INDUSTRIAL LAND FOR LEASE

With the demand for industrial land for lease service continues rising, Du Long Industrial Park (IP) stands out as an attractive option for businesses and investors. Here are five key things you need to know about Du Long’s industrial land for lease that make it a prime choice for those looking to establish or expand operations.

1. General information

Located in the heart of the South Central economic zone, Du Long is one of the most promising destinations for real estate investments in industrial land for investors in Ninh Thuan. Particularly, Du Long IP’s outstanding feature is its industrial land for lease service, which is attracting attention from both domestic and international investors.

As of the end of 2023, Du Long has successfully attracted 5 secondary investors, including 4 foreign-owned businesses and Dugarco, one of Vietnamese – leading textile business. These five investors hold the promise of establishing a seamless supply chain within Du Long. The ultimate end goal is to create an economies of scale and to reduce cost for all members within the industrial park:

The total investment flowing into Du Long has reached over VND1,000 billion (USD41million). The two most notable investments in 2023 for Du Long come from Suedwolle Group with a capital of VND638billion (USD26million) and the Hoang Thanh Do Luong factory project by Dugarco Group worth VND600billion (USD24.4million). These investments serve as evidence of Du Long IP’s remarkable development pace and its future potential.

In addition to competitive pricing, Du Long IP offers various attractive policies and incentives to welcome new investors into the industrial park. This, combined with the available land and promising supply-chain developments, makes Du Long an appealing destination for businesses seeking investment opportunities.

2. Price and incentives of Du Long Industrial Park

Du Long Industrial Park is offering a range of incentives and support for new investors. Below is detailed information about the pricing and incentives for land leasing services at Du Long Industrial Park.

2.1. Price

During their participation in Du Long, investors will need to cover the following types of expenses:

• Land leasing fee.
• Management fee.
• Wastewater treatment fee.
• Electricity and water costs.

The average industrial land leasing price in the southern region in 2023 is around USD 189 per square meter per lease term. Especially in provinces with strong industrial potential, prices can reach as high as USD 300 per square meter per lease term and are expected to continue rising in the future:

• Ho Chi Minh City: USD 100 – USD 300/m2/lease term.
• Binh Duong: USD 100 – USD 300/m2/lease term.
• Long An: USD 125 –  USD 275/m2/lease term.

Currently, Du Long’s land leasing prices are only half of the average prices in the southern region. This presents a significant opportunity for investors to take advantage of attractive incentives and reduce land leasing costs when engaging in activities at Du Long Industrial Park.

However, these incentives are only applicable for the initial period for pioneering investors. Therefore, investors are encouraged to quickly contact Du Long Industrial Park directly via hotline 096.230.5757 to benefit from these limited-time incentives.

2.2. Incentives

Currently, Du Long is implementing several incentive programs for businesses investing in the industrial park under the support policies of Ninh Thuan province. These incentives include:

• Corporate income tax incentives: An income tax rate of 10% is applied for 15 years, helping businesses stabilize their profits during the initial production phase. Furthermore, secondary investors are exempted from income tax for the first 4 years and enjoy a 50% reduction in tax for the following 9 years, easing their financial burden.
• Import tax exemptions: Businesses benefit from import tax exemptions on certain types of goods to create fixed assets. This policy significantly reduces initial costs for businesses.
• Land lease fee waiver: Infrastructure construction projects are exempt from land lease fees until the project is completed.

In addition, Du Long will support investors in handling procedures such as investment certificates or business registration during the initial period. Furthermore, Du Long Industrial Park will assist investors in resolving any issues to expedite procedures, such as obtaining construction permits and environmental permits as long as its within the developer’s responsibility.

3. Why should you choose industrial land for lease Du Long IP?

In addition to the advantages of affordable land lease costs and favorable investment policies, Du Long IP also possesses several strengths that make it an ideal destination for new investors.

3.1. Strategic location

Du Long is strategically located in the heart of the South Central Coast Economic Zone, providing direct access to major cities such as:

• 320 km from Ho Chi Minh City.
• 70 km from Nha Trang.
• 20 km from Phan Rang – Thap Cham.

Furthermore, the industrial park boasts excellent connectivity to key transportation hubs, including:

• The nearest international airport: Cam Ranh International Airport, just 20 km away.
• The nearest railway station: Thap Cham Railway Station, also 20 km away.
• The nearest seaport: Cam Ranh Seaport, located 25 km away.

Thanks to its strategic geographical location, manufacturing and trade activities in Du Long Industrial Park benefit from excellent accessibility. This factor, among others, has attracted significant attention from international investors.

