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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office A RECOMMENDATION ON POTENTIAL PROVINCES AND CITIES IN VIET NAM FOR ITALIAN INVESTORS Prepared by: Mr. NAM – Investment Desk Officer Email: [email protected] Tel: (84-8) 38269646 ……………………………… ICE - HO CHI MINH CITY OCTOBER 2008 - DRAFT 1

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Page 1: A RECOMMENDATION ON POTENTIAL PROVINCES AND CITIES … › fs › 2008121611840_216.pdf · Hung Phu industrial park, Can Tho city Constructing port for 20,000 ton vessels to dock

Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

A RECOMMENDATION ON POTENTIAL

PROVINCES AND CITIES IN VIET NAM

FOR ITALIAN INVESTORS

Prepared by: Mr. NAM – Investment Desk Officer Email: [email protected] Tel: (84-8) 38269646

……………………………… ICE - HO CHI MINH CITY OCTOBER 2008 - DRAFT

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

OUTLINE STRUCTURE

I. General information

1.1 Master plan/Map of the city/province

1.2 Geographical location

II. Productive resources

2.1 Natural resources

2.2 Population and labor force

III. Infrastructure

3.1 Energy

3.2 Water supply

3.3 Telecommunication

3.4 Transportation

IV. Economic structure and potential for co-operation

V. Financial sector

VI. Local government’ strategies and orientation for the development of

the city/province

VII. Local preferential policies for attracting investment

VIII. List of projects calling for investment

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

INTRODUCTION TO THE

INVESTMENT DESK’S ACTIVITIES

The Desk for Italian investments in Vietnam has been created in March

2008 inside Ice’s office in Ho Chi Minh City of the Italian Institute for

Foreign Trade.

The main purposes of the Desk on Italian investment in Vietnam are to

facilitate the interaction amongst companies, public and financial institutions

either Vietnamese, Italian or multilateral in nature, in order to facilitate

Italian investment in Vietnam. The major activities of the Investment Desk

Officer the following.

* Assist Italian companies willing to invest in Vietnam

* Identify investment opportunities and disseminate information about

them

* Entertain public relations with the main Vietnamese public sector

administrations and organizations in charge of attracting investment.

* Analyze main trends and features of foreign direct investment (FDI) in

Vietnam.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

* Produce reports on specific issues or sectors, as far as investment

opportunities are concerned.

* Take care of the investment desk’s web pages on ICE’s institutional

website

* Organize technical seminars on investment opportunities in Vietnam.

If you need any specific assistance, please do not hesitate to contact

our Investment

Desk Officer, Mr. Nam at the phone number: (08) 3826 9646 or to the email

address:

[email protected]

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

A COVER LETTER

A list of selected cities and provinces in Vietnam is recommended to

Italian businesses by the Investment desk of ICE in Ho Chi Minh city for the

Investment seminar in the big mission in November 2008. These provinces

and cities are typical areas in the country of Vietnam and they are included:

Hanoi, Hai Phong and Vinh Phuc in the North; Da Nang in the Central; Ho

Chi Minh city, Dong Nai, Binh Duong, Ba Ria – Vung Tau and Can Tho in

the South. Main reasons of choosing those cities and provinces are as follows:

1/ They are not only big but also dynamic cities and provinces in Vietnam.

2/ They have strategic positions in Vietnam.

3/ They are potential for the further development and investment co-

operation.

4/ Population there is crowded and labor forces are active.

5/Natural resources at those places are rich.

6/It is convenient for traffic and transportation.

7/Infrastructure is fairly good.

8/Preferential policies for attracting investment at these cities and provinces

are flexible.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office 9/Authorized organizations are willing to help investors.

10/There are many projects calling for investment.

In order to collect information on those cities and provinces, firstly, we

contact responsible entities and persons in order to introduce ICE and to let

them know the importance, targets and activities of the mission in November

2008. Then, we explain them benefits of introducing their provinces and

cities to Italian businesses and ask them to give us our required information

(like the outline structure above). Based on facts gathered from those sources,

we filter out records and check unclear or missing information with

responsible persons for their clarify. After that, if possible, we visit some

cities and provinces to see what they told us. Finally, we edit data as a

brochure in order to recommend to Italian businesses in the mission in

November 2008.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

SOUTHERN PROVINCES

Can Tho City

Ho Chi Minh City

Binh Duong province

Dong Nai province

Ba Ria – Vung Tau province

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

CAN THO CITY

I. General information

1.1 Master plan/Map of the city/province

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

1.2 Geographical location

Can Tho city is the center of economy, finance, trade, service,

science, technology and culture of the Mekong delta. Can Tho city is

under the administrative control of the central Vietnamese government.

The city has a total area of 140,000 ha and it is conveniently located in

the center of the Mekong Delta, on the western portion of the Hau

River, 75 km from the sea. Can Tho is on the national highway 1A,

giving easy access to Ho Chi Minh city (170km) and other Mekong

Delta provinces. Moreover, it is convenient for transportation to

Cambodia by roads and waterways.

II. Population and labor force

The total population is 1,147,067. Of which, 50.30% are urban people,

49.7% are rural ones. 48% of the labor forces are agricultural laborers while

remains are non – agricultural people. The population density is 812

people/km2.

III. Infrastructure

3.1 Port and seaport

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

There is Can Tho port and Cai Cui seaport that 10,000 and

20,000-ton vessels can be dock and 4.5 million tons of foods can be

yearly handled.

3.2 Airport

Tra Noc airport has been upgraded and enlarged to connect

flights to other parts of Vietnam and in the future, it will be expanded to

include more flights to other South East Asian countries.

3.3 Energy

Tra Noc thermo – power plant has the capacity of 200 MW and

O Mon thermo – power plant which is currently being built will have

the capacity of 2,800 MW. This is the second largest thermo –power

plant in Vietnam.

3.4 Water supply

There are two clean water supply plants with the capacity of

90,000 m3/day and there is an expectation of building more clean water

supply plants by 2010, with the capacity of 200,000 m3/day.

3.5 Transportation

Can Tho is strategically positioned by converging of many

important roads, waterways and seaways connecting with other

provinces and cities of Vietnam. From Can Tho city, goods can be

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

easily transported to other cities and provinces of the Mekong Delta, and

other parts of Vietnam. Can Tho bridge is under construction,

connecting the important road axis between Can Tho city to Ho Chi

Minh city and to the Mekong Delta provinces.

3.6 Telecommunication

The system of modern public media and telecommunication is

able to connect Can Tho city with the rest of Vietnam and other

countries of the world.

IV. Economic structure and potential for co–operation

Industry is the strongest sector of the city and keeps a key role of the

economy. It is also considered as a foundation of the industrialization and

modernization process of Can Tho city. Industrial production is ranked the

first of the Mekong Delta and the 12th of the whole country, with an average

growth rate of 19%/year approximately, contributing nearly 32% to GDP of

the city. The industrial production value in 2006 was VND 9,983 billion.

Major industries of the city are processing food and foodstuff,

electricity, electronics and informatics, garments, footwear, chemicals,

machinery and construction materials. The city is calling for further

investment in these industrial fields.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office Besides that, Can Tho city has an agricultural area consisting of about

114,400 ha, which is mainly used for paddy cultivation, other farm products

and fruit. Annually, more than 1.2 million tons of rice; 110,000 tons of fruit;

90,000 tons of aquatic products and 20,000 tons of meat from cattle and

poultry, over 3,000 tons of maize, 3,000 tons of Soya beans, and more than

4,000 tons of sesame seeds are produced and supplied to the country.

To effectively exploit the potential of agriculture in serving the

economic development, Can Tho city is calling for investment projects to

develop processing industries, such as canned concentrated fruit juice,

vegetable oil, canned food and foodstuffs, feed for fish and shrimp and

veterinary medicine production.

Moreover, Can Tho city is proceeding to build 3 wholesale markets:

Thot Not rice wholesale market, an aqua product wholesale market, an agri –

product wholesale market. Besides that, Can Tho is making special projects,

such as Commerce Center, Regional Center for Information.

As expected, in 2010, the export turnover will be USD 1billion and

USD 800 million for the import.

V. Service sector

In addition to a system of banks, there are supermarkets, recreational

parks, exhibition and fair centers. A number of existing and potentially

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office attractive popular tourist sites are in Can Tho, such as 2 floating markets at

Cai Rang and Phong Dien; 14 local markets, the ecological tourist areas of

My Khanh, Au isle and Thuy Tien and a system of many orchard gardens

lying along the Hau river.

VI. Local government’ strategies and orientation for the development of

the city/province

In order to develop commerce and tourism, Can Tho city is calling for

investment in projects of new urban residence, supermarkets, hotels,

ecological areas, and recreational centers.

VII. List of projects calling for investment

No. Name of project Location Technical parameters

Investment capital

( million USD)

A. INFRASTRUCTURE: 96

1

Constructing Cai Cui International Port.

Hung Phu industrial park, Can Tho city

Constructing port for 20,000 ton vessels to dock and container system

33

2 Resettlement area and house for worker.

Phuoc Thoi ward, O Mon district, Can Tho city

Total area of 120 ha. 34

3 Hung Phu I residential area Hung Phu ward, Cai Rang district, Can Tho city

Total area of 63 ha 16,5

4 91B residential area – phase 3 An Binh ward, Ninh Kieu district, Can Tho city

Total area of 29 ha 10,5

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

B. TRADE, TOURISM AND SERVICES: 107

5 Ecological tourist site of Au isle

Hung Phu ward, Cai Rang dist., Can Tho city

The area will be 114 ha 13

6 Entertainment site of Khuong isle

Cai Khe ward, Ninh Kieu dist., Can Tho city

The area will be 100 ha 22

7 Tourist site of Cai Khe isle Cai Khe ward, Ninh Kieu dist., Can Tho city

The area will be 37.8 ha 19

8 Tourist site of Son isle Binh Thuy ward, Binh Thuy dist., Can Tho city

The area will be 69 ha 13

9 International Hotel Ninh Kieu dist., Can Tho city

The scope will be 110 rooms of four star standard

8

10 Mekong Delta Commercial Center

Location 1: Cai Khe ward, Ninh Kieu dist., Can Tho city Location 1Hung Phu ward, Cai Rang dist., Can Tho city

The area will be 17 ha 32

C. MACHINERY: 35

11 Manufacturing motor-parts and installation

Industrial parks, Can Tho city

The capacity will be 10,000 motors/year and tonnes of motor-parts/ year

5

12 Manufacturing agricultural machines

Industrial parks, Can Tho city

The capacity will be from 50 HP and up

5

13 Plant for manufacturing diesel engines.

Industrial parks, Can Tho city

The capacity will be 100,000 engines/ year. from 30HP to 50 HP

25

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

D. ELECTRICITY: 25

14

Plant for manufacturing electric appliances and electric cables.

Industrial parks, Can Tho city

The capacity will be 1,000 tonnes/ year for electric cables and 6 million/ year for home electric appliances

10

15

Plant for manufacturing electric energy metres.

Industrial parks, Can Tho city

The capacity will be 2.5 million products /year. 15

E. HIGH-TECH SCIENCE AND ELECTRONIC INDUSTRY: 34

16 Plant for assembling electronics and informatics

Industrial parks, Can Tho city

The capacity will be 100,000 products/ year 14

17 Plant for producing high-tech plastics

Industrial parks, Can Tho city

The capacity will be 1 million products/ year 20

F. HEALTH: 75

18

Plant for manufacturing precision medical tools and devices

Industrial parks, Can Tho city

The capacity will be 10 million products/ year 15

19 Cardiovascular hospital

Binh Thuy district, Can Tho city

The scope will be 200 beds with medical equipment

20

20

Ophthalmologic - Dentofacial - Otorhinolaryngologic hospital

Ba Lang ward, Cai Rang district, Can Tho city

The scope will be 200 beds with medical equipment

20

21

Convalesce & Rehabilitation hospital

Phong Dien district, Can Tho city

The scope will be 200 beds with medical equipment

20

G.Education: 5

22 An Phu primary school

An Phu ward, Ninh Kieu dist., Can Tho city

The area will be 1 ha 3

23 Ninh Kieu private nursery school

An Phu ward, Ninh Kieu dist., Can Tho city

The area will be 5.600 m2 2

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

H. Culture: Tay Do cultural Center 160

24 Building the office high storey apartment for rent and high-glass buildings

Hung Thanh ward, Cai Rang dist., Can Tho city

The area will be 22 ha 90

25 Center for seminar – conference – theatre

Hung Thanh ward and Hung Phu ward, Cai Rang dist., Can Tho city

The area will be 13 ha 32

26 Multifunctional entertainment site

Hung Thanh ward and Hung Phu ward, Cai Rang dist., Can Tho city

The area will be 59 ha 38

L. BIO-TECHNOLOGY: 7,5

27 Plant for processing botanical waste into organic fertilizers

Phung Hiep rural districts, Hau Giang province

The capacity will be 500 tonnes /day

7,5

M. OTHER FIELDS: processing aquatic products, food for cattle and poultry, fruit juice, garment

28 Plant for processing concentrated fruit juice

Cai Rang Dist., Can Tho city

The capacity will be 10,000 tonnes products/ year

5

29 The garment plant Industrial parks, Can Tho city

The capacity will be 5 million metres of high quality cloth/ year

20

Total 569,5

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

HOCHIMINH CITY

I. General information

1.1 Master plan/Map of the city/province

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1.2 Geographical location

The total area is 2,094 square kilometers. It is located from 10010’-

10038’ North and 10602’-106054’ East. The city is bordered by Binh

Duong Province to the north, Tay Ninh Province to the northwest, Dong

Nai Province to the east and northeast, Ba Ria-Vung Tau Province to the

southeast, and Long An and Tien Giang provinces to the west and

southwest.

Ho Chi Minh City is 1,730km far from Hanoi and is at the

crossroads of international maritime routes. The city center is 50km from

the East Sea in a straight line, so it is a transport hub of the southern region

and a gateway to the world, having the largest port system and airport in

Vietnam: Saigon Port and Tan Son Nhat International Airport.

II. Productive resources

2.1 Natural resources

The ecology of Ho Chi Minh City is classified into 2 typical systems

based on the natural conditions: the alum flooded forest, and the mangrove

forest. The primeval forest almost no longer exists. However, a study of

the forest is expected to help restore and develop a good ecological system

for a large city in this tropical region.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

2.2 Population and labor force

According to the statistic in 2007, the total population was more

than 8 million people. The population is young, with over 50% under the

age of 35.

III. Infrastructure

3.1 Energy

The capacity of electricity from the national grids was 12.3 billion

kWh by 2005 and is expected to increase to 4,200 MW by 2010. There are

2 stations of 500kV: Phu Lam and Nha Be; together with 6 stations of

220kV and 31 stations of 110kV.

3.2 Water supply

According to General Water Company Sai Gon (Sawaco), citizens

are using water activities from 2 main sources: water provided by Sawaco

and water wells treated by the Department of Agriculture-Rural

Development Management.

Besides that, there are some water stations, such as: Thu Duc

(750,000 m3/day), Binh An (100,000 m3/day) and Tan Hiep (300,000

m3/day)

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

3.2 Telecommunication

The tasks from now to 2010 are to complete construction of the

three-level post network and to develop post and telecommunication

services. The development of Internet services is also important and the

number of Internet service subscribers is estimated at 300,000 by 2010.

3.3 Transportation

Ho Chi Minh City will focus on the development of transportation

network to tackle urban traffic congestion.

As for road traffic, the ratio of streets to population is aimed at 1

kilometer: 1,000 people in the inner-city area and 0.5 kilometer: 1,000

people in the remaining areas by 2010.

As for the railway, the city will invest to build the elevated and

underground system.

As for river waterways, river ports will be invested to increase the

amount of goods handled from 3.2 million tons to 3.9 million tons a year

by 2010.

As for sea transportation, the combined capacity of sea ports will be

increased from 49 million tons to 55 million tons by 2010.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office IV. Economic structure and potential for co-operation

Being a dynamic and leading city in Viet Nam, Ho Chi Minh City has

been achieving the highest GDP growth rate in Vietnam. Here is an

illustration of the city’s GDP figures:

Year 1998 1999 2000 2001 2002 2003 2004

Billion USD 4.22 4.75 5.28 5.78 6.14 7.08 8.74

Billion VND 61,226 69,002 76,660 83,810 96,403 111,344 131,523

GDP Per Capita (USD)

1,230 1,277 1,365 1,460 1,640 1,682 1,800

1 USD was calculated at 15.000 VND

Ho Chi Minh City’s increasing prosperity can be attributed to its

exceptional economic growth and development.

o It has an average growth rate of 10.2% per year

o It is experiencing an industrial growth rate of 13.2%

V. Financial sector

Many big Vietnamese and foreign banks as well as international

financial institutions are in Ho Chi Minh City.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office VI. Local government’ strategies and orientation for the development of

the city/province

By 2010, people and authorized organizations in Ho Chi Minh City try

to achieve:

o GDP per capital: US 3,010.

o Structure of the economy: 51.7 % service, 47.5 % industry and

construction

o Total investment required: USD 35 bill, of which USD 25 bill

for urban infrastructure and public utilities and 10 bill for traffic

facilities

o Source of capital: 35 % from domestic private sector, 44 % FDI,

21 % from the state and state-owned companies

By 2020, Ho Chi Minh City will turn into a modern city characterized

by hi-tech industries, high end services and scientific – technological research

facilities. GDP/capita will be US 6,000 and the economic structure will be

60.4 % service, 39.2 % industry.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office VII. Local preferential policies for attracting investment

Rate Type of projects Application period for incentive

tax rate (from start of operation)

Note

10% (a) New projects established in industries listed in

Appendix A and in areas listed in Appendix C

(b) Projects invested in developing infrastructure

of industrial parks and export processing zones;

new export processing projects established in

production

(c) Special foreign capital projects of investment

incentive and of health care, training and

education centers, science research institutions

15 years After the

period entitled

to incentive

tax rates, these

projects are

subjects to the

rate of 28%

24

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office 15% (a) New projects established in industries listed

in Appendix A and in areas listed in

Appendix B; or

(b) New projects established in areas listed in

Appendix C

(c) Projects of service located in export

processing zones; projects of manufacture

located in industrial parks

12 years

20% (a) New projects established in industries listed

in Appendix A; or

(b) New projects established in areas listed in

Appendix B

(c) Projects of service located in industrial parks

10 years

25

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office 28% Projects not entitle to incentives listed above Projects on the prospecting, exploring and exploiting

oil, gas and rare and precious natural resources are

subjects to rates ranging from 28% to 50%

• Appendix A: Industries entitled to investment incentives

• Appendix B: Areas of difficult socio-economic conditions

• Appendix C: Areas of especial difficult socio-economic condition

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office Tax exemption and reduction:

• Exemption for 2 years from the first year with taxable income and

reduction of 50% for the 2 years thereafter for manufacturing projects

newly established or relocated from urban areas in accordance with

approved plans

• Exemption for 2 years and reduction for 3 years for projects newly

established in industries list in Appendix A or meeting conditions on

the use of labor: 20 persons for areas listed in Appendixes B and 50

persons for other areas;

• Exemption for 2 years and reduction for 5 years for projects newly

established in industries list in Appendix A and meeting conditions on

the use of labor: 20 persons for areas listed in Appendixes B and 50

persons for other areas;

• Exemption for 2 years and reduction for 6 years for projects newly

established in industries list in Appendix B or relocated to areas listed

in Appendix B; Projects of service located in industrial parks.

• Exemption for 3 years and reduction for 7 years for projects newly

established in industries list in Appendix A and in areas listed in

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Appendix B: projects of service located in export processing zones,

projects of manufacture located in industrial parks

• Exemption for 3 years and reduction for 8 years for projects newly

established in industries list in Appendix A and in areas listed in

Appendixes B and at the same time meeting conditions on the use of

labor: 20 persons for areas listed in Appendixes B and 50 persons for

other areas;

• Exemption for 3 years and reduction for 9 years for projects newly

established in industries list in Appendix A and in areas listed in

Appendixes B and at the same time meeting conditions on the use of

labor: 20 persons for areas listed in Appendixes B and 50 persons for

other areas and laborers of ethnic minorities account for more than 30%

of the total workforce

• Exemption for 4 years and reduction for 7 years for projects invested in

developing infrastructure of industrial parks and export processing

zones; new export processing projects established in production

• Exemption for 4 years and reduction for 9 years for projects established

in the forms of BOT, BTO and BT

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office VIII. List of projects calling for investment

8.1 Urban Development Projects

8.1.1 Thu Thiem New Township

Thu Thiem will be developed as a dynamic, diverse urban

center of HCM City, which comprises facilities for trade,

housing, public services, culture and education as well as open

space.

