Project Information on Construction of Nghi Son Container port

Pushlic on: 10:11:12 10/08/2016 (GMT+7)

Nghi Son Economic Zone
Nghi Son EZ's oriental development space planning map(1).jpg
- Topography: Diversified topography including mountainous, plain and coastal areas. Of which, the plain accounts for about 60% of total natural area;
- Natural area: the existing area of 18,611.8 hectares has been expanded up to 106,000 hectares ( defined in Decision No. 18/2015/QD-TTg dated 12 June 2015 by the Prime Minister related to the amendment and supplement of several articles in Operating Regulations of Nghi Son EZ, ThanhHoa province enclosed with Decision No.28/2010/QD-TTg dated 03 March 2010 by the Prime Minister);
- Geographical boundaries:
+By Quang Xuong district in the North;
+ By Quynh Luu district, Nghe An province in the South;
+ By East sea in the East;
+ By communes of Tuong Van, Tuong Linh, Tuong Son and Cong Liem in Nong Cong district, Ben En National Park, and Phuc Duong commune of NhuThanh district in the West.
- Geographical location: in the South of Thanh Hoa province, 200 kilometers from Hanoi to the South and 1,500 kilometers from Hochiminh City to the North, bounded in the East by the East Sea and in the West by Nhu Thanh district. It has national road 1A, North-South railway, Nghi Son deep-water seaport including 50 berths, of which the general berths No. 1, 2, 3 and two other berths of Nghi Son Thermal Power Plant No. 1 are capable of accommodating ships of 35,000 DWT with the loading capacity of approx. 5 million tons per year;
- Population: 80,000 people with labor force of 45,000 people.
- Distance to major areas:
+ 60km from ThanhHoa city to the South (by national road 1A);
+ 200km from Hanoi capital to the South (by national road 1A, North-South highway);
+ 1,500km from HochiminhCity;
+ 260km from Haiphong port to the South;
+ 70km from Tho Xuan airport;
+ 250km from Na Meo international border gate to the East;
+ 15km from Nghi Son port to the East.
+ To Nghi Son deep seaport: 15 km to the East
Name of project: Construction of Nghi Son Container port, Thanh Hoa province
Project location:
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 Location description: Construction project of Nghi Son Container seaport belongs to Nghi Son deepsea port, the detailed planning of Nghi Son seaport by 2020, vision to 2030 is approved by Ministry of Transportation at Decision No 1401/QĐ-BGTVT dated 26/5/2010 including:
+ The Northern area of Bien Son Island;
+ The Southern area of Bien Son Island;
+ Development area of Hon Me Island;
Total port area: 2,020 ha (including both land and water surface area).
- Geographical Boundaries:
+ By breakwater of ex-production berth of Nghi Son Petrochemical and Oil Refinery Plant in the North;
+ By sea of Quynh Luu district, Nghe An province in the South;
+ By Eastern sea in the East;
+ By road No. 513 in Nghi Son EZ in the West.
- Distance from Nghi Son deep seaport:
+ To Hai Phong port: 119 nauticial miles;
+ To Ho Chi Minh city port: 700 nauticial miles;
+ To Hongkong port: 650 nauticial miles;
+ To Singapore port: 1,280 nauticial miles;
+ To Tokyo port: 1,900 nauticial miles.
- Natural conditions: Bien Son island is ultilized as natural breakwater and windbreak for Nghi Son seaport.
+ Prevailing wind direction in the area: the Northern direction (13.22%), the Southeast direction (8.28%), Northeast direction (8,24%) and North by Northwest direction (7,75%). The frequency of calm wind is high (38.43%). Wind speed: mostly at (0.1 ¸ 3.9)m/s (50,5%), >15m/s (0,03%). Maximum speed in storm: 40m/s;
+ The water level in Nghi Son area: high-water, Hmax = 3,44m; Low-water: Hmin = 0,43m;
+ Stratigraphy of the area without reef is affirmed favorable for seaport construction.
The land use area: 180.1 ha
Objectives and scale of project
- Project objectives: Construction and operation of Container berths, system of storage warehouses and modern equipment to load and unload import-export commodities in Nghi Son Economic Zone, Thanh Hoa province and neiboring provinces in the region.
- Project scale:
+ Total planned investment capital: 200 million USD
+ Including 10 container berths for 50,000 DWT vessels, shoreline L= 2,500m.
Current investment status: Not more than 5 years
The current status of technical infrastructure
- Roads: Road No.513 linking Nghi Son port with National Road No 1A is now expanded to 8lanes-road and median strips.
- Railway: Khoa Truong station, 15km from Nghi Son seaport, is the nearest station to the port on the North-South National Railway through Thanh Hoa province. Under plan, a port  railway station in the South of Nghi Son seaport shall be built to connect with North-South National Railway.
- Shipping channel status: Currently, the shipping channel at Nghi Son seaport is 120 wide, minus 11m deep and 2.5km long, has received 47,000 DWT freighters. Under plan, the shipping channel shall be expanded to 300m wide and minus 14.5m deep. Hon Me island, 10km from seaport, has potential to develop to become a transshipment hub for 200,000 DWT vessels.
