VSIP I Industrial Park – Binh Duong – avaconsult.en

VSIP I BINH DUONG INDUSTRIAL PARK

Province

Binh Duong

Occupancy Rate

100%

Area

500 hectares

Lease Price

80 USD/m2

Details

Industrial Park Name	VSIP I Industrial Park, Binh Duong Province
Location	No. 8 Friendship Avenue, VSIP Building, Thuan An Town, Binh Duong Province
Total Area	500 hectares
Land Rental Price	80 USD/m2
Construction Density	60%
Construction Density	100%

Infrastructure Information

Electrical System	141 MVA
Water System	40,000 m3/day
Sewage System	30,000 m3/day
Traffic System	The planned transportation system is designed with main roads up to 64m wide, and internal roads (branches) up to 24m wide.

1. Project overview and legal information

VSIP I Industrial Park in Binh Duong province (full name: Vietnam-Singapore Industrial Park) was established and developed based on important legal documents of the Government and relevant agencies. Specifically, the project is regulated by Decision No. 870/TTg dated November 18, 1996, of the Prime Minister on the functions, tasks, powers, and organizational structure of the Management Board of Vietnam-Singapore Industrial Park. Simultaneously, the project has also received investment licenses through several adjustment phases with licenses No. 1498/GP (1996), 1498/GPĐC1 (1998), 1498/GPĐC2 (2001), and 1498/GPĐC3 (2004) issued by the Ministry of Planning and Investment. The application for an investment certificate was further completed and submitted in June 2008 by the Vietnam-Singapore Industrial Park Joint Venture Company Limited.

The VSIP I project was officially launched on May 14, 1996, in Thuan An town, Binh Duong province, with the participation of former Vietnamese Prime Minister Vo Van Kiet and former Singaporean Prime Minister Goh Chok Tong, representing the cooperative relationship between the two countries. Over its development, VSIP I has become one of the leading and most successful industrial parks in Vietnam, achieving a 100% occupancy rate and attracting 231 investment projects with a total registered capital of approximately US$3.2 billion.

Overview of VSIP I Industrial Park:

Project Name: VSIP I Industrial Park, Binh Duong Province
Location: No. 8 Huu Nghi Boulevard, VSIP Building, Thuan An Town, Binh Duong Province
Area: 500 hectares
Occupancy Rate: 100%
Operating Period: 50 years (1996 – 2046)
Investment Sectors: Food industry, electrical and electronics, precision mechanics, pharmaceuticals, and other supporting industries

VSIP I is currently considered a model of a modern industrial park, contributing significantly to the industrialization process and attracting foreign investment in Vietnam.

2. Investment costs and incentives

When leasing land or factory space in VSIP Industrial Park, investors will be granted an Investment Certificate with a maximum operating term of up to 50 years, calculated from the date of issuance. Throughout the lease period, businesses also have the right to transfer or sublease to other secondary investors according to regulations.

Regarding operating costs, water prices are applied according to the price framework issued by the People’s Committee of Binh Duong Province. Labor wages (reference from 2019) in Binh Duong and Ho Chi Minh City range from 250 to 500 USD/person/month.

Costs such as electricity, clean water, solid waste and wastewater treatment are calculated according to current regulations of the People’s Committee of the province and the Industrial Park Management Board. In addition, infrastructure management fees are applied at approximately 0.4 USD/m²/year.

Priority investment areas at VSIP I Industrial Park in Binh Duong focus on high value-added and environmentally friendly industries, specifically: high technology, clean manufacturing; electronic component assembly and precision mechanics; and the textile and garment industry.

New investors leasing land or factory space in the industrial park will benefit from attractive incentives such as: exemption from corporate income tax for the first two years, followed by a 50% reduction in tax payable for the next four years. In addition, businesses will receive one month of free support during the initial preparation and installation phase.

3. Geographical location of VSIP I Industrial Park in Binh Duong province

VSIP I Industrial Park in Binh Duong is located in Thuan An town, Binh Duong province, strategically situated at the intersection of two major transportation routes: National Highway 13 and Provincial Road 743. Its proximity to Ho Chi Minh City (approximately 20km) offers investors significant advantages in accessing the modern infrastructure, services, and amenities of the country’s leading economic hub. Furthermore, VSIP I is located near Tan Son Nhat International Airport and major ports such as Saigon Port, facilitating transportation and import/export activities.

Specific distances:

Distance from Ho Chi Minh City center: approximately 23 km
Distance from Tan Son Nhat International Airport: approximately 20 km
Distance from Binh Duong province center: approximately 10 km
Distance from Thong Nhat Railway Station (Saigon): approximately 25 km
Distance from Cat Lai Seaport: approximately 28 km

4. Infrastructure System

VSIP I Industrial Park in Binh Duong is planned with a total area of approximately 500 hectares of industrial land for lease and is expected to expand to 1,000 hectares in subsequent phases. The industrial park is comprehensively invested according to modern standards, including full infrastructure items such as electricity, water supply, waste treatment, telecommunications, and even a power plant to serve production.

The area boasts a solid natural foundation with an average elevation of 25–30m above sea level, allowing businesses to construct factories without complex foundation reinforcement, significantly reducing initial investment costs. The climate is relatively stable, with an average annual temperature of approximately 27.3°C, average humidity of 88%, and a maximum recorded rainfall of around 130mm/day.

The internal transportation system is well-planned and spacious, with a main road up to 64m wide and branch roads up to 24m wide, facilitating the movement of goods. Electricity is supplied from the national grid via the industrial park’s own transformer station with a capacity of approximately 141 MVA, ensuring sufficient power for production needs.

The clean water supply system has a maximum capacity of approximately 40,000 m³/day, while the wastewater treatment plant has a capacity of up to 30,000 m³/day, accompanied by a scientifically designed rainwater drainage system along the internal roads.

In addition, the industrial park is equipped with a fire prevention and fighting system with hydrants evenly distributed throughout the area and a fire station located inside. A modern telecommunications system uses high-bandwidth fiber optic cables, supporting thousands of telephone lines. Furthermore, convenient services such as banks, security, and service offices are located right at the entrance, fully meeting the operational needs of businesses.