Are you a foreign investor interested in leasing land for your manufacturing business in Vietnam? Vietnam offers over 300 Industrial Parks on an area of 94,900 ha designed to accommodate manufacturing, distribution, and warehousing activities.
In this blog, we will delve into the various types of Industrial Parks in Vietnam to help you make an informed decision for your manufacturing venture.
Understanding Industrial Parks: Industrial Parks are designated areas within cities specifically designed for industrial purposes, including manufacturing, distribution, and warehousing.
Types of Industrial Parks in Vietnam and Their Advantages: Let’s explore the different categories of Industrial Parks in Vietnam:
- Pre-built Facilities:
- Ideal for small to medium-scale enterprises requiring less than 8 hectares of land.
- Suitable for those who need to commence operations swiftly.
- High demand in locations like Dong Nai and Binh Duong provinces, thanks to excellent transport infrastructure access.
- Average rent for pre-built facilities ranges from 4 to 5 USD/m²/month.
Benefits of Pre-built Facilities:
- Conform to international standards.
- Faster setup time.
- Reduced construction costs.
- Equipped infrastructure.
- Customizable to meet your business requirements.
- Pre-built factories in Ho Chi Minh City’s industrial zones are eligible for a 10% corporate income tax rate for 15 years.
- Industrial Zones:
- Suitable for businesses requiring a larger area and proximity to major markets.
- Ideal for long-term leases of over 20 years.
- Located near major cities and transportation hubs.
- Average rent for Industrial Zones ranges from 10 to 22 USD/m²/month.
Benefits of Industrial Zones:
- Access to essential infrastructure and services.
- Availability of skilled labor.
- Competitive operating costs.
- Government support and tax incentives.
- Companies in Industrial Zones can benefit from income tax exemptions, land use tax exemptions, and reductions in income tax rates.
- Export Processing Zones (EPZs):
- Geared towards encouraging export-oriented production.
- Offer incentives such as tax holidays, duty-free import of raw materials, and streamlined customs procedures.
- Average land rent in EPZs ranges from 8 to 14 USD/m²/month.
Benefits of Export Processing Zones:
- Tax incentives for companies operating in EPZs.
- Access to well-developed infrastructure.
- A skilled labor pool.
- Focus on exporting goods to international markets.
- Proximity to seaports and airports.
- Companies in export processing zones can enjoy import and export duty exemptions and competitive Corporate Income Tax (CIT) rates.
- High-Tech Zones:
- Designed for research and development and tech-based companies like software, biotechnology, and electronics.
- Average rent in High-Tech Zones ranges from 6 to 7 USD/m²/month.
Benefits of High-Tech Zones:
- Advanced laboratories, research centers, and technology parks.
- Government funding, R&D grants, and market access support.
- Companies in High-Tech Zones may enjoy CIT exemptions for the first few years and other tax benefits.
Choosing the Right Industrial Park for Your Business in Vietnam: When selecting an Industrial Park for your business in Vietnam, consider the following factors:
- Location of the Industrial Park.
- Availability and reliability of essential infrastructure.
- Local labor force quality and skillset.
- Understanding the tax framework and its implications for your business.
How to Lease Land in an Industrial Park in Vietnam: The process to lease land in an Industrial Park in Vietnam involves several steps, facilitated by experts like Emerhub:
- Find a suitable Industrial Park.
- Apply for an Investment Certificate and Business Certificate.
- Sign a lease contract for the land.
- Obtain necessary permits.
- Proceed with construction according to your business requirements.
Emerhub’s market entry services are a dependable choice to assist you in making the right investment in Vietnam.
Legal Requirements for Land Lease in an Industrial Park in Vietnam: To legally lease land in an Industrial Park in Vietnam, you need the following documents:
- Industrial land lease application form.
- Copy of the investment certificate.
- Project outline.
- Written assessment of land lease demand.
- Map of the rental land.
Leasing land in an Industrial Park in Vietnam is a strategic move for your manufacturing business, and with the right guidance and expertise, it can lead to a successful venture in this vibrant and growing economy.