INVITATION LETTER FOR INVESTMENT

We are committed to a prompt provision of infrastructure to accommodate the investor’s progress. 

ITEM	DESCRIPTION
Road system in the Industrial Park	The main road has a total width of 35m, internal roads 24 - 28m, loading capacity of H30, ensuring the easy and convenient traffic of containers and other means of transport.
Power system	Ratings 110/22KV, Capacity 40 MW, scalability of capacity is supported.
Water supply system	Water plant: The internal water plant has a capacity of 7,500m3/day. Main pipelines Ø200mm - Ø300mm and branch pipelines Ø150mm - Ø100mm
Firefighting system	Fire hydrants are Ø100mm, 150m apart
Drainage system	Rainwater is drained through a circular reinforced concrete sewer system, which can accommodate the storm water from plants and the Industrial Park itself.
Water treatment plant	Capacity of 4,000 m3/day. For Phase 1, the plant is built with a capacity of 2,000 m3/day. - Secondary investors locally treat the wastewater to meet column B requirement under QCVN 40: 2011/BTNMT standard. - The Industrial Park further treats the wastewater to meet column A requirement under QCVN 40: 2011/BTNMT standard
Telecommunication system	The network of fiber optic cables and high-speed internet, postal and telecommunications services will be provided by VNPT Binh Thuan.
Parking lot	Area of 19,000m2.
Topographic and geological characteristics	The ground is geologically firm, favorable for construction, average soil strength of 2.5 kg/cm2 Relatively flat terrain, leveled ground slope of 0.5%, topographic slope of 0.8%.

We are committed to a prompt provision of infrastructure to accommodate the investor’s progress.

6. Regional connections and external traffic system:

Tuy Phong Industrial Park advantageously benefits from a convenient traffic location for the following reasons:

6.1. Roads:

Located next to the intersection of the trans-Vietnam expressway (speed 120km/h) National Highway 1A, very convenient to get to:

- Provinces in the North and Central Coast:

• About 50 km from Phan Rang - Thap Cham City in the North,
• About 150km from Nha Trang City.

- Ho Chi Minh City and Southern provinces: Vinh Hao - Ho Chi Minh City expressway, which is expected to be completed in 2022, will take only about 2.5 hours to drive from Tuy Phong Industrial Park to Ho Chi Minh City.

• About 90 km from Phan Thiet in the South,
• About 250 km from Ho Chi Minh City.

- Connected to the Central Highlands provinces by National Highways 26, 27 and 28: about 150 km from Da Lat and about 300 km from Ban Me Thuot in the West.

- Connections to Asian and European countries are allowed by the Asia Highway system (AH1) which coincides National Highway 1A running along the Industrial Park frontage.

6.2. Seaways:

8km from Vinh Tan International Port, a general port with a depth of 10.2m, capable to accommodate 30,000-70,000 DWT ships including container ships, bulk carriers, equipment ships. The port works 24/24h, always ready for fast loading and unloading.

There is a local Customs Sub-Department that allows on-the-spot clearance procedures.

6.3. Railways:

The Industrial Park is located near the North-South railway axis, 01 km from Vinh Hao Railway Station, 30 km from Phan Rang Station, 90 km from Phan Thiet Station, enabling international transportation of passengers and goods from Vietnam to other countries such as Mongolia, Kazakhstan, Uzbekistan, Russia, Tajikistan, Poland, United Kingdom, Germany, etc. A variety of goods is supported: electronics, textiles, footwear, cosmetics, frozen foodstuff, fruits ...

In addition to the traditional form of railway - railway transport to other countries, Vietnam railways also accept multimodal transports: railway - road, railway - seaway.

In the time to come, when the Ho Chi Minh City - Phnom Penh Rail Line is invested, Vinh Hao will be connected to Southwestern Provinces via the Ho Chi Minh City - Can Tho Rail Line and enable westward transport of goods and passengers to Singapore, Thailand, Myanmar, India, etc. through Cambodia.

6.4. Airways:

• 135 km from Cam Ranh International Airport
• 250 km from Tan Son Nhat International Airport – Ho Chi Minh City.
• 250 km from Long Thanh International Airport (expected to operate in phase 1 in 2025)
• 80 km from Phan Thiet Airport (expected to operate in 2023)

7. Advantages of Binh Thuan:

7.1. Minerals: Binh Thuan is endowed with a diverse source of minerals: Titanium, oil and gas, peat, gold, tin, wolfram, lead, zinc, sapphire, quartz, brick clay, bentonite clay, etc.

• Binh Thuan has the largest titanium reserve in Vietnam (accounting for 92% of Vietnam’s total reserve): over 599 million tons.
• Nationwide leading reserve of Zircon: 4 million tons.
• Glass sand: reserve of over 500 million m³, qualified for export, suitable for high-grade glass production, construction glass and glass bricks
• Oil and natural gas is said a new economic advantage of Binh Thuan Province, where many oil fields of large reserves have been discovered 60 km from the mainland, three oil fields are under exploitation, and two oil fields are going to be exploited. Vietnam is investing in the development of Binh Thuan’s oil and gas industry so as to form an oil reserve center to ensure national energy security and export.
• Bicarbonated natural mineral water: more than 10 mines of large reserves and good quality (including hot spring at 87 degrees C), which can provide over 300 million liters per year.
• Bentonite clay: used for chemical industry and oil mining, reserve of about 20 million tons.
• Granite: very large reserve, scattered across the Province.

