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Industrial Parks and Economic Development Zones in North Vietnam

Vietnam is just like other developing countries in Asia in that there are a large number of industrial parks waiting to welcome foreign investors.  The reality however is that many of what may appear at first blush as quite attractive investments may with later reflection and investigation have unwanted complications or potential negatives to an investors plans.  We always recommend that all investors perform the necessary due diligence and consider all aspects of the potential areas welcoming their investment.  There is just no substitute for research, research and more research.  We also strongly recommend working with a professional firm like Runckel & Associates that can assist you in selecting the industrial park which best fits the requirements of your project.  Below is a list of some major industrial parks in the North of Vietnam.  We believe Northern Vietnam can be a good fit for many projects and encourage more investors to seriously study the investment opportunities awaiting them in these and other industrial parks throughout Vietnam.

Read our insight article: Thailand and Vietnam: Picking the Right Industrial Park

List and information of IP and EDZ in North Vietnam shown below:  Noi Bai IZ | Daewoo-Hanel IZ | Dai An Industrial Zone | Dai Tu IZ | Dinh Vu IZ | Hai Phong 96 EPZ | Nam Sach Industrial Zone | Nomura - Haiphong (NHIZ) | Pho Noi Bai IZ | Phu Thai IZ | Phu Dien Industrial Zone | Sai Dongi IZ(SIZ) | Thang Long IP (TLIP)


 

Noi Bai IZ


Location

20 km from the center of Hanoi City
30 km from Noi Bai International Airport
125 km from Hai Phong Port

Establishment in 1994
 

Investor Nationality Vietnamese-Malaysian
(Hanoi Industry Construction Co. 30% / Renong Company 70%)

NBIZ is jointly-operated by Vista Spectrum (M) Sdn Bhd, a wholly-owned subsidiary of Opus International Group PLC of Malaysia (formerly known as Kinta Kellas PLC) and Hanoi Industrial Construction Company of Vietnam.
 

Scale Development Area: 100 ha
Sellable Area: 66 ha
Leased Area: 11 ha
(17% are occupied) 
Total FDI projects 13 (total of 1998-2003) 
Total FDI registered capital US$ 79,795,000 (total of 1998-2003) 
 

No.of tenants approx. 19 
Present tenants include companies from Japan, USA, China, Taiwan, Korea, Singapore and Malaysia

Located in the area where investment is encouraged by the Government, this industrial zone has benefited greatly from tax incentives from the Vietnamese Government and is one of the more developed industrial zones in the North.
The second phase of the industrial zone is expected to be ready for occupancy by April 2006.

Investment licenses are issued for free of charge.

Infrastructure

 

Power supply
Provided by National electricity grid, 110kv/20kv, 40MVA,
Nine transformers (20kv / 415 v / 240 v).
 

Water supply
There is a water processing station with a capacity of 1000 cm3 per day.
 

Sewage treatment
There is a sewage treatment system.
 

Tele-communications
2000 lines, available for 24 hours a day.
 

Other facilities
Management office, Custom Office, bus stops, shops, petrol stand, water purification plant, substation, etc.

List of Major Tenants

1. Sumitomo Metal  (VSP) 
2. Vietnam Steel Products 
3. United Motor [Chinese]
4. Vietnam Safety Products & Equipment 

5. Armstrong Component Parts VN [Malaysia] 
6. Nippo Mechatronics VN
etc...

Daewoo-Hanel IZ

Establishment in 1996

Location 9 km from the center of Hanoi City
94 km from Hai Phong Port

Owner: Daewoo Hanel Company is a 60:40 joint venture between Republic of Korea's Daewoo Engineering and Construction Company (60%) and Ha Noi Electric Company (40%).  This is one of the North's major industrial parks.
Area: 407 ha, planned with 3 functions: 197 ha for Industrial zone; 100 ha for housing and 110 ha for a green Park.

