Project on Construction of Container Production Factory in Nghi Son Economic Zone

Pushlic on: 15:57:46 24/05/2016 (GMT+7)



Nghi Son EZ's oriental development space planning map(1).jpg
Nghi Son Economic Zone

- 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.





Name of project: Project on construction of container production factory in Nghi Son EZ, Thanh Hoa province


Location of the project:


The Western national road 1A Industrial Zone 


- Location: The container production factory is located in the Western national road 1A industrial zone in Nghi Son Economic Zone.

so do lien ket vung.png

- Comparative advantages of location:

+ Location: the IZ has convenient location in the administrative territory of Tan Truong commune, Nghi Son EZ, in the West of NR 1A.


+ By Nghi Son- Bai Tranh road in the North;

+ By Industrial zone No.5 in the South (via road to Truong Lam clay mine);

+ By National road No. 1A in the East;

+ By planned North-South railway in the West;

- Comparative advantages:

+ Transport:

. Road: Adjacent to NR 1A, the road linking Nghi Son with Hochiminh highway, 1 km from the planned North-South national highway to the East.

. Railway: close to the national railway with distance of 500m from Khoa Truong station, which is expected to be upgraded into the central station of Nghi Son EZ.

. Seaport: 7km from Nghi Son sea port to the West. Nghi Son port are capable of accommodating ships of 50,000DWT with the loading capacity of hundreds of million tons per year. Currently, there are specialized berths of Nghi Son Thermal Power Plant No.1, Nghi Son Cement Plant and 4 general berths put into operation with capabilities of accommodating ships of 30,000DWT and loading capacity of about 10 million tons per year. In addition, dozens of general, specialized and container berths as well as logistics areas are being constructed by investors. The distance from Nghi Son port position:

      To Hai Phong port: 119 nautical miles

      To Hochiminh City port: 700  nautical miles

      To Hong Kong port: 650  nautical miles

              To Singapore port: 1,280  nautical miles

+ Power supply to Nghi Son EZ is provided from the national power grid including North-South 500 KV and ThanhHoa – Nghe An 220 KV lines. Currently, the 220/110/22 KV - 250 MVA transformer station has been upgraded for production purpose.

+Water supply

- Raw water supply: 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. The pipeline in the phase 1 with capacity of 30,000m3 per day leading to Dong Chua Lake has been built and put into operation. The pipeline in phase 2 with the capacity of 90,000m3 per day has been invested from ODA source and expected to be completed by 2017.

- Clean water supply: There are two clean water supply plants, consisting of one plant in Dong Chua lake, now under operation in phase 1 with capacity of 30,000m3 per day and construction in phase 2 with capacity of 90,000m3 per day; and another plant in the West of NR. 1A with capacity of 20,000m3 per day now under construction.

+ Telecommunications services: Under investment and completion.

 + Labor: Population of Nghi Son EZ is approximately more than 250,000 people (consisting of 137,000 labor).

 - Land rent: on negotiation with infrastructure developers.


Land-use area: 20 ha


Project objectives, scale and products

- Objective: Producing containers pursuant to international standards to save cost and time for the transport and construction industries in Nghi Son EZ, Thanh Hoa province, in the region and for export.

- Scale:

+ Total proposed capital amount: 50 million USD

+ Capacity: 60,000 TEUs/year

+ Labor in use: 1,000 workers

- Products of project:

- Standard container: 20DV, 40DV, 20HC

- Specialized Container OFSHORE: 6ft, 10ft, 12 feet, containing wastes.

- Non-standard containers:  petrol storage containers, refrigerated containers, containers for telecommunications, container power station.


Implementation schedule: 2-3 years


Current technical infrastructure status :

* Transport

- Roads: Situated in the North-South transport axis of Vietnam, Nghi Son EZ has the national road 1A and the national north-south highway passing through. It owns a linking transport road network reaching different areas of the province and the region. The major transport axes connect the urban area centers with industrial zones and Nghi Son port; the East – West transport axes connect Nghi Son port with the planned North – South highway and Hochiminh highway.

- Railway: 15 kilometers of the national railway passing through Nghi Son EZ. Khoa Truong railway station (200km from Hanoi station) is expected to be upgraded into the central station of Nghi Son EZ.

- Sea port: The specialized berths of Nghi Son Thermal Power Plant I, Nghi Son cement plant and 4 other general berths are put into operation with capabilities of accommodating ships of 30,000DWT with the loading capacity of about 10 million tons per year. Currently, dozens of general, specialized and container’s berths as well as general port logistics sectors are being constructed by investors.

* Power supply

- Nghi Son EZ is exploiting the national power grid including North-South 500 KV and ThanhHoa – Nghe An 220 KV lines. Currently, the 220/110/22 KV - 250 MVA transformer station has ensured the power supply for civil consumption and production.

- The Government has planned Nghi Son EZ into a big thermal power center with total capacity of 2,400MW. In which, Nghi Son Thermal Plant 1 of 600MW has generated electricity since October 2013. Nghi Son Thermal Plant 2, with capacity of 1,200MW, which BOT contract awarded to consortium of Marubeni Corporation (Japan) and Kepco (South Korea), is expected to start its construction in 2016.

* Telecommunications services: The telecommunications system of ThanhHoa province has developed and expanded throughout province with the increasingly improved quality.


Form of investment: joint-venture; Business Cooperation Contract (BCC); 100% foreign capital, domestic capital.


Land lease duration: 50 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% (of which the company: 18% employee: 8%);

+ Medical insurance: 4.5% (including the company: 3%, employee 1.5%);

+ Unemployment insurance: 2% (including 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 labour 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 neighboring universities (Hanoi capital, Vinh city ...): every year, about 20,000 students joining the labor market is an opportunity for businesses to recruit high-quality human resources;

- High number of trained labor force (approximately 55% of total 2.23 million people in working age);

- Available sources of materials for construction in the province (cement, bricks, tile, stone, sand, gravel...).


Commitment and strong support of the local government and people in Thanh Hoa province

+ Thanh Hoa 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.

+ Thanh Hoa Investment, Trade and Tourism Promotion Agency under the Thanh Hoa Provincial People’s Committee is the first place to support businesses tailored to their demands during the survey, investment research, production and trading





- 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: Thanh Hoa 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 named Samson Golflink in Sam Son town;

- Hospitals: Thanh Hoa 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.



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.



This week:
This month: