I. What is the carbon footprint

1. Definition of carbon footprint

A carbon footprint is the total amount of greenhouse gases emitted by an organization’s activities, converted into CO₂ equivalent. This concept includes major greenhouse gases such as CO₂, CH₄, and N₂O.

Quantifying the carbon footprint helps businesses better understand their environmental impact, identify emission “hotspots,” and set specific reduction targets. For manufacturing enterprises in particular, greenhouse gas inventories not only support operational efficiency but also reduce environmental impacts, promote sustainable development, and meet increasingly strict future market requirements.

2. Why is the carbon footprint important for business?

 As many countries including Vietnam have committed to achieving Net Zero by 2050, measuring and reducing carbon footprints is no longer optional; it is essential. It enables businesses to contribute to global emission reduction goals while meeting consumer demand for “green” products and complying with strict regulations in markets such as the EU.

The carbon credit market has also become a crucial tool for optimizing emission reduction strategies. A carbon credit represents permission to emit one ton of CO₂. Governments set sectoral emission caps and allocate specific allowances. Companies with lower emissions can sell excess credits, while those exceeding limits must purchase additional credits.

Understanding and managing carbon footprints early allows businesses to proactively adapt to new regulations, participate effectively in the carbon market, and strengthen future competitiveness.

II. Categories of carbon footprint in manufacturing

Among global standards for emission management and reporting, the GHG Protocol is the most widely used. It establishes core principles for calculating and reporting emissions at the organizational level across three scopes: Scope 1 (direct), Scope 2 (indirect from purchased energy), and Scope 3 (other indirect emissions throughout the value chain).

Scope 1 is the easiest to measure and offers many reduction opportunities through process optimization or technological upgrades. Scope 2 reductions can be achieved through energy efficiency measures or adopting renewable energy such as rooftop solar.

Scope 3, although most difficult to measure and control, often accounts for up to 75% of total emissions and nearly 100% in some industries. Managing Scope 3 effectively helps businesses strengthen sustainability and meet global ESG requirements.

III. Leading businesses in Vietnam committed to reducing their carbon footprint

1. Vinamilk

Vinamilk is one of Vietnam’s pioneers in carbon footprint management. Since 2012—well before any mandatory regulations Vinamilk has published Sustainability Reports identifying greenhouse gas management as one of its 11 key material issues.

In 2023, Vinamilk launched the “Vinamilk Pathways to Dairy Net Zero 2050” program. Within just one year, three units achieved PAS 2060:2014 carbon neutrality certification, offsetting over 21,000 tons of CO₂ (equivalent to more than 2 million trees).

Despite adopting numerous emission-reduction measures, the livestock and dairy sectors cannot easily achieve zero emissions. Therefore, Vinamilk has expanded carbon absorption initiatives through tree-planting programs such as the “Vinamilk Net Zero Forest” project.

2. Samsung Electronics Vietnam

Manufacturing, especially electronics production, is one of the world’s largest energy-consuming sectors. In Vietnam, industry accounts for more than 50% of total national energy consumption.

Samsung Electronics Vietnam is integrating renewable energy into its production chain. In April 2025, the company began rooftop solar projects at its Bac Ninh (SEV) and Ho Chi Minh City (SEHC) facilities, aligning with Samsung Vietnam’s Net Zero commitment.

In an era where Net Zero has become a global mandate, the carbon footprint is not just an environmental metric it is a strategic business factor. Accurate measurement and effective management of emissions enable enterprises to optimize operations, ensure compliance, enhance competitiveness, and strengthen a sustainable brand image.

As Vietnam’s carbon market becomes operational and emission regulations tighten, businesses that act early will lead not only in economic growth but also in sustainability and environmental responsibility. 

Above RSL Group has provided readers with information about carbon footprint. If you have any questions, please contact our hotline immediately for answers. See more articles here.

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I. What is a border-gate econimic zone?

A border-gate economic zone (BGEZ) is an economic zone established in land-border areas and their adjacent territories. It is one of Vietnam’s special types of economic zones.

The strategic objective of a border-gate economic zone is to promote cross-border trade, develop logistics services, tourism, and export-oriented industries, thereby serving as a key gateway for commercial exchange and strengthening Vietnam’s connectivity with neighboring countries.

In terms of the legal framework, all management and investment activities within border-gate economic zones are currently governed by Decree No. 35/2022/NĐ-CP, issued on 28 May 2022, which regulates the management of industrial parks and economic zones. The integration of border-gate economic zone management under this unified decree reflects Vietnam’s intention to standardize governance and reduce fragmentation in the administration of special-function economic areas.

II. Eight key border-gate economic zones in Vietnam

According to the Report on the establishment and development of industrial parks and economic zones by the Ministry of Planning and Investment (now under the Ministry of Finance), Vietnam currently has 30 border-gate economic zones (BGEZs). To concentrate resources and create breakthrough efficiency, the Prime Minister has approved a list of 8 priority BGEZs to receive central government budget support during the 2021–2025 period. These areas have demonstrated strong economic performance and hold strategic geographic advantages, include: Mong Cai border-gate economic zone (Quảng Ninh), Đong Đang – Lang Son (Lạng Sơn), Lao Cai, Cao Bang, Cau Treo (Hà Tĩnh), Lao Bao (Quảng Trị), Moc Bai (Tây Ninh), An Giang

This decision reflects the Government’s strategy of targeted, in-depth investment, prioritizing maximum effectiveness over widespread allocation. In 2019 alone, these eight zones contributed more than USD 344 million-accounting for nearly 70% of total budget revenue from all border-gate economic zones nationwide. By directing investment toward high-performing zones such as Mong Cai, Lao Cai, and Đong Đang – Lang Son, the Government aims to form internationally competitive growth hubs while encouraging other zones to proactively attract capital and develop their infrastructure.

III. Smart border-gate systems

Investment in “smart border gates” is a strategic move by the Government, focusing on operational efficiency as the primary competitive advantage instead of tariffs-thereby creating a sustainable form of non-tariff incentives.

Smart border gates will prioritize upgrading to advanced technologies such as facial recognition systems, automated cargo control, and biometric identification technologies. They will apply Artificial Intelligence (AI), the Internet of Things (IoT), and Big Data to shorten customs clearance times, minimize cross-border trade risks, and optimize operational procedures. The development of smart border-gate models not only enhances management efficiency but also provides significant benefits in preventing smuggling and trade fraud.

Quang Ninh is a notable example, currently piloting the smart border-gate model at Mong Cai – Donh Hung to increase clearance capacity, reduce waiting times, and promote cross-border trade. The Móng Cái border-gate economic zone, spanning more than 121,000 hectares, has been designated as a national key border-gate economic zone, directly linked to international economic corridors between China and Vietnam’s major economic centers.

Alongside Quang Ninh, Lang Son has also been assigned by Prime Minister Phạm Minh Chính to lead the development of smart border gates, particularly at Huu Nghi and Tan Thanh-two critical trade gateways with China.

IV. Investment Incentives in Border-Gate Economic Zones

Before 2018, goods and services exported abroad from non-tariff zones within border-gate economic zones (BGEZs) were exempt from VAT, while goods transported from the domestic market into the non-tariff zone enjoyed a 0% VAT rate. In addition, investors in BGEZs were entitled to a 70% reduction in land and water surface rental fees after the initial rent-free period.

However, on January 16, 2018, the Prime Minister issued Decision No. 01/2018/QD-TTg, which abolished Decision No. 72/2013/QD-TTg on special financial mechanisms for border-gate economic zones. Since then, BGEZs have applied investment incentives under the general framework of the Law on Investment 2020 and Decree No. 35/2022/ND-CP on the management of industrial parks and economic zones.