3.2. Infrastructure environment and facilities

Currently, all of Du Long’s infrastructure has been completed and synchronized to meet the needs of businesses:

• Electrical system: The electrical system is connected to the national grid’s 110/22kV substation, supplemented by renewable energy sources such as wind and solar power, ensuring an abundant supply of electricity for businesses.
• Water supply and wastewater treatment system: The water supply has a capacity of 15,000 m3/day, while the wastewater treatment plant employs advanced SBR technology, with a treatment capacity of 12,000 m3/day. This system caters to the water supply and wastewater treatment needs of specific industries such as chemicals and textiles.
• Transportation system: Du Long’s internal transportation system has been fully developed, with roads ranging from 20 to 52 meters wide and featuring eight lanes.
• Telecommunication system: This system ensures connectivity and communication requirements for businesses.

These well-established infrastructure facilities make Du Long a prime location for investment and industrial development.

3.3. Reputable developer

Du Long IP has undergone two ownership changes since 2007. The industrial park has finally realize its potential in 2022 when Hoang Thanh Du Long Investment Joint Stock Company officially took over

Hoang Thanh Du Long Investment Joint Stock Company boasts 19 years of experience in the real estate industry. With an experienced leadership team from the shareholder that has previously managed industrial parks such as Khai Quang Industrial Park and Song Lo II Industrial Park, Du Long IP is poised to be the next successful industrial park project.

In just one year under the management of the new investor, Du Long IP has completed its basic infrastructure system that meets environmental regulatory requirement. The IP looks to further fulfill additional requirements to become a more efficient and sustainable industrial park. 

3.4. Priority investment areas

Du Long IP is one of the 13 industrial zones in Vietnam that possesses environmental licenses for businesses in specific industries. Currently, the industrial park is focusing on attracting sectors such as textiles and high technology. Investors can explore further information about the industries that are being welcomed in the table below:

The prioritized industries attracted to Du Long all have stringent requirements for environmental permits and a high-quality infrastructure system. With a wastewater treatment plant utilizing SBR technology and an abundant power supply, Du Long fully meets the regulations and production needs of businesses optimally.

Currently, Du Long has successfully attracted 5 businesses in the textile and garment supply chain to operate in the industrial park. Among them, 4 are foreign-invested enterprises, demonstrating the reputation that Du Long IP has to international investors.

In the near future, Du Long plans to continue attracting investment from businesses involved in processing raw materials and material handling, such as wool processing, yarn spinning, and fabric weaving, to create a comprehensive textile and garment supply chain within the industrial park.

Furthermore, with the advantage of sustainable renewable energy sources, Du Long also aims to welcome high-tech, environmentally friendly businesses to contribute to sustainable economic development within the industrial park.

4.Procedures of industrial land for lease Du Long

Investors can refer to the following information for more details on the legal documentation requirements and procedures for leasing land in Du Long Industrial Park.

4.1. Components

The legal documentation that businesses need to prepare when going through the process of leasing industrial land in Du Long Industrial Park, following the regulations of the Ninh Thuan Provincial Industrial Park Management Board, includes:

• A request letter to implement the investment project.
• Documents verifying the legal status of the Investor.
• Financial capability documents, including the financial reports of the Investor for the past 2 years, financial support commitment from the parent company or the Investor, and other financial capability documents.
• Investment project proposal, which includes essential information such as details about the Investor or the selection of the Investor, project objectives, scale, investment capital, and funding sources, project location, project implementation schedule broken down by timeframes, current land use status, labor force requirements, proposed investment incentive levels, assessment of the project’s socio-economic impacts, and a preliminary assessment of the project’s environmental impacts (if applicable).

Regarding the number of prepared dossiers and the processing time, the Ninh Thuan Provincial Industrial Park Management Board specifies the following:

• For foreign investors: Investors need to prepare 1 original dossier, and the maximum processing time is 15 days.
• For domestic investors: Investors need to prepare 1 original dossier and 3 notarized copies, and the maximum processing time is 18 days.

Furthermore, to ensure the conditions for submitting legal documents, businesses must meet the following requirements:

• The investment project does not fall under the list of prohibited business sectors according to the regulations in Article 6 of the Investment Law and international investment agreements.
• Completion of land leasing procedures: A lease agreement with the Industrial Zone infrastructure developer for the land.
• The investment project is in line with the specified planning requirements.

