PHAN THIET INDUSTRIAL PARK

Investment Opportnities

Binh Thuan is coastal province, which is in the economic Southern - Eastern zone and Southern pivotal economic area, appraised as Vietnam's economic zone dynamically developing at high rate. Geographically being the center of 3 economic zones including the Southeast Central coast and Tay Nguyen (Western Highland); Phan Thiet - the provincial capital of the province is only km away from Ho Chi Minh city, km away from Nha Trang city, km away from Vung Tau city. With Highway 1A, Highway 55, highway 28, and North – South railway through the province and sea route to joint the big economic centers of the whole country and the would, it is very farorable for cultural-economic exchange and commodity circulation.

Phan Thiet Industrial Park is adjacent to Phan Thiet city, located in comfortable geographical - economic position, in the center of rich and diversified natural resources of the province, with preferential investment policies, simple, quick and “one - door - on the spot" procedure.

Binh Thuan province welcomes and pledges the favorable condition to foreign and domestic investors carrying out investment operation in Phan Thiet Industrial Park in order to enrich themselves and contribute to speed up Binh Thuan provincial socio - economy development.

Phan Thiet Industrial Park is an attractive attractive and efficient for investment. The Management Boad of Binh Thuan Industrial Park Zones is always wide - open to welcome all of you.

Phan Thiet Industrial Park - Binh Thuan province was approved and established by the Minister at the Decision N^o 827/QDTTg, date September 11, 1998. Binh Thuan Construction Materials and Mineral Company is the Investor. Phan Thiet Industrial Park was officially started its construction.

It is considered Phan Thiet Industrial Park as a new addredd to enterprises and investors, but full of attraction.

I- SOME INFORMATION ABOUT PHAN THIET INDUSTRIAL PARK:

1. Location: Phan Thiet Industrial Park is next to Phan ai Thiết city, on the intersection of national highway 1A (from Ha Noi to Ho Chi Minh city) and national highway 28 (from Phan Thiet to Di Linh - Lam Dong). It is 200 kilometers from Ho Chi Minh city, 250 kilometers from Nha Trang city, 150 kilometers from Vung Tau city, 165 meters from Da Lat.

2. Land use planning:

1 . Phan Thiet Industrial Park has the natural area of 68 ha, with functions:

+ Industrial enterprises                   : 42.4 ha

+ Warehouses                               : 3.2 ha

+ The center and service area          : 2.6 ha

+ The area for growing shape trees   : 8.8 ha

+ Lake                                           : 1,88

* Attractive capacity: 50-60 projects.

* 110KV/22KV transformer station: 17,000 KVA.

* Water supply plant with daily capacity of 3,500 m³/day

* Waste treatment station with daily capacity of: 2,800 m³/day

* Telephone exchange: 750-800 numbers.

* Next to Phan Thiet Industrial Park (to national route 28) is a 9 ha zone for hahitants and services of Phan Thiet Industrial Park that was planned and has been constructed.

* The representative office of Bank for Investment and Development of Vietnam (Binh Thuan branch) will be built in the year of 2004.

3. Preferred industrial branches in the Industrial Park:

Industrial branches:

+ Processing Agro - Forestry products.

+ Processing foods, goods-tuff, fruits and beverages.

+ Producing consumer goods: garments, leather shoer, household appliances, hardware, electrical goods...

+ Producing stationery and children-toys.

+ Producing construction materials, interior decoration materials.

+ Assembling and manufacturing machinery, electricity electronics.

+ Industrial branches for industry - agriculture and fisheries development services.

+ Services for industrial production.

* Forms of enterprise:

+ Small and medium scale.

+ Clean, not polluted environment.

II- PHAN THIET INDUSTRIAL PARK – ATTRACTIVE INVESTMENT AREA:

1. Advantageous - Position:

Phan Thiet Industrial Park is next to Phan Thiet city with a lot of advantages.

* Lying in the center of abundant material areas to develop processing industries on agro-products, marine products, forestry products, mineral products.