Investment form: 100% foreign ownership, joint venture,

business cooperation contract or build-operate-transfer.

8.1.2 Nam Rach Chiec Residential Area

Building condominiums for resettlement of people relocated

for the development of the Thu Thiem New Urban Center. The

construction area is 62.3 ha (69% of the land area). The

remaining land (27.9 ha or 21%) will be put up for auction to

call for foreign investment.

Investment capital: About VND7 million (US$440) per sq m-

Area: 90.267ha (with 27.9 ha to be put up for auction t o call for

investment)

Investment form: Land auction

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8.1.3 North-West Metropolitan

Building and developing the North-West Metropolitan Area

is expected to convert the economic structure from agricultural-

based to services-based economic, promote the economic growth

of the City and neighboring regions. The North-West

Metropolitan Area would be a regional center, a modern

ecological metropolitan area with the harmony of urban and

social infrastructures, ensure a good environment for residents.

8.1.4 International Universities and Residential Area in North-

West Metropolitan

The project is aimed to found an international- class

university and a high-class residential area for opulent living,

higher and post- graduated education;

A general library, a scientific materials center and an IT

center would also be founded to serve the research of students

and experts, even people living and working in North-West

Metropolitan Area and neighboring regions.

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8.1.5 Housing Project in Thanh My Loi Ward, District 12,

HCM-City

Objective: House building and trading

investment capital: US$50-60 million

Investment form: joint-venture, business cooperation contract

Project progress:

o Site clearance and compensation: the remaining

18.68% of the total area will be available by December

31, 2005

o Project development time: 10-15 years

8.1.6 Phu My Residential Area

The project of Phu My Residential Area helps to push up the

development and urbanization of the South Saigon Area. During

its development process, Phu My Residential Area project will

create jobs for many people in the location.

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8.2 Infrastructure Projects

8.2.1 Subway and Monorail Systems

o Subways

No. 5 route: (Saigon River – Can Giuoc bus station):

17 kilometers running along streets Dien Bien Phu,

Bach Dang, Phan Dang Luu, Hoang Van Thu (turning

to Tan Son Nhat Airport), Ly Thuong Kiet, Phu Dong

Thien Vuong and Can Giuoc bus station

No.6 route: (Ba Queo T-junction–Phu Lam

Roundabout): 6 kilometers running along Au Co and

Luy Ban Bich streets.

Investment estimate: some US$40 million a kilometer

of underground subway and US$20 million a

kilometer of aboveground subway.

o Tramways (or monorail): total length of 35 kilometers:

No. 2 route: (Intersection of National Highway 50 and

Nguyen Van Linh Boulevard to District 2): 14

kilometers running along Nguyen Van Linh and Tan

Thuan Export Processing Zone to District 2.

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No. 3 route: (Quang Trung Software City – Nguyen

Oanh Street): 8.5 kilometers running along Quang

Trung Street to Go Vap District

Investment estimate: some US$7 million a kilometer

Investment form: 100% foreign-invested, joint-

venture, business cooperation contract (BCC)

8.2.2 Underground Parking Lots

o Investment form: 100% foreign-invested, joint-venture,

business cooperation contract (BCC)

o Policies for investors:

No land rental

Corporate Income Tax: 20% for in 10 years, 2 years

tax holiday and 50% tax reduction in following 3 years

(Decree 164/2004/ND-CP dated 22/12/2003)

8.2.3 Binh Khanh Bridge

Constructing Binh Khanh Bridge will help to complete main

road system connect downtown HCM City to Can Gio district –

Eco-tourism area of HCM City. It helps reduce the transportation

burden of Binh Khanh Ferry. Investment form: BOT

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8.2.4 Nhon trach Road

The purpose of this project is to construct a part of ring road

No.4 according to the Master Plan of the Ministry of

Transportation and to complete the road system in district 9 .

Investment form: BOT

8.2.5 Nhieu Loc- Thi Nghe Elevated Road

o Size and technical requirements:

Project’s life span: 100 years

Design speed: 80km/h

Loading capacity: loading design HL 93

Number of lanes: 4 lanes, 3.5 meter-wide each.

1 or 2 lanes in each exit of the road upon demand

Length: 8.2 km

+Beginning point: Lang Cha Ca roundabout

+Ending point: Nguyen Huu Canh St (next to Thi

Nghe II Bridge)

Bridge design must be slim, esthetic and well

integrated in the landscape.

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Routing can follow the course of Nhieu Loc – Thi

Nghe canal or different if proven as being more

appropriate and feasible.

o Investment Capital: 3,500 billion VNĐ est. (project in

category A):

Construction cost: 2,200 billion VNĐ

Resettlement cost: 1,300 billion VNĐ

o Time frame:

Project studies start in Aug, 2006 and bridge

commissioned by 2010

Priority to investors experienced in elevated road

construction and proposing better and shorter time

frame.

8.3 Technologies Projects

8.3.1 Saigon Hi-tech Park

Saigon Hi-tech Park is designed as a science and technology park

to promote the knowledge-based economy of HCM City and the

Southern Key Economic Zone. It is expected to become a model for

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the development of technology innovations, knowledge and creative

economy in Vietnam.

In accordance with the Prime Minister’s Decision 53/2004/QD-

TTg dated April 5, 2004, which stipulates a 10% corporate income

tax for the lifetime of projects, an exemption for four years and a 50%

reduction for the next five years from the year of generating taxable

revenue.

8.3.2 Quang Trung Software City (QTSC)

Provision of infrastructure and services up to international

standards to meet the present and future requirements of software

research, development, manufacture and export .

Continual formation and incubation of new software companies,

along with on-going training of software developers and business

managers of both domestic and global enterprises (including export of

senior programmers).

Attention to quality of life needs, with beautiful landscape and

pleasant living and working environment.

Establishment of a world-class research and development center,

an advanced institute for mathematics, physics and informatics.

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Encouragement of Overseas Vietnamese investments through

preferential policies and incentives.

Built on public-private partnerships and international cooperation

Incentive Policies:

o Corporate income tax

Investors enjoy the corporate income tax of 10% during the

project’s life. They are entitled to exemption of corporate

income tax for four years from the date taxable income is

made and a 50% reduction in the nine following years.

o Income tax for high-income earners

Vietnamese nationals and overseas Vietnamese who are

working for investment projects at QTSC are given

personal income tax exemption and reduction as applied

to foreigners earning the same income.

Import-export duties

- Exemption from import duties is given to materials,

which are imported to facilitate production of software

programs upon condition that the materials have yet to be

locally manufactured.

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- The materials are also exempted from value-added tax.

- Software products are free from export duties.

o Land use incentives

The one-price policy is applicable for both local and

foreign investors who lease land in QTSC for investment

projects.

During the land lease term, investors can use land-use

right certificates and assets related to land as collaterals to

access bank loans at Vietnam’s credit organizations.

o Current situation

Workforce: 3,852 people (set to increase to 5,000 in late

2005 and 20,000 by 2010)

Land rent: US$0.4 per square meter a year

No compensation for site clearance

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BINH DUONG PROVINCE

I. General information

1.1 Master plan/Map of the city/province

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1.2 Geographical location

The province center is 40 kilometers from Ho Chi Minh City. Binh

Duong, Dong Nai, Ba Ria – Vung Tau and Ho Chi Minh City are

constituted the “Southern Key Economic Development Zone” of the

country of Viet Nam.

II. Productive resources

2.1 Natural resources

Covering an area of 2,695.5 square kilometers, the province is

endowed with advantages of agriculture, mineral and construction

material resources for manufacturing and export activities.

2.2 Population and labor force

With the population of 925,318 (December 31, 2004) and the

population density of 343 persons per square kilometer, the province

possesses a labor force of approximately 52% of its total population.

III. Infrastructure

3.1 Energy

At present, the electricity supply in Binh Duong is supplied by

three major stations: Song Than, Ben Cat and Go Dau with a total supply

capacity of 225 MVA from the following sources: Thac Mo hydro power

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plant (capacity: 2x75 MW), Thu Duc thermal power plant (291 MW), and

Tri An hydro power plant (400 MW)

2 electricity supply networks are included 220 KV and 110 KV on

a total length of 290.3 km. The medium voltage network is included 1,202

km and 2,530 stations with a total electricity supply capacity of 440

MVA.

3.2 Water supply

Thu Dau Mot water station and Di An water station, with a total

supply capacity of 56,000 cubic meters, will ensure the water supply to

enterprises at some industrial parks in Binh Duong.

3.3 Telecommunication

Post and telecommunication networks have been developed in all

communes of the province.

3.4 Transportation

In recent years, the construction and upgrading of major internal

provincial roads such as National Highway 13, DT 743, DT 747, DT 746,

have been completed, meeting the need of the community’s

transportation, and of material and product delivery; creating convenience

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for goods distribution; enabling the economic and social progress of

remote areas of the province.

IV. Economic structure and potential for co-operation

Target Period of 1997-2004 Year 1997 Year 2005

Provincial GDP increased

Economic structure in GDP:

• Industry

• Service

• Agriculture

14.3%

3.9%

-0.1%

-12.8%

17.5%

50.4%

26.8%

22.8%

15.4%

64.5%

28%

7.5%

Particularly, GDP during the period of 2001-2004 was annually

increased 15.5% on average. GDP per capita during the period of 1997-2004

was 16.4% on average.

4.1 Industrial development

The industrial production value during the period 1997-2004

was increased 36.4% annually on average.

There are 16 industrial parks with the total area of 3,275

hectares, and one industrial – service- urban complex with its area of

4,196 hectares.

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4.2 Production value of forestry, agriculture and fishery

In 2004, the production value was 1,447 billion and 600 million

VND, an increase of 5.7% compared with the previous year, including

5.6% in cultivation, 15.4% in breeding, 15.9% in fishery and 3.2% in

agricultural service.

