to finish in 2020 and the 6 lane highway will link Ho Chi Minh with key towns in neighbouring provinces including Trang Bom in Dong Nai, Thu Dau Mot in Binh Duong and Ben Luc in Long An Province.

 

In mid-2006 Ho Chi Minh City and Binh Duong agreed on a plan to build a bridge connecting both provinces, under which HCMC authorities agreed to cover the estimated $15.5 million construction costs of the bridge and site clearance expenses on the HCMC side. The 4 lane bridge will link District 12 with Lai Thieu Town in Binh Duong and have a total length of 1.5 kilometers, including two approaches. The bridge would replace the existing Phu Long Bridge which is severely de­teriorated and thus makes traffic unsafe. The bridge project will play an important role in easing the flow of traffic be­tween the city and the prov­ince, especially by reducing traffic congestion on Na­tional Highway 13, and help shorten the distance between Binh Duong’s Thu Dau Mot District and other adjacent southern provinces by 4 kilometers. The new bridge with a to­tal length of 1,523 meters, including two approach roads, is expected to begin construction in 2007. The new bridge will replace the existing Phu Long Bridge which has se­verely deteriorated and hin­dered normal traffic between the two localities. There are currently 3 bridges between HCMC and Binh Duong comprising a newly built one named Ben Sue, one currently being upgraded named Phu Cuong Bridge, and the current Phu Long Bridge.

 

In late 2004 the central government ap­proved a project to build a satellite township for indus­tries and services for Ho Chi Minh City in Binh Duong. The township will be developed in a 4,200 hectare area of Thu Dau Mot Town and covering parts of Tan Uyen and Ben Cat districts. The province has spent roughly $83.5 million in com­pensation for clearing 96% of the project area and nearly three quarters of the project area has been regis­tered for investment.

 

Industrial Sector

 

Enterprises in the Binh Duong's Industrial Zones posted a combined revenue of roughly $2.2 billion in 2006 - a year-on-year increase of 49% - according to provincial Industrial and Export Processing Zone's management board. Of the figure, the foreign direct­ invested sector contributed the most with $1.6 billion - up a huge 63% over 2005 and double the originally planned target of $620 million in “fresh” FDI. Major investments included a $380 million rubber / tire project by South Korea’s Kumho Tires Company Ltd; a $58 million mixed property project into the Vietnam Singapore Industrial Park by Guoco Land; and a project worth $31 million by Singapore's Mapletree Investment Pte Ltd to develop a 56 hectare logistics park in VSIP II. The key export products post­ing high growth rates in export value compared to the same (10 month) pe­riod last year included electron­ics, increasing nearly 80%; seafood, up 31.7%; agricultural products, up 22.7% and wood products, up 19.2%. Export products with high ex­port turnovers included wood products, totaling $608 million; footwear, $497 million; gar­ments, $405 million; electronics, $124 million; handicrafts, $116 million; and electric wires and cables, $108 million. Binh Duong’s key export markets were mainland China, Japan, South Korea, Taiwan, the UK, Germany, and the US. Leading imports included raw materials for dairy processors, plastics, iron and steel, paper, silk, electronics, paint and paint additives.

 

However, due to a labor shortage the province is no longer such an attractive destination for labor-intensive projects in tex­tiles, garment, footwear and projects in environment­ friendly sectors, so the province is now calling for investors to engage in high tech, electronics, and engineering industries and in a lot of service projects such as hotels, entertainment parks, golf, hous­ing, banking, education and heath care.

 

The province has so tar attracted 1,285 foreign-invested projects with a total capital of $6.5 billion and 4,045 domestic projects capitalised at $1.88 billion and in the 2006-2010 period the province plans to at­tract $3.5 billion in foreign investment capital. However, only $3.3 billion from 584 foreign invested projects and 201 domestic projects has gone into its 15 industrial zones which cover an area of 1,536 hectares and which have leased out 53% of their existing areas.

 

Binh Duong has issued a plan through to 2020 under which the province will develop 54 full ­scale industrial zones in­cluding 25 mass industrial zones, 24 industrial areas and 1 indus­trial-service-building complex (which will include 5 separate in­dustrial zones). In addition the province will establish 24 small industrial areas comprising 3,530 hectares mainly in rural regions like Tan Duong, Ben Cat and Phu Giao. The announcement was closely followed by news that the province will be restricting projects outside industrial zones.

 

The province is scheduled to have 31 industrial zones and 23 industrial complexes with a total area of 9,220 hectares and 2,704 hectares in 2020.

 

THE PRESENT - Existing Industrial Parks

 

Binh Duong : - Covers 2,681 sq.km and has a population of 770,000. Its centre is Thu Dau Mot Town which is about 30 km from Tan Son Nhat Airport and Saigon Port and is roughly 110 km from Vung Tau Port. According to its master plan to 2010, Binh Duong Province expects to develop 54 full ­scale industrial zones, including 25 mass industrial zones, 24 industrial areas and one indus­trial-service-building complex which will include 5 separate in­dustrial zones. In addition, the province plans to establish 24 small industrial areas comprising 3,530 hectares, mainly in rural regions like Tan Duong, Ben Cat and Phu Giao. The province now has 13 IPs with a total area of 2,421 hectares of which around 70% has been leased (with 7 of them over 90% leased). The province has attracted a total of 871 FDI projects worth $4.1 billion, most of which went in IPs. In 2004 the province attracted 130 new FDI projects and 110 already es­tablished projects with a to­tal capital of US$657 million, an increase of 43% over 2003. In 2003 it attracted 135 new foreign projects last year worth $264.7 million and 106 domestic projects worth $193.3 million. The province has approved construction of the 365 hectare Nam Tan Uyen; the 280 hectare Rach Bap; and the 200 hectare Thoi Hoa park in addition to three others of between 50 and 70 hectares each that are situated in remote districts. There are also plans to construction a $645 million project covering 4,196 hectares in Ben Cat & Tan Uyen Districts; and 5 others covering almost 1,500 hectares.

