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Industrial park Vietnam - Opportunities & challenges when investing in Vietnam

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Industrial park Vietnam
 

In the process of industrialization and modernization of the country, industry plays a leading role in transforming a country from agriculture to industry towards modernity, contributing to the formation and development of industrial park Vietnam. Industry is the largest group of real economic sectors, the driving force and the locomotive of economic growth of the whole country. Investors in this field are also facing new challenges and opportunities. Find out with LHC through the article below!

 

1. What is an industrial park Vietnam? What's the difference with the high-tech park?

1.1 What is an industrial park?

According to Decree No. 82/2018/ND-CP, an industrial park is defined as an area with definite geographical boundaries, specialized in manufacturing industrial goods and providing services for industrial production; established under the conditions, order and procedures specified in this Decree.

Industrial parks include many different types, including: export processing zones, supporting industrial parks, ecological industrial parks.

(Excerpt: Decree No. 82/2018/ND-CP).

1.2 What is Hi-Tech Park?

High-tech park is a multi-functional economic-technical zone with defined boundaries established by the Prime Minister's decision to research, develop and apply high technologies, and incubate technology enterprises. high technology, training high-tech human resources and manufacturing and trading high-tech products.

What is a high-tech park?

What is a high-tech park?

See more: What is an industrial park? Is there any difference with the export processing zone?

2. List of the largest industrial parks in Vietnam

2.1 Southern Vietnam Industrial Park

Long Hau Industrial Park

Long Hau Industrial Park is located in Long Hau Commune - Can Giuoc District - Long An Province. This is one of the Industrial Park Vietnam with great potential for development today with the following advantages:

- Having a convenient geographical position for transportation and trade of goods:

  • Located right on the road traffic axis and highway, near the international seaport system.
  • 3km from Saigon Central Container Terminal (SPCT) and Saigon - Hiep Phuoc Port.
  • 12km from Phu My Hung urban area.
  • 19km from the center of Ho Chi Minh City.
  • 25km from Tan Son Nhat International Airport.

- Receive investment from major domestic and foreign investors.

- Up to now, there have been more than 200 domestic and foreign investors investing in Long Hau Industrial Park.

- As an industrial park Vietnam combining urban - service.

- Long Hau is one of the industrial parks developed according to the model of an industrial - urban - service zone (both an industrial production zone and integrated with additional services: Business incubation center; research and development; Educational, cultural, medical facilities, ...) should have great potential for development in the future.

Long Hau Industrial Park is located in Long Hau Commune - Can Giuoc District - Long An Province
Long Hau Industrial Park is located in Long Hau Commune - Can Giuoc District - Long An Province

Contact Info:

  • Address: Hamlet 3, Long Hau Commune, Can Giuoc District, Long An Province
  • Phone: (028) 3937 5599 - (+84) 906 938 599
  • Fax: (028) 3781 8940

Phuoc Dong Industrial Park

Phuoc Dong Industrial Park is evaluated as an Industrial - Urban - Service complex with a high scale and potential for development in the Southeast.

Phuoc Dong has a total area of 3,158 ha, of which 2,190 ha is land for industrial park development.

This is an industrial park Vietnam designed and planned according to international standards, ensuring all utility factors related to production, import and export as well as a professional working environment for investors & enterprise

Contact Info:

  • Address: DT782, Phuoc Dong commune, Go Dau district, Tay Ninh province
  • Phone: 0276 3888 999

Becamex - Binh Phuoc Industrial Park

Becamex Binh Phuoc Industrial Park has a total area of 4,600 ha, of which 2,400 ha is industrial development land and 2,200 ha is service and urban land.

With a favorable geographical position, especially close to 4 key economic areas in the South, Becamex Binh Phuoc Industrial Park is a very convenient place in terms of traffic to carry out transportation, production and business activities. , supply goods, ... Therefore, renting land and factories here will bring many benefits to investors.

