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Last updated: Monday, July 24, 2017

 

Hiep Phuoc Industrial Park: Bright Spot in HCM City

Posted: Thursday, June 15, 2017


From a poor, swampy and deserted land, the southern part of Ho Chi Minh City has today emerged as one of the bright spots in economic development, infrastructure investment and urbanisation. This general achievement is significantly contributed by south-heading development projects such as Tan Thuan Export Processing Zone, Phu My Hung Urban Area, Saigon Premier Container Terminal Company (SPCT) and Hiep Phuoc Industrial Park.

Good location, convenient traffic
Lying adjacent to the heart of Ho Chi Minh City is one of the comparative advantages of Hiep Phuoc Industrial Park, located in Long Thoi and Hiep Phuoc communes, Nha Be district. The industrial park is 15 km from the downtown of Ho Chi Minh City, 20 km from Tan Son Nhat International Airport, and particularly just 10 km from Phu My Hung New Urban Area-the second biggest commercial and financial centre in the city.

In addition, according to economic experts, the biggest difference of Hiep Phuoc Industrial Park over other industrial zones is the deep-water port system inside. It also lies on national and international traffic routes and serves as an economic exchange hub not only for Ho Chi Minh City but also for the southern economic zone and the Mekong Delta. The deep-water ports inside Hiep Phuoc Industrial Park are connected to inland and international waterway systems via Long Tau and Soai Rap passages to reach international seaports, and via the Vam Co River to reach the Mekong River system to Mekong Delta provinces and to Cambodia. As a result, freight can be shipped from and to other industrial parks or inland clearance depots (ICD) in the region.

Diversified product, service and utilities
Another plus of Hiep Phuoc Industrial Park to exert a pull on investors is the range of good investor supports. Prefabricated workshops with multiple area choices for small and medium enterprises (SMEs) are considered a development breakthrough to enhance the competitiveness of Hiep Phuoc Industrial Park on the industrial property market. Currently, pre-built factories are enthusiastically appreciated and chosen by investors, especially Japanese. Taking this opportunity, the company also established a Vietnam-Japan joint venture to catch investment flows of Japanese companies seeking multi-storey works on the area of 20,000 square metres.

Especially, Hiep Phuoc is the only industrial park in Ho Chi Minh City to have a natural gas (NG) distribution station sourced from Vung Tau to supply Hiep Phuoc power plant and other customers in the industrial park. Hiep Phuoc Industrial Park Joint Stock Company (HIPC) also invested to upgrade other infrastructure such as information systems, post and telecommunication, waste water treatment, water supply and worker accommodation facilities, to better serve tenants.

Many attractive incentives
Practical investment preference and support policies are also behind the current success of Hiep Phuoc Industrial Park. In addition to universal incentives of corporate income tax, import tax and VAT, Hiep Phuoc Industrial Park also has additional specific preferences and supports for tenants. Specifically, the park will provide consultancy support concerning procedures and formalities to facilitate investors when they invest and operate here. Joining the Ho Chi Minh City investment stimulation programme, they will be offered 50-100 per cent of loan interest in seven years and access loans guaranteed by the Small and Medium Enterprise Credit Guarantee Fund. In addition, Hiep Phuoc Industrial Park has cooperated with banks to provide credit for tenants and joined hands with major universities (e.g. Technology University and Ton Duc Thang University) to train workers at the request of enterprises.

At present, Hiep Phuoc Industrial Park has housed 194 projects with a total registered capital of US$600 million and VND19,800 billion. In particular, the first phase drew 109 projects (99 per cent of rentable land leased) while the second phase attracted 85 projects registering to hire 35 per cent of the land. Tenants’ operations have contributed to increasing exports, bringing in foreign currencies, creating more than 8,000 jobs and paying more than VND1,000 billion of taxes and fees to the State Budget. As a key stepping stone in the southward development strategy of Ho Chi Minh City, Hiep Phuoc Industrial Park has successfully attracted a handsome amount of investment capital for the city and transferred modern technologies and governance levels.

Thanh Tung








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