Phong Dien Industrial Park
H > Phong Dien Industrial Park
Overview of Thua Thien Hue Province

- Area : 5,062.6km²
- Population : 1,100,000 people / Working-age population: 702,000 people
- Administrative area : the whole province has 9 districts and cities
- Transportation linking the North and the South via the system of national highways and railways
- There are 5 daily flights to Ho Chi Minh City and Hanoi
- It is the hub of Central Vietnam with an economic growth rate of 12%.
- There is one UNESCO cultural heritage.
- It is an educational center with 9 universities, 8 colleges, 22 vocational training centers and research institutes. Annual training of more than 9,000 students.

Chan May Port

La Son – Tuy Loan Highway

Phu Bai Airport


Image from Google Earth satellite in March 2014

Main gate

IP Office

Industrial Park

Industrial Park
Overview of Phong Dien Industrial Park
Payment of land rent and |
I.Term of land lease: 50 years II.Minimum lease area: 5000m2 Payment of land rent: • Phase 1: 20% upon contract execution • Phase 2: after the first installment, paying 40% within 3 months • Phase 3: after the second installment, paying 40% within 3 months III.Management fee: undetermined |
Basic infrastructure |
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Street | • Access road to the industrial park: width of 36-40m • nternal roads in the industrial park: 2 ~ 4 lanes for car, width of 22 ~ 33m |
Power supply |
• Direct contract with electric supplier/monthly payment |
Water supply |
• Direct contract with a water supply company of Thua Thien Hue province /monthly payment • Price of clean water supply: 11,240 VND/m3 (in 2016) |
Wastewater treatment | • Amount of wastewater treatment in the industrial park: 10,000m3/day • Vietnam Standard No. 40: wastewater discharge beyond Class A according to the prescribed standard 2011/BTNMT • Wastewater treatment cost: undetermined (Apply 80% of clean water usage, to be in line with Class B wastewater standard) • Monthly payment for wastewater treatment costs |
equipment | • ADSL network • IDD (international direct dialing) • Satellite broadband service • Post office |
Environmental regulations |
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Wastewater |
Compliance with Vietnamese regulations on wastewater treatment : Class A according to QCVN 20: 2011/BTNMT |
Noise |
Regulation on maximum noise: 90dB |
Smoke and dust |
Regulation on smoke and dust: QCVN 05: 2013/BTNMT |
Fire protection & fighting |
Compliance with Vietnamese regulations on fire prevention and fighting |
Classification | Type |
Corporation tax | • Apply the rate of 20% CIT within 10 years after operation (normally 22%) – 50% tax reduction for 4 consecutive years after generating profit after enjoying 2-year tax exemption |
Import Tax | • Exemption from import tax for fixed assets • Import duty exemption when importing materials, raw materials and components that Vietnam cannot produce |
Infrastructure | • The government invests in infrastructure such as traffic, electricity, clean water, IT networks in business areas • Support for land compensation costs according to the project scale and nature for enterprises investing in the infrastructure |
Labor training and recruitment support | • The Management Board of the Industrial Park cooperates with relevant agencies to provide vocational training for related fields of high labor demand in a certain time |
Administrative procedures | • The Management Board of Hue Industrial Park handles all investment procedures through one-stop administrative service • Simple investment procedures: Minimize duration of dossier approval • The Management Board acts as an intermediary when it is necessary to seek advice from the government |
Support services in the industrial park |
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Contents | • Registration for enterprise establishment • Procedures for issuing investment licenses • Tax registration • Registration for enterprise seal • Comprehensive support |
Natural condition | |
Climate | Average annual temperature: 25.2 °C |
Humidity | Annual average humidity is high, reaching 85% during the year |
Wind direction | • Dry season: Southwest wind/Rainy season: Northwest wind • The area suffers from a large number of storms but due to the high mountainous terrain, it is less affected than surrounding areas |
Topography and geology | • flat terrain |
Average precipitation | Average annual precipitation: 2,449mm |
Labor regulations | |
Unskilled labor | 130USD-150USD |
Skilled labor | • Engineer, accountant: 160USD ~ 300USD • Manager: 300USD ~ 500USD |
Social insurance, health insurance (% according to |
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Number of annual days off | • 12 days off in 12 months (1 day /month) • Every 5 years, 1 more day off is accumulated |
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Public holidays of the state | • 9 public holidays/ year • 4 days off for the Lunar New Year, April 30, May 1, September 2, and March 10 of the lunar calendar |
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Workinghours as prescribed | 48 hours/week (8 hours/day, at least 1 day off/ week) | ||||||||||||
Night shift | Increase by 30% of the basic salary (basic salary by day) | ||||||||||||
Overtime working | 4 hours/day, maximum of 200 hours/year | ||||||||||||
PIT | Applicable to people with incomes over 9 million VND/month | ||||||||||||
Probationary period | • 6 days for unskilled labor • 30 days for skilled labor • Salary during probation: 70% |
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Severance allowance | Employees working for more than 1 year are entitled to 50% salary allowance, annual pay raise equal to 50% of the monthly salary |