Besides that, there are 113,301 hectares for rubber trees, 22,571

hectares for rice, 10,735 hectares for fruit trees; 18,279 hectares of

forest.

4.3 Trade - service

Growth rate on average Period of 1997-2004 2005

Growth rate of production value

in service field

Export turnover

12.1%

27.8%

15.1%

36.3%

Some main export products are rubber sap, cashew nut kernel,

garments, furniture, electronic goods, etc.

V. Financial sector

Some commercial bank braches are available in the province.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office VI. Local government’ strategies and orientation for the development of

the city/province

In the period of 2006-2010, the province orientation is to develop the

service sectors the way of modern, civil and international standardize to

become an important economic industry of the province.

In order to implement the orientation, during the past time, the

province has concentrated on constructing infrastructure in association with

developing potential and service sectors. In addition, the province has created

the convenience for attracting both the local and foreign capital in the fields:

finance, banking, insurance, consultancy, post and telecommunication,

transportation, housing, electricity supply, training and education, health care

service, culture, sports and entertainment, etc.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office VII. List of projects calling for investment

Project’s title Location Investment type Investment capital

(US$ Mln)

Contact Information

Motorbike and automobile tire production factory

Ben Cat District

Joint-venture or 100% foreign owned

20 Binh Duong Department of Industry

Add: Binh Duong Boulevard, Phu Tho Commune, Thu Dau Mot Town.

Canned chicken, pork processing

Ben Cat District

Joint-venture or 100% foreign owned

15 Department of Agriculture and Rural Development

Add: Le Thi Trung Str, Phu Hoa Quarter, Thu Dau Mot Town.

Production of new medicine, traditional drug, and health materials

Binh Duong Province

Joint venture or BOT

4 Binh Duong Pharmaceutical Company (BIPHACO)

Add: 6/3 Binh Duong Boulevard, Thu Dau Mot Town

Tel: 0650 822415 Rubbish treatment

Tan Dinh Commune, Ben Cat District

Joint-venture or 100% foreign owned

30 Department of Environment, Science, and Technology

Add: Huynh Van Nghe Str, Phu Hoa District, Thu Dau Mot Town

Television and movie studio

Thai Hoa Commune, Tan Uyen District

Joint-venture or 100% foreign owned or BOT

50 Binh Duong Television and Brocasting Station. Add: Phu Hoa Commune, Thu Dau Mot Town

Kaolin Processing Factory

Tan Uyen District

Joint-venture or 100% foreign owned

Binh Duong Construction and Minerals Company Add: Thuan Giao Commune, Thuan An District

Tel: 0650 823922

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DONG NAI PROVINCE I. General information

1.1 Master plan/Map of the city/province

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office 1.2 Geographical location

Dong Nai province is located in the eastern part of South – Viet Nam

with an area of 5,862.37 km2, accounting for 1.76% of the national area or

25.5% of the natural area of the South-Viet Nam eastern region. There are 9

administrative units: Bien Hoa City political, economic and social center of

the province, Long Khanh town and the districts of Long Thanh, Nhon Trạch,

Thong Nhat, Vinh Cuu, Xuan Loc, Dinh Quan, Tan Phu, Trang Bom, Cam

My.

Dong Nai is located in the southern key region, bordered by:

o Binh Thuan Province to the east

o Lam Dong Province to the north-east

o Binh Duong and Binh Phuoc Provinces to the north-west

o Ba Ria-Vung Tau Province to the south

o Ho Chi Minh City to the west.

II. Productive resources

2.1 Natural resources

Dong Nai is fairly rich of minerals and natural resources. There are

about 214 mines, mineral points and chemical mineral points, including:

peat, metals, non-metals, precious and semi-precious stones.

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2.2 Population and labor force

There are 2.2 million inhabitants, of which 1.1 million people in

labor age.

According to the data in the Annual Statistic of 2004, there were

672,331 urban habitants (31.4%) in Dong Nai. Urban habitants have been

increased by 2.78% annual in the past 5 years.

III. Infrastructure

3.1 Energy

Dong Nai has focused on developing the electric network for the

economic development. There is Tri An Hydraulic electric Power of

400MVA connected to the National electric network through the 220KV

Tri An - Long Binh line. The 220KV line from Da Nhim is also connected

to the National Electric Network at the 200/110KV-2x250MVA Long

Binh Station. The 220KV line from Phu My Thermo-electric Center is

attached at Long Binh Station.

3.2 Water supply

Dong Nai has an abundant water source and an adequate

distribution system to industrial zones. The Dong Nai river water is not

only used in Dong Nai, but also in Ho Chi Minh City and Binh Duong

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Province. The existing water plants: Bien Hoa with the capacity of

36,000m3/day; Long Binh 30,000 m3/day; Thien Tan 100,000 m3/day;

Nhon Trach 15,000 m3/day. In the future, the capacity of Thien Tan will

be increased to 1,000,000 m3/day, 200,000 m3/day for Nhon Trach.

3.3 Telecommunication

Dong Nai has invested for the expansion and modernization of the

communication system. In the province, there are 79 post offices and 47

electronic telephone switchboards, concentrated in industrial zones.

3.4 Transportation

Dong Nai has a convenient transportation network with National

Highway No 1, 20, 51, with a total length of 244.5km. In addition, there

are many interprovincial roads, the transvietnamese Railway, a system of

ports in Dong Nai, including: Long Binh Tan Port, Go Dau A Port, Go

Dau B Port.

In future, the provincial transportation system will be continuously

upgraded, widened and invested for new roads, such as the express

highway connecting Ho Chi Minh City and Ba Ria - Vung Tau.

The railway station system in the province spreads 87.5 kilometers

long with 12 stations: Gia Huynh, Trang Tao, Gia Ray, Bao Chanh, Xuan

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Loc, An Loc, Dau Giay, Bau Ca, Trang Bom, Long Lac, Ho Nai Bien

Hoa. This line is the important transport blood vessel linking Dong Nai

with The North and Ho Chi Minh City.

IV. Economic structure and potential for co-operation

According to Dong Nai Department of Planning and Investment, the

total production value in the first six months of 2008 in the province was

VND 12,755 billion, 15.3% higher than that of 2007. In which, the growth

rate of all key sectors and fields was time, such as construction (15.8%),

service (17%), agriculture-forestry-fishery (5%), import (36.4%), investment

capital (20.7%)…

V. Local government’ strategies and orientation for the development of

the city/province

The orientation for general objectives of economic and social

development in Dong Nai Province up to 2010 is: to overcome challenges in

order to maintain political stability; to develop all resources to maximum and

heighten competitiveness in accordance with the international economic

integration process and contribute a positive part to speed up national

industrialization and modernization to the socialist direction.

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BA RIA –VUNG TAU PROVINCE

I. General information

1.1 Master plan/Map of the city/province

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office 1.2 Geographical location

The province is located in the main economic area of the South, in

adjacent to Dong Nai Province and Dong Sea; 125 km far from Ho Chi Minh

City. The total area of Ba Ria - Vung Tau is 2,000km2; and there are 8

administrative units in the province.

II. Population and labor force

The total population is 974,000 people and 61.9% of them are of

working age.

III. Infrastructure

3.1 Energy

There are 8 power factories with the total capacity of 4,000 MW.

3.2 Water supply

Water is daily supplied with a capacity of 200,000m3 and it will be

increased up to 700,000m3/day in 2020.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office IV. Economic structure and potential for co-operation

GDP Growth in 2007 was 25.47%.

Economic Structure in 2007

o Industry-construction: 64.67%

o Service 29.99%

o Agriculture 5.34%

64.67%

29.99%

5.34%

The valid foreign investment projects are 191 with the total investment

capital of nearly USD 8 billion.

In addition, there are 9 industrial parks with the total area of 3,500

hectares and most of the industrial parks are concentrated closely to the deep

water ports along Thi Vai – Cai Mep River and Dinh River.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office V. Service sector

There are 21 commercial banking branches and one financial company

and 4 industrial zones are under construction.

VI. Local government’ strategies and orientation for the development of

the city/province

Ba Ria Vung Tau has planned to develop 3 new major cities of the

region: Phu My, Long Son, Long Hai as well as remains in the province, such

as: Dat Do Town, Phuoc Hai, Loc An, Kim Long, Hoa Binh, Binh Chau, Ho

Tram (Xuyen Moc)

Besides that, Ba Ria Vung Tau has intended to develop 6 tourist zones:

Vung Tau, Long Hai, Phuoc Hai, Binh Chau, Ho Tram, Nui Dinh, Con Dao

(high quality economic- tourist- service zone) and to consider high class

convention centers, 5-star hotels, offices for lease.

Moreover, Ba Ria Vung Tau will invest in infrastructure projects,

including: railway, highways, port network, communication, solid waste

treatment plant; wastewater treatment station and some interprovincial and

interdistrict roads…

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office VII. List of projects calling for investment

List of projects calling for investment by the province

No Project name Scale

1 My Xuan Industrial Zone B1 Dai Duong 146ha

2 My Xuan Industrial Zone B1 Tien Hung 200ha

3 Cai Mep Industrial Zones 670ha

4 Dat Do Industrial Zone 500ha

5 Vung Tau Tower high-class apartment and office

building block

2.3ha

6 High-class apartment building and hotel complex 1.5ha

7 Long Toan industrial zone 40ha

8 IMI International hospital 300beds

9 New city along National highway 51B and 51C 446ha

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List of major national projects within the province

No Project name Investment funds

(million USD)

1 Bien Hoa- Vung Tau highway 325

2 Expansion of National Highway 51 38

3 Bien Hoa – Vung Tau railway 400

4 Sao Mai- Ben Dinh Petro port D 1000

5 Oil Refinery Plant No 3 6000

6 Southern petrochemical industry

complex

2000

7 Nui Dinh Forestry – cultural resort 7000

8 Hoa Binh Fall Resort 600

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

CENTRAL PROVINCES

Da Nang City

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DA NANG CITY

I. General information

1.1 Master plan/Map of the city/province

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1.2 Geographical location

Danang City is situated at the center of Vietnam, 759km from Hanoi

and 960km from Ho Chi Minh City. Danang is on the north-south

transportation axis of land route (National Road 1A), rail, sea and air

routes. Danang is near to Thua Thien - Hue province in the north, Quang

Nam province in the south, and the Eastern Sea in the east. The total land

area is 1,256km2 and there are six urban districts, one rural and one

archipelago district.

