Phase I of Dung Quat Industrial Town has received an investment of over 2,000 billion VND by Hoang Thinh Dat Corporation (Investment License no 7020466318). This project is expected to be a breakthrough in infrastructures of Dung Quat Economic Zone and North Quang Ngai‘s urban area. Moreover, the project would also extend its affect to Chu Lai Economic Zone in South Quang Nam, where planning for urbanization by local government is in progress. (Environmental Impact Assessment)
Dung Quat Industrial Town Project is oriented to develop on the total land area of 1,303 ha, divided into two main phases: Phase I: 319ha, Phase II: 984 ha. Specific location of the project has been agreed by the Management Board of Dung Quat Economic Zone (Document No. 895 / MB-QLQH & XD July 7, 2016).
Hoang Thinh Dat Corporation has proposed to prioritize the development of Phase I with a scale of 319 ha in order to develop industrial and service parks. Regarding the development of the next phase, the company will carefully analyze and concretely propose before implementing.
|No.||Sort of land||Phase 1||Expected phase 2||Total|
|Size (ha)||Proportion (%)||Size (ha)||Proportion (%)||Size (ha)||Proportion (%)|
|1||Land for factories||267.75||83.89||93.63||52.95||361.38||72.86|
|3||Land for parks and green trees||7.14||2.24||49.39||27.93||56.53||11.40|
|4||Land for infrastructure||9.66||3.03||0.00||0.00||9.66||1.95|
|5||Accomodation for workers||0||0.00||3.20||1.81||3.20||0.65|
|6||Land for transportation||20.01||6.27||21.82||12.34||41.83||8.43|
Phase I’s total invested capital: 2.025.000.000.000 VND (Two Thousand and twenty-five billion VND), in which:
- IA Developing Expense: 1.050.000.000.000 VND.
- IB Developing Expense: 975.000.000.000 VND.
Duration for project activities is 50 years since the Investment Certificate is granted.
This project is divided into two main phases for development following a specific schedule as follows:
- Phase IA: Implementation of infrastructure construction for the entire 166 hectares of industrial land. Construction Phase I’s wastewater treatment plant with a capacity of 25,000 CMD and clean water plant with a capacity of 31,000 CMD.
- Phase IB: Develop 153 hectares of industrial space. Invest in the construction of the second phase of the wastewater treatment plant with a capacity of 25,000 CMD, and clean water plant with a capacity of 31,000 CMD.
The division of the project into different development phases is just a plan. In fact, when Phase IA has been implemented and filled about 60% of the area, we will immediately invest in the construction of Phase IB.
INVESTMENT ATTRACTION FIELDS
- Manufacture and assembly of electrical, electronic and telecommunication equipment;
- Manufacture and assembly of automobile and aircraft components;
- Production of Medicine, pharmaceutical chemistry and pharmaceuticals;
- Manufacture of chemicals and chemical products;
- Producing and processing foodstuffs, beverages;
- Wastewater treatment and management;
- Textile industry;
- Leather production and related products;
- Mechanical (including plating);
- Manufacturing industry;
- Light industries and supporting industries;
Dung Quat Industrial Town Project is located in Binh Son District, Quang Ngai Province, which belongs to Dung Quat Economic Zone.
The project has the most convenient transportation in Dung Quat Economic Zone:
- East is adjacent to Tra Bong river and Thanh Nien street
- North is adjacent to Chu Lai Airport
- South is adjacent to Doc Soi – Dung Quat street
- West is adjacent to Land of Phase II area
Tax and policies’ advantages
- Tax rate of 10% corporate income in 15 years since the company starts generating revenue from the project, 04-year tax exemption, reduction of 50% of the tax payable in the next 09 years since taxable income is applied. For large-scale and important projects, the Prime Minister is allowed to apply the preferential tax rate of 10% within 30 years
- Import Duty: Duty-free for special equipment, machinery, and materials (non-production in Vietnam) constituting fixed assets of the project. Exemption of import tax for 05 years for the production of materials and components which cannot be produced in Vietnam and must be imported for production of the project.
- Export Duty: Only apply to limited natural resources.
- Value-added tax: VAT applied differently depending on the sectors: 0%, 5%, and 10%
- Other Priority Policies: Quang Ngai also has many policies to support businesses such as employee training, trade promotion, implementation of administrative procedures, etc.
Key infrastructure system advantages
– Electrical supply system and information system will be invested and supplied to the fence of the project by Quang Ngai authorities.
– Regarding the supply of clean water and wastewater treatment, Hoang Thinh Dat proactively invested in wastewater treatment plant with a capacity of 51,000 CMD and 50,000 CMD clean water supply plant with raw water sourced from the Thach Nham B3 canal in order to meet the demand for production activities.
– There are schools, hospitals, municipalities and other utilities have been invested by the local government around this project in order to develop overall Dung Quat Economic Zone and Quang Ngai Province. Therefore, Dung Quat Industrial Town project can easily have access to and benefits from these social utilities of the Dung Quat Economic Zone.
Industrial Town Facilities
Human resource advantages
Quang Ngai Province has a population of over 1.3 million people, the labor force accounts for 53.8% of the population of working age. Currently, there are 8 Colleges and Universities in this area. Every year, nearly 30,000 students graduate from high schools, professional schools, colleges, universities; besides, Quang Nam, Komtum, Binh Dinh Province with a population of 3.5 million people (in which 50% to 58.8% in the working age) shall ensure adequate supply of quality human resources for businesses.
PLANNED SERVICE CHARGES
|1. Infrastructure lease fee (one-time payment)||50-55 USD/ m2 / until 2066|
|2. Land lease fee (one-time payment)||This fee is waived by Goverment|
|3. Management & maintenance fee (annual payment)||0.05 USD/ m2/ month|
|4. Infrastructure lease payment schedule||Upfront payment when signing MOU: 10%
Upon receiving the Investment Registration Certifcate: 30%
Once the lease contract is signed: 50%
Upon receiving the Certificate of Land Use Rights: 10%
|5. Clean water fee||0.45 USD/ m3|
|6. Sewage treatment fee (subject to quality)||0.25 – 0.85 USD/ m3|
|7. Infrastructure integration fee (investigation, planning)||6,000 USD|
|8. Electricity bill|
|3,076 VND/KWh = 0.13 USD/KWh
1,685 VND/KWh = 0.08 USD/KWh
1,100 VND/KWh = 0.05 USD/KWh
|* Bills are subjected to EVN’s exchange rate at the payment time and will be paid directly in VND.
* VAT is not included in above charges.
VISIT THE AREA
|5km to Chu Lai Airport|
|3km to Dung Quat Seaport|
|1km from Da Nang – Quang Ngai Highway|