Economic zones in general including border-gate economic zones are entitled to investment incentives applicable to areas with exceptionally difficult socio-economic conditions. Specifically, investment projects in BGEZs are eligible for a preferential corporate income tax rate of 10% for 15 years, a 4-year tax exemption, and a 50% tax reduction for the subsequent 9 years.

Border-gate economic zones continue to demonstrate their strategic role in boosting cross-border trade, developing logistics, and driving regional economic growth. With a focused investment strategy and the shift toward smart border-gate models, these zones will continue to play a crucial role in Vietnam’s strategy for integration and supply chain expansion. Going forward, the effectiveness of infrastructure development, technology adoption, and investment attraction will be key factors determining the competitiveness and momentum of the border economic ecosystem.

Above RSL Group has provided readers with information about border-gate economic zones. If you have any questions, please contact our hotline immediately for answers. See more articles here.

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1. What is an island container depot (ICD)?

ICD (Inland Container Depot), also known as a dry port or inland port, is a container terminal located inland – away from seaports or rivers – that is authorized by customs authorities to handle import and export procedures similar to those at seaports or airports. In other words, an ICD serves as an extended arm of a seaport on land, functioning as a hub for cargo consolidation, customs clearance, container stuffing and unstuffing, as well as the transshipment of goods to and from seaports.

2. Why should businesses choose industrial zones or clusters near ICDs?

An Inland Container Depot (ICD) functions as an extension of a seaport, providing logistics and customs clearance services directly inland — including inspection, customs procedures, temporary storage, and the transportation of containers to and from seaports. Located at strategic intersections of multiple transportation modes, ICDs serve as highly efficient transshipment hubs, optimizing the entire logistics network.

As a result, ICDs enable businesses to streamline their supply chains, shorten customs clearance times, reduce operational costs, and enhance competitiveness. Establishing factories or carrying out customs procedures in industrial zones near ICDs allows companies to make more flexible use of domestic logistics services while helping to ease congestion at seaports.

3. Latest list of ICDs in Vietnam

On March 21, 2025, the Ministry of Construction issued Decision No. 287/QĐ-BXD, announcing the list of 17 Inland Container Depots (ICDs) in Vietnam, replacing Decision No. 320/QĐ-BGTVT dated March 28, 2024, previously issued by the Ministry of Transport regarding the publication of Vietnam’s ICD list.

Specifically, the list of 17 Inland Container Depots (ICDs) in Vietnam includes:

4. Typical inland container depot (ICD) projects in Vietnam

In reality, Vietnam’s most efficient ICD network operates in the Southern region, which handles nearly 80% of the country’s total cargo volume. Thanks to strong connectivity with the inland waterway system, these ICDs play a crucial role in supporting seaports in handling import–export cargo, helping reduce congestion at ports and within urban areas.

Meanwhile, the Northern region shows a lower ICD utilization rate since its container transport market is only about 30% the size of the South. Moreover, seaports in the North still have spare capacity and rarely face congestion, prompting many businesses to prefer direct transport to ports.

Below are some notable ICD projects located in Vietnam’s major industrial development centers by RSL Group:

Tan Cang Que Vo ICD – Bac Ninh

Inaugurated on March 24, 2023, the Tan Cang Que Vo ICD holds a strategic position on National Highway 18, located along the Hanoi – Hai Duong – Quang Ninh – Hai Phong corridor, making it convenient for both road and inland waterway transport. It serves as a key logistics hub connecting Bac Ninh, Bac Giang, Thai Nguyen, and Hanoi to major seaports in the Hai Phong region.

Within a 50 km radius, Tan Cang Que Vo ICD is linked to several major industrial parks such as Que Vo I, II, III; Yen Phong I, II (and expansion); VSIP Bac Ninh; Quang Chau; and Van Trung – all of which host vibrant FDI ecosystems with strong import–export activities.

 Notable ICD Projects in Hai Phong

Hai Phong currently has four major ICDs, all located within industrial zones of the Dinh Vu – Cat Hai Economic Zone, providing businesses with on-site customs and logistics services that significantly save time and transportation costs.

• Tan Cang Hai Phong ICD – located in Minh Phuong Industrial Park
• Dinh Vu – Quang Binh ICD – located in Dinh Vu Industrial Park
• Hoang Thanh ICD – located in Dinh Vu Industrial Park
• Nam Dinh Vu ICD (Phase 1) – located in Nam Dinh Vu Industrial Park

Tan Cang – Song Than ICD – Ho Chi Minh City

With an area of 50 hectares, Tan Cang – Song Than ICD is located in the center of Song Than II Industrial Park, acting as a gateway for trade between Binh Duong and Ho Chi Minh City. It connects seamlessly to key highways – National Highways 1, 13, and 14, and the Trans-Asia Road – as well as nearby industrial and export processing zones across Binh Duong and the Southeast region.

Surrounded by major industrial parks such as Song Than and VSIP, the ICD facilitates efficient cargo distribution to Ho Chi Minh City, Binh Duong, and Dong Nai, and supports export activities through the Cat Lai and Cai Mep seaports. This is one of the oldest and most important ICDs in southern Vietnam, playing a central role in the region’s logistics network.

Above RSL Group has provided readers with information about island container depot (ICD). If you have any questions, please contact our hotline immediately for answers. See more articles here.

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In the context of increasingly fierce global investment competition, special economic zones (SEZs) are considered a breakthrough development model, designed to create an open business environment with exceptional incentives that strongly attract investment capital. Many countries such as China and South Korea have successfully implemented this model – Shenzhen (China) and Jeju (Korea) are prime examples of SEZs that transformed regional economies and became global innovation hubs. In Vietnam, three regions Van Don (Quang Ninh), Bac Van Phong (Khanh Hoa), and Phu Quoc (Kien Giang) have been oriented to become pilot special economic zones. These SEZs are expected to create new growth engines and bring about breakthrough opportunities for national economic development.

1. What is a special economic zone (SEZ)?

A special economic zone (SEZ) is a designated geographical area under government management, established with the goal of creating an open and flexible business environment that is less constrained by overlapping administrative regulations, while offering preferential policies to promote business cooperation, attract investment, create jobs, and enhance economic efficiency.

The incentive policies within SEZs vary by country but generally provide greater advantages compared to other regions, such as: the ability to apply foreign legal systems (through mutual agreements) in dispute resolution, significantly lower tax rates often half the standard rate elsewhere; retention of all local budget revenue for reinvestment and developmen. The SEZ governor is typically granted broad authority to make key economic and administrative decisions within the zone.

One of the most successful SEZs in the world is Shenzhen (China), established in 1980. Once a small fishing village of about 30,000 people, Shenzhen has achieved an economic miracle, transforming into one of the world’s leading technology and financial hubs. In 2024, Shenzhen’s GDP reached 3.68 trillion yuan (approximately 500 billion USD), driven by booming high-tech industries such as internet services, biotechnology, and telecommunications. Foxconn, Apple’s major supplier, opened its first factory in Shenzhen in 1988 to produce computer components. Today, Shenzhen is home to global giants like Huawei, Tencent, BYD, and DJI, and has become the cradle of many fast-growing startups and technology billionaires in China.

In South Korea, SEZs such as the Incheon Free Economic Zone and the Jeju Free International City have also become highly successful models, recognized as iconic destinations that drive the nation’s economy and innovation.