Scale Development Area: 197 ha
Sellable Area: 150 ha


Dai An Industrial Zone

Location: Tu Minh Commune, Hai Duong City and Lai Cach Town, Cam Giang District.  Area 170 ha, total capital to be invested: VND 259.83 billion. Investor is Dai An Joint Stock Company (Head office: 15E, Son Tay, Hanoi)

- Location of the Industrial Zone

51 km away from Hanoi Capital
50 km away from Hai Phong City
90 km away from Noi Bai Airport - Hanoi

- Business in the Industrial Zone:

Textile, garments, leather foot wares, consumer goods;
Foodstuffs and agricultural product processing;
Manufacture of accessories, machinery assembly, electronic equipment manufacture and assembly.
Making porcelain, terra-cotta, glassware;
Making handicrafts and fine art articles and some other crafts.

- Land rent with infrastructure available: USD 0.4 - 0.7/m2/year for a duration of 49 years maximum.

- Infrastructure is under construction.


Dai Tu IZ

Location 8 km from the center of Hanoi City
90 km from Hai Phong Port.

Establishment in 1995
Owner: Taiwanese (100%)
Scale Development Area: 40 ha
Sellable Area: 30 ha

The preferred investment is electronic products, food processing, sewing and garments, domestic appliance production.
There is a road linking to Highway No.5, the vital artery linking Hanoi to the largest port, Hai Phong.


Dinh Vu IZ

Location - 5km from Hai Phong City's Center

2km from Hai Phong ports
12km from Cat Bi airport (Haiphong)
8km from the central railways station, railways link to the site is in the international network Hai Phong - Ha Noi - Lao Cai - Con Minh (China)

Establishment in 1997
Owner: Vietnamese
Scale Development Area: 164 ha
Sellable Area: 130 ha

It is divided into three parts, an export processing zone, an industrial park, and a residential area.
The zone is directly connected to National Highway 5 and will be connected to Haiphong, Hanoi and China by railway.

Land rental rate In the period of 2002 - 2004:

Zone I (land area adjacent to water front and the port berth) 45 - 90USD/m2/50 years
Zone II (land area adjacent to the port) 40 - 75USD/m2/50 years
Zone III (remaining areas) 35 - 50USD/m2/50 years


Hai Phong 96 EPZ

Location

121 km from the center of Hanoi City 
15 km from Hai Phong
17 km from Hai Phong Port

This IZ is located along Highway 14 (linking Hai Phong and Do Son

Establishment in 1997
Scale Development Area: 150 ha
Sellable Area: 110 ha 

Nam Sach Industrial Zone

Location: Nam Dong Commune and Ai Quoc Commune, Nam Sach District

3 km from Hai Duong City

50 km away from Hai Phong

Facing Highway 5 in the south and Highway 183 in the north

Nam Sach Industrial Zone has a total area of 63 ha.

 

Nam Quang Company Limited (Hai Duong) is the investor with total invested capital of VND 86,6 billion.


At the end of September 2003, Investor has carried out infrastructures items valued at VND 49 billion.  Status of this is as follows: land filling and leveling has been basically completed, 80% of the items such as internal traffic roads, lighting system, water drainage system has been finished. 15 investors have invested in renting land in the Industrial Zone, several enterprises are building factories. The area for lease in NSIZ has been fully acquired.


Nomura - Haiphong (NHIZ)

Location

15 km from Hai Phong International Airport (15mins)
13 km from the centre Hai Phong City
85 km from the centre Hanoi City (60mins by car)
15 km from Hai Phong Port
110 km from Noi Bai International Airport

Haiphong is the major Northern port in Vietnam and because of this has a strategically important position in the northern economic zone. The Government has invested funds to build, renovate and upgrade the infrastructure such as the national highway, railway, international port, airport, and water and power plants. These facilities are very convenient for developing the industry, trade and tourism.


Nomura-Haiphong Industrial Zone is situated in An Hai District, Haiphong City . It has a very convenient position for transport: 85 km from Hanoi by National Highway 5, 13km from the downtown of Haiphong City, 2km from the railway station, 15km from Haiphong Port and 20km from Cat Bi Airport.


From Haiphong Port, the biggest port in northern Vietnam, there are routes to Singapore, Hong Kong, Taiwan (Kaohsiung, Keelung), South Korea (Pusan) and China (Shekou).