II. Productive resources

2.1 Natural resources

Danang City is endowed with a 70km coastline of numerous

wonderful beaches suitable with the tourism.

2.2 Population and labor force

The total population is about 806,900 people and 58% of the

population are of working age.

III. Infrastructure

3.1 Energy

Power for production and domestic use in Danang is supplied from the

national electricity grid through the north-south 500KV high voltage line.

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3.2 Water supply

The existing capacity of Danang Water Plant is over 80,000m3 per day

and a new plant is under construction with the capacity of 120,000m3 per

day. Thus, the total capacity of water supply will be about 210,000m3 per

day in the coming time

3.3 Telecommunication

There is an international marine optical fiber cable station (SE-ME-

WE 3); ASEAN top-ranged international transmission line with a speed of

355 Mbps.

3.4 Transportation

Danang City is an important transportation hub of the central region,

Western Highlands with an international airport, deep-water seaports and

north-south land routes and railways.

Danang Port is the third large commercial port in Vietnam after the

ports of Saigon and Haiphong. With a navigation depth of -11m,

warehouses and modern handling equipment funded by the Japanese

Government, 45,000 DWT ships and other kinds of vessels, such as

container ships and large cruise ships can be dock. The annual capacity for

handling cargo through Danang port is about 4 million tons. There are

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regular international shipping lines from Danang port to Hong Kong,

Singapore, Japan, Taiwan and South Korea.

The transportation system inside and outside the city has been

continually expanded and newly built. Many major construction projects

are put in use or under construction such as Nguyen Tat Thanh, Dien Bien

Phu, Ngo Quyen, Bach Dang and Son Tra-Dien Ngoc Street; Hai Van Pass

Tunnel; Song Han, Tuyen Son and Thuan Phuoc bridge, etc. to facilitate

the transportation and tourism development as well as to create the

landscape, basically change the appearance of the most crowded urban in

central Vietnam.

IV. Economic structure and potential for co-operation

GDP growth at an average rate of 12.47% in the period of 2001-2006 and

at the rate of 13.2% in 2007. The economy was restructured positively, of

which the portion of the industry and construction sector was 46,4%; service

sector 49,4%; agro-forestry and fishery sector 4,2%.

Currently, there are more than 9,000 establishments of all sectors

operating in the city. The industrial output for the year 2007 had an increase

of 18.5% compared to the year 2006. Major industrial products are seafood,

rubber tires, garments, footwear, mechanical products, construction

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office materials, fine-art handicrafts, etc...The city’s government is now focusing

on developing IT, particularly the software industry, to be one of the key

industries of high economic efficiency, considerably contributing to the

city’s GDP growth.

In recent years, trade and import-export activities of the city have been

improved. Import-export turnover has been increased continually with an

annual average growth rate of 10.37% in the period of 1997-2006. The total

export turnover of goods and services of the city in 2007 was US$757

million, an increase of 24.6% compared to that of 2006. Major export

products are textile, garment, seafood, children’s toys, fine-art products, etc.

With the continuous efforts of the City in the past time, foreign direct

investment activities have been achieved some good results. Until 10th

October 2008, in Danang, there were 143 licensed projects with the total

registered capital of more than US$ 2.4 billion. At present, Danang city is

calling for investment in some fields, such as hi-tech; IT; finance and

banking; international schools; hospitals; tourist services; supporting

industry, etc...

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office V. Financial sector

There are about 47 commercial banking branches, 9 insurance companies

and 4 auditing companies in Danang.

VI. Local government’ strategies and orientation for the development of

the city/province

Recently, the Vietnamese Government has much focused on developing

this Key Economic Zone. Many big infrastructure projects have been under

construction, including the Hai Van Pass Tunnel, one of the biggest tunnel

projects in South East Asia, linking Hue with Danang; Danang - Quang Ngai

Highway, Chu Lai Open Economic Zone with the development of oil

refinery, petro-chemistry industry; upgrading and expansion of Danang

International Airport, etc…

Besides that, the city authorities plan to develop following issues:

- Transforming the economic and labor structure with the direction of

increasing the proportion of industry and services and accelerating the

technological content of products.

- Rapidly developing services including transportation, tourism, finance,

banking, insurance, telecommunication, consultancy and technology

transfer.

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- Creating favorable conditions for accelerating export turnover as well

as attracting capital and technology, particularly high technology.

- Accelerating the process of equalization and developing the private

economic sector, cooperation and cooperatives.

- Enhancing the quality of education and training and relieving poverty

and improving people’s living standard.

VII. Local preferential policies for attracting investment

Incentives policies are effect according to the regulations of the

Vietnamese Government.

VIII. List of projects calling for investment

No.

Name of projects

Location Proposed specifications

Proposed investment

form

I - Industrial sector

• Information technology, electronics and electrical materials

1. Development of informatics software park Danang City US$ 30 mil.

Joint venture or 100% foreign

invested capital

2. Assembly and production of computers

Hoa Cam/ Danang IZ 20,000 units/year

Joint venture or 100% foreign

invested capital

3. Production and assembly of household electrical and electronic products

Danang/

Hoa Khanh IZ 500,000

units/year

100% foreign invested capital

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4. Production and assembly of refrigeration equipment

Hoa Khanh/ Danang IZ US$ 5 mil.

Joint venture or 100% foreign

invested capital

5. Production and assembly of telephones

Hoa Cam/ Danang IZ US$ 5 - 10 mil.

Joint venture or 100% foreign

invested capital

6. Production of electrical cables Lien Chieu/

Hoa Khanh IZ US$ 25 mil.

100% foreign invested capital

7. Production of electrical cables for vessels Hoa Khanh IZ US$ 9.5 mil Joint venture

8. Production of optical fibres Hoa Khanh IZ US$ 8 mil 100% foreign invested capital

9. Production and assembly of specialized medical equipment Hoa Cam IZ US$10 mil 100% foreign

invested capital

10. Production of high class decorative lights

Expanded Hoa Khanh IZ US$5 mil 100% foreign

invested capital

11. Production of peripheral devices of computers (printers, scanners, etc.) Hoa Cam IZ US$ 35 mil 100% foreign

invested capital

12. Production and assembly of digital equipment Hoa Cam IZ US$ 15 mil 100% foreign

invested capital

13. Production of printing circuit boards for electronic and electricity industries

Hoa Cam IZ US$ 10 mil

100% foreign invested capital

14. Production of electric engines Lien Chieu IZ US$ 9,5 mil 100% foreign invested capital

• Processing

15. Planting & processing of straw mushroom for export

Hoa Vang district

600 tons of fresh straw mushroom

per year

100% foreign invested capital

16. Poultry breeding and processing Hoa Vang district US$ 15 mil.

100% foreign invested capital

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• Rubber and plastics

17. Production of plastic wares Lien Chieu/ Hoa Khanh IZ US$ 5 - 8 mil. 100% foreign

invested capital

18. Production of plastic encasements Hoa Khanh IZ US$1.6 mil 100% foreign invested capital

19. Production of sound and heat insulators Hoa Khanh IZ US$ 5 mil 100% foreign

invested capital

20. Production of leatherette and plastic materials for raincoats

Lien Chieu/ Hoa Khanh IZ US$ 10 mil. 100% foreign

invested capital

21. Production of fiberglass pipes Lien Chieu/ Hoa Khanh IZ

7,000-10,000 tons/year

100% foreign invested capital

22. Production of motorbike accessories

Lien Chieu/ Hoa Khanh IZ US$ 3 - 5 mil. 100% foreign

invested capital

23. Production of medical equipment and materials Danang IZ 250 tons/year 100% foreign

invested capital

24. Production of medical gloves Hoa Khanh IZ US$ 3 mil 100% foreign invested capital

25. Production of sports equipment Danang IZ 500,000 units/year

100% foreign invested capital

• Chemicals

26. Production of carbon black Lien Chieu IZ US$ 40 mil Joint venture

27. Production of activated carbon Hoa Khanh IZ US$ 2 mil 100% foreign invested capital

28. Production of high-class perfume and cosmetics Danang IZ US$ 3 - 5 mil. 100% foreign

invested capital

29. Production of soda, NaOH Lien Chieu/ Hoa Khanh IZ US$ 5 mil. 100% foreign

invested capital

30. Production of industrial gas Lien Chieu/ Hoa Khanh IZ US$ 10 mil.

100% foreign invested capital

31. Production of adhesives Lien Chieu/ Hoa Khanh IZ US$ 1 mil. 100% foreign

invested capital

32. Production of welding rods Lien Chieu/ Hoa Khanh IZ 1,000 tons/year 100% foreign

invested capital

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33. Production of reflectors for traffic safety

Lien Chieu/ Hoa Khanh IZ US$ 5 mil 100% foreign

invested capital

• Mechanical industry

34. Production of equipment and tools for agriculture

Lien Chieu/ Hoa Khanh IZ US$ 2 - 5 mil.

100% foreign invested capital

35. Manufacture of equipment and accessories of machines (lathes, routers, planes, grinders...)

Lien Chieu/ Hoa Khanh IZ US$ 5 -10 mil.

100% foreign invested capital

36. Production of metal accessories for porcelain factories (valves, taps, etc)

Lien Chieu/ Hoa Khanh IZ US$ 5 - 7 mil.

100% foreign invested capital

37. Production of metal moulds Lien Chieu IZ/Hoa Khanh

US$ 2-5 mil 100% foreign invested capital

38. Production of civil stainless steel products

Lien Chieu/ Hoa Khanh IZ 600 tons/year 100% foreign

invested capital

39. Production, designing and assembly of industrial ventilation system

Hoa Cam IZ US$4 mil 100% foreign

invested capital

40. Production of metal household appliances

Lien Chieu/ Hoa Khanh IZ 300 tons/year 100% foreign

invested capital

41. Production of standardized screws, adjusters and bolts Lien Chieu IZ US$ 5 mil 100% foreign

invested capital

42. Building FRP - covered ships Hoa Khanh/ Lien Chieu IZ US$ 3 mil. 100% foreign

invested capital

43. Production of high-class equipment for fire prevention and fighting

Lien Chieu/ Hoa Khanh IZ US$ 2 - 5 mil.

