Choosing An Industrial Park in Vietnam for Your Manufacturing Business

Manufacturers entering Vietnam can save 15-25% on operating costs by choosing industrial parks over standalone facilities. With faster permit approvals, reliable infrastructure, and built-in logistics support, industrial parks not only reduce your expenses but also accelerate the setup process. This means production lines can start operating months earlier, allowing you to focus on growth rather than being slowed down by setup challenges.

Overview of Setting Up A Business in An Industrial Park

What is an Industrial Park?

An industrial park is a designated area developed to support industrial activities, manufacturing, and logistics. It provides essential infrastructure such as roads, utilities, and facilities tailored for industrial operations, ensuring businesses have the necessary resources.

Managed by government agencies or private developers, industrial parks offer shared infrastructure, streamlined regulations, and business incentives like tax benefits and simplified permit applications. By reducing administrative burdens and creating a business-friendly environment, these parks enable companies to operate more efficiently and focus on growth.

Benefits of Setting Up A Business in An Industrial Park in Vietnam

Setting up a business in an industrial park offers numerous advantages, making it an attractive option for those seeking efficiency and cost-effectiveness. You can leverage the following benefits for your business and gain a competitive edge:

• Cost Savings: In industrial parks, costs for utilities, waste treatment, and infrastructure are shared across tenants, resulting in lower monthly overhead costs and reduced maintenance expenses.
• Tax Incentives: Industrial parks often provide substantial cost savings through corporate income tax holidays of up to four years, reduced tax rates for subsequent years,  VAT exemptions on certain goods and services, and import duty waivers on equipment and raw materials. For manufacturers, these incentives allow them to save costs during the early years of operation, freeing up capital to reinvest in production and growth.
• Streamlined Regulations: Industrial parks provide ‘one-stop centers’ that coordinate directly with government agencies, allowing business licenses, construction permits, and compliance approvals to be processed faster. For manufacturers, this means saving 3-6 months of setup.
• Proximity to Supply Chains: Their location near suppliers, transportation hubs, and export routes grants exporters a built-in advantage by reducing shipping times and logistics costs. Manufacturers benefit from smoother supply chain integration and faster delivery to both domestic and global markets.
• Access to Skilled Labor: Many industrial parks are built near population centers with universities and vocational schools, ensuring a steady stream of trained talent. For example, Amata City Bien Hoa attracts engineers, technicians, and operators from nearby institutions. This reduces recruitment costs and improves retention.
• Modern Infrastructure: Companies in industrial parks have access to reliable infrastructure from day one. Parks like Long Hau near Ho Chi Minh City provide ready-built factories, stable electricity from multiple sources, and centralized wastewater treatment plants. This minimizes setup delays and ensures manufacturers can focus on scaling production rather than utility issues.

Key Industrial or Hi-Tech Parks in Vietnam

When selecting an industrial park in Vietnam, it helps to look at concrete examples of what different zones offer. Here are some of the most prominent parks and the specific advantages they bring to manufacturers:

A. Saigon Hi-Tech Park (SHTP), Ho Chi Minh City

As Vietnam’s leading technology hub, SHTP is designed to attract high-value industries such as electronics, IT, and biotechnology. Manufacturers here enjoy strong government support and generous tax incentives, including:

• 0% corporate income tax (CIT) for the first 4 years, 50% reduction for the next 9 years
• Preferential CIT rates as low as 10% for up to 30 years.
• Import duty and VAT exemptions on machinery, equipment, and raw materials not produced locally.

Combined with one-stop administrative services and proximity to a highly skilled workforce, SHTP is ideal for innovation-driven businesses.

B. DEEP C Industrial Zones, Hai Phong and Quang Ninh (Northern Vietnam)

Located next to Lach Huyen Deep Sea Port and Cat Bi International Airport, DEEP C offers logistic advantages for exporters. The zones also come with attractive financial incentives:

• Up to 4 years of CIT exemption, followed by 9 years at a 50% reduction.
• Preferential 10% CIT for up to 15 years in certain areas.
• Transparent infrastructure pricing and centralized utility management.

For manufacturers that rely on overseas shipping and northern Vietnam’s supply chain, DEEP C is a solid choice to establish your facility.

C. Vietnam-Singapore Industrial Parks (VSIP)

VSIP has multiple locations across Vietnam, from Binh Duong in the south to Bac Ninh in the north. These parks are known for their reliability and scale, providing:

• 2 years of CIT exemption, then 50% reduction for 4 subsequent years (depending on project type).
• Import duty exemptions on machinery and raw materials are not available domestically.
• Streamlined compliance and licensing via one-stop service centers.

