THAI BINH PROVINCE CALLING FOR INVESTMENT.
I.Letter calling for investment;
Thai Binh is coastal plain province in the south of the Red River Delta, adjacent to economic growth region in the North Vietnam (Hai Phong, Quang Ninh, Hanoi); also the place of the Tran dynasty, there are many historical and cultural monuments; People here have a tradition of heroic struggle against foreign invaders and hardworking, creativeness in production. The stable political situation and ensured social order help create a favorable environment for marine economic and tourism development; gas resources in the continental shelf of land and underground brown coal assessed with great reserve are being planned for major mining and serving industrial development.
In recent years, the province focus on promoting economic development in the direction of industrialization, modernization and construction of new rural models; Positive development and implementation of economic policy, investment attraction in an open way, creating favorable conditions for domestic and foreign enterprises to invest in business development; Completed the social economic development planning to 2020, planning on transportation system and irrigation, planning on human resouces to attract investment. Many Industrial Parks (IPs) as Phuc Khanh, Nguyen Duc Canh, Tien Hai, Gia Le have occupied rate from 85-95%. The province has fairly good economy growth rate, economic structure shifted positively; period 2001-2010 the average growth rate of 11.5%. The proportion of industry and services accounted for 68% of GDP.
Currently, Thai Binh has new advantages. Many key projects to promote the social economic development of the province have been approved by the Government and implementing the construction, such as: Coastal Highway Road , Ha Nam – Thai Binh Road and Bridge, Hai Phong - Thai Binh - Nam Dinh Highway and railway, together with Lach Huyen National port, new Tien Lang airport in Hai Phong city (about 30km from Thai Binh province) are the driving forces to attract investment. Universities, colleges and vocational institutions are being built and upgraded to create qualified human resources to meet the development requirements in the new period. Many Thai Binh persons who succeed in many fields and many businesses, entrepreneurs all over nation are heading for their homeland and willing to contribute their wisdom, effort and investment capital to jointly build a flourished Thai Binh province.
All departments, sectors and local people always have power and determination for the province’s rapid and sustainable social economic development; always welcome and ready to work closely with investors, creating the best conditions for exploiting the potential advantages to build the more prosperous and civilized Thai Binh province.
II.Affected region and advantages for buisiness investment in Thaibinh province;
Affected region: Thái Bình is 70 km from Hai Phong city, 110 km from Hanoi; located in the directly affected region of the economic growth triangle in North Vietnam: Hanoi - Hai Phong - Quang Ninh; economic corridor Kunming - Lao Cai - Hanoi - Hai Phong; economic corridor Hai Phong - Ha Noi - Lang Son - Nanning and coastal economic belt along the North Bay (Quang Ninh - Hai Phong - Thai Binh - Nam Đinh)
1. Thai Binh is coastal plain province: has natural and ecological conditions favorable for the development of intensive and high technology agriculture, is a major rice and vegetable producing area of the Northern region; 54km long of coastline, vast tidal area favorable for aquaculture, seafood (especially brackish water mollusc), development of marine economic zones and eco-tourism and resorts.
2. Population, labor:
- Thai Binh population of 1,787,000 people, population density of 1,200 people/km2.
- The abundant workforce in working age group of over 1 million, including trained workers accounted for 28%. Each year over 20,000 students have graduated from high school. The province has three universities, three colleges and 48 secondary schools, vocational training institutions. Thai Binh people are diligent, hard work and creative in working.
3. Convenient transport network: The province has 108 km national highway, 356 km of provincial road, 539 km of district road.
The main roads: Highway 10 connecting Nam Dinh - Thai Binh - Hai Phong; Thai Ha road connecting Thai Binh - Ha Nam - Ha Noi; National Highway 39 connecting Thai Binh - Hung Yen, National Highway 37 connecting Thai Binh - Hai Phong.
According to the planning stage 2015 - 2025, development of coastal highways, high-speed roads and railways: Hai Phong - Thai Binh - Nam Dinh.
Waterway: There are 4 major rivers and a coastline of 54km, Diem Dien national seaport (400-600 ton ship in - out). A project to upgrade port for ships of over 1,000 tons in – out is being implemented.
130 km from Thai Binh to Noi Bai Airport - Hanoi, 30 km to Tien Lang - Hai Phong airport (planning to build), 30 km to Lach Huyen port, Hai Phong.
4. Mineral Resources:
- Gas mines in Tien Hai supply 30-40 million m3 per year for production. Deploying the project: Exploiting natural gas from about 70 km offshore Thai Binh coast to serve Tien Hai industrial park.
- High-quality brown coal mine located at a depth of 650 - 1200 m, about 210 billion tons of reserves. State has a planning of exploration for period 2015 - 2020 and exploiting 01 mine under coal gasification method.
