While exploiting and promoting its inherent strengths and making efforts to improve the investment environment, Hung Yen is taking important strides in attracting FDI, being chosen by many investors as a place to set up factories and warehouses.
Favorable geographical location
Hung Yen province is located in the northern key economic region and the economic triangle Hanoi – Hai Phong – Quang Ninh, near the seaports of Hai Phong, Cai Lan, and Noi Bai international airport, sharing a border with Bac Ninh province, Ha Tay, Ha Nam, Thai Binh, and Hai Duong. Its convenient geographical location is beneficial for economic exchange and goods circulation; suitable for large factory construction projects.
Hung Yen is located in the northern key economic region, convenient for economic exchanges
Flat terrain
As the center of the Red River Delta, Hung Yen has the typical characteristics of a plain province, without hills or mountains; with relatively flat terrain. This is an advantage in helping the factory construction process take place quickly and easily because contractors can directly build immediately without performing ground leveling.
Hung Yen has a flat terrain, helping to save leveling costs when building a factory
Factors helping Hung Yen to attract FDI
From a locality only having strengths in agriculture, Hung Yen has become one of the bright spots to attract foreign direct investment. Since the re-establishment of the province up to now, there have been 19 countries and territories registered to implement investment projects in industrial parks in the province. By the end of 2021, Hung Yen had had 237 FDI projects put into operation. The total area of land leased and used by secondary FDI projects in industrial zones is 539 ha. The factors that help Hung Yen become a potential destination for FDI enterprises are:
Administrative procedure reformation
Hung Yen simplifies administrative procedures to create the best conditions for investors when coming to the area. The breakthrough of the province is the application of electronic office software to process records and administrative files. Currently, 100% of documents handled, directed, and administered by city leaders and municipal departments and units, and People’s Committees of wards and communes in Bac Ninh are carried out on software.
In addition, Hung Yen is proactively replicating the model of the one-stop-shop and inter-agency one-stop-shop mechanism in the administrative process. The one-stop-shop and inter-agency one-stop-shop mechanism is a regulation that requires local authorities to: Keep the process of receiving and processing documents simple, clear, and laws-based; Publicize administrative procedures, fees, charges, and time for managing the work of organizations and citizens; Receive requests and return results at the same receiving and returning department; The coordination between relevant departments to handle the work of organizations and citizens is the responsibility of local administrative authorities; Ensure quick and convenient work settlement for organizations and citizens.
Such policies help investors save a lot of cost and time to complete all legal procedures before building and operating the plant.
Hung Yen simplifies administrative procedures, creating all favorable conditions for investors
Infrastructure, society and services in industrial zones
The Industrial Parks Management Board of Hung Yen province said that industrial parks in the province are not only well-invested in infrastructure but also develop in society and services.
Infrastructure
The land plots in the industrial zones have been treated, and are ready for building up factories. There being stable power and water supply ensures production conditions. The wastewater treatment system is built with a capacity of up to thousands of cubic meters per day. The system of internal roads in the industrial park is built with a reasonable cross-section, ensuring easy and convenient means of transportation connected to every factory. Lighting systems are installed along the roads. The fire fighting and prevention system has a full water supply system with fire hydrants arranged along the roads of the industrial park. Modern infrastructure, developed in Hung Yen industrial zones, can meet all conditions to operate a production plant.
Yen My Industrial Park has a clean water supply plant with a total capacity of 15,000 m3/day
Society and services
In industrial zones, there are social services such as banks, hospitals, customs, and housing for workers. The facilities available in the industrial park give workers a comfortable life, helping them to work with peace of mind, and contributing to increasing labor productivity in the factory.
Investment incentive policies
Enterprises investing in building factories in Hung Yen are entitled to investment incentives in terms of company income tax and import duties.
Company income tax
Investors are entitled to a tax rate of 10% for 15 years, tax exemption for the first 4 years, and a 50% reduction in payable tax for the next 9 years for income from the implementation of new investment projects in special fields by the law on corporate income tax.
In addition, enterprises are also entitled to the tax rate of 17%, tax exemption for 2 years, and a 50% reduction of payable tax for the next 4 years for income from implementing new investment projects in the following fields: high-grade steel manufacturing; energy-saving products; manufacturing machinery and equipment for agricultural, forestry, fishery and salt production; production of irrigation equipment; production and refining of animal, poultry and aquatic for food…
In addition, enterprises are exempted from corporate income tax for 2 years and reduced by 50% of the payable tax for the next 4 years if implement new investment projects in industrial parks.
Import duties
Investment projects in industrial parks are exempt from import tax on goods created to be fixed assets. Fixed assets may include:
- Equipment, machines;
- Specialized means of transport in the technological chain and means of transport used to carry workers (cars with 24 seats or more, watercraft);
- Components, details, separate parts, spare parts, jigs, molds, accessories accompanying equipment, machinery, special-use means of transportation;
- Raw materials, supplies imported for manufacturing equipment and machinery in technological lines or for manufacturing components, details, separate parts, spare parts, jigs, molds, accessories accompanying the equipment, machines;
- Construction materials that cannot be produced domestically;
- Raw materials, loose parts, spare parts and supplies imported for export production;
- Other goods and materials used for projects specifically encouraged for investment under the State laws.
Such policy significantly reduces freight costs for businesses wishing to build production plants or move warehouses to Hung Yen.
Building factories in Hung Yen is exempt from import tax on goods to create fixed assets
List of industrial zones
Up to June 2021, Hung Yen has 10 industrial areas that have been put into operation. Foreign investment in these industrial parks mainly comes from Japan, China, Korea, Italy, etc. Some large economic groups have built factories in Hung Yen including Daikin, Toto, Panasonic, Kyocera, Hoya, Nippon, etc.
1. Pho Noi A Industrial Park
Location: Located in Yen My district, Van Lam district and My Hao town, Hung Yen province
Scale: 688.94 ha, of which industrial land for lease is 486 ha
Prioritized industries: manufacturing and assembling electrical, electronic, mechanical, automobile, motorbike; manufacturing steel and steel products; producing building materials; processing agricultural products, food, etc.
2. Pho Noi Textile and Garment Industrial Park
Location: Located in Yen My district and My Hao town, Hung Yen province
Scale: 121.81 ha, of which industrial land for lease is 93 ha, the industrial park is 100% occupied
Prioritized industries: Textile and garment industry, mechanical engineering, electronics, chemicals, pharmaceuticals, consumer goods, etc.
3. Thang Long Industrial Park II
Location: Located in Yen My district and My Hao town, Hung Yen province
Scale: 525.7 ha, of which 345.2 ha has been invested in infrastructure and fully filled up; the rest 180.5 ha is under implementation
Prioritized industries: Manufacture of precision mechanical and electronic products; mechanical and electronic industries, traffic machinery, light industry; industrial gas production, etc.
Foreign investors in Thang Long II industrial park are mainly Japanese enterprises
4. Minh Quang Industrial Park
Location: In My Hao town, Hung Yen province
Scale: 150 hectares, industrial land for rent is 115 hectares
Prioritized industries: Electrical industry, electronics, refrigeration, mechanical engineering, agro-forestry product processing industry, food, high-grade building materials, packaging industry, consumer goods production, light industry, and other clean industries, etc.
5. Minh Duc Industrial Park
Location: In My Hao town, Hung Yen province
Scale: 198 hectares, industrial land for rent is 136 hectares
Prioritized industries: Manufacturing and assembling electrical, electronic, and refrigeration equipment; paper production, packaging, and ceramics; processing agricultural and forestry products, and food; production of consumer goods; general light industry.
6. Yen My Industrial Park
Location: Located in Yen My district, Hung Yen province
Scale: 280 hectares, industrial land for rent is 204 hectares
Prioritized industries: High-tech application; manufacturing electrical equipment, electronics, computers and optical products; manufacture of automobiles, motorcycles, machines, equipment and products from prefabricated metal; processing and preserving meat, vegetable and fruit products; beverage production; manufacture of wood products; pharmaceuticals, cosmetics, paints, packaging; Services of Logistics, etc.
7. Yen My II Industrial Park
Location: Located in Yen My district, Hung Yen province
Scale: 313.5 hectares, of which 97.5 hectares have been invested in infrastructure and filled in and 216 hectares are under implementation
Prioritized industries: Manufacturing and assembling electrical, electronic, mechanical, automobiles, motorbikes; manufacturing steel and steel products; processing agricultural products, food, etc.
8. Tan Dan Industrial Park
Location: In Yen My district and Khoai Chau district, Hung Yen province
Scale: 200 hectares, industrial land for rent is 143 hectares
Prioritized industries: Manufacturing, mechanical engineering, automobiles, motorcycles, agricultural machines; electrical, electronic, refrigeration and information technology equipment; office and sports equipment; processing agricultural products, food and applying biotechnology…
9. Kim Dong Industrial Park
Location: Located in Kim Dong district, Hung Yen province
Scale: 100 hectares, industrial land for rent is 51 hectares
Prioritized industries: Manufacturing and assembling electronic and telecommunications equipment, household electricity, refrigeration; software technology; production of consumer goods…
10. Ly Thuong Kiet Industrial Park
Location: Located in Yen My district, Khoai Chau, An Thi, Hung Yen province
Scale: 300ha, industrial land for rent is 214 ha
Prioritized industries: Manufacturing and assembling electrical, electronic and refrigeration equipment; manufacturing, mechanical engineering, manufacturing machinery, equipment, mechanical assembly…
In addition, the province also has Ly Thuong Kiet Industrial Park and Service Urban Area (Yen My District, Khoai Chau District, An Thi District), with an area of 1,988 hectares, which is undergoing investment, construction, and environmental procedures by law; expected to be available for rent in 2022; and prioritizes occupations with high, safe, and low-pollution technology.
Many large economic groups choose Hung Yen to build factories
DELCO has consulted, designed and built many projects for investors from Korea, Japan, and China in Hung Yen such as: DORCO VINA Factory (Pho Noi A Industrial Park), MIE Vietnam Factory (Pho Noi A Industrial Park), ANNEX Electronics Factory (Pho Noi A Industrial Park), etc.
Pham Nguyen Confectionery Factory Construction Project – Delco acts as the construction contractor – designing and building the MEP system.
Renovation of DORCO VINA Factory Construction Project – Delco serves as the general contractor for the construction of the factory in Hung Yen.
MIE Vietnam Factory Construction Project – Delco serves as the general contractor for the construction of the factory in Hung Yen.
Therefore, DELCO knows in detail about administrative procedures, investment incentives, and regulations of the Management Board of industrial zones, etc. to geological, environmental, and infrastructure conditions, etc. in the locality.
Thanks to that knowledge and experience, DELCO can effectively support and advise investors in every stage of factory construction in Hưng Yên, from research, survey, and design – build factories to electromechanical systems (MEP) construction and installation.
Sources: Hung Yen Provincial Portal, Finance Electronic Magazine, Hung Yen Electronic Newspaper, Ministry of Industry and Trade’s Portal,…
Read more: Potential to attract investors to construct factories in Hung Yen