2. Three special economic zone in Vietnam

In 2018, the National Assembly of Vietnam received a draft proposal outlining preferential policies for the establishment of three major Special Economic Zones (SEZs): Van Don (Quang Ninh) linked to the northern key economic region, Bac Van Phong (Khanh Hoa) part of the central region, and Phu Quoc (Kien Giang) representing the southern growth area. These three areas were strategically chosen to form a national SEZ network connecting the north, central, and south economic hubs. However, the draft SEZ Law faced significant public debate and controversy, leading to its indefinite postponement on June 11, 2018. As a result, Vietnam has not yet officially established any special economic zone. By 2025, in response to growing economic and strategic needs, the proposal to revive the three SEZ projects was reintroduced at the 9th National Assembly session on February 15, 2025. These include the following:

2.1. Van Don special economic zone, Quang Ninh province

With its strategic location for international trade, Van Don has long served as a gateway of maritime prosperity for Vietnam, facilitating sea-borne commerce with nations such as Japan, China, India, Thailand, and Indonesia.
In terms of air connectivity, Van Don International Airport allows travelers to reach major economic, financial, and tourism hubs across China and Southeast Asia within 1–2 hours of flight time, and destinations such as Beijing (China), Seoul (South Korea), Tokyo (Japan), or Dubai (UAE) within 3–4 hours.
This strategic position gives Van Don a distinct competitive advantage to evolve into a dynamic and globally connected special economic zone, positioning it as one of Vietnam’s most promising gateways for regional integration and high-value development.

2.2. Bac Van Phong special economic zone,Khanh Hoa province

Blessed with a strategic geographical location, Van Phong Bay features an average depth of 20–27 meters, calm waters, and no sedimentation, lying close to international maritime routes — making it an ideal location for developing a regional deep-water seaport and logistics hub. According to the national development plan, Bac Van Phong is envisioned to become an international-class coastal tourism city, a modern marine economic center, and a deep-water port complex integrated with a free trade zone. If the special economic zone (SEZ) proposal is approved, Bac Van Phong will be among Vietnam’s first three SEZs, serving as a key driver of the country’s marine economy and a strategic gateway for global trade and investment.

2.3. Phu Quoc special economic zone, Kien Giang province

Phu Quoc holds a strategic role across multiple sectors serving as a marine economic hub, a leading tourism center, a magnet for foreign investment, and an international gateway for the Mekong Delta region.
With its well-developed infrastructure, including an international airport, seaport, and inter-regional transportation network, Phu Quoc acts as a key connection point linking Vietnam with ASEAN countries and major global economic centers.

Many experts note that Phu Quoc shares striking similarities with globally successful special economic zones such as Shenzhen (China) and Jeju (South Korea) both of which started as undeveloped coastal regions before transforming into thriving economic powerhouses. This geographical advantage provides Phu Quoc with ideal conditions for trade, logistics, import – export activities, and foreign investment attraction and it is expected to follow a similar path of growth.
Notably, in preparation for the APEC 2027 summit, a series of major infrastructure projects are being implemented with a total investment exceeding 300 trillion VND. Experts predict that these developments will significantly upgrade the island’s infrastructure, creating a strong momentum for sustainable economic growth in the near future.

3. The Significance of Special Economic Zones (SEZs)

A highly competitive and attractive business environment within special economic zones (SEZs) is a key factor in strongly attracting investment capital from multinational corporations and foreign investors. This serves as a critical foundation for Vietnam to gain access to advanced technologies, modern production techniques, and sophisticated management experience, thereby driving breakthrough economic growth.
In addition, SEZs can be regarded as “institutional laboratories”, where the effectiveness and feasibility of new economic and administrative policies can be tested before being applied nationwide.
Currently, Vietnam has developed six types of economic and industrial zones, including: (1) export processing zones, (2) industrial parks, (3) high-tech zones, (4) border-gate economic zones, (5) open economic zones, (6) coastal economic zones. These models have made significant contributions to Vietnam’s industrialization and modernization process, yet they also expose certain limitations, such as low flexibility, incentive policies that lack international competitiveness, and investment attraction that remains below potential.
For Vietnam, as economic competitiveness remains modest, domestic and natural resources are approaching their limits, and global investment competition grows increasingly fierce, the establishment of special economic zones is considered a strategic solution and is being closely directed and prioritized by the Party and the Government.
However, international experience also indicates that granting excessive autonomy without robust oversight mechanisms may lead to the emergence of a “state within a state”, posing risks such as money laundering, real estate speculation, and capital diversion away from productive sectors.

Above RSL Group has provided readers with information about the special economic zone in Vietnam. If you have any questions, please contact our hotline immediately for answers. See more articles here.

Source: Redsunland

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1. Industrial development and the energy security challenge

In Vietnam’s energy consumption structure, the industrial sector has emerged as both a key driver of economic growth and the largest consumer of electricity. According to the National Program on Economic and Efficient Use of Energy (2019–2030), industry accounts for over 50% of the country’s total energy consumption. As Vietnam prioritizes the development of the semiconductor industry and data centers, electricity demand is expected to soar — since data centers alone require more power than the steel, cement, and chemical industries combined.

Alongside its industrial development goals, Vietnam has pledged to achieve Net Zero by 2050 at COP26. However, the industrial sector is currently the largest source of carbon emissions, accounting for up to 40% of the nation’s total CO₂ output. Therefore, reducing the environmental impact of power sources used for manufacturing is not only essential to meet international commitments but also a key factor in enhancing the global competitiveness of Vietnamese enterprises.

It is clear that ensuring energy security while transitioning to clean energy represents a dual challenge the Government must tackle in the coming phase of industrial expansion. This balance will also play a vital role in attracting high-quality FDI inflows, especially in the context of a global investment slowdown.

2. Nuclear power – an inevitable trend

Renewable energy sources such as wind and solar power, though highly regarded, remain unstable and weather-dependent. Imported LNG power is also considered an important transitional energy source, yet its development requires synchronized infrastructure and a suitable pricing mechanism. Moreover, increasing dependence on imported fuels makes the economy vulnerable to price fluctuations and geopolitical risks.

In this context, nuclear power emerges as the most feasible solution:

• High and stable output, largely unaffected by weather conditions.
• Near-zero carbon emissions during operation, aligning with Net Zero commitments.
• Exceptional efficiency: just 1 kg of enriched uranium can generate as much energy as 160 tons of coal, enough to power a city of 100,000 people for an entire year.

Nuclear power is produced from the thermal energy released during controlled nuclear reactions, primarily nuclear fission. In this process, nuclear fuels such as uranium or plutonium are split in a reactor, releasing immense heat. This heat boils water to produce steam, which drives turbines connected to generators, producing electricity.

Of course, nuclear power also has its drawbacks — notably high initial investment costs, the need for highly skilled human resources, and strict management of radioactive waste. However, in the long term, it stands as a strategic energy source, capable of ensuring both energy security and environmental sustainability for Vietnam’s industrial future.

3. Ninh Thuan nuclear power project – a turning point for nuclear energy in Vietnam

Vietnam began researching nuclear energy in the 1970s, with significant progress made between 1996 and 2009. On November 25, 2009, the 12th National Assembly approved the investment policy for the Ninh Thuan Nuclear Power Plant Project, which consisted of two separate plants — Ninh Thuan 1 and Ninh Thuan 2 — with a total planned capacity of 4,000 MW. However, by 2016, the National Assembly decided to halt the project, citing capital pressure and the need to prioritize investment in other socio-economic infrastructure projects.