 

Song Than 1 & 2:- Song Than Industrial Park is one of the oldest in Vietnam and previously the site of a major military base. The land is regarded as ‘good’ with relatively strong load bearing capacity compared to most parts of Ho Chi Minh City and large parts of (southern) Dong Nai province. Song Than is easily accessible from all parts as it is situated on the main Ho Chi Minh City ring-road and close to several main arteries that connect with central Ho Chi Minh City (only 20-30 minutes drive), and other parts of Binh Duong and central Vietnam. Saigon Port is located in Ho Chi Minh City and Tan Son Nhat airport is also close by. Furthermore, Song Than is particularly attractive to logistics companies since it is close to the Song Than railway station which lies on the north-south main railway line. Song Than is also situated within the centre of a large number of other industrial parks that together contribute a large part to the SKER (Southern Key Economic Region) and so country’s economic activity, growth and wealth.

 

Official occupancy is over 90% & 72% of their 180 & 388 hectares respectively. Located only 12 km from Saigon and Tan Cang ports; 100 km from Vung Tau Port; and close to national highways 1, 13 & 51; the Trans Asia highway; and Song Than Railway Station; and in the center of 3 big residential areas (Thu Duc, Di An & Lai Thieu within a radius of 3 km), Song Than is arguably the best located of all industrial parks. In mid-2006, Vietnam's largest shipping agency Gemadept and Germany's Schenker announced details of a $5 million logistics Joint Venture with Gemadept holding a 40% stake. The JV will invest in building a logistics centre on an area of 15,000 square metres.

 

Viet Huong 1 & 2:- Situated in Thu Dau Mot town 22km from HCMC by National Highway 13. The park comprises 47 hectares to be developed in two phases. The 23 hectare first phase has all been leased to 29 projects with an investment capital of $60 million of which 27 are operational. Of these, one project is locally owned and the others are from Britain, Hong Kong, Singapore, Taiwan, Germany and Japan. The fields of operations of these projects include garments, footwear, shoe materials, food processing and cosmetics.

 

My Phuoc:- Situated 40km from Ho Chi Minh City in Ben Cat district, the provincial / state-owned construction conglomerate Becamex (Binh Duong Industrial Investment & Development) is investing in developing the My Phuoc Industrial Park Urban Areas Nos. 1-3 covering 3,700 hectares, 2,000 hectares of which are for industrial purposes. Since opening in 2002, the 377 hectare first phase has sold out, the 800 hectare second phase has leased out over 93% of its land, and the third phase over 40% leased to more than 190 investors from 18 countries and territories with a total pledged capital of $1.4 billion and employing over 25,000 workers, including to Taiwan’s Tatting, who have leased 40 hectares for producing household electrical appliances and computers with a registered capital scheduled to increase to $100 million. In 2006 alone the IP attracted over 145 foreign invested projects worth more than $1.2 billion. The government have agreed in principle to allow the province to set up the 472 hectare My Phuoc 2 IP which should start construction soon.

 

Dong An:- Situated in Thuan An District, Dong An is 12km from HCMC and 2km from the Song Than railway station, the park was established in 1996. Over 90% of the 132 hectares have been leased to over 38 foreign and 26 local businesses worth $85 million and $9.5 million respectively, with 59 operational facilities in the fields of shoes for export, wood processing for export, plastics production, paint, cosmetics and molds. Tenants include Procter & Gamble, ICC and Rinnai Vietnam.

 

Rach Bap:- Situated in Ben Cat District and covering 279 hectares with an adjacent 50 hectare residential area, the $20 million IP was approved in early 2004 and construction started in early 2005. Developed by a subsidiary of Geruco (Vietnam General Rubber Corporation), the $11 million IP will target investment projects using latex to make automobile and motorcycle tires and inner tubes, medical gloves, protective equipment and footwear.

 

Binh Duong :- Situated in Di An District 15km from HCMC the park has long since leased all of it 17 hectares. Tenants include Bero Vietnam.

 

Tan Dong Hiep A & B:- Tan Dong Hiep has a total area of 362.7 hectares constructed in two sections by different developers. Tan Dong Hiep A covers 47 hectares and Tan Dong Hiep B covers 306 hectares including 164 hect­ares for industrial use, 35 hectares for a resettlement area and 108 hectares for future expansion. It borders Provincial Road 743 and National Highway 1 and is 12 km from central HCMC and l5 km and 1 km from Song Than and Di An railway stations.

 

Vietnam-Singapore (VSIP):- VSIP is a 1996 $134 million 51/49 Joint Venture involving a consortium of Singaporean partners including SembCorp Parks Holdings, Ascendas Investments, Seletar Investments, MC Development Asia, KMP Vietnam Investments, UOL Overseas Investments and LKN Constructions. The park is 17km from HCM City on National Highway 13 and home to over 292 foreign and local projects with a total capital of about $1.4 billion, with over 130 projects in operation employing over 40,000 workers. The 100 hectare 1st Phase is now almost fully leased and work is well underway on the 200 hectares 2nd Phase. The 3rd phase of 200 hectares is being adjusted to meet the local authorities desire for sustainable growth, on the basis of constructing an industrial town, designed to accommodate not only factories but green spaces for nature. To date VSIP has invested nearly $100 million in infrastructure development on the 300 hectare 1st & 2nd phases and plans to spend over $40 million on the 3rd phase. Priority will be given to projects applying high-tech in manufacturing and those with good pollution treatment facilities to make VSIP a green park. VSIP received ISO 9001:2000 Quality Management System accreditation in 2002. The main business fields of VSIP tenants are electronics, pharmaceuticals, food processing, consumer goods, precision mechanics and construction materials. Tenants include Fujikura, Kurable Industrial, Sunlight Electrical, Schneider Electrical, Rohto Metholatum, Korea United Pharma, ICA Pharmaceutical, Diethelm, Roche, Ranbaxy, F&N, Liwayway, Kimberly Clark, Konica, Nitto Denko and Sime Darb.