Contact Info:

  • Address: National Highway 14, Minh Thanh Commune, Chon Thanh District, Binh Phuoc Province
  • Phone: 091 312 52 39

2.2 Central Vietnam Industrial Park

Thuan Yen Industrial Park

Thuan Yen Industrial Park is one of the first four industrial zones in Quang Nam province and is on the list of industrial zones across the country approved by the Government under Decision No. 1107/QD-TTg dated August 21, 2006.

Contact Info:

  • Phone: (84-510) 3824 618
  • Email: Vinaconex25@vnn.vn

Nhon Hoi Industrial Park

Nhon Hoi Industrial Park (Zone A) has an area of 630ha, located in Nhon Hoi Economic Zone, Quy Nhon City, Binh Dinh Province; is a multi-industry industrial park with a convenient location, modern synchronous infrastructure, ready to accompany investors.

Nhon Hoi Industrial Park (Zone A) has an area of 630ha, located in Nhon Hoi Economic Zone, Quy Nhon City, Binh Dinh Province.
Nhon Hoi Industrial Park (Zone A) has an area of 630ha, located in Nhon Hoi Economic Zone, Quy Nhon City, Binh Dinh Province.
Contact Info:
  • Address: Nhon Hoi Commune, Quy Nhon City, Binh Dinh Province
  • Phone (+84-56) 3822427

Du Long Industrial Park

Du Long Industrial Park was approved by the Prime Minister for construction in Document No. 256/TTg-CN dated March 14, 2005 and was established by the Chairman of Ninh Thuan Provincial People's Committee in Decision No. 3848/ QD-UBND dated 30/6/2008.

2.3 Industrial Park in the North of Vietnam

Phu Nghia Industrial Park
Being on the list of industrial parks in Vietnam in general and industrial parks in the North in particular, Phu Nghia Industrial Park is always appreciated for its development potential and has made great contributions to solving problems. employment decisions for the workers.
Phu Nghia Industrial Park has a total area of 670ha, built with a modern infrastructure system with full internal traffic system, drainage system, power supply system, wastewater treatment system, etc. …
Contact Info:
  • Address: Phu Nghia commune, Chuong My district, City. Hanoi
  • Phone number: 024 63 264 568 - 097 221 6868
Trang Due Industrial Park
With a total usable area of 600ha, favorable geographical location, built according to modern architecture and invested in construction by Saigon INVEST (a large corporation today), Trang Due Industrial Park has and is attracting investment from many domestic and foreign investors, with great potential for future development.
 
Trang Due Industrial Park
Trang Due Industrial Park
Contact Info:
  • Address: Le Loi, An Duong district, Hai Phong province
  • Phone: 0888 000 836
Hoa Xa Industrial Park
Established in 2003, after more than 16 years of operation, Hoa Xa Industrial Park is currently receiving the attention of many investors with the following advantages:
Convenient geographical location: located on National Highway 10, is a bridge connecting with many neighboring provinces such as Thai Binh, Ninh Binh.
There is a complete internal traffic system, electricity system, and wastewater drainage system.
Contact Info:
  • Address: Hoa Loc and My Xa communes, Nam Dinh city
  • Phone: 0350.3676.151

3. Vietnamese industrial parks possess the potential to attract foreign investors

3.1 Industrial zones in Vietnam have potential due to lower investment costs than the region

Most importantly, the cost of industrial land in Vietnam is competitive compared to other countries in the region, especially China. The price of industrial real estate in China is up to 180-200 USD/m2/full lease period, while the price of land in the North of Vietnam is only 99 USD/m2/full lease term. These things explain why Vietnam's industrial real estate attracts the attention of world investors

3.2 Potential industrial park in Vietnam due to surrounding roads and traffic

Recognizing the importance of the transport infrastructure system for industry, Vietnam prioritizes the rapid development of transport infrastructure with the motto "one step ahead", both to remove bottlenecks, while creating conditions for rapid breakthrough in the process of building synchronous infrastructure of the country.