After eight years of suspension, the Ninh Thuan Nuclear Power Project was officially revived at the end of 2024. During a site visit, General Secretary To Lam emphasized that this was a “necessary choice” and “the solution to Vietnam’s energy challenge.” This marks a strategic shift in Vietnam’s energy policy, reflecting a new perspective on the critical role of nuclear power in ensuring national energy security. Of course, the project still faces challenges related to funding and human resource development. However, its reactivation signifies a major milestone, ushering in a new era for nuclear power development in Vietnam.

In a context where electricity demand is surging, industry has become the largest energy consumer, and emission reduction pressure is mounting, nuclear energy is not merely an option — it is an inevitable trend in the country’s future energy mix. With its stable, clean, and sustainable energy output, nuclear power will play a pivotal role in driving Vietnam’s industrialization, modernization, and global integration in the decades to come.

Above RSL Group has provided readers with information about the nuclear power in Vietnam. If you have any questions, please contact our hotline immediately for answers. See more articles here.

Source: Redsunland

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I. What is the regional minimum wage?

The regional minimum wage is the lowest wage rate that employers are required to pay workers performing the simplest jobs under normal working conditions. It is applied to different geographic areas based on varying socio-economic conditions.

The regional minimum wage not only protects employees’ rights but also directly affects businesses’ labor costs, payroll budgets, and social insurance obligations. Therefore, it is an important factor that enterprises—especially those planning to expand production in industrial zones or clusters—must carefully consider.

Following the administrative merger, the regional minimum wage for the 34 newly established provinces and cities will take effect from July 1, 2025, as stipulated in Decree No. 128-NĐ/CP issued by the Government.

II. Regional minimum wage in northern provinces after the administrative merger

After the administrative merger, the northern region will consist of 15 provinces and cities, including: Hanoi, Hai Phong, Bac Ninh, Hung Yen, Ninh Binh, Phu Tho, Son La, Dien Bien, Lai Chau, Lao Cai, Tuyen Quang, Cao Bang, Thai Nguyen, Lang Son, and Quang Ninh.

1. Regional minimum wage in key industrial provinces

Below is the classification of regional minimum wage levels by administrative unit in major industrial provinces in northern Vietnam:

1.1. Ha Noi City

1.2. Bac Ninh province

Newly established projects with ample available land, such as Chau Minh – Bac Ly – Huong Lam Industrial Park, Danh Thang – Doan Bai Industrial Cluster, and Jutech Industrial Cluster, are located in Region III, corresponding to a regional minimum wage of 3,860,000 VND per month.

1.3. Hung Yen province

Key industrial projects in Hung Yen province (former administrative unit) such as Industrial Park No. 3, Industrial Park No. 5, Van Du – Quang Vinh Industrial Cluster, and Quang Lang – Dang Le Industrial Cluster are located in region III, corresponding to a regional minimum wage of 3,860,000 VND per month.

Meanwhile, projects like Yen My Industrial Park and Yen My II Industrial Park fall under region II, with a regional minimum wage of 4,410,000 VND per month.

In former Thai Binh province, industrial parks under the Thai Binh Economic Zone such as Lien Ha Thai Industrial Park and Hai Long Industrial Park are classified in Region II, meaning the regional minimum wage is 4,410,000 VND per month.

1.4. Hai Phong province

Key industrial zones such as Gia Loc II Industrial Park and Kim Thanh Industrial Park in the former Hai Duong province are potential investment destinations located in region II, where the regional minimum wage is 4,410,000 VND per month.

Meanwhile, industrial parks within the Dinh Vu – Cat Hai Economic Zone — including Nam Dinh Vu Industrial Park, Trang Due Industrial Park, and VSIP Hai Phong Industrial Park — fall under region I, corresponding to a regional minimum wage of 4,960,000 VND per month.

1.5. Phu Tho province

Prominent new industrial projects in Phu Tho—such as Thai Hoa – Lien Son – Lien Hoa Industrial Park and Nam Binh Xuyen Industrial Park—are located in Region III, corresponding to a regional minimum wage of 3,860,000 VND per month.

1.6. Quang Ninh province

1.7. Thai Nguyen province

Prominent new industrial projects in Thai Nguyen, such as Luong Phu – Tan Duc Industrial Cluster and Yen Binh 3 Industrial Park, are located in Region III, corresponding to a regional minimum wage of 3,860,000 VND per month.

1.8. Ninh Binh province

Key industrial projects ideal for investors in Ninh Binh – such as Taseco Dong Van 3 Industrial Park, Kim Bang I Industrial Park, Yen Lenh Industrial Cluster (former Ha Nam province), Bao Minh Industrial Park, and Kim Thai Industrial Cluster (former Nam Dinh province) — are all located in region III, where the regional minimum wage is 3,860,000 VND per month.

2. Other provinces

Above RSL Group has provided readers with information about the regional minimum wage in northern provinces after the administrative merger. If you have any questions, please contact our hotline immediately for answers. See more articles here.

Source: Redsunland

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Currently, the province boasts 10 industrial parks and 49 industrial clusters, covering nearly 3,000 hectares, all of which have been cleared and equipped with infrastructure to welcome investors.

As of the end of August 2024, the province’s total investment capital reached over VND 21,600 billion, 1.6 times higher than the same period last year. This impressive figure is a clear testament to its strong transformation and potential of a promising bright spot in the national economy.

1. Location and regional connectivity

Thai Binh is a coastal province located in the Red River Delta, positioned within the economic growth triangle of Hanoi – Hai Phong – Quang Ninh. The province features a 52 km coastline and five major estuaries, which unlock significant potential, especially in developing the maritime economy.

The province has three side border rivers and one side borders the sea, which was once likened to an “isolated island” due to its limited transportation connections with neighboring provinces. However, over the past few years, Thai Binh has overcome these initial challenges and invested heavily in infrastructure to attract investors.

• In development plan, three expressways are being constructed within the province: the Ninh Binh – Hai Phong Expressway (CT.08), the Hanoi Ring Road 5 (CT.39), and the CT.16 route, which connects the Thai Binh Economic Zone, Tra Giang Urban Area, and Thai Binh City to the Hanoi Ring Road 5 and the southern economic zone of Hanoi capital.

• The national highways (10, 37, 37B, 39, and 39B) are being developed in alignment with the Road Network Plan for 2021-2030, with a vision to 2050, as approved by the Prime Minister.
• Thai Binh has identified five key provincial roads as an important pillar of provincial development (DT.467; DT.468; DT.454; DT.469; DT.464). These serve as the link of Thai Binh City with the province’s critical gateways. There are also nine newly planned routes for intra-provincial connections and 15 routes slated for upgrades and improvements.
• Notably, the completion of the coastal road will significantly reduce the distance and travel time from Thai Binh’s coastal areas to the deep-water seaports of Dinh Vu and Lach Huyen, as well as to Cat Bi International Airport (Hai Phong), Van Don Airport, Mong Cai Border Gate (Quang Ninh), and other provinces and cities in the Northern coastal region.

2. Labor Force

An ample labor force is one of the province’s major advantages. The province ranks 11th nationwide in population size, with nearly 2 million residents and a working-age labor force of about 1.2 million people. Over 75% of the workforce has received formal training.

In response to the rapid socio-economic growth, particularly within the industrial sector, the provincial government is prioritizing vocational training, with a strong emphasis on high-skill fields.

In May 2023, the People’s Committee of Thai Binh approved a project to enhance vocational training to meet the demand for a high-quality workforce. This move is to  support the province’s socio-economic development through 2025, with an orientation toward 2030. The project aims to develop a modern, open, flexible, interconnected, high-quality, and efficient vocational education system.

3. Thai Binh Economic Zone

The Thai Binh Economic Zone (EZ) was established in 2017 with a total area of 30,583 hectares. It has been identified as a key economic zone, serving as a driving force for local socio-economic development and a prime area for investment incentives. 

Investment projects in the Thai Binh EZ enjoy the highest level of incentives by the government, along with special local benefits. Notably, secondary investment projects are eligible for a corporate income tax rate of 10% for 15 years, a 4-year exemption from corporate income tax, followed by a 50% reduction for the next 9 years. Additionally, they receive exemptions for 5 years on import duties for goods used to create fixed assets and for raw materials, supplies, and components that are not yet produced domestically.

In addition, Thai Binh province offers specific support, such as vocational training subsidies of up to VND 5 million per worker, and support in administrative procedures to facilitate investment.

The Thai Binh EZ is currently home to Thai Binh Power Center featuring two thermal power plants.  These plants have a total capacity of 1,800 MW, generating approximately 10.8 billion kWh per year. Other key developments include an offshore gas supply project producing 200 million cubic meters of gas annually, an Ammonium Nitrate manufacturing plant, an Ammonia plant, and the Diem Dien Port, among others. These energy supplies are a unique advantage that few economic zones can offer.

Since its establishment, the EZ has attracted three industrial park projects: the infrastructure development projects for Lien Ha Thai IP, Hai Long IP, and VSIP Thai Binh IP.

4. Proactive Approach to Promotion of FDI Investment

On October 12, 2023, a delegation from Thai Binh province participated in the Investment Promotion Conference for Thai Binh, organized by the Vietnamese Embassy in the UK and Thai Binh province in London. During the conference, the Secretary of the Thai Binh Provincial Party Committee pledged that the province would create the most favorable conditions for businesses to invest, expand their production and achieve long-term, effective business growth.

Since the beginning of 2024, Thai Binh’s active approach to investment promotion can be seen more clearly, with provincial delegations frequently organizing investment promotion activities abroad. These include business trips to several European countries such as Germany, Switzerland, Hungary, the Netherlands, France, and Belgium; an investment promotion trip to Shenzhen, China; and representatives from the Management Board of the Economic Zones and Industrial Parks of Thai Binh participating in trade and investment promotion conferences in Hai Long Industrial Park in China.

These efforts by local authorities demonstrate their strong commitment to attracting foreign investment and creating the best possible investment environment for international investors.

Above RSL Group has provided readers with information about the investment potential of Thai Binh province. If you have any questions, please contact our hotline immediately for answers. See more articles here.

Source: Redsunland

Ha Nam has become a strong magnet for both domestic and international investors thanks to attractive investment incentive policies, prime location, integrated infrastructure, favorable environmental conditions, along with generous business support from the local government. 

1. Location

Ha Nam is the southern gateway of Hanoi and borders Hung Yen, Nam Dinh, Ninh Binh, and Hoa Binh province. This location enjoys convenient transportation thanks to major roadways, expressways, railways, and waterways along the North-South axis. The province is also one of the satellite cities, serving as a “gateway” connecting Hanoi with the central and southern provinces of Vietnam.

The strategic potential of Ha Nam has been timely recognized, therefore, the government has set the goal of a province with prosperous economic development and environmental sustainability. The transportation infrastructure system is considered the key to driving the development of industrial parks, export processing zones, and more.

2. The attractiveness from transportation infrastructure

Ha Nam province has been striving to develop transportation routes that create integrated connectivity with other provinces in the region as well as across the country.

The first highlight of the transportation system in Ha Nam is the Phap Van – Cau Gie – Ninh Binh expressway, which connects with Thanh Hoa, Nghe An, Ha Tinh, and North-South expressway. There are three interchanges in the province, including the Cau Gie interchange (facilitating transportation to Kim Bang and Phu Ly city), the Liem Tuyen interchange (facilitating transportation to the center of Phu Ly city), and the Vuc Vong interchange (Duy Tien town). These interchanges are important traffic hubs, connecting areas which have unique strengths. All contribute to a “perfect” transportation infrastructure development in Ha Nam province.

Secondly, the road connecting the Hanoi – Hai Phong expressway and the Phap Van – Cau Gie – Ninh Binh expressway, (passing through Ha Nam and Hung Yen province), ensures seamless connections between the industrial parks and clusters of both provinces with Hai Phong port, Mong Cai international border gate, Noibai airport, and more. This is also a crucial transportation axis for transportation from the Hai Phong ports to Hung Yen – Ha Nam, and then distributing to other provinces and vice versa. Therefore the road will pave the way for industrial parks to develop along.

Thirdly, “The project connecting 1A National Road with the Cau Gie – Ninh Binh expressway via the Liem Son interchange, passing through Binh Luc district to connect with National Routes 21A and 21B, linking the two expressways of Hanoi – Hai Phong and Hanoi – Ninh Binh; connecting the two special national relics, Trần Thương Temple (Ha Nam province) and the Tran Temple historical-cultural relic area (Nam Dinh province).” 

The project includes two segments with a total length of 46.5 km. Segment 1 connects National Route 1 with the Hanoi – Ninh Binh expressway, National Route 21A, National Route 21B, and the road connecting the two expressways of Hanoi – Hai Phong and Cau Gie – Ninh Binh.

3. Government as a reliable partner to enterprises

In recent years, Ha Nam has gradually become an investment hub and in  the top 10 localities attracting foreign direct investment (FDI). Up to mid-2024, the province has 8 out of 24 industrial parks with developed infrastructure put into operation. These projects have attracted 582 investment projects, in which 350 FDI projects with a total investment of 6.137 billion USD.

These achievements are not only attributed to large investment in transportation infrastructure but also the provincial government’s efforts to support businesses.

With a long-term mindset and vision, the Ha Nam government always considers enterprises as both a driving force and an internal strength for socio-economic development. Businesses in Ha Nam have stated that the government consistently focuses on improving the investment and business environment and enhancing the Provincial Competitiveness Index (PCI). The authority frequently organizes meetings with local businesses, listens to their opinions and recommendations. This intends to come up with support solutions and resolve difficulties in production and business activities.

The results of the annual Provincial Competitiveness Index (PCI) survey for 2023 published by VCCI show that the index “Business Support Policies” of Ha Nam reached 7.10 points, an increase of 1.42 points compared to 2022, ranking 18th out of 63 surveyed provinces/cities. Notably, this is the highest score for this locality in over 10 years. This demonstrates that the efforts and determination of the government in supporting businesses have been recognized and highly valued by the business community.

4. Project highlights in Ha Nam

The development of integrated transportation infrastructure is the primary driver behind the growth of potential industrial zones in Ha Nam, particularly along the Phap Van – Cầu Giẽ Cau Gie – Ninh Binh expressway and National Highway 38.

The Expanded Dong Van I Industrial Park

The Expanded Dong Van I Industrial Park boasts a prime location in the northeast of Vuc Vong interchange, Duy Tien Town, Ha Nam Province. It is adjacent to the Cau Gie – Ninh Binh expressway, National Highway 1A, and National Highway 38, all within the boundaries of Duy Tien Town.

>> Find out more about the Expanded Dong Van I Industrial Park here.

Dong Van III Taseco Supporting Industrial Park

Located on the eastern side of the Cau Gie – Ninh Binh expressway, the Dong Van III Supporting Industrial Park has a strategic position on Yen Nam (Lung Xuyen) Road, Duy Tien Town, Ha Nam Province. 

The project enjoys a modern transportation network: National Highway 38 and the Cau Gie – Ninh Binh expressway system. These routes play a crucial role in economic development, linking Ha Nam to the southeast growth corridor of the Red River Delta. The Ring Roads 4 and 5, as completed, will become new economic drivers, enhancing regional connectivity and reducing traffic pressure on the Phap Van interchange.