7.2 Agriculture - Forestry - Fishery:

Regarding fishery, Binh Thuan is one of the three major fishing grounds of Vietnam. With an area of 52,000 km2, this fishing ground provides over 200,000 tons of seafood every year. In Binh Thuan, where scallop is a specialty, the catch of scallop is 25-30 thousand tons per year. The Province has more than 4,100 hectares of water surface favorable for developing various sectors of aquaculture. It is also advantageous for export-processing of seafood.

The agricultural land area is over 270,000 ha. Particularly, dragon fruit is a famous specialty with a cultivation area of 27,031 ha, production of over 518,000 tons. Rubber tree cultivation area is over 42,131 hectares, giving an output of over 50,000 tons;

The forestry area as planned in a view to 2020 is 346,278 ha; wood reserves of about 353 million m3, including 172,735 ha of production forest.

7.3 Energy:

Binh Thuan is becoming Vietnam’s national energy center for its nation-wide leading production of wind and solar energy. The numbers of wind hours, sunny hours, wind speed and heat radiation are high and stable, highly favorable for the development of wind power and solar power.

By the end of 2020, Binh Thuan Province will have 42 active power plants with a total capacity of 6,225.4 MW (including: 4 thermal power plants under Vinh Tan Power Center (capacity of 4,224 MW), 7 hydro power plants (819.5 MW), 1 diesel power plant on Phu Quy Island (10 MW), 4 wind power plants (100 MW) and 26 solar power plants (1,071.9 MW). The design production of 37 power plants in the Province is about 31.13 billion kWh/year.

8. Orientation of Binh Thuan Province’s government:

Strive to become a strong magnet to large investors, capable of driving Binh Thuan Province’s rapid and sustainable development, gaining a firm stance in marine economy, energy and tourism.

Focus on 03 economic pillars in association with high technology application, while building value chains for industry, tourism and agriculture.

Develop the energy industry into a mainstay of the Province’s economic development, giving priority to renewable energy development based on the potential of solar radiation and wind energy, especially offshore wind power.

Call for investment in supporting industries for energy and processing industry, especially advantageous products such as Minerals and Aqua-products ...

Promote the role of Vinh Tan International Port, Phan Thiet Airport, North - South Expressway (the section crossing the Province) to develop the logistics service system.

Attach importance to the development of aquaculture, especially marine aquaculture in association with processing so as to create high added values; develop large-scale livestock and poultry husbandry in association with veterinary control and concentrated slaughter.

9. Advantages and investment attraction guidelines of Tuy Phong Industrial Park:

9.1 Favorable geographical location of Tuy Phong Industrial Park:

The Park has the best proximity to Vinh Tan International Port compared to other industrial parks in the Province, very convenient for import and export of bulky/large sized goods; being the gateway for industrial products, agriculture, forestry products, aqua-products and minerals from Binh Thuan and the Central Highlands provinces toward Vinh Tan International Port. It is also advantageous for connection to countries in Europe, Asia, America, Australia, Africa, helping to shorten the time and cost of forwarding/importing/exporting goods to and from every corner of the world.

Located between the "kingdom" of wind and solar power in Binh Thuan and Ninh Thuan, the Industrial Park is endowed with an abundant, stable and cheap electricity source.

Situated next to the trans-Vietnam highway system, convenient for transporting goods along the North-South and East-West axis of Vietnam;

Located right at the intersection of the trans-Vietnam expressway system, including National Highway 1 of the Asian Highway system (AH) from Tokyo through North Korea, China, Southeast Asia and India, to the border between Iran, Turkey and Bulgaria.

Located near train stations, enabling international transportation of goods to Asian, European and African countries, thanks to the Trans-Asian Railway (TAR) system.

Convenient for travel by domestic and international airways, thanks to the existing Cam Ranh and Tan Son airports, and Phan Thiet and Long Thanh airports in the future.

Tuy Phong District now has a population of about 200,000 people. The Industrial Park is close to residential centers such as Ca Na (10km away), Lien Huong (20km away) and Phan Rang (30km away). Therefore it is easy to find workers for factories;

Tuy Phong Industrial Park has a good foundation and is located amid an abundant source of building materials, so the construction of projects will be very convenient and require low investment costs;

It is easy for experts, managers and workers to live, travel, go for sight-seeing and entertainment near the Industrial Park, for examples:

• Convenient accommodation in Tuy Phong- Lien Huong, Ca Na- Phan Rang;
• Resorts in Phan Thiet - Mui Ne, Phan Rang - Vinh Hy , Cam Ranh – Nha Trang or Da Lat - Buon Me Thuot;
• Local attractions such as Cu Lao Cau, Seven Colored Stone Reef, Co Thach Beach.