 

Vietnam-Singapore II (VSIP2):- VSIP II is just 15 km (9 miles north) from VSIP1, located in the heart of the 4,200 hectare Binh Duong Township. The 345 hectare VSIP II is being developed as a modern and fully self-contained industrial estate, similar to the current infrastructure of VSIP1. It will offer tenants a world class operating environment with reliable infrastructure and unmatched customer service support. Tenants will receive the full support from both VSIP Management Board and the Provincial Government in their daily operation. Construction began in September 2005 and in 2007 Singapore’s logistics giant Mapletree Investments committed to develop a logistics park on 56 hectares facing the main entrance.

 

VSIP II Expansion (2007) : To keep up with demand, the shareholders have, in 2007, purchased a further 1,000 hectares of land adjoining VSIP II. This additional plot brings the total area of VSIP II to 1,345 hectares.

 

Mai Trung:- in mid 2005, the Mai Trung company started construction on a 50 hectare, $5.3 million IP of the same name in Ben Cat District, with an estimated completion date in 2007. At the construction commencement ceremony, the provincial IZs Authority granted licences to 3 Taiwanese projects planned for the IZ, with a total investment capital of $12 million.

 

Beautiful City IP:- The Korea Glass - Windoor Joint Venture and Yuro VINA Co Ltd have occupied 3 hectares at the Beautiful City Company Industrial Park which covers 63 hectares of land - 28 hectares of which has been cleared.

 

Dat Quoc:- The Binh Duong Construction and Mineral Company have is­sued a call for investment to further develop the Dat Quoc Industrial Park, on which they have already spent about $3.1 million in building infrastructure for the 1st phase - accounting for 104 hectares of the planned 212 hectare project.

 

Lai Hung New Urban Area:- In late 2006 work got underway on the 100 hectare Lai Hung residential development and industrial zone in Ben Cat District with an initial investment of $28.3 million. The project includes a 80 hectare industrial complex divided into electronics, processing and garment manufacturing facilities. The residential area is comprised of 800 lots designated to build houses for employees of the industrial complex.

 

Bau Bang: - In mid 2007, the Prime Minister approved the IP for development to 2015. The IP in Ben Cat District will be 1,000 hectares

 

Ascendas Protrade AP Singapore Tech Park: - At the end of 2007 Ascendas, which devel­ops, manages and markets in­dustrial parks, announced a 70/30% partnership with the Binh Duong Province owned Protrade Corporation to develop a USD$100 million 500 hectare industrial park as part of the larger the An Tay Industry and Service Complex which cov­ers 1,350 hectares. The township project will also comprise residen­tial and recreational facili­ties. Ascendas already has a minor stake in the Viet Nam­ Singapore Industrial Park. The first phase will cover 150 hectares and provide 184 land lots for tenants.

 

Mapletree Business City @ Binh Duong: - In late 2008 Singapore's leading real es­tate developer Mapletree Invest­ment Pte Ltd signed an agreement with Becamex IDC Corp allowing the Singapore partner the exclusive right to develop a 75 hect­are business park costing USD$400 million. The integrated business park is inside the 4,200 hectare Binh Duong Integrated Township that is partly owned by Becamex. The park will be positioned as a world ­class modem business park catering to various industries in the high tech, software and product development, research and development, and value added manufacturing.

 

Ba Ria – Vung Tau

 

Is 2,006 sq.km, with a population of 719,000 125km outside HCMC.It is home to many of Vietnam’s large heavy industries which account for about a third of the country’s total exports, with ambitious plans for it to account for 75% of total exports by 2010. It is interesting to note that the investment per project is unusually high at about $40 million each on average. This can be explained by the fact that some projects, such as the Phu My power plants, have registered capital of hundreds of millions of dollars that distort the straight line average. Many investors prefer Ba Ria-Vung Tau as an ideal place for heavy industry projects thanks to its location and the avail­ability of many ports.

 

Dong Xuan. Located in Vung Tau city on 161 hectares with 3 sides fronting onto the Dinh River and one bordering National Highway 51. Despite the slow pace of infrastructure construction since the government approved the project in 1996, more than half of the zoned land in the 954 hectare IPin Tan Thanh District has been leased by the owners of 27 projects capitalized at US$3.16 billion.

 

Phu My 1. Located 75km from HCMC and 40km from Vung Tau City on 954 hectares and bordering National Highway 51 on the east and Ba Ria Serece Port and the Thi Vai Complex Port on the west. Over 55% of the land has been leased by over 5 foreign and 27 domestic projects capitalized at over $3.2 billion with most large undertakings in heavy industry like steel, cement and petroleum.

 

Cai Mep-Thi Vai:- Established by the PM in 2002, this 670 hectare park is centered around the biggest deep water port complex in Vietnam and is 85% funded by the Japanese official development assistance (ODA). It is located in a prime position able to handle ships of up to 80,000 tons. Work on the port is expected to be completed in 2009 to partially replace Saigon Port which will be closed. Some US$270 million is planned in the first 4 year phase start­ing in 2005 for building two special and two common wharfs. The next phase will begin after 2010 when the Thi Vai-Cai Mep port will have an an­nual capacity of 42 million tons, or 16 million tons higher than the total capacity of ports in inner city areas of HCMC at the moment.

 

My Xuan A1:- Located in Tan Thanh District, 55 km from HCMC; 40 km from Bien Hoa City; 2 km from Go Dau Port; and 2 km from Go Dau Port with direct access onto National Highway 51. My Xuan A IP has advantages in waterway and overland transport and as part of the Saigon-Vung Tau railroad project, a port and a low pressure gas pipeline will be built to serve the industrial park. To date, My Xuan A IP has leased about 70% of its 123 hectares to over 11 investment projects. The majority of these projects are local invested and involved in the production of construction materials and food processing.

 

My Xuan A2:- Located in Tan Thanh District the 313 hectare park is a $19 million Taiwanese Joint Venture. BP are planning on laying pipelines and building pumping stations to supply gas from Bach Ho oilfield to My Xuan A IP and Go Dau IP in Dong Nai. In late 2005, Taiwan’s Qian Ding invested $700 million for a stainless steel plant.

 

My Xuan B1:- Established by the PM in 1998 this 200 hectare park is still undertaking site clearance for building infrastructure. Targeted industries include manufacturing industries, mechanical engineering, food and foodstuff processing, light industries, electronics assembly and building materials.

 

Kim Dinh:- in mid 2005, the provincial authorities approved the construction of the $9 million 60 hectare park, 80 kilometers southeast of HCMC and 25 kilometers from Vung Tau, and accessible by both road and sea. Another advantage is that the IZ lies near a gas pipeline. Target industries include rubber manufacturers, plastics, pottery & ceramic, glass, farm produce & animal feed producers which consume great amounts of fuel, and so who can save on fuel costs.

 

Chau Duc:- in mid 2007, the provincial authorities approved the construction of the IP which will cover 2,200 hectares with 1,550 hectares of which will he reserved for its industrial zone and 650ha for accommodation and services.

 

Long An

 

The Cuu Long (Mekong) River Delta province of Long An is 30km from HCMC and home to 5 operational IPs with 4 more are under preparation. Long An IP Authority have also applied to the MPI for permission to develop 13 more IPs with a total area of 4,000 hectares, mostly designed to accommodate polluting factories relocated from the inner HCMC. In fact, provisional developers for all the planned industrial parks have already been selected. Of particular interest are the Soai Rap Seaport project, which will cover an area of 2,363 hectares, and the $320 million Tan Duc City (which is part of an economic cooperation programme with HCMC), that will cover 1,175 hectares and include the Tan Duc IP and is hoped to provide jobs for about 100,000 people and a stable revenue source of $44 million a year. Overall FDI into Long An has declined in recent years. The province attracted 10 projects with an average investment of $3.7 million per project in 2001 but only licenced 9 projects with an average investment of $2.56 million per project in 2004. By mid 2005, Long An's IPs housed 33 foreign ­invested projects with US$270 million in registered capital and 18 local projects with a combined capital of VND284 billion.Local authorities have recently issued a decision exempting new investment projects from having to pay land rental tax, and plan to cooperate more closely with HCMC in developing road links between the province and city. By 2010 the province hopes to have 20 IPs with a total area of 6,300 hectares. Long An Province's industrial parks aren't attracting as much investment as expected because of slow site clearance. Though the province houses 22 IPs with a total area of 8,120 hectares, compensation has paid for clearing just 1,370 hectares, or about 17%. By mid 2005, only about 350 hectares was, in fact, prepared. Projects occupied about half of that area. The authority estimates every square meter of IP land in Long An costs from US$29 to US$32. Rent ranges from US$35 to US$40 per square meter for 40 to 50 years.

 

Tan Duc:- Situated only 15km from the developer’s other HCMC based IP (Tan Tao), the 535 hectare $88 million projects has attracted over 30 local and foreign investors who have pre-leased over 50 hect­ares of land, partially because of the port facility on the Vam Co River that the developer intends on building along side the IP.

 

Duc Hoa 1:- Phase one of Duc Hoa 1 has been completed with a total area of 70 hectares and it has leased out over 17 hectares to 14 companies. The park is being expanded by 252 hectares in the 2nd & 3rd phases: Duc Hoa 2 & 3.

 

Xuyen A:- Phase one is 50 hectares and it has rented out over 40 hectares to more than 6 companies. In late 2002, the PM granted approval for 2nd phase expansion by 256 hectares with an investment capital of $20 million.

 

Ben Luc:- Phase one of Thuan Dao IP has been completed with a total area of 113 hectares. The park is being expanded by 897­ hectares in the second phase.

 

Thuan Dao (aka Ben Luc-1st Phase):-:- Situated in Ben Luc District, this 113 hectare $13 million 51/49 JV was licenced to 5 Taiwanese nationals in 2003. Among the pre-committed tenants was the Cayman Islands registered DRC–Vietnam Chingluh Shoe Co who reserved 80 hectares who are building a $50 million sports shoe and sporting equipment factory.

 

Daresco (aka Duc Hoa 3):- A 260 hectare park in Duc Hoa District near Tay Bac Cu Chi IP that will include residential areas at a cost of $64 million. Daresco is a Joint Stock company involving Saigon Real Estate and eight other businesses. The whole project will be completed by 2010 and between 70 and 100 companies are expected to lease land to relocate their polluting factories from HCMC.

 

Trans Asia Industrial & Residential Park:- Covering 680 hectares in Duc Hoa District bordering HCMC s Hoc Mon and Cu Chi districts, an area of 180 hectares has been set aside for manufacturing and the rest for residential purposes. The IP owner has started levelling land on half the area and over 9 investors have pre-leased land, 2 of whom are building factories.

 

Thinh Phat:- In early 2005, the electrical cable & wire manufacturer developer invested over $8 million in building infrastructure over the 74 hectare 1st phase, of the 200 hectare site. Located in Ben Luc District, two thirds of the 1st phase had been pre-committed by 7 local and foreign investors.

 

Thai Hoa:- Developed in 2005 by Vietson Infrastruc­ture Development JS Co, part of Siam Brothers Vietnam Corp Ltd (Siam Brothers Group of Thai­land), the park park has two construction phases, costing $17 million and $30 million each. The park is targeting clean manufacturing focusing on the fields of electronics and electrical engineering, garments, food pro­cessing, pharmaceuticals, automotive com­ponents, precision engineer­ing, and construction materi­als, with the aim of crating a green and clean envi­ronment of international standards. The land rents for 25 and 50 years are $25 and $22 per square meter. The price for land transfer is $35-42. Those tenants who get the land transfer will become the land owners and be able to mortgage the land. Four of five present inves­tors have taken the land transfer option, occupying more than 10% of the park's 100 hectares. The park expects to have 30% Thai, 30% Vietnamese, and 40% Hong Kong, Taiwanese, Chinese and Korean investors. While industrial parks in HCM City, Binh Duong, Dong Nai and Tay Ninh offer a corporate income tax rate of 15% for the first 12 years, a reduction for 7 years, and an exemption for 3 and 5 years, Thai Hoa gives 10% for the first 15 years, a 10 year reduction and a 6 year exemption.