100% foreign invested capital

44. Production of pressure equipment (boilers, tanks...)

Lien Chieu/ Hoa Khanh IZ US$ 5 mil. 100% foreign

invested capital

45. Development of aluminum extruding plant

Hoa Khanh US$ 7.5 mil 100% foreign invested capital

46. Production of steel structures Lien Chieu IZ US$ 10 mil 100% foreign invested capital

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47. Production of water filters Hoa Khanh IZ US$ 3.5 mil 100% foreign invested capital

48. Production of air filters Hoa Khanh IZ US$ 3 mil 100% foreign invested capital

• Textiles, garments and footwear

49. Garment production Danang US$ 3 - 5 mil. 100% foreign invested capital

50. Footwear production for export Danang IZ US$ 3 - 5 mil. 100% foreign invested capital

51. Production of accessories for garment & footwear industry

Hoa Khanh/ Danang IZ US$ 5 mil 100% foreign

invested capital

52. Silk production for export Danang city 500,000m of silk/year Joint venture

53. Development of a knitting plant Hoa Khanh / Danang IZs 5,000 tons/year 100% foreign

invested capital

54. Development of a synthetic yard plant

Hoa Khanh IZ US$ 50-70 mil 100% foreign invested capital

55. Development of a high class fabric plant

Hoa Khanh IZ US$ 5-30 mil 100% foreign invested capital

56. Production of technical and industrial fabrics

Hoa Khanh IZ US$ 5-20 mil 100% foreign invested capital

• Other industries

57. Production of medicines of the GMP international standards

Hoa Cam IZ US$ 5 mil 100% foreign invested capital

58. Production of handicrafts for export Danang city US$ 1 - 2 mil.

Joint venture or 100% foreign

invested capital

59. Production of high-class carton packaging

Hoa Khanh/ Lien Chieu IZ US$ 2 mil.

Joint venture or 100% foreign

invested capital

60. Production of high-class stationery, teaching and learning equipment

Danang IZ 1,000,000 units/year

Joint venture or 100% foreign

invested capital

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II- Service sector

61. High class commercial center Northwest urban area, Lien Chieu

district US$10 mil 100% foreign

invested capital

62. Dormitories for persons of low income

Hoa Khanh urban area, Lien Chieu

district US$10 mil 100% foreign

invested capital

63. International exhibition and fair center

Hoa Khanh urban area US$15 mil 100% foreign

invested capital

64. Sports service center Northwest urban area US$40 mil 100% foreign

invested capital

65. Sea sports service center Beach park along

Son tra-Dien Ngoc road

US$5 mil 100% foreign invested capital

66. Supermarket Hoa Khanh market US$15 mil 100% foreign invested capital

67. Bio-technology R & D center Hoa Quy ward, Ngu Hanh Son

district US$ 5 mil 100% foreign

invested capital

68. Aquarium

Son Tra district US$ 10 mil.

Joint venture or 100% foreign

invested capital

69. Development and business of office and apartment building for lease

New urban area US$30 mil. Joint venture or 100% foreign

invested capital

70. Development of dormitories for workers at IZs Lien Chieu district US$ 20 mil.

Joint venture or 100% foreign

invested capital

71. Development and business of infrastructure of Hoa Khuong IZ Hoa Vang district US$ 500 mil

Joint venture or 100% foreign

invested capital

72. Development and business of bonded warehouses

Lien Chieu/

Son Tra district US$ 5 mil. 100% foreign

invested capital

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III. Health care, education and training

73. International secondary school Northwest urban area US$10 mil. 100% foreign

invested capital

74. Technical vocational school

Ngu Hanh Son district (nearby

Danang University village)

US$15 – 20 mil. 100% foreign invested capital

75. International general hospital Northwest urban area US$50 mil. 100% foreign

invested capital

76. International hospital specialized in heart diseases

Northwest urban area US$40 mil. 100% foreign

invested capital

77. International general university

Ngu Hanh Son district (nearby

Danang University village)

US$40 mil. 100% foreign invested capital

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NORTHERN PROVINCES

Vinh Phuc province

Hai Phong City

Ha Noi Capital

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VINH PHUC PROVINCE I. General information

1.1 Master plan/Map of the city/province

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1.2 Geographical location

Located near the northern economic triangle of Ha Noi - Hai

Phong -Quang Ninh, Vinh Phuc has got a favorable geographical

position for trade development.

Vinh Phuc province is in the Northern Key Economic Zone and

it is bordered by Thai Nguyen and Tuyen Quang province in the north;

Ha Tay province in the south; Phu Tho in the west, and Hanoi capital

in the east. The total natural area of Vinh Phuc province is 1,371.41

km2, with 9 administrative units, including the two provincial towns of

Vinh Yen and Phuc Yen and 7 districts: Lap Thach, Tam Duong, Tam

Dao, Binh Xuyen, Vinh Tuong, Yen Lac, Me Linh. The township of

Vinh Phuc is Vinh Yen Town, which is 50 km from Hanoi Capital

center and 25 km from Noi Bai international airport.

Vinh Phuc, which is on the national route No.2 and Hanoi-

Laocai railway, is the bridge between the northern midland and

mountainous area and Hanoi capital.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office II. Productive resources

2.1 Natural resources

Vinh Phuc is located in the transition area between midland

mound and hill area and the Red River Delta. The topography is

classified into 3 ecological zones: lowland, midland and mountainous

area.

The total area of the mountainous area is 65,300 ha (farmland:

17,400 ha, forest land: 20,300 ha).

Midland area is next to the mountainous area, running from

northwest to southeast. In the area, there are many big lakes like Dai

Lai, Xa Huong, Van Truc, Lien Son, Dam Vac which are water source

supply for production activities.

The total area of the low land area is 47,000 ha, including new

and old alluvium sub-regions. This area has flat topography which is

convenient to develop infrastructure, urban residential area, and

suitable with farming production.

Regarding to the forestland in the province, the area is 30,236.08

ha. Of which, the natural forest is 9,591.47 ha (2003), accounting for

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31.72% of the total forest land; the artificial forest is 20,640.87 ha,

making up 68.28%.

2.2 Population and labor force

The total population of the province is approximately 1.2 million

and about 520,000 people are of working age.

Some figures of the population, area and population density at

the administration units in Vinh Phuc.

No Name of district,

town

Population (inhabitant)

Area (km2)

Population density

(inhabitant/km2)1 Tam Dương 92,694 107.03 866 2 Lap Thach 208,121 323.07 644 3 Binh Xuyen 103,495 145.21 711 4 Tam Dao 65,156 235.11 276 5 Me Linh 178,559 140.94 1,270 6 Phuc Yen 81,173 120.31 675 7 Vinh Yen 76,650 50.87 1,508 8 Vinh Tuong 186,976 141.82 1,318 9 Yen Lac 142,989 106.72 1,339

III. Infrastructure

3.1 Energy

The energy is being supplied by 110 KV line from Thac Ba

hydropower station.

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A 220 KV line has been built since 1997 from Hoa Binh

hydropower plant via Vinh Phuc to Soc Son (Hanoi) creating a

capacity to supply energy for the province.

3.2 Water supply

Surface water resources in the province is abundant thanks to the

two rivers of Red River and Lo River along with a small river system

and a variety of reservoir.

Although the water resources in the province are quite abundant,

the shortage of water still happens in the dry season, especially in high

mountainous and midland districts (Lap Thach, Tam Duong, Binh

Xuyen). In order to ensure the water supply for the economic

development, it is necessary to take more consideration to establish

more water regulating works and have measures to exploit

supplementary underground water.

3.3 Telecommunication

A communication network covering most of communes within

the province has been under construction.

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3.4 Transportation

There is a varied transportation network, including roads,

railways and waterways. Besides that, Vinh Phuc is located near Noi

Bai international airport and Gia Lam dry port, convenient for traveling

and goods transportation.

There are 4 highway lines: national highways 2, 2B, 2C, and 23.

Two of them are important ones running through northern provinces to

Hanoi and southern provinces. Highway 2 is being gradually upgraded

and expanded to 4-lane motor vehicles. Highway 2C is being planned

as an axis from Son Tay to Tuyen Quang with a length of 48km

running through Vinh Phuc.

The Hanoi - Lao Cai railway line linking to Yunnan (China) is

an important transportation line with 6 stations located in Vinh Phuc.

In addition, inner province transportation roads linking to

districts and communes are being gradually upgraded and transformed

to meet the need of socio-economic development.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office IV. Economic structure and potential for co-operation

Vinh Phuc has a favorable geographical position for trade

development. Located near big economic centers of Hanoi Hai Phong and

northern border provinces, the province is potential develop a large market.

V. Local government’ strategies and orientation for the development of

the city/province

The orientation for development by 2010 is to make a rational

agricultural and rural economic structure to assure food security; to increase

the population's income, but to reduce rich and poor differentiation; to

strongly orient the province agricultural production towards the world

market.