Thus, Tuy Phong Industrial Park is very suitable for:

• Enterprises wishing to import/export and transport raw materials, finished products and goods in large quantities and large sizes through seaports;
• Enterprises engaged in manufacturing, trading, service and logistics relating to wind and solar power; supporting industries for energy.
• Enterprises with intensive consumption of electricity.
• Enterprises processing Titanium, Zircon, and bentonite clay, ...
• Manufacturers of smart agriculture products such as automatic irrigation technology, water saving and aquaculture; post-harvest preservation; processing seafood, agricultural and forestry products for export and domestic service.
• Enterprises producing high-grade glass, construction glass, glass bricks; building materials.
• Enterprises producing mineral water; pharmaceuticals and cosmetics from mineral springs and minerals ...
• Enterprises producing consumer goods and health care products.

9.2 Based on the above said advantages and strengths, Tuy Phong Industrial Park is planned to accommodate the development of multiple industries, specified as follows:

• The detailed planning and environmental impact assessment have been approved.
• Infrastructure construction permit has been granted.
• Financial obligations, hand-over of land for lease have been fulfilled; and land use right certificate is available.

10. Incentives and supports for investors targeting Tuy Phong Industrial Park:

Investing in Tuy Phong Industrial Park, investors will be entitled to the following preferential policies and supports:

10.1. Incentives

10.1.1. Corporate income tax incentives:

New investment projects in the areas of: manufacturing software products; manufacturing composite materials, light construction materials, rare and precious materials; manufacturing environmental pollution treatment equipment, environmental monitoring and analysis equipment; recycling, reuse of waste, ... enjoy preferential tax rate of 10% for a period of 15 years, tax exemption for 04 years and 50% tax reduction for the next 9 years.

New investment projects in the areas of: Processing agricultural and aquatic products; post-harvest preservation of agricultural products, preservation of agricultural and aquatic products and foodstuffs; salt production, extraction and refinement (except salt production as specified in Clause 1, Article 4 of Decree No. 218/2013/ND-CP) enjoy preferential tax rate of 10% throughout the project life cycle.

New investment projects in other areas are entitled to preferential tax rate of 17% for a period of 10 years, tax exemption for 02 years and 50% tax reduction for the next 04 years.

(Specific conditions for each field and line of investment are given under Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Corporate Income Tax and documents related to corporate income tax).

10.1.2. Import and export tax incentives:

Investment projects are exempt from import tax on fixed asset machinery and equipment; goods imported for processing of export goods; goods imported for production of export goods (Case-based conditions are specified in Decree No. 134/2016/ND-CP of the Government detailing a number of articles and enforcement measures of the Law on Export Tax and Import Tax).

10.1.3 Import and export tax incentives under Vietnam's bilateral and multilateral trade agreements:

• ASEAN (AFTA)
• ASEAN - China (ACFTA)
• ASEAN – South Korea (AKFTA)
• ASEAN - Japan (AJCEP)
• ASEAN - India (AIFTA)
• ASEAN - Australia - New Zealand (AANFTA)
• Vietnam - Japan Economic Partnership Agreement (VJEPA)
• Vietnam - Chile Free Trade Agreement (VCFTA)
• Vietnam - Korea Free Trade Agreement (VKFTA)
• Vietnam - Eurasian Economic Union (VN-EAEU FTA)
• European Union Vietnam Free Trade Agreement (EVFTA)
• Free Trade Agreement between Vietnam and the Association the Member States of the European Free Trade Association (EFTA)
• Regional Comprehensive Economic Partnership (RCEP)
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

10.2. Supporting policies

10.2.1. Preferential loan interest rate for innovation of technology and equipment for enterprises producing advantageous products of Binh Thuan Province:

Enterprises investing in the production of Province’s advantageous products (products derived from rubber latex; dragon fruit processed products and dragon fruit preservation technology; processed aquatic products), when mobilizing funds from commercial banks and credit institutions in Binh Thuan Province will receive 100% support from the Province’s budget at the interest rate of Joint Stock Commercial Bank for Investment and Development - Binh Thuan Branch as prevailing from time to time. The facility limit is up to VND 20 billion for a project. The maximum support period is 03 years from the date the bank accepts the facility agreement (as specified in Decision No. 16/2017/QD-UBND dated May 16, 2017 of the People's Committee of Binh Thuan Province)

10.2.2 Cost of investment in the construction, operation or rent of apartment buildings and social infrastructural works for laborers working in the Industrial Park:

All of these costs are reasonable deductible expenses in account of taxable income of any enterprise which has an investment project in the Industrial Park (as specified in Decree No. 82/2018/ND-CP of the Government. on management of industrial parks and economic zones).

10.3. Supports from the developer of Tuy Phong Industrial Park:

Empowered by a team of professional managers experienced in managing, administering, constructing and developing the environment of industrial parks, the developer of Tuy Phong Industrial Park will support investors in applying for investment certificate, construction implementation, operation, logistics and further development.

11. Approved planning targets: