Yen Bang Industrial Cluster, Nam Dinh Province

Yen Bang Industrial Cluster was established according to Decision No. 1232/QD-UBND dated June 11, 2019, and approved for detailed planning at a 1/500 scale under Decision No. 1358/QD-UBND dated June 10, 2020, issued by the Nam Dinh Provincial People’s Committee. Accordingly, Yen Bang Industrial Cluster covers an area of 50 hectares with a total investment of nearly 500 billion VND. On March 25, 2021, the Nam Dinh Provincial People’s Committee held the groundbreaking ceremony for the infrastructure construction project of Yen Bang Industrial Cluster in Y Yen District, Nam Dinh.

 I. Overview of Yen Bang Industrial Cluster

 Below is an introduction by RSL Group about Yen Bang Industrial Cluster:

• Name: Yen Bang Industrial Cluster
• Location: Yen Bang Commune, Yen Hong Commune, Y Yen District, Nam Dinh Province
• Area: 50 hectares
• Operation period: 50 years (2019 – 2069)
• Occupancy rate: 10%
• Preferred industries: High-tech supporting industries, mechanical engineering and machinery manufacturing; production of automotive components and parts; production and assembly of electronics and electrical equipment; mechanical repair of equipment, precision mechanics, assembly; production of medical equipment; other industries.
• Labor force: A young and highly qualified workforce, with over 69% of the province’s total population of 2.15 million in working age. More than 30,000 workers are formally trained each year. The industrial cluster is located at the center of a labor market with over 6,000,000 people, connecting the four provinces of Thai Binh, Nam Dinh, Ha Nam, and Ninh Binh. The rate of trained workers accounts for 42.3%, with competitive labor costs: from 3,010,000 VND/person (~128 USD/person).

II. Location of Yen Bang Industrial Cluster

Located in the southwest of Nam Dinh Province, Yen Bang Industrial Cluster is situated in Yen Bang Commune and Yen Hong Commune, Y Yen District, with convenient transportation which is adjacent to major roads, lying on the North-South Expressway and National Highway 10. 

Connection: 

• To the Northeast: Adjacent to Hanoi – Ninh Binh Expressway.
• To the Northwest: Adjacent to National Highway 10 in Yen Quang Commune.
• To the South: Adjacent to agricultural land.
• To the West: Adjacent to agricultural land (according to the plan).

The prime location allows Yen Bang Industrial Cluster to easily access and trade with regional economic centers such as Hanoi, Hai Phong, Quang Ninh, as well as domestic and international markets.

Distance:

• To the center of Ninh Binh City: 7km
• To the center of Nam Dinh city: 25km
• To the center of Hanoi Capital: 85km
• To Noi Bai International Airport: 115km
• To Cat Bi Airport, Hai Phong: 125km
• To Hai Thinh Port: 60km
• To Hai Phong Port: 125km
• To Cai Lan Deepwater Port: 160km

III. Infrastructure in Yen Bang Industrial Cluster

Yen Bang Industrial Cluster has an area of 50 hectares (with plans to expand to 75 hectares). The project is planned to be equipped with modern infrastructure to provide the best conditions for businesses operating here. 

Internal road system: 

• Road density: 4-13.3 km/km²
• Minimum road land ratio: 8%
• Lane width: 3.0 – 3.75 m/lane
• Pedestrian lane width: 0.75 m/lane

Power supply system:

Modern investment with high transmission capacity from the 35kV line of Nam Dinh Power Company, ensuring stable power supply for production. The control and transformer areas are built separately from the factory area. The power transmission system is designed according to strict safe standards.

• Operations management and service area: 0.025 kW/m² floor area
• Factory construction area: 250 kW/ha
• Technical infrastructure area: 100 kW/ha
• Power factor: 0.85

Clean water supply system:

The clean water supply system, with a total usage demand of 1800 m³/day-night, is uniformly invested up to all factories. The large capacity water supply system ensures stable supply, meeting the production needs of businesses.

• Water supply for production: 22 m³/ha-day-night
• Water supply for the operating and service center: 2 l/m² floor area
• Plant irrigation water: 3 l/m²
• Road washing water: 0.5 l/m²
• Leakage reserve: 18%∑Q
• Water supply for the industrial cluster’s : 4%∑Q

Wastewater treatment system:

Wastewater is collected to the industrial cluster’s treatment plant, with a processing capacity of 800 m³/day-night. Using a combined physical-chemical treatment technology, the equipment operates with modern imports from EU and G7 countries. The wastewater discharge indicator is 80% of the water supply indicator.

Treated wastewater meets the A standard according to QCVN-40/2011/BTNMT before being discharged into the environment.

Fire protection system:

The industrial cluster is equipped with a fire warning, prevention, and fighting system that strictly complies with national regulations. Fire hydrants are placed at internal traffic hubs and around all factories. The hydrants are connected to a separate, high-pressure, reserved fire pump station, ready for use in case of an emergency.

Telecommunication system:

Modern telecommunication system meeting international standards.

Operations management area and public service area: 1TB/500 m² floor area

Factory construction land: 1TB/500 m² floor area

Future reserve: 10%

Other amenities: 

Yen Bang Industrial Cluster is located between the center of Y Yen District and Ninh Binh City center, making it highly accessible to important regional and provincial transportation routes, as well as numerous major hospitals, banks, sports & entertainment facilities, hotels, and tourist attractions.

IV. Investment Incentives of Yen Bang Industrial Cluster

Investors  in Yen Bang Industrial Cluster are entitled to the following investment incentive policies:

1. Import tax exemption for:

• Industrial equipment, machinery, and components
• Transportation vehicles serving within the industrial cluster
• Construction materials not yet produced in Vietnam
• Imported raw materials and supplies for processing and exporting
• Raw materials for production within 5 years from the start of production for the categories: manufacturing mechanical, electrical, and electronic components and parts

2. Exemption from value-added tax (VAT) and tax on profit repatriation

• Exemption from VAT for imported raw materials used for manufacturing and processing export goods under manufacturing and processing contracts signed with foreign parties
• Complete exemption from tax on profit repatriation

3. Preferential tax rate of 10% for 15 years:

Businesses in Yen Bang Industrial Cluster are eligible for 4 years of tax exemption, followed by a 50% reduction in payable tax for the next 9 years for industries/fields such as:

• High technology, renewable energy, new materials
• Green, environmentally friendly technology
• Supporting industrial products for manufacturing sectors: textiles and garments, leather and footwear, electronics and informatics, automobile manufacturing and assembly, mechanical engineering

4. Support from the infrastructure developer: 

Besides facilitating the construction of infrastructure and factories, and connecting investors to reputable construction and transport companies, the developer of Yen Bang Industrial Cluster will assist in connecting investors with relevant provincial authorities to complete legal procedures such as:

• Investment license application procedures
• Personnel registration procedures
• Tax code registration procedures
• Construction permit application procedures
• Fire prevention and fighting, environmental impact assessment, and environmental protection commitment procedures