 

Cua Tram: - In early 2007, the Prime Minister approved the establishment of the 84 hectare IP which is being developed by Trung Thanh Import Export, Trading, Service and Con­struction JS Co with an investment capital of over $18 million.

 

Nhut Chanh: In mid 2007, the Thanh Yen JS Co started construction of the 125 hectare park in Ben Luc District's Nhut Chanh Com­mune, capitalized at more than $22 million. The IP is 32 kilometers from downtown HCMC and only 9 kilometers from HCMC's Binh Chanh District and land rent is only one-third of the rates charged by IPs in HCMC at $35-45 per square meter over a period of 50 years. Seven investors from Hong Kong, Singapore, South Korea and Vietnam had pre-registered to lease more than 65 hectares of land for cement, granite, concrete, and auto and motorcycle parts factories. Thanh Yen has also started the construction of a 34 hectare residential area adjacent to the new IP costing $9.3 million which is able to house some 8,000 people.

 

An Thanh: In early 2008 the HCMC based Phu An Thanh Joint Stock Company started work on the 600 hectare environmentally friendly industrial park in An Thanh Commune, Ben Luc District which will be developed in two phases. The first phase will develop infrastructure on 307 hectares at a total cost of more than USD$62.5 million and in the second spend another USD$50 million building factory spaces for lease on more than 20 hectares for clean manufacturing projects of local and foreign companies. The IP is only 30 kilometers from downtown HCMC and only 9 ki­lometers from the city's Binh Chanh District. The company is expected to attract 200 investors employing 30,000 people in the first phase. The company targets manufactur­ers of products for serving agriculture, foodstuffs, fabrication and in­stallation of machinery and equip­ment as well as agricultural and piscicultural machines. The IP is also looking to manufac­turers of consumer goods for domes­tic use and export, such as house­hold equipment, packaging, cos­metics, textiles, building materials, interior furnishing items, design, building structures, and pre-engi­neered steel.

 

Dong Nai

 

Dong Nai province is one of the key economic areas in southern Vietnam. It borders Ho Chi Minh City to the west; Lam Dong, Binh Duong and Binh Phuoc provinces to the north; Binh Thuan to the east; and Ba Ria-Vung Tau province to the south. Dong Nai is integrated into the National Highway system with connections to Highways No.1, No.51 & No.20; the railway system; with waterways and ports such as Long Binh Tan Dau; and the proposed Long Thanh International Airport. Communications and telecommunications are modern. Furthermore, Dong Nai is next to Ho Chi Minh City which has many good infrastructure systems and services such as the Tan Son Nhat international airport; many ports; telecommunications networks; hotels; banks and other such services.

 

Dong Nai is seen as an in­dustrial manufacturing hub in the country's south with 24 operational industrial parks covering about 6,500 hect­ares, 64% of it occupied by mostly foreign-invested en­terprises. The FDI sector contributes 95% of exports, 62% of indus­trial production and 15.8%of GDP in the province.

 

Dong Nai’s 21 IZs have attracted 779 foreign invested projects from 30 countries and territories with capital totaling US$8.4 billion to date. More than 470 projects are operational, employing over 265,000 local workers. Some 60% of FDI is from Taiwan and South Korea.

 

 

General Information

 

Dong Nai province is one of the key economic areas in southern Vietnam. It borders Ho Chi Minh City to the west; Lam Dong, Binh Duong and Binh Phuoc provinces to the north; Binh Thuan to the east; and Ba Ria-Vung Tau province to the south.

 

Ø Land Area - 5,860 sq.km

Ø Population - 2.04 million / 1.1 million labourers

Ø City & Districts - Bien Hoa City; Long Khanh; Thong Nhat; Long Thanh; Dinh Quan; Tan Phu; Nhon Trach; Vinh Cuu; and Xuan Loc Districts.

Ø Climate - Two tropical seasons : rainy & dry

Ø Temperature - between 25 - 35C

Ø Rainfall - 1,500 - 2,700 mm

 

Dong Nai is integrated into the National Highway system with connections to Highways No.1, No.51 & No.20; the railway system; with waterways and ports such as Long Binh Tan Dau; and the proposed Long Thanh International Airport. Power is supplied by EVN (Electricity Vietnam). Water supply capacity is 325,000 cu.m. Communications and telecommunications are modern. Furthermore, Dong Nai is next to Ho Chi Minh City which has many good infrastructure systems and services such as the Tan Son Nhat international airport; many ports; telecommunications networks; hotels; banks and other such services.

 

Existing IP’s

 

Bien Hoa 1 IZ

 

Situated in Bien Hoa City, 25 km from HCM City, 90 km from Vung Tau City, 2 km from Dong Nai Port, 25 km from New Port, 30 km from Saigon Port, and 44 km from Phu My Port on National Highway No.1a (the Hanoi Highway) and Dong Nai River. Bien Hoa 1 was established with 335 hectares in 1963 and is now home to over 90 enterprises with a total registered capital over US$326 million. Bien Hoa 1 Industrial zone has infrastructure such as power : 126 MW from the national power network; water supplies of 25,000 cu.m per day; transportation & telecommunications networks; and security. Encouraged investment projects in Bien Hoa 1 IZ are mechanics, electronics, leather - shoes, plastics and garments.

 

Developer : Corporation of Bien Hoa Industrial Zone (SONADEZI)

Address : Vung Tau junction, Bien Hoa 1 IZ, Dong Nai.

 

 

Bien Hoa 2 IZ

 

Next to Bien Hoa 1 IZ, it has a high quality infrastructure such as electricity supply; transformer station of MVA; water supply of 15,000 cu.m per day; wastewater treatment plant with a capacity of 4,000 cu.m per day. Bien Hoa 2 has 365 hectares and home to 126 projects with a combined registered capital exceeds US$1.396 billion. Tenants include Viet-Nhat Gas Company in Bien Hoa 2 IZ

 

Developer : Corporation of Bien Hoa Industrial Zone (SONADEZI)

Address : Vung Tau junction, Bien Hoa 1 IZ, Dong Nai.

