TAN PHU 1 AND TAN PHU 2 INDUSTRIAL CLUSTERS, THAI NGUYEN PROVINCE

Tan Phu 1 and Tan Phu 2 Industrial Clusters were established under Decision No. 1188 and 1166 dated April 14, 2021 of Investment Policy. The project was approved for investment by the People’s Committee of Thai Nguyen province on May 12, 2025. Accordingly, the total investment capital of the two Industrial Clusters is over VND 1,211 billion, with a total area of 131 hectares. Tan Phu 1 Industrial Cluster spans 74.5 hectares with a total investment of over VND 496 billion; while Tan Phu 2 Industrial Cluster covers an era of 56.5 hectares with a total investment of over VND 403 billion.

The progress of the Tan Phu Industrial Cluster 2 project is divided into 2 phases:

• The period from Q2/2025 to the end of Q4/2025: The project focuses on compensation, support, resettlement, and the implementation of investment and construction procedures.
• From Q1/2026 to the end of Q3/2026: Technical infrastructure will be completed and the industrial cluster will be put into operation.

I. Overview of Tan Phu Industrial Clusters

• Name: Tan Phu 1 Industrial Clusters, Tan Phu 2 Industrial Clusters
• Location: Dong Cao Ward, Tan Phu Ward, Pho Yen City, Thai Nguyen Province
• Total area: 131 ha (Tan Phu 1 Industrial Clusters: 74.5 ha; Tan Phu 2 Industrial Clusters: 56.5 ha)
• Operation period: 50 years (2025 – 2075)
• Occupancy rate: Updating
• Permitted industries: Manufacturing and mechanical assembly industries, Industrial machinery and equipment for manufacturing, consumer goods production for domestic use and export, construction materials manufacturing, assembly of electrical, electronic products, motorcycles, automobiles, etc

The groundbreaking ceremony of the Tan Phu 1 and Tan Phu 2 Industrial Clusters projects was held on November 2, 2022, in Pho Yen City, Thai Nguyen Province. With a strategic location and modern, synchronized infrastructure investment, Tan Phu 1 and Tan Phu 2 Industrial Clusters are expected to become model industrial clusters nationwide, developing into green, smart logistics hubs and regional supply chain centers. The project aims to attract high-tech investment projects, generate high added value, bring economic efficiency to both investors and local authorities, create thousands of jobs, and significantly contribute to the economic growth targets and investment environment improvement of Pho Yen City and Thai Nguyen Province.

II. Location of Tan Phu Industrial Clusters

Directing link to the Hanoi – Thai Nguyen Expressway, it takes only 30 minutes to travel from these two Industrial Clusters to Noi Bai International Airport, 1 hour to reach downtown Hanoi, and 2 hours to access major ports such as Cai Lan Port (Quang Ninh) and Dinh Vu Port (Hai Phong).

In addition, the Tan Phu Industrial Clusters project benefits from transportation connections to National Highway 3, which leads directly to the border with China.

Distance to key locations: 

30 km from industrial clusters to Noi Bai International Airport

141 km from industrial clusters to Hai Phong International Port

142 km from industrial clusters to Lang Son Border Gate

162 km from industrial clusters to Quang Ninh Deep-Water Port

III. Infrastructure in Tan Phu Industrial Clusters

Tan Phu 1 and Tan Phu 2 Industrial Clusters are invested with synchronized and modern technical infrastructure, ensuring the supply of electricity, telecommunications, water supply and drainage, wastewater treatment. Furthermore, all the infrastructures meet the requirements and standards of a modern, sustainable Industrial Cluster.

Below is the detailed infrastructure planning for the Tan Phu 1 and Tan Phu 2 projects:

• Power Supply System: A 110kV/22 – 63kVA medium-voltage substation is located in the northern area of Tan Phu 2 Industrial Cluster (invested and constructed by EVN Thai Nguyen, expected to be completed in September 2022). A 22kV power line supplies electricity to each land lot.
• Clean Water Supply System: A water supply plant for both clusters with a capacity of 4,300 m³/day.
• Wastewater Treatment System: A centralized wastewater treatment plant for Tan Phu 2 with a capacity of 2,800 m³/day.
• Telecommunications System: An underground fiber optic cable line is built from the regional telecommunications center to the internal switchboard of the Industrial Cluster, located in the administration and service zone, and then distributed to usage points.
• Firefighting System: Fire hydrants are installed along the main roads within the Industrial Cluster

IV. Investment costs in Tan Phu Industrial Clusters

• Infrastructure management fee: USD 0.5/m²
• Electricity price: According to EVN regulations
• Water supply price: According to the service provider’s regulations
• Wastewater treatment fee: USD 0.5/m³

V. Investment incentives in Tan Phu Industrial Clusters

Enterprises operating in Tan Phu 1 and Tan Phu 2 Industrial Clusters are entitled to the following investment incentives:

• Land rent exemption for 7 years
• Corporate income tax (CIT): 17% tax rate for 10 years; tax exemption for the first 2 years and a 50% reduction for the following 4 years
• Import and export tax exemptions for EPE (Export Processing Enterprises)

Additionally, manufacturing enterprises in Tan Phu 1 and Tan Phu 2 Industrial Clusters will receive support from the infrastructure developer in handling investment procedures such as:

• Business registration
• Investment registration
• Construction permits
• Environmental permits, etc.

VI. Enterprises Operating in Tan Phu Industrial Clusters

At the groundbreaking ceremony of Tan Phu Industrial Cluster on November 2, 2022, the investor signed a Memorandum of Understanding (MOU) with Sea Logistics Company Limited (SLP) to develop over 20 hectares of Ready-Built Factory (RBF), or  Ready-Built Warehouse (RBW) for lease within the cluster.

At the same time, the investor also signed a cooperation agreement with BW Industrial Development Joint Stock Company (BW Industrial). Under this agreement, BW will collaborate in the research and development of projects covering up to 20 hectares across the two Tan Phu Industrial Clusters, focusing on smart warehouse systems, ready-built factories, and supporting facilities.

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This article highlights Tan Phu 1 and Tan Phu 2 industrial Clusters as a prime investment location for both domestic and international businesses. We trust this information from RSL Group is valuable to our readers.

>> Discover more about Tan Phu 1 and Tan Phu 2 Industrial Clusters here

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