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VI. List of projects calling for investment

Order

Projects

Goal

Location Investment capital

(Million USD)

Market

Investment form

Input material source

Project utilities

1 Developingcomputer software technology

Producing software

Chan Hung Industrial Zone (IZ)

5 Domesticsales: 80%; exports: 20%

100 percent foreign capital

Domestic materials plus import components

Available

2 Producing CDs, CD-ROM and DVD

producing various compact discs

Chan Hung (IZ)

10 Domestic sales: 80%; exports: 20%

100 percent foreign capital

Domestic materials plus import components

Available

3

Producing and assembling a computer

producing and assembling high speed computer

Chan Hung and Khai

Quang (IZ)

5 Domesticsales

100 percent foreign capital

Domestic materials plus import components

Available

4 Producing electronicand telecommunication component parts

producing information technology component parts

Chan Hung (IZ)

10 Domesticsales: 20%

joint-venture; 100 percent foreign capital

Export: 80%

Import components

Available

5 Producing DVD players

Producing DVD players

Chan Hung (IZ

10 Domestic sales: 80%; Export: 20%

100 percent foreign capital

import components

Available

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6 Producing autocassette players

Producing auto cassette players

Chan Hung (IZ

8 Domesticsales: 50%; export: 50%

100 percent foreign capital

import components

Available

7

Producing and assembling refrigeration equipments

Producing fridges, refrigeration systems and air conditioners

Chan Hung, Khai Quang, Quang Minh

IZs

12 Domesticsales: 80%; export: 20%

100 percent foreign capital

import components

Available

8

Producing and assembling telephones

Producing desktop and handheld telephones

Chan Hung (IZ

8 Domesticsales: 50%; export: 50%

100 percent foreign capital

import components

Available

9

Producing liquid crystal displays

Producing monitors

Chan Hung (IZ

10

Domestic sales: 80%; export:20%

100 percent foreign capital

import components

Available

10

Producing audio electronic appliances

Producing audio appliances

Chan Hung (IZ

5 Domesticsales: 70%; export: 30%

100 percent foreign capital

import components

Available

11 Producing specialized batteries

Producing specialized dry batteries

Kim Hoa, Binh Xuyen

IZs

5 Domestic sales: 100%

100 percent foreign capital

Domestic materials

Available

12

Producing medium and low voltage electric cables and information cables

Producing various cables

Kim Hoa, Binh Xuyen

IZs

5 Domesticsales: 70%; export: 30%

100 percent foreign capital

Import cables covers

Available

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13

Producing yarns, textiles, and garments

Producing yarns, textiles and garments

Tan Tien, Hop Thinh

IZs

15 Domesticsales: 80%; export: 20%

100 percent foreign capital

Import materials

Available

14

Producing secondary materials for the garment industry

Producing buttons, linings, zippers, ect..

Tan Tien, Hop Thinh

IZs

10 Domesticsales: 100%

100 percent foreign capital

Domestic and import materials

Available

15

Producing optical cables

Producing optic cables

Kim Hoa and Quang Minh

IZs

5

Domestic sales:

100 percent foreign capital

import materials

Available

16

Producing spare parts of agricultural machinery and small water pumps

Producing tools machines and small water pumps

Kim Hoa, BInh Xuyen and Quang Minh IZs

10 Domesticsales: 70%

100 percent foreign capital

export: 30%

import materials and components

Available

17 Producingmultifunctional diesel tool machines

Producing agricultural machinery, import materials and components

Kim Hoa IZ 10 Domestic sales:

Joint-venture; 100 percent foreign capital

Import materials

Available

18 Producing auto parts and spare parts

Producing auto spare parts

Khai Quang and Binh

Xuyen IZs

12 Domesticsales: 70%, export: 30%

Joint-venture; 100 percent foreign capital

Import materials and components

Available

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19

Producing metal molds

Producing precise, molds

Khai Quang and Binh

Xuyen IZs

5 Domesticsales: 100%

Joint-venture; 100 percent foreign capital

Import materials

Available

20

Producing sound-resistant steel sheet for civil and industrial use

Producing sound and heat resistant steel sheet

Khai Quang and Kim Hoa

IZs

8 Domesticsales

Joint-venture; 100 percent foreign capital

Import materials

Available

21 Producing householdutensils and stainless metals

Producing kitchen utensils

Khai Quang and Binh

Xuyen IZs

5 Domesticsales: 70%; export: 30%

Joint-venture

Import Available

22 Producing high grate fire-resistant equipment

Producing fire clothing and equipment

Khai Quang and Kim Hoa

IZs

5 Domesticsales

100 percent foreign capital

Import fire-resistant materials

Available

23 Producing medical

electronic equipment Producing medical electronic equipment and monitor

Chan Hung IZ

5 Domesticsales: 60%; export: 40%

Joint-venture; 100 percent foreign capital

Import materials and components

Available

24

Producing component parts of cameras, photocopiers and high speed printers

Building a production plant

Chan Hung and Binh

Xuyen IZs

30 Domesticsales: 50%; export: 50%

Joint-venture; 100 percent foreign capital

Import materials

Available

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25 Planting andproducing export flowers

Building a flowers processing factory

BInh Xuyen Tourist site

50 Export Joint-venture; 100 percent foreign capital

Import flowers varieties

Available

26 Producing public entertainment equipments

Park equipment Khai Quang or Binh

Xuyen IZ

12 Domesticsales: 30%; export: 70%

100 percent foreign capital

Import component parts

Available

27 Building aninternational hospital

Building a high grate hospital with international equipment and labs

Me Linh district

20 Domesticsales

Joint-venture; 100 percent foreign capital

Available

28

Building horse race course

Phuc Yen Town

200 Domesticsales

100 percent foreign capital

Available

29 Treating industrial

and private rubbish Building a rubbish treatment and microbiological fertilizer production area

Tam Duong district

20

Domestic sales

Joint-venture; BOT

Available

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30 Treating industrialwaste water

Building a waste water treatment plant

Vinh Yen Town

25 Domesticsales

Joint-venture; BOT

31 Upgrading andbuilding Tam Dao I resort

Building a three -star tourist complex

Tam Dao I Area, Tam Dao district

50 Joint-venture; 100 percent foreign capital

32 Building Tam Dao II resort

Building a tourist, entertainment and scientific research complex

Tam Dao II Area, Tam Dao district

200 Joint-venture; 100 percent foreign capital

33

Building an international university

Building an university with labs, teaching and learning equipments for 400-500 students

Vinh Yen Town

20 Joint-venture; 100 percent foreign capital

34

Building and trading in Dao Tu IZ

Building IZ infrastructure

Thanh Van commune,

Tam Duong district

30

100 percent foreign capital

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HAI PHONG CITY

I. General information

1.1 Master plan/Map of the city/province

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1.2 Geographical location

Hai Phong is a seaport city with an important inter – transport

link with other provinces and a main gateway to the sea in the North.

The city has long been known as a key industrial hub with the largest

seaport in Northern Vietnam, easily accessible to huge markets in

Southern China and Southern East Asian countries.

Just 102 km from Hanoi and 200 km from Vietnam – Chinese

border, Hai Phong is on the plain of the Red river delta with 2 island

districts, Cat Ba and Bach Long Vi, including thousands of large and

small islands.

II. Productive resources

2.1 Natural resources

The city is rich of minerals like oil, sand, gravel, limestone for

cement production…and large resources for aquaculture and the fishing

industry.

2.2 Population and labor force

There are more than 1.8 million people and around 1 million

people are of working age.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office III. Infrastructure

3.1 Energy

About 4,800,000 KW is daily supplied to the City from the 2

stations of 220 KV: one station of 110 KV and a 1,200 MW thermo –

power plant under construction, ready for service in 2008.

3.2 Water supply

There are currently six water plants with a combined capacity of

152,000m3/day. Plentiful surface and underground water is available

and two new water supply plants are under construction to serve future

economic development.

3.3 Telecommunication

A full range of domestic and international postal and

telecommunication services are available for use, such as internet

services, telex, ADSL….

3.4 Transportation

Road network with national highways are connected with Hanoi,

Northern provinces, border provinces with China, Ha Long Bay and

other coastal provinces.

In addition, Cat Bi International airport, is 5 km far from the city

center.

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Surrounded by 5 rivers, Hai Phong’s inland waterway network

can cater for 40% of the total volume of goods transported in the

northern provinces.

Besides that, the Hai Phong – Ha Noi railway enables rapid

cargo transport from Hai Phong to Ho Chi Minh City and the Northern

provinces as well as to Kunming in Southern – Eastern China.

IV. Economic structure and potential for co-operation

The average GDP growth rate was 11.31% for the period of 2002 –

2007 and GDP/person was USD 1,383 in 2007. The export turnover was

over USD 1 billion, with an annual average increase of 21.24%. FDI capital

projects in 2007 were USD 430 million.

To 2010, the GDP of Hai Phong city is expected to achieve 4 to 4.5%

of GDP of the whole country, with an average annual GDP growth rate of 12

to 13 %; 1.2 times higher than the Northern area. The GDP/capita will be

USD 1,900. The export turnover will be USD 1.9 to 2 billion with an average

growth rate of 18 – 20 % per year.

Hai Phong is also an attractive destination for visitors. In 2007, there

were about 3.62 million visitors and the popular destinations are: the Cat Ba

archipelago, Do Son beach ….

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office V. Service sector

Hai Phong offers a full range of business, finance, trade, and tourism

services to investors, business people and foreign travelers.

5.1 Shipping services

Hai Phong, which is one of the busiest commercial ports in Viet

Nam can handle the vast majority of imported and exported goods. It is

equipped with modern port facilities: deep – water berths, storage

yards and outdoor and indoor warehouse systems.

5.2 Finance and banking

Full banking services are provided by branches of all major

Vietnamese banks, joint – venture and foreign banks.

VI. Local government’ strategies and orientation for the development of

the city/province

The city will be a focal point for rapidly developing the Northern

dynamic economic region, an important place for sea economic development;

one of big national industrial, commercial centers as well as a center for

tourism, services, aquaculture raising and processing products, education

development and healthcare in the north coastal region.

Following sectors are included in the city’s investment orientation:

• Promoting FDI into industrial parks

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• Developing IT and high –tech industries.

• Developing tourism resorts; recreation; entertainment centers

• Developing apartments, offices, hotels, international hospitals and

schools…

• Developing the city’s infrastructure by BOT

• Developing new urban centers

• Shipbuilding, manufacturing equipment and devices for navigation

and shipbuilding industry.

• Manufacturing new materials, applying new technologies

• Producing equipment for waste treatment.

VII. List of projects calling for investment

There are some big and important projects in Haiphong calling for

investment.

7.1 Hanoi – Haiphong highway project

Project location: At the South side of the existing Highway

No.5, starting from the belt-road III (Hanoi), going through Hung Yen

and Hai Duong provinces, to Dinh Vu Peninsula (Hai Phong).

o Project Scope:

- 105.5km long, of which, 33km located in Hai Phong 6-lane

road with 35m wide

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- Design speed: 120 km/h

o Financial Issues:

- Total investment capital: about US$ 1.2 billion

- Mode of investment: BOT

o Schedule:

- Commencement: May 2008

- Completion: 2010

7.2 Dinh Vu – Cat Hai bridge project

o 6km long (4.5 km long bridges, 1.5km long approach section)

o Connect the Lach Huyen Port and Hai Phong City. In the

future, the bridge will be used as a part of connecting facility

to Cat Ba Island for tourists.

o It is planned to have 6 lanes for a highway bridge option, and

4-lane and single track for a highway-railroad combined

bridge option.