- Current investment status: Nghi Son seaport is constructed and operated the specialized berths of Nghi Son Thermal Power Plant I, Nghi Son Cement Plant and 04 general berths with capable of receiving 30,000 DWT; loading and unloading capacity of 7.5 millon tons/year.
In addition, there are dozens of general and specialized berths, logistic which are invested construction.
Form of investment
- Investor may select one of following investment forms: BOO, PPP, 100%  foreign-own capital or domestic capital
Land and water surface lease duration: 70 years and can be extended upon the investor’s request
Major infrastructure projects having impact to Nghi Son EZ
- On-going project “Channel dredging” to accommodate vessels of 50,000 DWT;
- 02 specialized berths and 04 general berths are active;
- Construction of the road linking Na Meo international border gate and Nghi Son seaport;
- Construction of the road connecting Tho Xuan airport and Nghi Son deep-water seaport, expected to be completed in December 2017;
- The new terminal of Tho Xuan airport has been in use since 30 January 2016.
Regulations on construction procedures and issuance of investment certificates
10.1. Issuance of construction license
- Application form for issuance of construction license by the Investor (conforming with the form, 01 original);
- One of the papers proving the land use rights as prescribed by law (01 notarized copy);
- Business Registration Certificate (01 notarized copy);
- Technical drawings: ground plan, cross-sections plan, foundation plan; diagram on infrastructure works location; system diagrams and connection points of power and water supply, scale 1/100 to 1/200 (01 original for each type of plan);
- Time of issuing construction license: Not more than 20 days from the date of receipt of full qualified application dossiers.
10.2. Issuance of investment certificate, construction license, decision of land hand-over and land lease
- Issuing agency: Management Board of Nghi Son Economic Zone
- Place of submission: One-stop shop, Management Board of Nghi Son Economic Zone
The highest investment incentive policies
Nghi Son Economic Zone is one of the five key coastal economic zones which the Government of Vietnam prioritizes their investment. It is operated under a special mechanism. Businesses investing in Nghi Son Economic Zone enjoy the highest level of incentives under the current provisions of the law of Vietnam.
- Land rent incentives: exemption of land rent in 15 years since the date project is put into operation.
- Tax incentives:
Corporate Income Tax (CIT):
+To enjoy preferential CIT tax rate of 10% within 15 years and can be prolonged up to 30 years upon the Decision of the Prime Minister;
+ Be exempted from tax for 4 years and reduction of 50% of the tax payable for the next 09 years.
Import and export tax:
+Exemption for goods used for generating fixed assets, specialized transportation means of the technology line serving the investment project, vehicle to transport workers…;
Personal income tax (PIT): reduction of 50% of personal income tax for Vietnamese and foreigners working in Nghi Son EZ.
Other incentives:
+ The province and Nghi Son Economic Zone Management Board support investors in site clearance, administrative procedures, security and social order, labor recruitment and training.
+ Support dredging channel to the investors’ ports and breakwaters
Competitive cost:
* The land rent rate:
Low land rent = the percentage of land rent unit price x price of land (according to the purpose of the land use issued published annually by ThanhHoa Provincial People's Committee); in which:
+ The rate of land rent unit price as stipulated in Decision No. 1928/2014/QD - UBND dated 20 June 2014 of ThanhHoa Provincial People's Committee;
+ Production and business land price as stipulated in Decision No. 4545/2014/QD – UBND dated 18 December 2014 of ThanhHoa Provincial People's Committee.
* Compensation cost for site clearance:
• Agricultural land: about 2.62 USD/m2;
• Salted field land: about 2.91 USD/m2;
• Housing land: from 78.57 to 83.33 USD/m2.
*Water supply:       
- Raw water: The raw water is taken from Yen My Lake (87 million cubic meters) and Song Muc Lake (200 mill. cubic meters) by raw water supply piping system. From the factory, there are piping system to each section of the port. The water piper’s diameter is D150 to D400.
+ Water fees: from 0.26 to 0.5 USD/m3 (daily life) and 0.64 USD/m3 (business services).
- Drainage: There is a drainage system for production and daily life purpose.
- Wastewater treatment: The province is promoting a project on construction of centralized wastewater treatment plant in Nghi Son Economic Zone in the form of public-private partnerships (PPP). The Pre - Feasibility Study report for this project funded by the Asian Development Bank (ADB) is completed.
- Power supply: using the national grid including 500 KV North-South line and 220 KV ThanhHoa - Nghe An line. Existing substation: 220/110/22 KV - 250 MVA;
Electricity fees pursuant to Decision No.2256/QD-BTC dated 12 March 2015 by the Ministry of Finance: 0.04 - 0.12 USD/Kwh (industrial production); 0.07 - 0.16 USD/kwh (daily life).