>> Find out more about Dong Van III Taseco Supporting Industrial Park here.

Kim Bang I Industrial Park

Kim Bang I Industrial Park is situated in Kim Bang District. Kim Bảng District, located at the northwest gateway of Ha Nam, is a key industrial and service development hub of the province. It is also one of the region’s tourism development centers, serving as a crucial transport and communication node southeast of Hanoi. The IP lies next to Dong Van IV Industrial Park and Le Ho Industrial Cluster and is adjacent to the N2 Tan Lang Bridge road (which connect the project to major routes: National Highway 38, National Highway 21B, and the Ring Roads 4 and 5, which are currently under development by Hà Nam Province).

With Ring Roads 4 and 5, the industrial park will become a key connection point for the entire northern and central regions.

>> Find out more about Kim Bang I Industrial Park here.

Le Ho Industrial Cluster

Le Ho Industrial Cluster is part of the Dong Van I, II, and III industrial zones, located within Ha Nam’s key industrial area. The project is strategically positioned on National Highway 38, allowing convenient access to National Highway 1A, leading to Hanoi and connecting to Hai Phong via the Ha Noi – Hai Phong expressway.

>> Find out more about Le Ho Industrial Cluster here.

Yen Lenh Industrial Cluster

Situated along National Highway 38B, Yen Lenh Industrial Cluster enjoys advantageous transportation links to provinces within the Red River Delta, such as Hai Duong, Hung Yen, Nam Dinh and Ninh Binh. It is located 50 km from Hanoi and just 700 meters from Yen Lenh Port, providing convenient connections to goods via the inland waterway system.

>> Find out more about Yen Lenh Industrial Cluster here.

Above is the information about Ha Nam province and its investment potential. Check out more articles from RSL Group here.

Source: Redsunland

I. Who is Foxconn?

Hong Hai Technology Group (internationally known as Foxconn Technology Group) was founded in 1974 in Taiwan with a foundation in mold manufacturing, gradually developing into a high-tech service enterprise. With nearly 40 years of operation, Hong Hai is now the world’s leader in electronic manufacturing services (EMS), gaining a market share of over 40%. The group  encompasses four main product areas: consumer electronics, cloud computing, computer terminal devices, components, and other fields. At its peak, the total global workforce numbered around one million people, and total revenue reached approximately USD 206.2 billion (2021).

Notable products manufactured by this giant are BlackBerry, iPad, iPhone, iPod, Kindle, Nintendo 3DS, Nintendo Switch, Nintendo Switch Lite, Nokia devices, Google Pixel devices, Xiaomi devices, PlayStation 3, PlayStation 4, Wii U, Xbox 360, and Xbox One. Noticeably, Foxconn is currently Apple’s largest manufacturing partner, producing more than 50% of the world’s iPhones.

Foxconn’s business operations span all over the world, covering three continents. The group takes Taiwan as the center, and expands to other countries and territories such as Mainland China, India, Japan, Vietnam, Malaysia, Singapore, the Czech Republic, Hungary, Slovakia, the United States, Brazil, and Mexico. Foxconn’s manufacturing and service facilities are present in more than 20 countries. Currently, Foxconn is providing products for major companies in the United States, Canada, China, Finland, and Japan.

II. Foxconn’s Operations in Vietnam

With the desire to become a leading FDI enterprise in Vietnam, Foxconn Vietnam has established factories in our country and transferred many modern production techniques to provide clients with high-quality, fast, flexible, and reliable services.

The group officially invested in Vietnam in 2007. Over 15 years of construction and development, Foxconn has built a total of seven modern factories in industrial zones with a workforce of over 60,000 workers, engineers, and experts:

• Que Vo Industrial Park, Bac Ninh Province
• Dai Dong – Hoan Son Industrial Park, Bac Ninh Province
• VSIP Industrial Park, Bac Ninh
• Dinh Tram Industrial Park, Bac Giang Province
• Van Trung Industrial Park, Bac Giang Province
• Quang Chau Industrial Park, Bac Giang Province
• Dong Mai Industrial Park, Quang Ninh Province

Foxconn’s main products in Vietnam include precision connectors, mobile phone component assemblies, XDSL, STB, Router, IP-Camera, and small-sized screens.

Recently, in order to expand production in Vietnam, this giant in Apple’s supply chain established a new company named FuKang Technology Limited to invest further in projects in Bac Giang Province.

At the end of November 2020, Nikkei Asia reported that Apple planned to move part of its supply chain out of China, specifically shifting some MacBook production to Vietnam after trial production at Foxconn’s facility in our country. On January 18, 2021, Foxconn was granted a license to build a $270 million factory in Bac Giang Province, clearly intended for the production of MacBooks and iPads. The expected capacity could reach 8 million laptops and tablets annually.

Subsequently, on August 20, 2022, Foxconn signed a memorandum of understanding (MOU) worth $300 million with Kinh Bac City Development Corporation. At the beginning of 2023, Foxconn signed a contract to lease a 50.5-hectare land area in Quang Chau Industrial Park, with the lease agreement extending until February 2057.

III. Impact of Foxconn on Vietnam’s Economy

The continuous expansion of production by the “giant” Foxconn in Vietnam and the recent project to build iPad and MacBook production lines, demonstrates that major technology corporations highly value our country’s investment environment. Ms. Trang Bui, Senior Director for Vietnam Market at JLL, likened enterprises like Foxconn to “queen bees,” whose movement will attract hundreds to thousands of “worker bees.” Manufacturers such as Foxconn will also view Vietnam differently.

Sharing the same viewpoint, Mr. David M. Jackson, General Director of Colliers International Vietnam, believes that Foxconn’s decision reflects confidence in Vietnam’s capabilities, including factors such as political stability, development potential, growth momentum, infrastructure, and the quality of the workforce. He also emphasized, “Vietnam is the first country outside of China to have an iPad assembly plant. Many other leading corporations have also been choosing Vietnam as the location for their large-scale factories. The decision by the world’s leading manufacturer highlights Vietnam’s prominent position compared to many other countries in the region.” 

Furthermore, this promisingly creates numerous positive impacts on the supply chain, particularly Vietnam’s supporting industries, opening up prospects for Foxconn to collaborate with local suppliers to participate in the supply chain. This creates opportunities for Vietnamese businesses to join the high-tech device production lines. In other words, this is a positive signal showing Vietnam’s attractiveness in attracting FDI in general and the wave of investment shifts in particular.

Above, RSL Group has provided basic information about Foxconn and its influence in Vietnam, hoping to bring useful information to readers. Read more articles here. 

Source: Redsunland

I. Who is Luxshare ICT?

Who Is Luxshare? Luxshare’s Activities In Vietnam

1. Introduction

Luxshare ICT (Luxshare – ICT Precision) has its headquarters in Shenzhen, China. It was founded in 2004 by Grace Wang – one of the first employees working for Foxconn. Luxshare has many subsidiaries, which spread throughout many countries such as China, USA, Britain, Korea and Vietnam. The company mainly specializes in connectors, cables and antennas. 

Over 19 years, Luxshare has grown into a big company to serve numerous international clients, which include major brands such as Apple, Sony, Panasonic, Samsung, Huawei, Oppo, Vivo, Lenovo, Dell, Asus, Tesla…It is also the very first company located in China to assemble Iphone.