7.3 Hai Phong Int’l gateway port project

o Project Objective: Meeting requirements on increasing cargo

throughput of the region in the period of 2010-2020.

Becoming international container transfer port in the

Northern region with the capacity of over 100 mil.tons/year

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o Total investment capital: US$ 1.74 billion

o Area: 1,200ha

o Projects scope: Construction of port and narrow passage for

receiving 50,000 DWT vessels and 6,000 TEU container

vessels; meeting cargo throughput requirement of 35

mill.tons/year for the period of 2020

o Narrow passage scope: 150 m width, 14.9 m depth, -11.9 m

bottom level

7.4 Upgrading Cat Bi airport project

o Project location: at South - Eastern side of the city, 8km from

city center.

o Investment capital: over US$ 100 millions (to period 2025)

o Forecast of transportation capacity:

To 2015: 2,000,000 passengers/year

17,000 tons of cargo/year

To 2025: 4,000,000 passengers/year

82,000 tons of cargo/year

7.5Hai Phong thermal- power plant project

o Project Owner: Haiphong Thermal-power Joint-Stock

Company

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o Project time: 25 years

o Project area: 163.1ha (Plant No.1) and 53.3 ha (Plant No.2)

o Plant capacity: 1,200 MW, will be in operation at the end of

2008

o Average operation time (hours/year): 6,000 hours

o Total investment capital:

US$ 640.45 million (Plant No.1)

US$ 623.57 million (Plant No.2)

7.6 DinhVu – Cat Hai economic zone

o Scope

- Area: 21,640 ha

- Population: 92,292

o Development model:

General economic Zone with Functional Sub-areas: Tax area

and Non-tax area

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HA NOI CAPITAL

I. General information

1.1 Master plan/Map of the city/province

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1.2 Geographical location

Hanoi - the capital of Socialist Republic of Vietnam, is the Political -

Economic - Cultural - Scientific and Technological center of the whole

country. Hanoi is located in the center of the Northern Delta with a

population of 6 million people, and an area of 3,300 km2. Hanoi is an

ancient city, which had been established and developed for almost 1,000

years since 1010. It is near Thai Nguyen province in the North, Bac Ninh

and Bac Giang provinces in the East, Hung Yen in the Southwest, Ha Tay in

the South and Vinh Phuc in the East

Hanoi's geographical location is very convenient. It is the traffic clue

of the road way, water way, rail way and air way from Hanoi to other

provinces of Vietnam as well as to other countries in region. Hanoi is

becoming an important economic and international transaction center of the

whole country, after Ho Chi Minh city.

II. Productive resources

2.1 Natural resources

Covering an area of more than 918 square kilometers. There are many

rivers and hills and mountains in Hanoi.

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2.2 Population and labor force

There are 2,756,600 people, of which 1,300,000 living in urban and

1,400,000 in suburban. According to the statistic in 2000, about 1,561,000

people were of working age.

III. Infrastructure

3.1 Energy

The power grid has been renovated, ensuring its stable tension.

3.2 Water supply

Water resources are mainly from the Red river and Duong River.

Surface and underground water of Hanoi is fairly abundant.

3.3 Telecommunication

The telecommunication network is equipped with modern facilities,

such as digital operation exchange, optical fibers and mixed with global

telecommunication system.

3.4 Transportation

The intricate transportation network of road way, river way, railway

and airway allows access in all directions and neighboring provinces.

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office IV. Economic structure and potential for co-operation

Over the ten years period from 1991-2000, Hanoi’s average annual

GDP growth was 11.6% (1.5 times higher than the country average), of

which industrial growth 13.8%, agriculture-forestry 4.5%, and services 11%.

V. Local government’ strategies and orientation for the development of

the city/province

Hanoi will celebrate its 1000th year in its history. 2001-2010 is special

development period of Hanoi to head to this important historic event.

The main target and requirement of checking, supplementing and

completing Hanoi's social-economic development strategic plan in the period

of 2001-2010 are:

o To create an overall picture of Hanoi gradually deserving as “the

heart of the nation, national political-administrative central, big

cultural, scientific, educational, economic and international

transactional center a peaceful city and heroic capital.”

o To build the base for planning development strategies, investment

cooperation and for preparing the coordination with strong

development of the north key economic zone, the area, nation as

well as other cities in the region.

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To build strategic plan project, the city has ordered authorized

organizations, sections to coordinate with related ministries, departments,

research institutes, universities to arrange researching force and to get ideas,

recommendations from leading experts.

VI. List of projects calling for investment

Infrastructure

Project Name Product Total

Capital (USD)

Priority Policy

Constructing Hanoi software technology area at Hoa Lac Hi-tech zone.

Hoa Lac Hi-Tech Zone (55ha) 70,000,000

Constructing area for researching and development agriculture with hi-tech method.

136 Ho Tung Mau - Tu Liem, Hanoi 50,000,000

Constructing Hanoi hi-tech agricultural park.

Phu Dong & Trung Mau (Gia Lam) 50,000,000

Constructing ecological and agricultural area in west area of Hanoi city.

Phu Dien,Tu Liem 50,000,000

Constructing Bac Ha ecological agricultural area. Dong Anh 50,000,000

Constructing Tam Thien Mau high quality agricultural production area.

"Thuan Thanh, 50,000,000

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Constructing infrastructure of Soc Son forest ecological tourism area.

Soc Son, Hanoi 50,000,000

Constructing Informatic Technology (IT) Industrial Zone at Nam Thang Long Hi-Tech Zone.

Nam Thang Long Hi-tech zone (30ha) 30,000,000

Constructing infrastructure of industrial zone for small and medium enterprises.

Duong Quang commune, Gia Lam distr., (100ha)

30,000,000

Hapro foodstuff industrial complex.

Le Chi, Gia Lam, Hanoi

Industry –agriculture

Project Name Product Total Capital

Priority Policy

Mich cow breeding center Phu Dong (Gia Lam) 50,000,000 High quality pig breeding center Kieu Ky, Gia Lam 20,000,000

Fabricating chips and wafer for telecommunication equipments

In industrial zones and complexes 20,000,000

Production of industrial moulds

In industrial zones and complexes 10,000,000

Planting and processing fresh vegetables

Suburb areas of Hanoi city 10,000,000

Manufacturing automobile's spare parts

In industrial zones and complexes 8,000,000

Fire fighting equipment production

Thang Long Industrial Zone 6,000,000

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Interior woody wares production to export to USA

Gia Lam 5,000,000

Appliances production Thang Long Industrial Zone 5,000,000

Cosmetics production Thang Long Industrial Zone 5,000,000

Processing exported woody materials

Soc Son/Dong Anh (1,5-2ha) 5,000,000

Manufacturing high pressure pipes

In industrial zones and complexes 5,000,000

Fruits production and processing Dong Anh 5,000,000

Processing vegetables and tinned fruits for export Dong Anh 5,000,000

Manufacturing automobile gaskets

In industrial zones and complexes 4,000,000

Export safety fruits and vegetables production

Phu Thi commune, Gia Lam district 4,000,000

Processed foodstuffs production 4,000,000

Handicraft and fine-art wares production 4,000,000

Glass fabrics production 4,000,000

Intelligence card production for export Tay Ho 3,000,000

Fresh Vegetable processing and collecting for export to Japan

Tu Liem/Dong Anh 2,000,000

Stationary production Noi Bai Industrial Zone 2,000,000

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Pre-fabricated steel frame and mechanical wares production 2,000,000

Aluminum powder and billet production 2,000,000

Manufacturing moulds for plastic sector Gia Lam 1,000,000

High quality garment wares production

Importing and processing woody materials for export

Exported porcelain and ceramic wares production

Exported woolen and jute carpet production

Exported high quality package production

Tinned packing production

Exported handicraft wares processing and production

Fresh meats processing center Le Chi Industrial Zone, Gia Lam

Planting fresh flowers for export

Poultry slaughtering and processing plant Dong Anh

Cattle slaughtering plant in southern area of Hanoi Thanh Tri, Hanoi

Constructing Dong Thanh cattle slaughtering plant Dong Anh

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Real estates

Project Name Product Total Capital Priority Policy

International Exhibition - Service -Trade Center (Central Business District)

Dong Anh (200ha) 1,000,000,000

Tam Xa Urban Area Tam Xa commune, Dong Anh district (700ha)

500,000,000

Building street routes in both sides of ring road No. 1, Kim Lien-O Cho Dua section.

"Ring 1, Kim Lien - 300,000,000

Completing Lang Ha- Thanh Xuan street (section from Khuat Duy Tien to Phung Khoang)

Road and both sides of Lang Ha street -Thanh Xuan (100 ha)

250,000,000

Research and Development Center (R&D), Hi-Tech, and training in north of the Red river.

Xuan Trach- Dong Anh (50ha) 200,000,000

Embankment and exploitation of yards in both banks of Red river

Both banks of Red river delta 200,000,000

Van Tri South Urban Area Dong Anh (100ha) 150,000,000

Complex of leased building and offices

Near to Thanh Nhan Park - Tran Khat Chan street (3,13ha)

125,000,000

Financial and Commercial Center (secondary project in west of West Lake Urban Area).

West Lake Urban Area (5ha) 100,000,000

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Istituto nazionale per il Commercio Estero Italian Trade Commission - Hochiminh City Office

High level House Area (secondary projects in west of West Lake Urban Area).

West Lake Urban Area (5ha) 100,000,000

Building houses for low-income persons (selling and leasing)

Thanh Tri (15 ha) 90,000,000

Near to Thanh Nhan Park - Tran Khat Chan street (1,37ha)

60,000,000

Project 1: Rehabilitating old housing area in inner area of the city

Van Chuong Apartment Area, Dong Da district (phase 1: 05 ha)

50,000,000

Leased Commercial and office Center in Long Bien district.

40,000,000

Project 2: Rehabilitating old housing area in inner area of the city

"Nguyen Cong Tru Apartment Area, 30,000,000

Trading and Office Center Cau Giay New Urban Area (4ha) 30,000,000

Multi floor garage In 4 former districts

Five star - international hotel

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