Nghi Son Industrial Park No.3, Thanh Hoa Province

Nghi Son Industrial Park No.3 (full name: Nghi Son Industrial Park No.3 – Nghi Son Economic Zone) was approved for investment policy by the Prime Minister in Documentary No. 1635/TTg-KTN dated September 14, 2016, and granted the initial Investment Registration Certificate on October 6, 2016, with the amendment on December 15, 2021. Industrial Park No. 3, has a total area of 247 hectares and a total investment of over VND 1,600 billion, is a typical industrial park of Thanh Hoa province and the North Central region.

I. Overview of Industrial Park No. 3 – Nghi Son Economic Zone

Industrial Park No. 3 – Nghi Son Economic Zone, Thanh Hoa Province, is a key mechanical and electronic industrial park in the economic development triangle of Quang Ninh – Hai Phong – Thanh Hoa.

RSL Group would like to give a brief description about Industrial Park No. 3 – Nghi Son Economic Zone as follows:

• Name: Industrial Park No. 3 – Nghi Son Economic Zone
• Location: Tung Lam Commune and Tan Truong Commune, Nghi Son Town, Thanh Hoa Province
• Area: 247.12 hectares
• Operation period: 2016 – 2066
• Occupancy rate: 5%
• Preferred industries: Construction machinery and equipment; metal casting and products from cast metals; manufacture and assembly of electrical, electronic, and computer equipment; production of optical products; manufacturing of industrial and agricultural machinery, specialized equipment for craft villages; various types of precision mechanical machinery and equipment; production of spare parts, components, and assembly of automobiles, motorcycles, and other motor vehicles.
• Labor force: Thanh Hoa has a population of about 3.6 million people, of which 2.3 million are of working age, with more than 80 training institutions at university, college, and vocational schools.

Industrial Park No. 3 has the potential to develop into the largest seaport in Vietnam and is one of the five key national projects. With the goal of developing a multi-sector Nghi Son Economic Zone with favorable conditions and incentives to attract investment in industrial production, mechanical engineering, precision mechanics, electrical equipment, construction machinery, medical equipment, consumer goods production, and garment manufacturing.

The development of Industrial Park No. 3 – Nghi Son Economic Zone will contribute to the economic growth of the province, and the implementation of the industrialization and modernization program, create favorable conditions for the investment environment, and attract investment in production and socio-economic development.

II. Location of Nghi Son Industrial Park No. 3

Located in the southern part of Thanh Hoa province, Nghi Son Industrial Park No.3 – Nghi Son Economic Zone is situated along National Highway 1A, serving as a bridge between the Northern and Central regions, and connecting to the markets of Southern Laos and Northeastern Thailand.

The project is located within the Nghi Son Economic Zone, which is considered a prime location for economic development strategy. It lies on the North-South exchange axis of the country, holding a key position in terms of economy, military, and foreign affairs, and is one of the eight coastal economic zones of the nation.

Connection:

• To the North: Adjacent to Cau Vang River Dike
• To the South: Adjacent to Nghi Son Bai Tranh Road
• To the East: Adjacent to National Highway 1A
• To the West: Adjacent to the North-South Railway

Distance:

• To the North-South Expressway interchange: 1km
• To Hanoi capital: 190 km to the South
• To Thanh hoa City: 50km
• To Nghi Son International Seaport: 12km
• To Khoa Truong railway station: 0.5km
• To Tho Xuan airport: 72km
• To Noi Bai airport: 120km

III. Infrastructure in Nghi Son Industrial Park No.3 – Nghi Son Economic Zone

As of April 2023, the project timeline for No. 3 Nghi Son Industrial Park has been adjusted, with the construction completion is expected in Q3 2023. Phase 1 has been basically completed, with a total land acquisition and clearance area of 80/80 hectares. Below is the infrastructure plan for the industrial park:

Power supply system

• Thanh Hoa currently has two thermal power stations with a total capacity of over 1800MW, along with various hydropower plants and renewable energy plants. It also has high-voltage transmission lines with voltage levels of 500kV, 220kV, and 110kV in close proximity.
• One new 110/22kV substation (with a capacity of 3x63MVA each) has been built specifically for the Industrial Park, with a 22kV medium-voltage system supplying power to the factory fences.
• Total capacity: 38,000 kVA

Clean water system

• Utilizing two water sources to meet the needs in the Industrial Park (raw/industrial water with a capacity of 90,000 m3/day and clean/domestic water with a capacity of 60,000 m3/day). The water supply pipeline reaches the factory fences.
• Demineralized water, steam, and purified water are available if required.

Wastewater treatment ystem

• Synchronized with a wastewater treatment plant with a capacity of 3,800 m3/day.
• The only industrial park in Northern Vietnam with a wastewater treatment plant that meets both ISO 9001 and 14001 standards.
• Pre-treatment equipment for on-site wastewater treatment is available if required.

Fire prevention and fighting system

• Fire hydrant system surrounding the entire industrial park.
• HDPE underground, closed-loop pipe network.
• Pressure: 5-7 bar.
• Capacity: 324 l/s.

Other amenities

• A commercial service area with full amenities such as restaurants, shopping centers, medical centers, warehouses, kindergartens, and community cultural and entertainment centers.
• 24/7 security system; maintenance and repair systems for roads, street lights, green belts, and drainage systems.
• Public liability insurance for shared areas.

IV. Costs in Nghi Son Industrial Park No. 3 – Nghi Son Economic Zone

• Maintenance fee (annual payment): $0.5/m²/year
• Electricity price: According to EVN’s retail electricity tariff
• Clean/domestic water price: According to the tariff approved by Thanh Hoa Provincial People’s Committee
• Raw/industrial water usage fee: According to the tariff approved by Thanh Hoa Provincial People’s Committee
• Industrial wastewater treatment fee: $0.35 – $0.85/m³ (depending on wastewater quality)

V. Investment Incentives in Nghi Son Industrial Park No.3 – Nghi Son Economic Zone

Corporate income tax

• For new investment projects, a preferential tax rate of 10% is applied for 15 years from the first year of taxable income.
• Tax exemption for the first 4 years, 50% reduction for the next 9 years.

Import tax

• Exemption from import tax on machinery, equipment, specialized transportation vehicles, and construction materials (not produced domestically) to create fixed assets.
• Exemption from import tax for 5 years for raw materials, supplies, and components not able to  produced domestically 

Land rental

• Land rental rates according to the price framework issued by the Thanh Hoa Provincial People’s Committee and stable for many years.
• Tax exemption for the first 11 to 15 years of project operations, depending on the project’s sector.
• Tax exemption from land rental fees for the entire project duration for projects in specially incentivized investment sectors as decided by the Government.

Logistics upport 

Support for container cargo transportation through Nghi Son Port:

• 20-foot container: 700,000 VND/container
• 40-foot container: 1,000,000 VND/container

Source: Redsunland

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Website: https://www.rslgroup.vn/
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