BO TRAI HOA BINH - INDUSTRIAL PARK MOTIVATION OF ECONOMIC GROWTH OF HOA BINH PROVINCE

Hoa Binh is located at the gateway of the Northwest region of Vietnam, 76 km from the center of Hanoi Capital in the direction of Highway 6, which is a counterbalance area to the West of Hanoi Capital. The East borders on Hanoi capital, North borders on Phu Tho province; the West borders on Son La and Thanh Hoa provinces, the Southeast borders on Ha Nam and Ninh Binh provinces, which are quite favorable for the development of industrial economy.

In recent years, Hoa Binh province has created many open policies and favorable conditions for investors to invest and produce effectively in the province, in particular: exemption of land rent 11 - 15 years; exempt or reduce from 10% to 50% of enterprise income tax for projects in key fields and areas; exemption of import tax for machinery and equipment; simplify administrative procedures ...

In the coming time, the province also said that it would further promote foreign activities to consolidate and develop good traditional relations as well as expand cooperation with more new partners in new fields with the expectation of increasingly attracting investment, socio-economic development of the province.

According to the information of the Management Board of Hoa Binh Industrial Park, Hoa Binh province has so far attracted 87 projects, including 23 FDI projects with a total registered capital of 605, 4 million USD and 64 domestic investment projects (DDI) with total registered capital of 7,250.14 billion dong. Contributing to that development, the most typical is the Bo Trai Song Da - the economic motivation source of Hoa Binh province.

Bo Trai Song Da Industrial Park was established under the Decision No. 2470 / QD-UBND dated 09/12/2009 by the People's Committee of Hoa Binh province. Bo Trai Song Da Industrial Park is developing according to the trend with industries using high technology, less environmental pollution, giving priority to large investment capital fields.

OVERVIEW ABOUT BO TRAI SONG DA INDUSTRIAL PARK - HOA BINH PROVINCE

Target:

- Taking advantage of the available potentials in the region, creating ground for investors and enterprises to rent and build industrial production plants as planned.

- Ensuring the saving of investment capital, rationally and economically exploiting and using the land fund, ensuring environmental safety and increasing revenue sources for the State budget.

- Creating jobs for workers, contributing to the growth and transformation of the local socio-economic structure.

Da Hop Trading Joint Stock Company has invested in constructing technical infrastructure of Bo Trai Song Da Industrial Park with an area of 68.37 ha, land use term is until June 30, 2064, expected to create jobs for many local workers.

Bo Trai Song Da Industrial Park was established under the Decision No. 2470 / QD-UBND dated December 9, 2009 of the People's Committee of Hoa Binh province in the development planning of Vietnam Industrial Parks approved by the Prime Minister in the Government. No. 2350 / TTg - KTN of December 31, 2008, approved detailed planning of 1/500 scale.

Geographic location and traffic

Bo Trai Song Da Industrial Park is located in Huu Nghi Ward, Hoa Binh City, Hoa Binh Province, this is the focal point of the province's economic development. There are many geographical and transportation features for industrial development such as:

• North: adjacent to Phu Tho province

• South: adjacent to Ha Nam and Ninh Binh provinces

• East: adjacent to Hanoi capital

• West: adjacent to Thanh Hoa and Son La

• 72 km from Hanoi center

• Thang Long Highway (30 km)

Infrastructure and other utilities

Bo Trai Da Song Industrial Park is invested and built with modern and synchronous infrastructure to fully meet the sustainable development standards of an Industrial Park:

- Power system:

The project is located in Hoa Binh city, where the Hoa Binh hydroelectric plant has a capacity of 1900 MW. The electrical system in the industrial park is invested in construction in a synchronous and independent manner with the daily-life electricity, the 22 KV cable system leading to the fence of enterprises.

- Water system:

Provided 24/24 from Song Da Clean Water Plant of Da Hop Investor located in the core of the Industrial Park, exclusively serving Bo Trai Song Da Industrial Park with a capacity of 6,000 m3 / day and night.

- Rainwater drainage system: Being organized in conformity with the current situation and planning the ground leveling, which is a separate drainage system, independent from the sewage drainage system, ensuring thorough drainage according to the principle of gravity.

- Waste water treatment system

Bo Trai Song Da Industrial Park is constructing a wastewater treatment plant with a capacity of 1,200m3 / day and night that can meet the capacity depending on the discharge needs of the factories. Comprehensive collection system, ensuring convenient connection right next to the fence of secondary plants.

Communication systems:

Communication service providers ensure enough connection capacity to businesses in need.

- External transportation: Hoa Binh road, Huu Nghi road, Le Thanh Tong street. In particular, Nguyen Van Troi Street running through the Industrial Park in the Northeast direction has a length of about 868m, the width of the road surface is 14m. The main road is 20m wide, 17.5m wide branches reach H30 load, plastic strip foundation, lighting system, green trees are up to the standard.

- Trees are planned to be planted along internal roads, creating a green, clean and beautiful environment with fresh air, improving the climate and environment for the region. The system of green strips isolated from fences of industrial parks on a large area will have a positive impact to minimize environmental pollution to the ecological environment, contributing to greening vacant land, surrounding public works, services, creating an ecosystem balance.

Labor source of Bo Trai Song Da Industrial Park

With a population of 808,200 people. Of which, the province's social labor is 452,000 people, accounting for 60% of the population. Hoa Binh is located in a large residential area, with the gateway to the Northwest, adjacent to many provinces and cities, which is convenient for attracting laborers in the surrounding areas. In which 20% of employees have received technical and professional training. Having quick access to modern technologies. Meet the needs of investors. IZ will take advantage of abundant human resources with skills and reasonable labor costs. This is an advantage that brings many advantages for investors in recruiting labor and operating production and business.

Investors participate in Bo Trai Song Da Industrial Park

With attractive preferential policies and geographical location, convenient transportation of the Northwestern region, Bo Trai Song Da Industrial Park has attracted many domestic and foreign investors to participate, currently a number of reputable investors have made investments in Bo Trai Song Da Industrial Park as:

+ Sankoh VN Company Limited: 1.46ha scale attracts 1045 employees

+ R technical research limited company: 3.5 ha, attracting 696 workers

+ GGS VN Co., Ltd: 2.2ha scale, attracting 1100 laborers

+ Hoa Binh Knitting Joint Stock Company: 2,4ha

+ Diostesh Vina Company: 1.54 ha scale is expected to attract 1,000 employees

+ Meiko Company: 10.7 ha scale expected to attract 7,000 employees

+ Long Binh Company: scale of 1.0 ha

+ Bandai Company: scale of 2.89 ha

USEFUL INFORMATION FOR INVESTORS IN BO TRAI SONG DA INDUSTRIAL PARK

Time and cost of investment in Bo Trai Song Da Industrial Park

Project period:

- Land lease term till: June 30, 2064

- Investors can lease for long term or transfer or invest

- In the process of hiring investors can sublease or transfer back - to other small investors.

Investment costs:

1. Unit price of land lease in Bo Trai Song Da Industrial Park:

Unit price of land lease: 60-65 USD / m2 / whole project life (expiry date until June 30, 2064) depending on location.

Annual infrastructure service fee: USD 0.3 / m2 / year.

2. Wages: Region wages 3

3. Electricity price:

Investor signs power supply contract with Da Hop infrastructure investor.

The selling price of electricity producers in Bo Trai Song Da Industrial Park will be 5-10% cheaper than the price of electricity specified in Decision No. 2256 / QD-BCT of March 12, 2015 of the Ministry. Industry and Trade (reference price from 1,555 - 2,871 VND / kWh (excluding VAT) depending on the hour of off peak to peak time for voltage from 22kV to less than 110 kV).

4. Price of clean water:

Investor signs a clean water supply contract with Da Hop infrastructure investor.

- In Bo Trai Song Da Industrial Park: VND 8,060 / m3 for manufacturing enterprises; 10,474 VND / m3 with service activities.

The selling price of clean water for manufacturing enterprises in Bo Trai Song Da Industrial Park will be charged 5-10% cheaper than the clean water price prescribed in the Decision No. 291 / QD-UBND dated March 15, 2013 of the Commission. People's Committee of Hoa Binh Province (reference price 8,060 VND / m3 (excluding VAT).

5. Waste water treatment charge:

Investor signs a wastewater treatment contract with Hoa Binh Industrial Zone Authority, receiving input B and output A wastewater, the reference wastewater treatment fee is $ 0.3 / m3.

6. Telecommunication service prices:

The investor signs a service provision contract with the Provider if required.

Fixed phone price (excluding VAT):

- Local area: VND 200 / minute.

- Inter-provincial network: 68 dong for the first 6 seconds, every second for 11.33 dong.

- External network: VND 75.73 for the first 6 seconds, followed by VND 12,62 per second.

Incentives for investment in Bo Trai Song Da Industrial Park.

Hoa Binh is a province in the Northwest region, so it is allowed by the State to carry out special preferential policies on industrial development with regimes such as:

- Corporate income tax:

+ Ordinary projects: preferential tax rate of 17% for 10 years, tax exemption for 2 years, reduction of 50% for 4 subsequent years.

Some priority fields: or preferential tax rate of 10% for 15 years, tax exemption for 4 years, reduction of 50% for 5-9 years; or apply a 10% tax to the project for the life of the project. (Decree No. 218/2013 / ND-CP).

- Land rental: Exemption from land rent for at least 7 years (Decree No. 46/2014 / ND-CP).

- Support vocational training for employees: According to Decision No. 1454 / QD-UBND dated June 3, 2016 of the People's Committee of Hoa Binh province, promulgating the regulation on vocational training support for employees working in enterprises. In industrial parks in Hoa Binh province, enterprises in industrial parks employing 10 or more local laborers will receive 300,000 VND - 1,000,000 VND / worker from Hoa Binh province for vocational training. Specifically:

+ Using from 10 to less than 100 employees: 300,000 VND / employee;

+ Using from 100 to less than 1,000 employees: 500,000 VND / employee;

+ Employing 1,000 or more employees: 1,000,000 VND / labor.