5. Stable electricity network: The province has started construction of Thai Binh Power Centre with a total of 6 units, capacity of 1,800MW. As planned, unit 1 of Thai Binh Thermal Power Plant 2 will be put into operation in late 2014. Thai Binh Thermal Power Plant 1 will be put into operation in the second quarter 2018. It is expected that after the thermal center is completed, an additional 7 billion Kwh will be available to serve the production needs of businesses.
6. Thai Binh has invested to build 6 industrial parks (IPs) and 14 industrial clusters (ICs): As of the end 2013, there are 692 investment projects in the province with a capital of over $ 3.5 billion, of which 50 FDI projects. Some existing industrial parks have cleared land and are calling for investment: Song Tra IP, Cau Nghin IP and Tien Hai IP. Infrastructure in these industrial zones has been completed such as; electricity, water, convenient transportation; One-Stop Shop (OSS), one focal point for simple investment licensing.
7. Investment support: The focal point agency for investment promotion supports investors to meet their diverse needs such as choosing locations and gathering information as well as provides follow up support to investors.
8. Tourism potentials: There are areas of eco-tourism resorts such as Con Vanh, Con Den and spiritual festival tourism.
III.Some of the information that investors need to know;
1.Land lease price in IPs and ICs:
In IPs where already have infrastructure investor:
In other IPs, ICs:
2. Power supply and services
3. Water price:
- Production and civil engineering Units; enterprises: 7,200 VND/m3.
- Business on services, motels, restaurants: 8,500 VND/m3.
4. Telecommunication service:
Landline Price (excluding VAT):
- Local: 200 VND/minute.
- inter-provincial, inter-regional: 78 VND/first 6 seconds + 13 VND/1 next second.
5. Internet service:
Decided by the service providers on the basis of frame rates issued by the Ministry of Information and Communication.
6. Minimum workers’ wage:
- The level of 2,100,000 VND/month applied to enterprises operating in Thai Binh city.
- The level of 1,900,000 VND/month applied to enterprises operating in the districts.
7. Insurance policy for employees:
- The employees are eligible to pay a voluntary insurance of 23% wage prescribed by the State in which employer pays 17%, employee pays 6%.
8. The investment encouragement policies/incentives
* Field of investment incentive include:
- Manufacturing accurate mechanic device and building element, electronic component,
- Manufacturing auxiliary industrial products; manufacturing pharmaceutical product
- Processing argricultural produce, food (rice, maize, soy bean, potato, vegetables and food, pig, buffalo, cow, chicken, duck).
- Investment in infrastructural construction of industrial zone, complex.
- Project for development of high technology and project for high technological production as per Decision No.49/2010/QD-TTg on 19/7/2010 of Prime Minister.(For big projects with high socio-economic effectiveness, protential paid to state budget, and friendly with environment, Provincial People's Committee shall consider to deternine specific investment incentive policy).
* Land lease unit price:
- Land lease unit price in industrial zone, industrial complex in the area is equal to 1.0% of non-argricultural manufacturing and trading land price in industral zone, industrial complex stipulated by Provincial People's Committee.
- Land lease unit price in the other areas (in addition to industrial zone, industrial complex and area of Thai Thuy, Tien Hai district) is equal to 1.5% of non - agricultural manufacturing and trading land price stipulated by Provincial People's Committee
- Land lease unit price for purpose of services and business shall be equal to 2% of non - agricultural manufacturing and trading land price stipulated by Provincial People's Committee.
- Investment projects in area of Thai Thuy, Tien Hai districts or under fields of investment incentives of the province, land lease unit equal to 0.8 of non - agricultural manufacturing and trading land price stipulated by Provincial People's Committee.
* Technical infrustructural support:
- Provincial budget for investment and construction of technical infrustructural works mainly including: drainage systems (processed), transportation road to industrial zone's barrier foot. Other infrustructural works beside barrier of industrial zone shall be undertaken by relavant units, sectors for investment and construction.
- Projects in field of investment incentive are financed by the province for leveling the site with expenditure of VND 35,000/m2. For high technology projects shall be financed for 100% of leveling expenditure but not more than VND 70.000/m2.
* Support for employees:- Investor must give priority for training jobs and recruitment employees of households individuals whose land are revoked to deliver to the enterprise and employees in locality.
- Projects in investment incentive field recruiting employees with permanent address in Thai Binh shall be supported expenditure for shot - term training of not more than VND 600,000/ month and not more than VND 2,000,000/person/course, each employees shall be supported once; supporting expenditure for provision of employees from VND 20,000 to VND 100,000/ person. This expenditure shall be given directly to employer when sufficency of dossiers, relavant documents as per guideline of competent body and commitment on using these employees at least 12 months.