The industrial park covers 153 hectares, including 123 hectares for factories and 30 hectares for public utilities.

Establishment in 1997
Owners: Japanese-Vietnamese
(Nomura/JAFCO Investment (Asia)Ltd. / Nomura-Haiphong IZ Development Corp.)
 

Scale Development Area: 153 ha
Sellable Area: 123 ha
Leased Area: 27.37 ha
(22% are occupied) 
Total FDI projects about 36 (total of 1998-2003) 
Total FDI registered capital US$ 221,467,508 (total of 1998-2003)

No.of tenants approx. 25 
 

National Highway No.5 is adjacent and connects Haiphong with Hanoi within about 90 mins.

Procedures for investment license application are carried out in Haiphong
Supporting amenities Onsite Post-Office, Custom Office, Bank and Clinic.
Targeted industries High-tech, precision metal processing, electrical and electronic products, informatics and telecommunication equipment, machining, plastic molding products, high quality home appliances, automobile parts.

Utilities

  • Power supply: a private 50M W power plant ensures the stable supply of high quality power to hi-tech businesses.

  • Water supply: a source of water from the Vat Cach Water Plant with a capacity of 13,500 cu. meters per day.

  • Waste water treatment: a plant with a capacity of 10,800 cu. meters per day treats waste water by the microbiological method.

  • Ready-built standard premises: four four-floor factories with an area of 1,470 sq. meters per floor for light industry; two one-floor factories with an area of 1,460 sq. meters per house for heavy industry.

  • Fire control: hoses are installed along both sides of the internal roads. The fire brigade of An Hat District is stationed nearby

  • On the spot services: a post office (1,000 phone numbers for the first stage and 1000 numbers for the second stage), customs, and a bank

Transport

 

- Internal roads: the main and auxiliary asphalted roads have widths of 30m and 20m and can acomodate very large trucks.
- External roads: the northern beltway and the southern road of the city are all built to international standards.  These lead to the port and airport.

Support and incentives

 

- Aside from incentives for import tax, VAT, and corporate income tax, hi-tech businesses in the Nomura-Haiphong Industrial Zone are exempted from the corporate income tax for eight years since the first year of profit.
- Foreign investors can use the natural land in the industrial park free of charge for 5-15 years and are offered 20-30% of the expense for training local workers.
- HEPIZA deals with administrative procedures and supplies labor quickly, conveniently and free of charge.
- NHIZ helps investors draft and develop projects for approval quickly and simply for no fee.
 
Investment attraction By March 2002, the NomuraHaiphong Industrial Zone leased 11.61% of the industrial land and all the ready-built standard premises to 15 foreign-owned businesses which registered to invest USD 89.78 million. These businesses engage in producing robots, electronic components, paper, processing adornments and so forth.

Infrastructures Nomura-Haiphong Industrial Zone has modern infrastructure.
An independent power station of 50 MW, a wastewater treatment plant, a telephone switchboard of 2,000 lines and other public facilities, this industrial park is now ready to accommodate over 100 new tenants.

List of major tenants

1. Rorze Robotech Inc. 
2. Hop Thinh Co., Ltd. 
3. As'ty Vietnam Co., Ltd.
4. Hi-Lex Vietnam Co., Ltd. 
5. Ortec Chemical Co., Ltd. 

6. Estelle Vietnam Inc. 
7. Meicorp Vietnam INC. 
8. PV Haiphong INC. 
9. Nichias Haiphong Co., Ltd. 
10. Yazaki Haiphong Vietnam Co., Ltd. 
11. Hiroshige VN Corporation 
12. Nishishiba Vietnam Co., Ltd. 
13. Office Xpress Manufacturing Co., Ltd.
14. Fong Tai Paper [Taiwan]
15. Vietphong Garment
16. Maiko Haiphong Co.
17. R & T Manufacturing
18. VINA BINGO 

19. BT Garment [Hong Kong]
20. Vn Hoa Nguyen Garment
22. Shin Yong Chemical [Korea]
24. May 1 Garment (VN) Co. [Hong Kong]


Pho Noi Bai IZ


Establishment in 2003
Owner:  Vietnamese - Viet Nam Textile and Garment Corporation (Vinatex)
 

Scale Development Area: 25 ha
Total FDI projects 0 (total of 1998-2003) 
Total FDI registered capital US$ 0 (total of 1998-2003) 


Phu Thai IZ

Location: Phu Thai town let, Kim Thanh District.