VSIP stands out with its integrated approach to industrial parks, including green spaces, housing, and social infrastructure as part of its parks. This allows companies to attract and retain their workers with better living conditions.

D. Hoa Lac Hi-Tech Park, Hanoi

Hoa Lax is Vietnam’s flagship high-tech zone in the north that focuses on R&D-intensive industries. Here, companies benefit from:

• 4 years of CIT exemption, followed by a reduced 10% rate for 15 years.
• Government-backed support for technology transfer and innovation.
• Proximity to Hanoi’s universities and research institutions provides a steady pipeline of skilled engineers and researchers.

For high-tech manufacturing and R&D-driven businesses, Hoa Lac provides a combination of incentives and talent.

Types of Industrial Zones Available in Vietnam

Vietnam’s industrial zones are tailored to different industries, investment models, and regulatory frameworks, ensuring targeted growth across sectors. Choosing the right one is crucial, as it affects tax incentives, infrastructure access, and operational efficiency, directly impacting your business success. The following are the available types of industrial zones in Vietnam:

Type	Description	Benefits	Key Features
Pre-built Facilities	Ready-built warehouses and factories for a quick setup.	Reduces initial capital costs and setup time.	Move-in ready factories and warehouses. Cost-effective leasing options. Minimal construction delays.
Industrial Zones	General manufacturing hubs for domestic and export-oriented businesses.	Access to essential utilities. Strategic location for supply chain efficiency.	Reliable power, water, and waste management.  Connectivity to transportation networks.
Export Processing Zones (EPZs)	Designed for businesses focused on export markets.	Tax incentives, such as the duty-free import of raw materials.  Efficient shipping logistics.	Located near ports or airports. Favorable trade policies. Streamlined export procedures.
High-Tech Zones	Catered to advanced industries like electronics, biotechnology, research, and development.	Specialized infrastructure.  Government incentives to attract foreign investment.	Research facilities. High-tech business clusters. Tax benefits for innovation-driven companies.
Economic Zones (EZs)	Combine industrial, commercial, and residential infrastructure.	Provides a comprehensive environment for businesses with integrated facilities.	Mixed-use developments. Support for multiple industries. Access to housing and commercial services.
Specialized Industrial Zones	Tailored to specific industries such as automotive or electronics.	Customised infrastructure and industry-specific support.	Sector-focused facilities. Specialized supply chains. Workforce training programs.

How to Lease Land for Industrial Parks in Vietnam

Legal Requirements to Lease Land in an Industrial Park in Vietnam

It is important to keep in mind that you cannot own land outright in Vietnam, but you can lease it instead. Industrial parks often offer land for you to lease in Vietnam. Lease terms typically range from 50 to 70 years, with renewal options depending on local regulations and industrial park policies. In some cases, you may need to establish a local entity to facilitate leasing arrangements.

Before leasing land, you will need to prepare the following documentation:

• Enterprise Registration Certificate (ERC)
• Investment Registration Certificate (IRC)
• Lease Agreement and Land Use Contract
• Environmental and Operational Permits

Steps to Lease Land in Vietnam with Emerhub

Leasing land in an industrial park involves multiple legal and administrative steps, but with Emerhub’s support, the process becomes seamless and efficient. From selecting the right location to securing permits, our local experts ensure compliance with local regulations while streamlining every stage of the process. Here’s how it works:

1. Find a Suitable Industrial Park: With our local business experts, we will help you identify the ideal industrial park based on your business needs, considering factors like location, infrastructure, tax incentives, and labor availability.
2. Sign a Preliminary Agreement: Once a suitable site is selected, a preliminary agreement is signed with the industrial park management. This outlines the lease terms, rental costs, and initial commitments.
3. Apply for Investment and Business Certificate: To operate, an investment license and business registration certificate must be obtained from the relevant authorities. We will assist in securing these certifications to ensure compliance with local regulations.
4. Sign the Land Lease Agreement: After obtaining the necessary licenses, sign the land lease agreement, formalizing the long-term lease arrangement with the industrial park.
5. Apply for Required Permits: Before commencing operations, businesses must secure additional permits, such as environmental clearances, construction permits, and operational licenses. Our licensing experts can facilitate this process to ensure a smooth setup.

Additionally, we’ve got an insightful article on how to buy property in Vietnam as a foreigner if you would like to understand the topic better. 

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