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WHA Industrial Zone 1 - Nghe An: Firm Statement to Vietnam and Southeast Asian Region
19/07/2019An initial area of 145 hectares is now available to investors who can benefit from the economic zone’s special investment incentives and investor support. Upon completion, the 3,200-hectare project will be the largest world-class industrial zone in North Central Vietnam.
WHA Industrial Zone 1 – Nghe An, Thailand-based WHA Group’s first industrial zone investment in Vietnam, is a firm statement of the company’s commitment to the country and to the Southeast Asian region.
“Vietnam is increasingly becoming a preferred investment destination in the region,” explained Ms. Jareeporn Jarukornsakul, Chairman and Group CEO, WHA Corporation PCL (WHA Group). “Thanks to its fast-expanding economy, its geographical location close to major markets such as China, Japan and South Korea, its large and well-educated labor force and numerous free-trade agreements (FTA) signed and under discussion, Vietnam is seen as Southeast Asia’s new bright star,” she said.
Prime location
Strategically situated in the Dong Nam Economic Zone, next to Highway 1A, WHA Industrial Zone – Nghe An will be the largest industrial zone in North Central Vietnam, offering a new and world-class manufacturing and distribution base to serve domestic and international markets.
With 3.2 million people, Nghe An is the fourth-most populated province in Vietnam. It is well-equipped with 7 universities, 6 colleges, 4 professional schools and 61 vocational training schools that provide education to 24,000 new graduates every year.
Ms. Jareeporn Jarukornsakul, Chairman and Group CEO, WHA Corporation PCL (WHA Group)
Nghe An Province also benefits from the presence of Vinh International Airport, 3 seaports in the vicinity of Vinh City, a railway network that connects the north to the south, and 8 national route highways running through the province. Furthermore, the completion of the motorway connecting Hanoi to Vinh City, planned for 2021, will greatly enhance the province’s connectivity. With the dedicated support of the Vietnamese government and provincial authorities, Nghe An is becoming an integrated hub for business, education, manufacturing, transportation and logistics, evolving into a prime location for major manufacturers and investors to contribute further to the development of the country.
These are among the major reasons why WHA Group decided to invest and build an industrial zone in Nghe An. WHA Industrial Zone 1 – Nghe An comes with well-designed infrastructure and utilities such as water utilities, including industrial water and wastewater treatment, full access to electricity, modern communication systems, as well as storm drainage and flood protection. Environmental monitoring by the WHA Industrial Zone’s professional operations and management team is also provided.
One stop service and special incentives for investors
With the development of Phase 1 well underway, an initial area of 145 hectares is now available to investors who can benefit from the practical One Stop Service provided by the Dong Nam Economic Zone Authority (DNEA). They may also receive special incentives in terms of Import Tax and Corporate Income Tax.
Leveraging WHA’s 30 years of experience in Thailand
Aside from WHA Industrial Zone – Nghe An’s strategic location and DNEA’s incentives, investors will also benefit from WHA Group’s 30 years of experience in the development of world-class industrial estates in Thailand, providing international standards in terms of infrastructure and customer services. Today, WHA Group operates 11 industrial estates in Thailand, representing a surface area of over 7,800 hectares, a total of 750 global customers and an estimated investment of US$32 billion.
Since its inception in 1988, WHA Group has been playing an instrumental role in pioneering industrial clusters for automotive, petrochemicals, electronics, consumer products and other export industries. International automotive brands such as Ford, GM, Isuzu, Mazda, MG by SAIC and Suzuki, together with automotive suppliers comprising 32 of the world’s top OEM parts suppliers, have selected WHA industrial estates for their manufacturing base in Thailand.
Superior environmental management practices
Another strong element of WHA Group’s reputation is its commitment to protect and care for the environment. From its earliest days in Thailand, WHA Group has always considered that its industrial estates must co-exist with the environment in a harmonious and sustainable manner. Therefore, the company carefully designs all its infrastructure and manages all its utilities to ensure minimum environmental impact.
Leveraging its extensive experience, WHA Group is ready to implement the same model and know-how at WHA Industrial Zone - Nghe An, applying the same environmental standards as in its 11 industrial estates in Thailand. The company firmly believes that introducing green initiatives, especially during the earliest stages of development, is essential for the protection of the environment.
For example, about 14% of the total land area is dedicated to creating green space that will act as a buffer zone. The water system is safe, cost-effective and reliable, while drainage networks are designed to limit flood risks, with wastewater leading to holding ponds for treatment. Similar to some of its industrial estates in Thailand, WHA is implementing in WHA Industrial Zone 1 - Nghe An a constructed wetland system, a chemical-free and environmentally friendly waste-water solution.
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Attractive Investment Incentives of Economic Zone Corporate Income Tax (CIT) Special tax rate: 10% for 15 years
Import Tax Import tax exemption for machines and equipment imported to create fixed assets 5 years exemption for goods imported for production, including raw materials, supplies and components that cannot be produced in the country Investor Support One Stop Service at Dong Nam Economic Zone Authority |
Roads and utilities are methodically designed to optimize efficiency. For lower energy consumption, LED lightbulbs are being used for all street lights. Another important feature that will be included is the Environmental Monitoring System which will track environmental data within the manufacturing area.
Mr. David Nardone, WHA Group Vice Chairman of the Board and Group Executive Industrial and International
Mr. David Nardone, WHA Group Vice Chairman of the Board and Group Executive Industrial and International, upholds the company’s staunch commitment for more environmentally-friendly initiatives. “With projects that can be as simple as tree planting activities and more sophisticated efforts such as constructed wetlands or energy production, we take pride in partnering with all stakeholders and government agencies to ensure environmental sustainability,” he said.
Keeping the momentum
WHA Group’s solid experience in the development of industrial estates will enable it to successfully develop the Nghe An industrial zone with similar world-class standards, responding to all customers’ requirements and contributing to the economic growth of Vietnam and the region.
To further enhance WHA Industrial Zone – Nghe An’s attractiveness and competitiveness, local and national authorities must remain focused on improving infrastructure and connectivity in terms of road, seaport and airport facilities, in particular, the completion of the motorway from Hanoi to Vinh City and the access to the three seaports.
In parallel, good coordination between all agencies involved is instrumental to ensure that license approvals, permits and certificates for investors can be quick and predictable.
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Beyond the 498-hectare Phase 1, another 6 phases, representing a total area of 3,200 hectares upon completion, are scheduled for development from 2020 to 2038 |
WHA Industrial Zone 1 – Nghe An is now welcoming its first investors from Japan and Thailand, who can benefit from DNEA’s special investment incentives and WHA investor support. The upfront work in terms of environmental approval has been completed. WHA Utilities and Power (WHAUP), WHA Group’s affiliate, is developing water and wastewater utilities, which are progressing according to schedule. With a number of additional prospects in the planning, WHA Industrial Zone – Nghe An is well on its way to a promising future.
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Target industrial sectors of WHA Industrial Zone – Nghe An include:
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This article was published at Vietnam Business Forum on 19 July 2019.