Luxshare ICT factories

2. Luxshare’s business activities

In 2007, Luxshare became the supplier of Lenovo and Asus thanks to its capabilities of manufacturing sophisticated products. At the same time, it succeeded in securing orders from Huawei and Emerson. In 2012, the company officially went public on Shenzhen stock exchange. 

Luxshare is also the first company to manufacture Airpods Pro for Apple. In 2013, Luxshare, for the first time, was listed in the top 200 suppliers for Apple as a connector supplier. According to the 2018 global ranking of connector manufacturers, Luxshare ICT ranked first in China and sixth in the world.

At the end of 2019, Apple launched two products, AirPods 2 and AirPods Pro, and requested Luxshare Precision to double the production of AirPods Pro to 2 million units per month due to higher than expected demand. Luxshare’s 2019 revenue increased fivefold to 62.09 billion CNY within five years thanks to having gained trust from Apple and other major technology names such as Microsoft, Google, Amazon, HP, and Dell.

In July 2020, Luxshare bought two smaller factories from Wistron in China. According the Luxshare’s data, revenue gained from Apple accounted for over 50% of the company’s total revenue.

II. Luxshare’s activities in Vietnam

Luxshare ICT Vietnam Co., Ltd. is a subsidiary of Luxshare Precision Industry Co Ltd and began operations in 2017. The company currently has six factories in Vietnam, of which four located in Bac Giang and two in Nghe An. The company’s products focus on three main areas: consumer electronics, information technology, and automotive. Until now, Luxshare ICT has invested approximately 600 million USD in Vietnam, employing around 40,000 people. This includes 270 million USD in Bac Giang province and 330 million USD in Nghe An province.

Specifically, Luxshare ICT opened its first factory in Quang Chau Industrial Park (Bac Giang) in 2016. Within just three years, in 2019, Luxshare ICT built additional factories in Van Trung Industrial Park (Bac Giang) and VSIP Industrial Park (Nghe An). 

From 2017 to 2019, Luxshare Vietnam’s revenue came solely from the Quang Chau factory. However, in the three years from 2019 to 2021, Luxshare’s revenue grew significantly. The total revenue of the Big3 (including Foxconn, Luxshare, and Goertek) in Vietnam reached 294 trillion VND (equivalent to 12.7 billion USD).

In the future, Luxshare ICT’s factories in Bac Giang and Nghe An industrial parks will meet Apple’s demand to shift 30% of its AirPods production lines to Vietnam.

1. Luxshare ICT Bac Giang

The Luxshare ICT Group has invested in an electronic component manufacturing project in Bac Giang with a capital of 100 million USD. The main products include computer cables and connectors, consumer electronic devices, automotive cables, and medical cables. The factories in Viet Yen, Bac Giang, have operated since July 2017, creating jobs for over 53,000 workers (as from 2022) with revenue exceeding 33 trillion VND.

• Luxshare factory in Quang Chau Industrial Park

The Luxshare Quang Chau factory spans 29.1 hectares and specializes in products such as computer cables and connectors, internet devices, smartwatches, styluses, lighting equipment, and other devices.

Factories in Quang Chau I

• Luxshare factory in Van Trung Industrial Park

Luxshare Van Trung received an investment registration certificate (IRC) for a 180 million USD project in September 2019. The registered investment capital was later adjusted to 190 million USD. The 36.1-hectare project has an annual production capacity of 20 million components for Bluetooth headsets, smartphones, and electronic devices; one million smartwatches; and 35 million Bluetooth speakers. The company plans to export all its products.

Luxshare’s factories in Van Trung

2. Luxshare ICT Nghe An

The “Electronic Devices and Components Manufacturing” project, also known as Luxshare ICT (Nghe An) 2, is located in VSIP Industrial Park Nghe An (Hung Tay commune, Hung Nguyen district, Nghe An province) with an area of 36.18 hectares. The total investment capital for the project is 150 million USD, equivalent to 3.4 trillion VND. The Luxshare ICT electronic component manufacturing project has a designed capacity of 74 million products per year, equivalent to 3.44 trillion VND. Construction began in January 2023, and production was expected to commence in March 2024. Once put into operation, the project will contribute to the state budget and create jobs for over 14,000 workers.

Luxshare’s factories in Nghe An

Luxshare is not only a leading company in the electronic component industry but also a prime example of successful development and expansion in Vietnam. With continuous growth and a commitment to quality, Luxshare will undoubtedly remain one of the top suppliers for Apple and other technology companies worldwide.

Source: Redsunland.vn

Typically, an FPF system for industrial factories and warehouses is generally described as comprising both an internal and an external FPF system. The external system refers to the infrastructure outside the factories/warehouses and is related to the technical infrastructure of the industrial park, such as water hydrants, water supply sources and internal traffic. The internal system pertains to the infrastructure inside the factories/warehouses, including fire extinguishers and ceiling display mounting pipe systems.

I. EXTERNAL FIRE PREVENTION AND FIGHTING SYSTEM

According to Article 10 of Decree 136/2020/ND-CP, requirements for formulation of or amendment to planning for construction of cities, economic zones, industrial parks, industry clusters, export-processing zones, hi-tech parks and other functional zones according to the Law on Planning, the following fire protection and firefighting (FPF) requirements must be ensured:

• The location of the construction of buildings or building complexes, the arrangement of land plots, and housing lots must ensure fire spread prevention and minimize the harmful effects of heat, smoke, and toxic gases generated by fires on surrounding residential areas and structures.

• Size and load capacity of transport systems and spaces must enable firefighting operations of motor firefighting equipment.

• Firefighting water supply; communication systems and power supply must be available for firefighting activities and fire incident reporting.

• Building sites of premises of firefighting authorities must be located according to regulations of technical regulations and standards on construction planning.

• All projects must make a cost estimate for fire prevention and fighting items.

Moreover, industrial parks must be equipped with outdoor FPF equipment such as outdoor fire hydrants, water supply points for fire trucks, fire extinguishers, fire equipment boxes, fire hose reels and fire nozzles.

Inspection of the fire hydrant system in Ba Thien II Industrial Park

Additionally, regarding firefighting vehicles and isolated respirators, industrial parks, industrial clusters, export processing zones and high-tech parks need to be equipped as follows:

Source: Draft National Standard TCVN 3890:2021 on Fire Protection – Fire Protection Equipment and Systems for Buildings and Structures

II. INTERNAL FIRE PREVENTION AND FIGHTING SYSTEM

The internal FPF system will include: fire alarm system and fire fighting system. In industrial parks, the most common firefighting systems applied is the wall-mounted firefighting system, automatic sprinkler system and smoke extraction system.

1. Fire alarm system

The fire alarm system is a system that detects the outbreak of fire and alerts both the workers in industrial parks and the fire brigade. The most commonly used fire alarm system in industrial parks nowadays is the automatic fire alarm system, consisting of three main components:

• Fire alarm control panel: consisting of batteries, power supply and processing circuitry.

• Input devices: including emergency switches and detectors.
• Output devices: comprising alarm lights, bells and auxiliary display panels.

2. Wall-mounted fire fighting system

The wall-mounted fire fighting system for factories is a system where pipes and equipment are installed close to the walls, emergency staircases and elevator corridors. The water-based fire fighting system includes a pump station supplying water connected to the wall-mounted water intake system. In a fire incident, simply opening the shut-off valve will immediately release a high-pressure stream of water for firefighting. At that point, the water pressure will decrease and the water pump system will automatically activate to supply firefighting water.