Area: 72 ha

Phu Thai Industrial Zone was approved by the Government to be listed as a the national Industrial Park. Two enterprises are in operation already and are Dong Tai Garment Company and Nam Minh Packing Company. Several additional enterprises are in process of starting additional factories.


Phu Dien Industrial Zone


Location of the Industrial Zone:

35 km away from Hanoi Capital
66 km from Hai Phong City
78 km from Noi Bai Airport - Hanoi
127 km from Cai Lan Port - Quang Ninh

Location: in Cam Phu Commune and Cam Dien Commune, Cam Giang District, in an area of 96 ha. Total capital to be invested will be: VND 149,875 billion. Investor: Construction Company No. 2 under Hanoi Construction Corporation.

Phuc Dien Industrial Zone has been approved by the Government to be listed as a National Industrial Park. Construction Company No. 2 - Hanoi Construction Corporation is approved by the Provincial People's Committee as Investor of infrastructure building and business, and permitted to make feasibility report.
Total capital needed: VND 149,875 billion
 

Types of Businesses targeted by Industrial Zone:


- Mechanical fabrications, assembly and electronics;
- Processing of foodstuffs and agricultural products;
- Textile, garment and consumer goods;
- Making traditional fine arts and handicrafts and other local crafts.



Sai Dongi IZ(SIZ)


Location

8 km from the center of Hanoi City
90 km from Hai Phong Port
5 km to National Highway No.1

Establishment in 1996
Owner: Vietnamese-Korean
(Hanoi Electronics Corporation (HANEL) / DAEWOO Corporation)


Scale Development Area: 97 ha [Phase1, completed], 150 ha [Phase2, completed], 150 ha [Phase3, under develop.], 175 ha [Phase4, under develop.]
Sellable Area: 73 ha
Leased Area: 39 ha
(53% occupied) 

Total FDI projects 25 (total of 1998-2003) 
Total FDI registered capital US$ 321,744.320 (total of 1998-2003) 
No.of tenants approx. 8 

Located adjacent to the National Highway No.5, connecting Hanoi and Hai Phong Port which is the country's third largest city and the most important port in the Northern part of Vietnam.


For future plans, HANEL is planning to provide public facilities such as school, hospital, residential buildings, shopping centre, parks for the tenants.

Infrastructure

 

WATER SUPPLY
The Hanel's water system can provide 10,000 cubic meters of water according to the Vietnamese standard (TCVN). Clean water will be provided by HANEL to the boundary of tenants plots on contract basis between HANEL and tenants.

ELECTRIC SUPPLY
Electricity will be guaranteed to supply by Hanoi Power company through six transformer stations with capacity of 50 MVA and 22KV output voltage.

COMMUNICATION FACILITIES
The Vietnam Post and Telecommunications (VNPT) will control and operate communication services in the SIZ. Tenants will sign a contract with VNPT for telephone and other communications services.

ROAD INFRASTRUCTURE  IN SIZ
The SIZ has a main road which is 26m wide and is designed with a loading capacity of 30DH as well as the system of lane road with 20.5m wide.

 

DRAINAGE
Hanel will provide drainage to the boundary of tenants plots. Tenant's waste treatment systems must have approval from the Vietnamese Ministry of Sciences -Technology and Environment.

INDUSTRIAL WASTE
Each tenant firm submits its treating waste system for approval of Ministry of Sciences - Technology and Environment. Industrial waste of each plant will be treated according to approval of Ministry of Sciences Technology and Environment.

OTHER FACILITIES

Hanel will in the future provide other social facilities such as school, hospital, housing, shopping, park and so on to meet the demands of tenants.