 

 

Amata IP

 

Located in Bien Hoa City, 27 km from HCMC, its 410 hectares are divided into 2 phases. The first stage covers 129 hectares and is home to over 51 projects with a total registered capital over $320 million occupying over 90% of the available land, and in 2003 decided to invest an additional $25 million in its 98 hectare second phase. Indeed, Amata has plans to develop itself into a small city called Amata Commercial City by expanding facilities to provide recreational, commercial, medical and residential services. The $17 million IP was established in 1994 by a 70/30 Joint Venture with Amata Corporation of Thailand. It is adding 232 hectares to the existing 129 hectares that has been leased by over 70 investors with a combined registered capital of over $400 million. Work is well underway on the initial 98 hectares of the 2nd phase. The IP is targeting investments in the fields of mechanics, metallurgy, chemicals, cosmetics, textiles, garments, leather - shoes, household products, electronics, bags, glass and pharmaceuticals. MNC’s include Quadrille Vietnam, Riches High-tech Wrapper Co, Bayer Vietnam Limited, YKK Vietnam, Fukuyama Gosei Vietnam, Gannon Vietnam, Kao Vietnam, Vietnam Wacoal and San Miguel.

 

Developer : Amata JV Company

Address : Long Binh Ward, Bien Hoa City, Dong Nai.

 

 

Loteco IZ

 

Adjacent to the Amata 30 km from HCMC, this 60/40 $41 million Nissho Iwai Corporation Joint Venture is 25 km from New Port and 40 km from Thi Vai Port. The Long Binh Techno Park (Loteco) covers an area of 100 hectares in the first phase including a 30 hectare Export Processing Zone (EPZ). Over 26, mostly Korean and Japanese projects, have invested over $175 million and occupy over 49% of the available land area. In the second phase of development, the park plans to increase its leaseable are to 200 hectares. Loteco plans to develop an additional 100 hectares in the second phase which is schedule to start in 2005, and received ISO9001:2000 certification in 2004. Infrastructure has been completed such as transportation, water drainage, power supply : transformer station of 32 MVA; water supply : 6,000 cu.m / per day; communications and a wastewater treatment plant of 1,500 cu.m. The IP is targeting investments in the fields of mechanics, electronics, chemical, cosmetics, shoes, garments, plastic, paper, wooden products and household products. Tenants include Daewoo Textile Company, Viko Moolsan, Shirasaki Corp, Yupoong Inc, Sposa Hychi, Mitsuba, Mitani Aureole and Fashion Force.

 

Developer : Long Binh Techno Park Dev Co (LOTECO)

Address : National Road 15 a, Long Binh Ward, Bien Hoa City.

 

 

Go Dau IZ

 

Strategically located in Long Thanh District, 60 km from HCMC and 11 km from the deep sea port of Ba Ria - Vung Tau the park has a total area of 184 hectares. In 2003 BP with PetroVietanm decided to lay pipelines and building pumping stations to supply gas from Bach Ho oilfield to My Xuan A IP (Ba Ria-Vung Tau Province) and Go Dau. There are over 14 enterprises with the total investment capital over $370 million occupying over 85% of the available land. This Industrial zone is planned for special fields such as chemicals, heavy industries, hi-tech and automatic industries, mechanics, plastics and chemicals.

 

Developer : Corp for the Dev of Bien Hoa IZ (SONADEZI)

Address : Vung Tau junction, Bien Hoa 1 IZ, Dong Nai, Vietnam.

 

 

Nhon Trach IZ

 

Situated in Nhon Trach District 35km from Bien Hoa City and 60km from HCMC, the area is planned to become a new city centred around the 2,700 hectare Nhon Trach IZs. The planned urban area is 10 hectares and the infrastructure is completed. The wastewater treatment plant is being designed to serve the whole area. Where there are 55 existing enterprises with the total investment capital of US$1,794.98 million. In which, there is also a large amount of big projects. For instance Hualon Company with an investment capital of US$486 million, Samsung Company with US$197 million and Hyosung Vina US$52.5 million, etc. This Industrial zones are planned to offer to the projects with a high volume of wastewater, such as mechanics, garments, leather-shoes, electronics, chemicals textiles, dying, plastics, papers. There are 460 ha left, with completed infrastructure for investment.

 

 

Nhon Trach 1 (aka Tuy Ha A)

 

Established in 1995, over 66% of the park’s 430 hectares have been leased to over 47 projects with a total capital of over $449 million, of which more than 17 are operational. Tenants include Dragon Bicycle, Dae Won, Hirota Precision Instruments, LG - Vina Cosmetics JV, Chang Yih Ceramics, Akzo Nobel Powder Coating - Chang Cheng and Samwoo.

 

Developer : Urban Dev Corp of IZs (URBIZ)

Address : Hanoi Highway, Long Binh Ward, Bien Hoa.

 

 

Nhon Trach 2

 

Established in 1997, over 47% of the park’s 350 hectares have been leased to over 20 projects with a combined capital of over $855 million, of which 8 are operational. Tenants include S Y Vinatex, Donafoods and King's Grating.

 

Developer : The Civil Industrial Construction Co No.2

Address : Hanoi Highway, Long Binh Ward, Bien Hoa.

 

 

Nhon Trach 3

 

Established in 1997, the park’s 368 hectares have been fully leased to 25 projects with a combined capital of $625 million. In 2004 the Formosa Group leased 100 hectares for construction of an over $500 million textile complex. Other tenants include Harvest Industrial, Tong Kook textile mill, Hwa Seung Vina and Lien Minh textiles. In early 2005, the developer started the $20 million 2nd phase of infrastructure construction (effectively doubling the size of the IP to 687 hectares) with pre-lease commitments from 9 projects worth $40 million.

 

Developer : Tin Nghia Import - Export Co (Timexco)

Address : 96 Highway No.1, Bien Hoa City, Dong Nai.