*Attractive labor cost
+ The minimum salary of unskilled labor: 100 USD/person/month;
+ Average salary: 150 USD/person/month;
+ The social insurance contributions: 26% (the company: 18% employee: 8%);
+ Medical insurance: 4.5% (the company: 3%, employee 1.5%);
+ Unemployment insurance: 2% (the company: 1%, the employees: 1%).
- Some other costs
+ Cost of ancillary services (telephone, fax, internet...): subject to time;
+ Hotel accommodation: 10 - 250 USD/room/day (subject to service quality);
+ Travel cost: Taxi: 0.45 to 0.7 USD/km; self-drive car hire: 35-70 USD/day (subject to car quality); Car monthly rental: 600 – 2,000 USD/car/month (subject to car quality)
+ One-way flight ticket price from ThanhHoa to Ho Chi Minh City: 120 USD/person.
- Telecommunications: coverage of all mobile networks, broadband and high-speed infrastructure telecommunications system.
- Prevent and Fight Fire: a fire police is established to ensure timely processing when a fire occurs. Fire infrastructure system is synchronized.
- Service System: social infrastructure system has been developed to serve the needs of labor in the area such as resort, hotel, hospital, banking and financial services...
The supply of labor
- Big supply from universities and colleges in the province and neighbouring universities (Hanoi capital, Vinh city ...): every year, about 20,000 students joining the labour market is an opportunity for businesses to recruit high-quality human resources;
- High rate of trained labor force (approximately 55% of the total 2.23 millions people in working age);
- Available sources of materials for construction in the province (cement, bricks, tile, stone, sand, gravel...).
Commiment and strong support of the local government and people in ThanhHoa province
+ ThanhHoa province commit to be consistent in investment policies, and co-operating closely with business, creating favorable conditions for businesses to invest in production and business efficiency in the province.
+ ThanhHoa Investment, Trade and Tourism Promotion Agency under the ThanhHoa Provincial People’s Committee is the first place to support businesses up to their demands during the survey, investment research, production and trading
The large-scale projects in ThanhHoa province
- Nghi Son Refinery and Petrochemical complex (joint venture with Japan and Kuwait) with a total investment capital of nearly 9 billion USD is one of the biggest foreign investment projects in Vietnam. It is expected to be completed and put into operation in 2017;
- Nghi Son Cement Plant (joint venture with Japan) with capacity of 4.3 million tons;
- Cong Thanh Cement Plant with capacity of 5.8 million tons;
- Nghi Son thermal power plant No. 1 with capacity of 600 MW, Nghi Son thermal power plant No. 2 with capacity of 1,200 MW, Cong Thanh thermal power plant with capacity of 600 MW, the Nghi Son steel refinery plant etc…
There are the large-scale projects with modern technology which are the motivation to develop different industrial sectors, downstream supporting industries, trade and related services.

- Hotels: There are 1 five-star resort; one 5-star and two 4-star hotel; one 4-star resort; two 3-star hotels; and 65 hotels of all kinds of which 29 hotels in ThanhHoa city, 21 hotels in Sam Son town, 17 hotels in the remaining areas;
- Business and Service Centers: Commercial and service center system in ThanhHoa is good covering all areas of the province. ThanhHoa city is a hub of commercial centers and major supermarkets such as Big C, Vinaconex, Song Da, ThanhHoa, HC electronics, Co-op Mart, Media Mart ...
- Restaurants: ThanhHoa province has many upscale restaurants with renowned service quality and local specialties such as: Da Lan, Forest in the city, Hoang Lan, Vu Bao...;
- Entertainment and tourism: ThanhHoa is well-known for Sam Son beach; Hai Tien beach, Hai Hoa beach; Ben En National Park; Pu Hu, Pu Luong, Xuan Lien Natural Reserves which keep many valuable and rare fauna and flora genes; Cam Luong holy fish stream; Citadel of the Ho dynasty – the World Cultural Heritage; Lam Kinh - special national cultural heritage. It has a diverse marine tourism, eco-tourism and cultural-historical tourism;
- Golf course: There is an 18-hole golf course called Samson Golflink in Sam Son town;
- Hospitals: ThanhHoa province has a number of public general and specialized hospitals at provincial level such as ThanhHoa province General Hospital, Children's Hospital, Eye Hospital, Obstetrics and Gynecology Hospital, Tuberculosis Hospital, Endocrinology Hospital and hundreds of private hospitals and other clinics;
- Banks: In the province, there are many banks currently in operation including major banks such as Vietinbank, Agribank, Bank for Investment and Development, Maritime Bank, Military Bank, ACB and others, etc.
Contact point:
1.      ThanhHoa Investment, Trade and Tourism Promotion Agency
Address: no 41, Le Loi Avenue, ThanhHoa city;
Tel: +(84) 373 716 867;
Fax: +(84) 373 716 866.
2. Management Board of Nghi Son Economic Zone
Address: Km 372 – national road 1A, Truc Lam commune, TinhGia district, ThanhHoa province
Phone: + (84) 373 617 235; Fax: + (84) 373 617 239.
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