SCALE AND DEVELOPMENT


The Sai Dong B Industrial Zone is covering 97 ha. It includes 78.38ha of land for industrial development and a further 18.73ha for auxiliary construction. Tenants will the bound to follow the Vietnamese Government Environmental Impact Regulations with regard to noise and air pollution and waste disposal.

OTHER FACILITIES
The Sai Dong B Industrial Zone (SIZ) is located in Gia Lam district to the East of Hanoi which is the capital city of Vietnam.

The SIZ is located about 8km from the centre of Hanoi and within easy reach of Gia Lam domestic and Noi Bai International Airport.

Being only 94km from Haiphong on the recently upgraded road system, railway and being only 5km from National highway Road No.1A, the main highway from north to south Vietnam. The SIZ offers excellent access to the northern border provinces as well as to the Central and Southern.

List of Major Tenants

1. Olion-HANEL 
2. Sumi-HANEL 
3. Pentax 
4. ASHIN VN
5. JAEWON VN
etc...


Thang Long IP (TLIP)


Location

Thang Long Industrial Park is located along the highway connecting central Hanoi with Non Bai International Airport .
16 km from the center of Hanoi City (30mins by car)
14 km from Noi Bai International Airport (15mins)
122 km from Hai Phong Port (100mins)
120 km from Cai Lan Port (100mins)

Area

 

With a planned area of 300 hectares, Thang Long Industrial Park has been developed in three phases:
121 hectares for the first phase (already completed), 80 hectares for the second phase, and 99 hectares for the third phase. The industrial park is 8.3 - 10.5m above sea level and 2-3m higher than the surroundings, so it is free from floods.

Establishment in 1997 (Commencement of construction: 1998)
Owners: Japanese-Vietnamese
(Sumitomo Corporation 58% / Dong Anh Mechanical Company 42%)]


Sumitomo Corporation, one of the world's leading integrated trading houses of Japan who holds 58% of the legal capital and Dong Anh Mechanical Company, one of the most successful Vietnamese companies under the Ministry of Construction who holds the remaining 42% of the legal capital. Sumitomo Corporation is a partner in the Rojana Industrial Parks in Thailand and has invested in industrial parks in numerous Asian countries

Scale [Phase1]
Development Area: 121 ha
Sellable Area: 87 ha
[Phase2]
74 ha (completed in Sep.2004)
[Phase3]
89 ha (Construction started from 2005)

Total FDI projects 24 (total of 1998-2003)
Total FDI registered capital US$ 439,623,667 (total of 1998-2003) 
No.of tenants approx. 22 as of 2003. 

 

Various types of support are provided including the One Stop Service, bank, cargo distribution center, post office, general engineering and maintenance companies operating inside the park.  Standard rental factories are available.  
TLIP was the first IP with ISO14001 (certified by BVQI in Feb 2000).  Land rent is negotiable.

Current Investment


Attraction Presently, 13 foreign-invested projects capitalized at nearly USD 200 million are in operation in Thang Long Industrial Park . These include one project of Singapore to produce electrical cables, one of Malaysia to make precision mechanical equipment, and the others of Japan to manufacture printing machines, sanitary ceramics, auto parts and cameras.  Most of the projects in the park are Japanese owned and although park has one of the highest land prices in Vietnam, Japanese companies still continue to invest in this project.

Infrastructure

 

Land Filling Height and Gradients

TLIP is designed to be free from flooding. After filling, the elevation of the site is 8.3 m (27 feet) at the lowest and 10.5 m (35 feet) at the highest above sea level, and it keeps higher elevation by 2 - 3 m (7 - 10 feet) than its surrounding area.


Foundations


The character of the ground soil is sand mixed with silt clay and firm and sound enough for construction of various types of factories. The result of geo-technical survey shows that pilling is not required for the construction of an average type of up to 2-story factory. However, the soil condition is different from point to point, and, therefore, we recommend that tenants should conduct geo-technical tests in their plots before starting construction of factories.