• The basic components of a wall-mounted firefighting system typically include:

• Backup fire pump system, electrically operated and booster pump
• Electrical control panel for the electric fire pump
• High-pressure tank, pressure gauge, pressure relay
• Flow switch and alarm valve system
• Shut-off valves, suction release valves, check valves
• Water supply piping system for firefighting
• Wall-mounted water intake for firefighting

Operating principle of the wall-mounted fire fighting system: To ensure that the water pressure remains constant under normal conditions, the pumps are controlled by an automatic central system. When the pressure gradually decreases, the pressure booster pump will automatically operate to supply water to the pipes, compensating for the lost pressure. In the event of a sudden drop in water pressure due to the opening of a sprinkler head, the main pump will activate to provide firefighting water, and a signal will be sent to the alarm center as well as other alarm devices simultaneously.

3. Automatic fire sprinkler system (AFSS)

The automatic fire sprinkler system (AFSS) is a system that uses closed nozzles (sprinkler heads) that are always on standby 24/7. When an incident occurs and the temperature rises to a certain value, the sprinkler head will activate, the thermal sensor will break and the system will operate. Therefore, the sprinkler system can only point-specific firefighting (localized firefighting) within a certain protected area.

Components of the automatic fire sprinkler system:

• Control center: Responsible for receiving signals from devices such as pressure switches, flow switches, automatic fire alarm control panels, or signal valves; controlling the air compressor, fire pump, and other firefighting equipment connected to the control system from the central panel.
• Automatic sprinkler heads: Designed with thermal sensors that break when the temperature rises to a certain level, allowing firefighting water to be released. The sprinkler heads are connected to branch pipelines that are always on standby, stemming from the main water supply lines.
• Fire pump assembly: Operates when the sprinkler heads activate.
• Valve assemblies, flow switches, pressure switches: Intermediaries that transmit signals to the control center when the sprinkler heads activate.
• Main and branch water pipelines.
• Additional devices for system installation, such as nozzle brackets, nozzle covers, and pressure tanks to maintain pressure for the booster pump.

Operating principle of the sprinkler system: The system interconnects pipelines running underground and above ground. Normally, the pipeline network is maintained at a certain working pressure, which is achieved by the booster pump. Due to external factors, there is always some water loss from the pipeline network back to the water supply source due to valve leakage. When this happens, the pressure in the system will slowly decrease to the threshold activation pressure of the pressure switch controlling the booster pump. This sends an electrical signal to the central control panel, which will then activate relays to supply power to the booster pump to replenish the lost water in the pipeline and generate a signal indicating the booster pump’s operating mode. When the pressure in the fire pipeline reaches the initial working pressure, the pressure switch will hit its cutoff threshold, sending an electrical signal back to the control center, and through the relays, it will cut off the power supply to the booster pump, causing the booster pump to shut off automatically.

A factory with wall-mounted firefighting and Sprinkler system

4. Smoke extraction system

The smoke extraction system for fire prevention in factories/warehouses is composed of many components with specific functions and tasks:

• Exhaust fans: Responsible for extracting smoke from corridors and emergency exits, these fans are usually installed on the roof.
• Air duct system: Channels smoke outside. These ducts are installed vertically, connecting directly to the exhaust fans from the roof down to the lobby or ground floor. In high-rise buildings, there are also air ducts in the corridors of each floor connected to the main vertical duct.
• Smoke extraction vents: Function to remove smoke from corridors during a fire, installed in each air duct in the corridor areas on each floor.
• Fire dampers and one-way air valves: Direct the airflow to ensure smoke follows a predetermined path. These valves are installed on the corridor air ducts at the connection points with the main vertical duct.
• Power supply cabinet: Provides a stable power supply for the exhaust fans on the roof.
• Control cabinet: Used for the smoke extraction system, with ON and OFF buttons to control the operation of fire dampers on each floor.

Ensuring fire safety in factories/warehouses and industrial parks is a key responsibility of investors as well as infrastructure developers, aimed at protecting the safety of people and assets of the enterprise as well as creating a favorable environment to attract investment. Currently, most of the procedures to bring warehouse facilities into operation depend on the completion of fire safety-related procedures.

Above, RSL Group has provided readers with useful information about the components, characteristics and operating principles of fire prevention and fighting systems in industrial factories and warehouses. If you have any questions, please contact our hotline for assistance. Check out more articles from RSL Group here.

Source: Redsunland.vn

I. Export processing enterprise (EPE)

1. What is an export processing enterprise?

According to Clauses 20 and 21, Article 2 of Decree 35/2022/ND-CP, an export processing enterprise (EPE) means an enterprise conducting export processing activities in export processing zones, industrial zones and economy zones. In particular, export processing refers to a specialized act of manufacturing of exported commodities and provision of services for the production of exported products and exportation.

2. Preferential policies for export processing enterprise

Value Added Tax incentives (VAT)

According to the provisions of Clause 20, Article 4 of Circular 219/2013/TT-BTC, export processing enterprises will not be subject to value added tax (VAT).

Corporate Income Tax incentives (CIT)

According to the provisions of Clause 4, Article 19 of Circular 78/2014/TT-BTC, export processing enterprises are entitled to a tax rate of 17% from January 1, 2016, when export processing enterprises carry out investment projects. in difficult socio-economic areas in the Appendix issued with Decree 218/2013/ND-CP, now Appendix II of Decree 118/2014/ND-CP (Article 66 of Decree 118/2014 /ND-CP).

At the same time, tax exemption for the first two years, 50% decrease in the 17% tax rate due over the next 4 years for income from implementing new investment projects specified in Clause 4, Article 19 of Circular No. 78/ 2014/TT-BTC as above (Article 6 of Circular 151/2014/TT-BTC). For businesses that have not yet made a profit, there is a maximum of 3 additional years of tax exemption in the first period.

Export and import tax incentives

Exporting enterprises exempt import taxes on imported goods to create fixed assets; Raw materials, supplies, and components imported for production according to the provisions of law on export tax and import tax.

3. Conditions for establishing an export processing enterprise

According to the provisions of Clause 2, Article 26 of Decree 35/2022/ND-CP, when investors want to establish an export processing enterprise, it is necessary to meet the following conditions:

• Export processing zones, export processing enterprises and industrial zones for export processing enterprises are separated from the outside territory by a fence system, with gates and doors;
• Must ensure conditions for inspection, supervision and control by customs authorities and relevant functional agencies according to regulations applicable to non-tariff zones in accordance with the tax law. export, import tax;
• Export processing enterprises that want to enjoy investment incentives and tax policies for non-tariff zones must be certified by a competent customs authority that they meet the conditions for customs inspection and supervision according to the regulations on export tax and import tax before officially going into operation.

II. Industrial factories for export processing enterprise

Conditions for building EPE factories are specified in Article 28A of Decree 18/2021/ND-CP stipulating conditions for customs supervision and inspection and application for tax policies on exporting processing enterprises (EPE) that are free trade zones (FTZ):

• There are hard fences that separate the EPE from the outside; there are gates/doors that are the only ways for goods to enter and leave the EPE;
• There are surveillance cameras at the entrances and exits where goods are stored throughout the day (24/24 hours, including days off and holidays); images recorded by these cameras shall be transmitted to the supervisory customs authority of the EPE and retained at the EPE for at least 12 months.

The Director of the General Department of Customs shall prescribe the format of surveillance camera data to be exchanged between customs authorities and EPEs mentioned in Point B of this Clause.

• There is software for management of duty-free goods of the EPE serving preparation of reports on receipt, discharge, inventory and use of imports required by customs laws.

Above we have provided information including concepts, preferential policies and conditions for establishing export processing enterprises, as well as conditions of industrial factories for export processing enterprises. Read more articles here.

Source: Redsunland.vn