4.2. Procedures

The land leasing process at Du Long Industrial Park consists of 4 main steps. Here is the detailed content of each step:

Step 1: Establishing a legal entity

• Sign MoU or In-principle land sub-lease agreement with Du Long Industrial Park: In the first step of the land leasing process at Du Long Industrial Park, investors need to sign a MoU (Memorandum of understanding) with the Management Board of Du Long Industrial Park and complete procedures related to land leasing at this industrial park.
• Acquire the Investment Registration Certificate (IRC) by submitting number 1) along with other required documents: The competent authority will review and issue the Investment Registration Certificate (IRC) for the project within a maximum period of 15 days from the date of receiving a valid application (if the project does not require investment approval).
• Establish a legal local entity in Ninh Thuan through an Enterprise Registration Certificate (ERC): Investors will go to Business Registration Office to carry out procedures to apply for an Enterprise Registration Certificate (ERC). This step will last about 3 to 5 working days from the date companies receive the valid documents.
• Proceed to sign the actual land sublease agreement using the entity formed in 3): After successfully establishing ERC, investors can proceed to sign the official land sublease agreement with the Management Board of Du Long Industrial Park. This agreement solidifies the terms and conditions of the land lease, including duration, rental fees, and any additional provisions.

Step 2: Land Handover

Du Long IP, after entering into the land sublease contract and has received full payments from the secondary investor, will initiate land handover.

Step 3: Prepare Factory Design

Businesses must prepare the factory design to submit to the authority for approvals,  including:

• Environmental Impact Assessment Report (maximum 30 – 45 days).
• Submit 1/500 Planning Design (15 days).
• Submit preliminary design documents and Fire Protection Design (maximum 30 days).

Step 4: Commence Construction of the Factory

Du Long and the businesses will closely follow the regulations and the specified timeline to ensure that the construction process proceeds according to the plan. The Certificate of Land Use Rights is not affects of constructing process, so businesses can apply whenever they want.

• Submit technical design documents, construction design, and Fire Protection Design (maximum 30 days).
• Apply for Construction Permit (maximum 7 days).
• Apply for the Certificate of Land Use Rights.

Please note that the process may be subject to change according to the regulations of the Management Board of Du Long Industrial Park and the laws of Vietnam at the time of implementation. Therefore, investors should contact Du Long Industrial Park directly for specific information and detailed guidance on the land leasing process.

5. Frequently Asked Questions

In order to help investors gain a better understanding of the procedures and related issues regarding land leasing in Du Long Industrial Park, here are some frequently asked questions:

Question 1: What are the amenities and services included when leasing industrial land at Du Long Industrial Park?

Answer: Standard infrastructures at Du Long Industrial Park are completed. Infrastructures include: the power and water supply systems; wastewater and waste treatment systems, security, fire-fighting, telecommunication, and road system to meet the essential needs for business.

Question 2: Can foreign investors lease industrial land at Du Long Industrial Park?

Answer: Yes, Du Long welcomes the foreign investors, especially businesses involved in various stages of garment and textile supply chains.

Furthermore, Du Long’s investment promotion extends to high-tech industries in accordance with government regulations, with the aim of creating a sustainable supply chain system.

Question 3: Can foreign investors sign land lease contracts through foreign legal entities/offshore entities? Do they need to establish a legal entity in the province?

Answer: Foreign investors are required to establish a legal entity in the province through an Enterprise Registration Certificate (ERC) when they want to sign a land lease contract in Du Long.

However, foreign investors must first acquire the Investment Registration Certificate (IRC) to be eligible to create a local entity through the  Enterprise Registration Certificate. Once they have the IRC, foreign investors can contribute capital to a local entity and then sign a Land SubLease Contract with the industrial park to have official the right to use the land and to commence production within the industrial park.

Question 4: What happens when the land lease expires?

Answer: Under Land Law, the stipulated time of industrial land lease is 50 years. However, the extension of the land lease period in specific industrial zones depends on the prevalent regulations at the time of expiry.

As of today, the government and Ninh Thuan province have not issued guidelines for extending the land lease period for industrial parks. We will continue to monitor and update this information for investors.

Question 5: Is the global minimum tax applicable to Du Long Industrial Park?

Answer: The global minimum tax is applied across the entire territory of Vietnam, including Du Long Industrial Park. This tax rate will only be applicable to projects of multinational corporations with a combined revenue of USD800 million over 2 years within the last 4 years of operation.

Feel free to reach out to us through our hotline at 096.230.5757 for the most detailed consultation on land leasing services in Du Long Industrial Park. Don’t forget to follow our website at https://dulongip.vn/ to stay updated with the latest information on investment opportunities in Du Long Industrial Park and Ninh Thuan province.