1. Project overview and legal information
The Hoa Khanh Industrial Park was established by Decision No. 343/QD-TTg dated April 18, 1998, of the Prime Minister. It was part of the former Lien Chieu – Hoa Khanh Industrial Park, with the initial investor being the Quang Nam – Da Nang Construction and Housing Business Joint Venture Company. The industrial park has a planned area of 423.5 hectares, with a total investment of approximately US$49.956 million; of which phase 1 was implemented on an area of 162 hectares with an investment of US$25.632 million.
By 2000, the right to invest in and operate the infrastructure was transferred to the Da Nang Industrial Park Infrastructure Development and Exploitation Company. Subsequently, on March 11, 2002, the People’s Committee of Da Nang City issued Decision No. 1675/QD-UB on the reclamation and allocation of land to this unit for lease to implement phase 2 of the project with an area of 111.5 hectares. Subsequently, according to Decision No. 101/QD-TTg dated January 19, 2009, the area of Hoa Khanh Industrial Park was adjusted to 365 hectares. Currently, according to Decision No. 7161/QD-UBND dated September 18, 2009, of the People’s Committee of Da Nang City, the total planned area of the industrial park is 395.72 hectares.
Hoa Khanh Industrial Park is oriented towards attracting industries such as mechanical engineering, assembly, electronics, garment manufacturing; processing of agricultural, forestry, and aquatic products; production of petrochemical products (packaging, plastics); and high-grade construction materials, mainly on a small and medium scale. To date, the industrial park has attracted nearly 200 investment projects, of which foreign-invested projects account for about 26%, with a total FDI of approximately VND 5,000 billion. The occupancy rate of Hoa Khanh Industrial Park has now reached 100%.
(Land use map of Hoa Khanh Industrial Park)
2. Costs and incentives for leasing land in Hoa Khanh Industrial Park
– Infrastructure rental cost: approximately US$100/m², with land use rights extending until 2048.
– Infrastructure management and maintenance fee: approximately US$0.3/m² per year.
– Land rent without infrastructure: applied according to the price framework stipulated by the Da Nang City People’s Committee.
– Electricity price: ranges from US$0.03 to US$0.1/kWh, depending on the time of day.
– Clean water price: approximately US$0.4/m³.
– Wastewater treatment fee: approximately US$0.28/m³, where the amount of wastewater is calculated as equivalent to 80% of the total water consumption.
Businesses operating in the high-tech and supporting industries sectors are eligible for preferential corporate income tax policies under current regulations. Specifically, the preferential tax rate is 10% for a period of 15 years; tax exemption is granted for the first 4 years, and a 50% reduction in tax payable is granted for the following 9 years. The preferential period is calculated continuously from the first year the business generates taxable income from the project. If no taxable income is generated within the first 3 years after revenue is generated, the tax exemption and reduction period will begin from the fourth year.
Regarding import tax, businesses are exempt from import tax on goods imported to create fixed assets for the project. These exempted items include: machinery and equipment; specialized transport vehicles used in the production line and vehicles for transporting workers; components, parts, spare parts, molds, and accompanying accessories. Raw materials and supplies used to manufacture machinery, equipment, or related components; as well as types of construction materials that are not yet produced domestically.
3. Geographical location
Hoa Khanh Industrial Park is located in Hoa Khanh Ward, Lien Chieu District, Da Nang City. The area has clear geographical boundaries: bordered to the north by residential areas and National Highway 1A, to the south by residential areas, to the west by the foot of Phuoc Tuong Mountain, and to the east by National Highway 1A. Its location near the city center and close to residential areas makes it convenient not only for transportation but also for utilizing local labor resources.
Hoa Khanh Industrial Park boasts a diverse and convenient transportation network, allowing quick access to important hubs via various modes of transport such as road, rail, sea, air, and inland waterways. Specifically, the industrial park is approximately 20 km from Tien Sa Port, 10 km from Da Nang International Airport, 10 km south of the city center, 9 km from the railway station, 13 km from Han River Port, and 5 km from Lien Chieu Port.
Located within Da Nang’s developing urban area, Hoa Khanh Industrial Park benefits from the city’s comprehensive infrastructure and services. Da Nang is currently one of the important financial centers in the Central and Central Highlands regions, with dozens of bank branches in operation. In addition, the city is one of the three major postal and telecommunications centers in the country, providing a full range of modern services. Regarding healthcare, the industrial park is close to many reputable medical facilities, such as Da Nang Hospital, approximately 9.5 km to the southeast, and Lien Chieu District Health Center, only about 1.1 km away.
4. Infrastructure system
The Hoa Khanh Industrial Park boasts a comprehensive and modern infrastructure system, effectively meeting the production and business needs of enterprises operating within the park.
Regarding internal transportation, the road network is rationally planned with a main axis 24.5m wide, and internal roads 15m and 10.5m wide. The total length of the internal road system is approximately 19.29 km, along with 2.56 km of connecting roads to national and provincial highways. The roads are designed in a grid pattern, facilitating easy access to each plot of land.
For the power supply system, the industrial park uses electricity from the national grid via the 500kV Hoa Cam substation (Cam Le district). In addition, the industrial park is equipped with two intermediate substations: 110/22kV – 40MVA and 22kV/0.4kV – 0.23kV. The power grid system is fully invested in, ensuring a stable electricity supply to each factory.
Regarding water supply, clean water is supplied from the Airport Water Treatment Plant with a capacity of approximately 30,000 m³/day, ensuring supply to the boundaries of each enterprise within the park.
The drainage and wastewater treatment system is built synchronously, separating rainwater and wastewater. Rainwater is collected through a system of sewers and ditches and discharged directly into the river. Meanwhile, industrial wastewater is pre-treated at each factory to meet Class B standards, then further channeled to a centralized treatment plant for treatment to meet Class A standards before being discharged into the environment. The industrial park currently has one wastewater treatment plant with a capacity of 5,000 m³/day, which has been operational since 2007.
In terms of telecommunications, the communication system is fully invested in with telephone networks, ADSL, and Internet readily available to each enterprise. The service is provided by major domestic network operators, ensuring stable transmission speeds and effectively meeting the needs of production and business operations.
(Centralized wastewater treatment system of Hoa Khanh Industrial Park)