Road System


All roads are asphalted. The main road has six lanes and is 37 - 42m wide. On both sides of this road is a system of lights installed symmetrically at distances of 40m. The auxiliary roads have two lanes and are 2627m wide. Along them is a system of lights arranged in the form of a zigzag at distances of 45m.


Internal roads are classified into two types as shown below. The road system in the park is designed to cope with the increase of traffic volume in the future and traffic characteristics of Vietnam.


- Main Road
Width of the road ranging is between 37 m (121 feet) and 42 m (138 feet).
Asphalt pavement road with 6 traffic lanes for 2 sides.
Street light poles are aligning in parallel with 40 m (131 feet) interval at both sides of road.
3 m - wide (10 feet) median and sidewalk at both sides.
This Main Road, which is as high as the Hanoi Noi Bai Highway, meets Level C in Japanese Traffic Classification.


- Secondary Road
Width of the roads ranges between 26 m (85 feet) and 27 m (89 feet).
Asphalt pavement road with 2 traffic lanes for 2 sides.
Street light poles are aligned in zigzag with 45 m (148 feet) interval at both sides of road.
Sidewalk at both sides.

Water Purification and Supply System

Thang Long IP provides tenants with purified water for industrial use through an iron distribution pipe network.
Thang Long Industrial Park has a water plant with a capacity of 2,000 cubic meters per day.

Wastewater Treatment System


Wastewater from factories is collected through the underground piping network and treated at the in-house wastewater treatment plant before discharging to the drainage canal running along the southern boundary of the park through the effluent pipeline. At the wastewater treatment plant, biochemical oxygen demand (BOD5), chemical oxygen demand (CODCR) and suspended solid (SS) are all measured and treated. The wastewater treatment plant has a capacity of 2,000 cubic meters per day. Here waste water is treated according to the environmental protection standards of Vietnam before being released into the ditches along the southern border of the industrial park 

 

Drainage System


The drainage system is composed of Box Culvert and Covered Open Ditch network and retention ponds. Since the flow capacity of drainage ditches and related structure are calculated with the consideration of recorded data, TLIP can be kept free from flood even in case of heavy storm and typhoon in the rainy season.


Telecommunications System


The internal telecommunication network is underground, with consideration of appearance and safety. 400 lines are available for the Phase 1 (121 ha) and Hanoi Post and Telecom Company has supplied more lines for the future in capacity and quality with optical fiber to accommodate high speed data communication, ISDN, etc.

A system of underground cables with 400 lines was installed for the first phase and has been expanded in the second phase and is again being expanded in the third phase.  Hanoi Post and Telecom Company ensures smooth communication with highspeed transmission of data.

Electricity


TLIP has its own on-site sub-station with capacity of 40MVA x 2 which receives the extra high voltage electricity directly from the national network, through 2 circuits. Via a connection to the new 110kV transmission line from the Hoa Binh Hydraulic Power Plant by the Chem sub-station as one source; and from Pha Lai Thermal Power Plant via Dong Anh sub-station as the second source.  This better ensures the stability of power supply to tenants with less fluctuation of voltage. Transformer and Switch-gear in Chem sub-station was renewed and expanded to 250MVA x 2 in 1999 with financial support from the World Bank.
The internal power distribution system is also underground and is a double loop system for making sure the power supply to the tenant is uninterrupted and reliable enough for manufacturing operation. Tenants receive electricity from ring main units which are installed right at every plots.

List of Major tenants

1. Parker Processing Vietnam Co., Ltd. 
2. Mitsubishi Pencil Vietnam Co., Ltd. 
3. Canon Vietnam Co., Ltd. 

4. Sumitomo Bakelite Vietnam Co., Ltd. 
5. Denso Manufacturing Vietnam Co., Ltd. 
6. TOA Vietnam Co., Ltd. 
7. TOTO Vietnam Co., Ltd. 

8. Sakurai Vietnam Ltd. 
9. Dragon Logistics Co., Ltd. 
10.  Vina KDC Wiring Industries Ltd. )
11. Volex Cable Assembly (Vietnam) Co., Ltd. 

12. Abe Asian Tech Hanoi Ltd.
13. Santomas Vietnam Co., Ltd.


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