Urban transport has been gradually improved, upgraded and expanded, especially in big cities, contributing to limiting the congestion of passengers and goods. Focusing on investing in radial traffic axes, ring roads, stereoscopic intersections at major intersections, urban bypass, especially giving priority to ring roads of Hanoi and Ho Chi Minh City, key works in each area; focus on implementing urban railway projects.

In particular, the quality of service and transport services are also constantly being renewed and improved, ensuring better service to the travel needs of the people; promote production and business development; contributing to controlling inflation, stabilizing the macro-economy, ensuring social security, thereby improving the competitiveness of the economy in general and the industry in particular.

3.3 Potential Vietnamese industrial park developed by FDI business community, easy trade connection

Associations play an important role in attracting foreign investment to Vietnam
Associations play an important role in attracting foreign investment to Vietnam
FDI enterprises investing in Vietnam have formed associations of foreign enterprises by country. Associations fully demonstrate their role in providing information on the law, market, business services, trade promotion support, dispute resolution, support and reflection. breath of foreign enterprises investing in Vietnam. Some associations are active in the industry: Korean Business Association in Vietnam (Korcham); American Chamber of Commerce in Vietnam (Amcham Vietnam); The Italian Chamber of Commerce (ICham),…

3.4 Preferential policies when investing in industrial parks in Vietnam

Vietnam has one of the most competitive tax policies in Asia. Industrial parks are being "exempted from 2, reduced by 4", ie exempted from corporate income tax of 20% for the first year and reduced by 50% of tax for the next 4 years. Even "4-free 9", 4-year tax exemption and 50% tax reduction in the next 9 years for industry projects prioritized by the Government.

4. Difficulties in renting factories in industrial parks in Vietnam

4.1    Difficulty in human resources

There are some challenges that Vietnam faces. When Chinese businesses want to move out of China, they want to cut costs, Vietnam has an advantage but lacks high-tech labor. Although the labor cost in Vietnam is only 1/3 of that in China, the productivity is also only 1/3.
To solve the above difficulties, Vietnam has developed a strategy on human resource development, boldly recruiting workers, prioritizing investment in human resource training in the fields of high technology, spearhead technology, etc. industry with high added value.
 
Developing and improving the quality of human resources, especially high-quality human resources, is one of the most critical factors for the country's rapid growth and sustainable development.
Developing and improving the quality of human resources, especially high-quality human resources, is one of the most critical factors for the country's rapid growth and sustainable development.

4.2 Difficulty in handling administrative procedures

There are still many challenges for foreign enterprises when expanding their manufacturing business in Vietnam. Prolonged administrative procedures and delays in customs clearance will increase the operating costs of these enterprises.
Digitizing and streamlining administrative procedures will be key elements for Vietnam. Although Vietnam has made reforms in tax payment and gradually eased procedures for setting up new businesses, these two areas still need to continue to be implemented.

4.3 Difficulties in factory infrastructure

Currently, the work of planning and management of planning has many shortcomings, the clean land fund to call for large-scale investment is still lacking. Urban development planning has not been linked with socio-economic development planning and sector development planning, leading to the existing land fund not meeting the demand for calling for investment and development of large-scale projects. large and pervasive.
Infrastructure, internal traffic and landscape in investment industrial zones are not synchronous, and the distance from residential areas is not suitable. There is a shortage of factories for rent in industrial parks, the quality of factories for rent and the landscape environment have not met the requirements of investors.
Long Hau Industrial Park - Partner in success
Address: Hamlet 3, Long Hau commune, Can Giuoc district, Long An province
Hotline: (+84 28) 3937 5599 - (+84) 906 938 599
Email: sales@longhau.com.vn
Fanpage: fb.me/longhau.com.vn
Zalo Official: https://zalo.me/2384735100152725129