Tuyen Quang is a province situated in the northern midland and mountainous region, approximately 165 km from the capital city of Hanoi. When traveling from downtown Hanoi to Tuyen Quang, you have the option of two routes. The first route: Travel via the Nội Bài - Lào Cai expressway (labeled CT.05) and take the IC09 exit leading to Phu Tho town, Thanh Ba town, and ultimately to Tuyen Quang (excluding the travel time from downtown Hanoi to the Noi Bai - Lao Cai expressway). The total travel time is around 3 hours. The second route: Journey via the Nội Bài - Lào Cai expressway and take the IC04 exit (interchange with National Route 2B at Kim Long commune, Tam Duong district, heading to Tam Dao town, Vinh Phuc province). The total travel time is a little over 2 hours. In the near future, upon the completion of the connecting road from Tuyen Quang to the Noi Bai - Lao Cai expressway (approximately 39.2 km), the travel time from Hanoi to Tuyen Quang is expected to reduce to about 1.5 hours.
Where is the suitable location for investment projects?
For investors with manufacturing plants, the most prudent choice for locating these plants is within industrial zones or clusters. According to the Tuyen Quang province's plan for the period 2021 – 2030, with a vision toward 2050, the province will establish six new industrial zones and 18 industrial clusters, as follows:
There will be six newly established industrial zones (IZs), including: Nhu Khe - Doi Can IZ (adjacent to the Tuyen Quang - Phu Tho expressway, 75 hectares, located in Tuyen Quang City and Yen Son district); Tam Da IZ (75 hectares, situated in Son Duong district); and four industrial zones that will be established after the province is provided with additional land planning targets, namely: Tan Long IZ (Tuyen Quang City); Nhu Khe IZ (Yen Son district); Nam Son Duong IZ (Son Duong district), and Thai Son - Thanh Long IZ (Ham Yen district).
The 18 newly established industrial clusters (ICs) include: An Hoa - Long Binh An IC (75 hectares, Tuyen Quang City); Thai Long - Luong Vuong IC (50 hectares, Tuyen Quang City); Nhu Khe IC (40 hectares, Yen Son district); Yen Son IC (53 hectares, Yen Son district); Trung Mon IC (30 hectares, Yen Son district); Phu Thinh IC (35 hectares, Yen Son district); Xuan Van IC (50 hectares, Yen Son district); Ninh Lai - Thien Ke IC (75 hectares; Son Duong district); Phuc Ung 2 IC (60 hectares, Son Duong district); Phuc Ung 3 IC (40 hectares, Son Duong district); Tam Da IC (75 hectares, Son Duong district); Trung Hoa IC (25 hectares, Chiem Hoa district); Xuan Quang IC (20 hectares, Chiem Hoa district); Yen Nguyen IC (30 hectares, Chiem Hoa district); Duc Ninh IC (25 hectares, Ham Yen district); Thai Son IC (30 hectares, Ham Yen district); Phuc Son 1 IC (30 hectares, Lam Binh district); Phuc Son 2 IC (20 hectares, Lam Binh district). Among these, there are four ICs already established: Phuc Ung IC (74 hectares, Phuc Ung district); Tan Thanh IC (72.2 hectares, Ham Yen district); An Thinh IC (75 hectares, Chiem Hoa district); and Khuon Phuon IC (20 hectares, Na Hang district). One industrial cluster has been established and is expected to expand, namely Thang Quan IC (58 hectares; Yen Son district); one IC is being researched to establish an industrial cluster within the planned area of an existing industrial zone, namely Son Nam IC (50 hectares, Son Duong district).
What incentives policies are offered by the province?
The investment policy in Tuyen Quang Province offers various incentives, which include tax exemptions, reductions, and land leases. Some of the notable tax incentives for industrial clusters (ICs) and manufacturing units in the province are:
Firstly, on import taxes: Exemption from import duties for machinery and equipment used to create fixed assets for enterprises (including in cases of project scale expansion). It also includes import duty waivers for components, spare parts, and detached parts used in the production chain, raw materials, and production-serving materials.
Secondly, corporate income tax: A preferential tax rate of 10% applicable for 15 years for projects in the industries that fall under the investment incentive category. For the remaining investment projects, a preferential tax rate of 17% is applicable for 10 years.
Thirdly, tax exemptions: Four years of exemption from taxable income, followed by a 50% reduction in taxes for the subsequent nine years for projects eligible for investment incentives. Additionally, two years of exemption from taxable income, followed by a 50% reduction in taxes for the subsequent four years for the remaining investment projects.
Fourthly, land lease incentives: Exemption from land lease fees for a maximum period of three years during basic construction. Eleven years of land lease fee exemption for investment projects qualifying for incentives from the commencement of project operations. Seven years of land lease fee exemption for the remaining investment projects.
Alongside tax benefits, Tuyen Quang Province supports labor training expenses for enterprise employees, offering 50% support (up to 2 million VND per person per course) for in-country training courses. The province also extends support for investing in the development of infrastructure, covering road systems, drainage systems up to the industrial park's boundary. It ensures the balance of the local budget to facilitate internal road construction and shared wastewater systems within the industrial park for investors.
How are land leasing prices, electricity, water rates, and labor costs charged?
Land leasing prices for different land categories are specifically calculated. Tuyen Quang Province has issued Resolution 20/2019/NQ-HDND dated December 11, 2019, which includes the Provincial Land Price Table for 2020-2024. Investors should contact the investment promotion agency (Tuyen Quang Provincial Investment Promotion Center, address and contact details below this article) to ascertain the specific areas for land leasing in the project. Regarding the leasing duration, the general lease duration is 50 years. The land rental payment can be made in a lump sum or installments. In the Son Nam Industrial Park, the land leasing price is 0.0857 USD/m2/year.
As for electricity, different pricing tiers exist based on usage purposes. Residential electricity is priced differently from electricity used for production or business, depending on different timeframes. Specifically, normal hours are priced at 1,388 VND/kWh, off-peak hours at 869 VND/kWh, and peak hours at 2,459 VND/kWh.
Water rates vary based on usage purpose, including water for household use, water for manufacturing, and service. Specifically, residential water costs 4,500 VND/m3, manufacturing water costs 8,000 VND/m3, and service, tourism, construction water costs 10,000 VND/m3.
(The information on land prices, electricity, and water is cited from: http://ipc.tuyenquang.gov.vn/.)
Regarding labor costs, salary for workers are based on the minimum regional wage as specified in Decree No. 38/2022/ND-CP dated June 12, 2022, by the Government on the minimum salary e for laborers working under labor contracts. According to Article 3 of Decree 38/2022/ND-CP on the minimum regional salary, investors pay laborers working in Tuyen Quang Province the minimum regional salary in the Tuyen Quang City area, which is 3,640,000 VND/month. In areas like Chiem Hoa District, Ham Yen District, Lam Binh District, Na Hang District, Son Duong District, and Yen Son District, investors pay laborers a minimum salary of 3,250,000 VND/month. Various factors influence workers' salary, such as job nature, work hazard level, mutual agreements between employers and employees, overtime pay...
In Tuyen Quang, where can you get detailed information about investment?
For detailed information, you would need to engage with the following agencies:
The Tuyen Quang Province Investment Promotion Center. Address: No. 4, 17/8 Street, Minh Xuân Ward, Tuyen Quang City, Tuyen Quang Province. Phone: 02073 828 155 - Fax: 02073 822 603 - Email: xuctiendautu@tuyenquang.gov.vn. The person in charge is Mr. Nguyen Tien Hung, Director.