 

 

Nhon Trach 5

 

Work started on the $16 million 309 hectares park in mid 2004. The park lies in a location very convenient for traffic as expressways from HCMC to Long Thanh and Dau Giay, and the Bien Hoa to Ba Ria Vung Tau roads are planned to be built soon. Another point is that it is near the future Long Thanh International Airport and deepwater ports of Phu My and Thi Vai. So far 3 Taiwanese in­vestors have leased 7 hectares worth $5.5 million and commitments to lease another 10 hectares have also been signed. Authorities expect the IP will be full in the next 8 years with 50 to 60 factories employing about 15,000 workers.

 

 

Nhon Trach Textile & Garment IP a.k.a Vinatex-Tan Tao IZ

 

The park opened in February 2004 as Vietnam’s first textile and garment industrial park. The Vinatex - Tan Tao Investment Shareholding Company (Vinatexin) operates the IP which is also called Nhon Trach Textile and Garment IP. The USD$15.3 million Vinatexin venture involves the Vietnam Garment and Textile Corporation (Vinatex) with 51%, Tan Tao IP Development Company (Itaco) with 25% and Saigon Construction with 24%. Vinatexin was established to develop industrial zones and residential areas which support the textile and garment industry. Vinatexin plans to build a similar facility in Haiphong after Nhon Trach is up and running. Long An, Can Tho, Hung Yen, Bac Ninh, Thai Binh and four provinces in the central region have also been chosen as locations for future textile industrial parks. The Vinatex-Tan Tao IP covers 183.9 hectares (including 124 hectares for rent), out of 2,700 hectares at the huge Nhon Trach IP. By March 2007 the IP had attracted 15 investors leasing 68.7 hectares to build factories.

 

 

Song May IZ

 

Situated in Thong Nhat District, 45km HCMC with a first phase area of 227 hectares (total area 417 hectares) the park has licensed projects to Taiwanese, French, South Korea, and US companies specialisng in shoes, veterinary medicines, paint, detergent and electronic com­ponents. Tenants include Dona Orient, Golden Shoes, Amega, Long Van and Viet Vinh-bona Victo. The IP is trying to focus on investments in the fields of garments, leather shoes, mechanics, products for household, and products from plastics and wood without wastewater and waste solids and toxic products. In early 2007 the park announced that it was seeking partners to jointly develop the 2nd stage infrastructure on 230 hectares.

After 6 years of establishment Song May IP has attracted 43 projects with total registered capital of US$315, leasing 123 hectares to investors, or 72.75% of the IP's total land for lease.

 

Developer : Song May Industrial Zone Development Company

Address : Bac Son Ward, Thong Nhat District, Dong Nai.

 

 

Ho Nai IZ

 

Located in Thong Nhat District, 15km from Bien Hoa City and 42km from HCMC with a 230 hectare first phase (total planned area 523 hectares), the park has attracted over 66 enterprises with a total investment capital of over $213 million occupying 57% of the available land. MNC’s include Taiwan's Chiau Hung, Cosmos Vietnam and Allied Vietnam, and Malaysia's Shicosun. The park is designated for rubber, plastic, chemicals, textiles, mechanics, garments, leather - shoes, construction materials, motor spare parts and car spare parts.

 

Developer : Ho Nai IP Development Company

Address : Ho Nai 3 Village, Thong Nhat District, Dong Nai.

 

 

Formosa IP

 

Formosa Chemicals and Fibre Corporation, a giant Taiwanese industrial company, was granted a licence by the Ministry of Planning and Investment in 2001 to develop a USD$420 million textile and garment complex. The complex, on 300 hectares in Nhon Trach 3 IP was opened in 2004 creating 2,500 jobs.

 

 

Tam Phuoc IZ :

 

Established in 2003 and located in Long Thanh District alongside National way 51 only 10 km from Bien Hoa City, 35 km from HCM City and 86 km from Vung Tau, the 323 hectare IP is in close proximity to the planned Long Thanh International Airport. The park is now full with 56 investors having pledged a total capital of USD$300 million. More than half the tenants are wood processors and 70% are owned by investors from China, France, Italy, South Korea and Taiwan, who mostly ship their products to the US market. IP provides support for handling procedures for customs clearance, access banking, logistics and administrative services and has sufficient infrastructure like power, telecom supplies, a wastewater treatment facility that is able to treat 1,500 cubic meters of wastewater a day and which will be doubled as the IP is expanded, and roads and green coverage that makes up 15% of the area. The labor-intensive wood processing enterprises in the IP employ some 19,000 people, and the IP has put into use a dormitory with 500 beds and has taken over 15 hectares of land nearby from the province to build more housing for the foreign expatriates such as a kindergarten, a school, an entertainment area and a shopping center. A little more than 8.2 million shares of Phuoc Industrial Park Development and Service Enterprise (under the State-owned Tin Nghia Corporation) or 45.88% of the total, was offered to the public in November 2007. The enterprise will convert into a shareholding company with a chartered capital of USD$11.13 million called the Nghia Industrial Park Investment and Development Joint Stock Company, with 51% held by Tin Nghia Corporation. Employees of the new company will hold 3.12% stake. The money from the IPO will help the developer invest in a ser­vice centre area of 4 hectares and a residential project of 18 hectares next to the IP, which require a combined investment of around USD$14.6 million.

 

 

Suoi Tre 1 IP

 

At the end of 2007 Sonacons JSC, part of Sonadezi Bien Hoa Corporation, began work on the IP in Suoi Tre Commune, Long Khanh District, covering 50 hectares and costing USD$5.25 million. The park is designed for small and medium sized companies using environmentally friendly technology.

 

 

Dau Giay IP

 

In early 2008 the province approved the 330 hectares zone.

 

 

Giang Dien IP

 

In late 2008 the 530 hectare Giang Dien IP opened.

