WHA Industrial Zone 1 – Nghe An: Ready to welcome investors

With a new post-pandemic wave of investment heading Vietnam’s way, WHA Industrial Zone 1 – Nghe An awaits investors with a powerful set of utilities and infrastructure.

Modern and synchronous infrastructure

The 3,200-hectare WHA Industrial Zone 1 – Nghe An is located at Dong Nam Economic Zone in the central province of Nghe  An. After two years of construction, the project has finished 143.5 of the 498ha of the first phase and has already attracted secondary investors. Now open for business, WHA Industrial Zone 1-Nghe An offers the ideal location for manufacturing and industrial development. With high-impact industries and other business investments looking for locational advantages, efficient use of land. Nghe An Office Vietnam, a large workforce and best practice planning. The first customers from China, Japan and Thailand are already setting up their operations in various industrial sectors such as building materials, electronics, food processing, solar energy and steel.

Since its opening, WHA Industrial Zone 1-Nghe An has been successful in bringing in brand new businesses and concrete investments into the region. The improving connectivity and infrastructure in the adjoining areas are key elements that are facilitating strategic planning and decision-making.

WHA Industrial Zone 1 – Nghe An is equipped with world-class infrastructure, including roads, water utilities, power supply, modern communication systems, air quality and security monitoring. Land plots of various sizes, ranging from 5,000 to 100,000 square metres, can meet the requirements of investors.

Beside, for easy and practical access, the road system consists of one 4-lane main road and a 2-lane secondary road, both with concrete pavement of up to 25cm in thickness. The water system features an expandable storage tank of 5,000 cu.m. and a water treatment plant, also with an expandable capacity of 10,000 cu.m. Using biological technology, including an underground filtration system, the wastewater treatment facility has started to collect wastewater from customers’ factories. It is equipped with aerated lagoons and constructed wetlands with an adaptable capacity of 3,200 to 9,600 cu.m. per day.

Investors can benefit from special incentives such as a special Corporate Income Tax at 10% for 15 years from the date the company starts to generate revenue; an exemption for the first four years and a 50% reduction in the subsequent nine years from the date the company generates taxable income. Machinery and equipment, specialised means of transportation and construction materials, which cannot be domestically produced and are imported to form fixed assets, are exempt from import tax. Investors can also enjoy a 5-year import tax exemption for goods imported for production, including raw materials, supplies and components that cannot be produced in the country.

Parallel with accelerating the construction, the managing board of WHA Industrial Zone 1 – Nghe An implemented numerous investment promotion programmes, including online events to attract investors.

In addition to WHA Industrial Zone 1 – Nghe An’s 498-hectare Phase 1, another 6 phases, covering a total area of 3,200 hectares upon completion, are scheduled for future development.

Ready to rebound with Vietnam

The Covid-19 pandemic has negatively influenced enterprises in Vietnam in particular and those in the world.  In that context, WHA put in place the same global standards for health and risk management that it used in Thailand immediately. Social distancing, segregation of operating teams, protecting its customer infrastructure are some.

WHA Industrial Zone 1 – Nghe An also had already built its own hub, which is an online tool with an e-library, e-business matching, and e-planning systems. Furthermore, it is also completing an e-service tool to help existing business partners register to use its supporting services and evaluate the service quality at workshops.

“Vietnam, especially in this post-pandemic era, is attracting increasing foreign investments,” said Mr. David Nardone, Group Executive - Industrial and International, WHA Industrial Development PLC.

Despite a plunge in total foreign investment during the first months of 2020, the market has retained its good prospects, as reflected by the multitude of foreign investors angling to expand capital at their current projects in the country to capitalise on Vietnam’s growing network of trade agreements. Mr David Nardone believes that the opportunities in Vietnam are substantial and attractive, especially after its effective response to the Covid-19 pandemic.

Companies are moving production out of China due to its trade war with the U.S. and the Covid-19 pandemic. In that context, Vietnam has been seen as a potential destination for factories to relocate. Thai investors are continuing to beef up investment and merger and acquisition activities in Vietnam even through complex global developments.

“WHA is continuing to expand in Vietnam as our strategic initiative”, says Nardone.  He believes that the opportunities in Vietnam are substantial and attractive for a host of reasons including a well-educated labor base, the central government and provinces being investor friendly, and improving infrastructure, all with reasonable costs.

Source: Vietnam Business Forum