* Having a favorable communication system, next to national highway 1A and national highway 28, South - North railway and Phan Thiet seaport and 200 km Ho Chi Minh city, 250 km from Nha Trang city.

* Power station, water supplying system, communication are available to the dence of the industrial park, and will be built for supplying these services to the fence of enterprises and meeting all the demands of enterprises.

* Having a plentiful source of laborers, mainly young people with educational background and hard working, together with labor source from vocational training schools which meet the labor demand sufficiently.

* The systems of recreation and relaxation services are very diversified and attractive on the periphery area. A zone for inhabitants and services of Phan Thiet Industrial Park, with 9 ha wide next to the industrial park. has been built at the same time with the technical infrastructure system in the industrial park.

* The system of banks, insurance and information telecommunication are modern and have close relations nationally and internationally.

Land rental is at low prices, procedures for investment license are simple rapid and convenient. Esprcially, all enterprises shall enjoy the tariff preference.

Besides the above - mentioned advantages, Binh Thuan province is ready to help and create favorable conditions for foreign and domestic investors to invest in building manufacturing - trading enterprises at Phan Thiet Industrial Park.

2. Having preferential policies for investors:

a) For land rental. Land rent is at low prices, exempted and reduced properly.

* Being defined clearly at the rate of 0.3 - 0.6 USD per square meter per year. accordance with the method of payment.

* Exempting 100% from land rental and infrastructure using fee for the first 5 investors investing in Phan Thiet Industrial Park within first 5 year duration. Cutting down 50o% from land rental and exempting 100% from infrastructure using fee within the first 5 years for projects investing in Phan Thiet lndustrial Park from now until 2003.

* Enterprises who rent land or receive and use transfer in Inhabitant - service Zone to build housing for workers of Phan Thiet Industrial Park will be exempt 100% from land rental for the first 11 years. Especially, using land for public works construction (school, child-care center, medical station, entertainment area, etc), they will be exempt 100% from land rental or the tax for land use during the operational duration.

b. Tax  preference:

In order to encourage investment in Phan Thiet Industrial Park, investors will enjoy tax preference, if their projects invest the areas to be encouraged investment and suffered economic - social difficulties concretely:

* Income Tax.

+ Foreign owned enterprises only pay income tax rate of 10% or maximum 15% according to their business sectors, scale of using labor export rate; exempt from come tax within 04 years and enjoy 50% reduction m income tax next 04 year since the enterprises get taxable income.

+ Domestic enterprises only pay income tax rate of 20% at maximum exempt from income tax within 03 years d enjoy 50% reduction from income tax next 05 - 07 years in succession counting from the year enterprises t taxable income.

* Other taxes: Individual income tax, tax on profit remittance to oversea... will be applied in accordance with the regulations of the Vietnamese Government for investment projects in areas suffered economic social difficulties.

Binh Thuan province will completyly apply the measures to encourage foreign direct investment and domestic investment in order to help investors decrease difficulties enhance investment effect, produce and trade stably the investment period in Binh Thuan province in general, and in Phan Thiet Industrial Park in particular.

 c) Investment procedures:

Investment procesdure is resolved simply, conveniently and quickly in accordance with “one door – on the spot” mechanism at the Management Board of Binh Thuan Industrial Zones

The Management Board of Binh Thuan  Industrial Zones is an authorized body to conduct an receive investment document, evaluate investment document, issue investment licenses or submit the authorized organization to issue the License, to manage enterprises; to solve the arising projects implementation in Phan Thiet Industrial Park.

The Management Board of Binh Thuan Industrial Zones and the investor of infrastructure system in Phan Thiet Industrial Parl ready to consult, investors with preparing prokect files, construction and import - export

 The duration of evalution and approval to issue investment licenses shall be not excessive of 15 days as from the date of receiving regular investment files by provincial concerned authority. We have striven to shorten the duration of issuing investment licenses only days or less.