 

 

Binh Phuoc

 

 

Is 120km from HCMC and has a population of 688,600 and borders Cambodia, Dac Lac, Tay Ninh, Lam Dong, Dong Nai and Binh Duong provinces. It is one of the new members of the SKER but only has one operative IP - Chon Thanh – which is nearly half developed and leased to investors, although the government has allowed the province to develop 7 with more than 3,200 hectares. There are plans for the Tan Khai and Nam Dong Phu IZs and in 2004 provincial authorities gave the go ahead to a number of Korean companies seeking to set up a $15 million IP for garment & textile production, rubber and stainless steel in Minh Hung Commune, Chon Thanh District including a 500 hectare golf course and tourist park. In early 2005, the PM gave approval for the establishment of the Hoa Lu Border Economic Zone in Loc Ninh District. Investors can receive assistance for site clearance, legal procedures, employee training and infrastructure construction.

 

 

Binh Phuc granted operating licences to 196 domestic enterprises with capital totalling VND543 billion (US$31.2 million) in 2005 – UP 20% in the number of new ventures and a 6.5% increase in the amount of investment capital funnelled into the province over the same period, he added. The province also licensed six foreign-invested projects with total registered capital of $17.8 million in 2005.

 

 

Chon Thanh:- In Binh Long Dis­trict, 30 km from Thu Dan Mot Town (Binh Duong) and 68 km from central HCM City, bordering National Highway 13. According to the development planning, road and railway branches of the Trans-Asia high­way will go to the IP. The total area is 500 hectares and the first phase 115 hectares. Tenants include the $3 million Isocab JV.

 

 

Hoa Lu Border Economic Zone:- In late 2005 the People's Committee created a new zoning plan to build the border economic zone in Loc Ninh District. The 28,000 hectare zone will span 4 communes : Loc Thai, Loc Tan, Loc Hoa, Loc Thanh and Loc Ninh town, with a total population of 36,430. The zone should boost trade between Vietnam and Cambodia and other neighbouring countries.

 

 

Tay Ninh

 

 

Sandwiched between Ho Chi Minh City and Cambodia, Tay Ninh Province lies northwest of HCM City. It shares its eastern border with Binh Duong and Binh Phuoc, and it’s north-western border with Cambodia. The province covers an area of 4,028 sq.km and has a population of 1.03 million. The province is expected to post the same impressive development numbers as Binh Duong and Dong Nai after the completion of the Trans­ Asia Road. In addition to the existing IPs, the province is in the process of establishing the Cha La IZ (39 hectares) in Duong Minh Chau District; the Thanh Dien IZ (50 hectares) in Chau Thanh; the Tram Vang IP (500 hectares) in Go Dau District; and turning the Sa Mat economic bor­der gate in Tan Bien District into an interna­tional entrance to boost tourism and trading with Cambodia. In addition, all districts have established one or two small-scale industrial complexes with an average area of 100-150 hectares. Of the 90 foreign projects, worth about $385 million, that had been licenced by early 2005, about 55 were operational.

 

 

Moc Bai Border Economic Zone:- Located on the Cambodian border near the Trans Asia Highway 70 km from HCM City and 170 km from Phnom Penh and is considered a gateway to other Southeast Asian markets. It covers 21,283 ha in Ben Cau District in Tay Ninh Province with three border gates: Moc Bai; Phuoc Chi; and Long Thuan. The $1.6 million 1st phase officially opened for operation in early 2005 with a 16,500 sqm compound and 2,000 sqm main building, and was funded by the ADB using left-over money from the $145 million Trans-Asia Highway project. Most commodities and services entering or exiting the commercial and industrial section will be entitled to 0% rate of import export tariffs and value added tax. The zone includes the 105 hectare Sun Industrial Zone; the 286 hectare Mat Troi / Sun City new urban town; and 405 hectares are slated for the con­struction of 3 additional IPs. The first phase of Mat Troi (Sun) Town, ca­pable of housing 40,000 residents is expected to start in 2005 and finish in 2010 when it is expected to become a dynamic economic hub in the country's south-west region. The 220 hectare Sun Urban Area will be home to an international trade and service centre, an industrial complex, a bonded warehouse area and a residential area. Authorities have asked the Government to turn the zone into a Duty Free Area in a move to better develop the area's industry. Provincial authori­ties plan to raise the IZ's bilateral trade turnover between Viet Nam and Cambodia to $37 million in 2005 which represents 10% percent of the total trade value of the two nations. Vietnam's export earnings to Cambodia through the zone was about $25 million in 2004. Over 1,430 hectares of land have been leased for a total registered capital of $300 million.

 

 

Trang Bang:- Located 40km northeast of HCMC, Trang Bang was the first operational park in the province and is conveniently located near the trans-Asia. In 2004, local authorities signed an agreement with HCMC to set aside 200 of the 400 hectares to factories and enterprises which cause environmental problems in HCMC, and assigned Satra (Sai Gon Trading Corporation) to prepare land for the resettlement programme. Trang Bang is home to over than 80 foreign invested projects worth over $120 million, over 40 of which are operational. Tenants include the Taiwan owned Diamond Gym producing toys and sports wear for export; the Korean Hong Jae Industrial producing garments; the US invested Lucidau Jewelry; the Taiwanese computer company Huan Thang International; China's Khang Lac producing ginseng; and Tanifood.

 

 

Linh Trung 3 EPZ & IP:- Located in Trang Bang District 43 km from HCM City covering 204 hectares, the $29 million Sepzone-Linh Trung Taiwanese Joint Venture was approved by the PM in 2002 and lies along the Trans-Asia Highway. It will comprise two industrial and one export processing zone and include houses, shops, a medical center, a vocational school, parks and sporting facilities. The park hopes to accommodate 100-120 projects with combined investment capital of $500-700 million within 5 years and employ 60,000-70,000 people. Tenants include Singapore’s Capital Textiles

 

 

Bourbon-An Hoa IP:- In mid-2008, Bourbon Tay Ninh Sugar JS Co was licenced to establish the 1,000 hectares IP. The company has also been licensed to develop a trade-service center covering nearly 15,000 square meters in Tay Ninh Town.

 

 

Last Updated ( Tuesday, 13 July 2010 )
 
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