WHA Industrial Zone 1 - Nghe An article was published on Vietnamnews.vn on 22 April 2020

For the past few years, Viet Nam has become a preferred investment destination in the region.

In 2019, the country attracted more than US$38 billion worth of foreign direct investment (FDI), representing more than 3,880 new projects, according to the General Statistics Office (GSO).

With a 7.02 per cent GDP growth rate recorded in 2019, Viet Nam topped among ASEAN nations in terms of economic growth, the World Bank reported.

In the 2017-25 period, Viet Nam expects to create six million additional jobs for real estate, energy, construction, transportation, textile and agri-food industries, the International Labour Organisation (ILO) forecast.

Compared to neighbouring economies, lower salary has been the key factor to lure foreign investors into Viet Nam, boosting the number of industrial parks (more than 330) and special economic zones (about 40) all over the country.

Foreign investors Japan, South Korea and Thailand have made significant purchases and investments in Viet Nam. Worries about the US-China trade war have also made a number of investors relocate their projects to Viet Nam, requiring more workers with good quality.

But the Vietnamese economy faces a labour shortage that has had effects on several job categories and industries.

MOU signing of training co-operation of high quality human resources between WHA Industrial Zone Nghe An jsc. and Vietnam-Korean College

Local businesses are now encouraged to provide more support and create better working conditions for employees. They are also expected to facilitate their labour market information and publicise recruitment needs; promote employment service centres; reinforce the co-ordination between training institutions, enterprises and local authorities; and developing social housing, cultural institutions and schools.

About half a million Vietnamese people working overseas are also targeted and encouraged to return home so that their skills and knowledge are used and they can join local and international investors.

Nghe An with prime location and dynamic workforce

The north-central province of Nghe An seems to perform the best in dealing with the labour-shortage problem.

The fourth most-populated province is home to 3.2 million people. Of which, 1.9 million people are of working age. The figures are forecast to grow 9.4-9.5 per cent by 2025.

Besides, Nghe An features Vinh City International Airport, an 82-km coastline stretching over three deep-water seaports, a railway network connecting the north to the south, eight national highways and an under-construction motorway linking Ha Noi and Vinh City.

In the education and training sector, the province has seven universities, six colleges, four professional schools and 67 vocational training facilities.

WHA office

Nghe An has since 2013 created 37,000 new jobs every year and aims to generate employment for more than 223,000 workers by 2020.

Within the past few years, Nghe An has seen the establishment of several industrial zones, such as Bac Vinh (60ha), Nam Cam (79ha), Hoang Mai (204ha) and WHA IZ (498ha for Phase 1).

WHA IZ-Nghe An ready to welcome its first customers

The Thai WHA Group in February 2017 inaugurated WHA Industrial Zone – Nghe An in the province, bringing to Viet Nam the group’s invaluable 30-year experience in the setting up and development of world-class industrial estates in Thailand.

“Viet Nam is a major investment destination among ASEAN countries,” explained Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation PCL.

“With the support of the Vietnamese Government and provincial authorities, Nghe An Province is becoming an integrated hub for business, education, manufacturing, transportation and logistics, contributing further to the development and economic growth of Viet Nam and the region,” she said.

WHA Group currently operates 11 industrial estates in Thailand, covering an area of more than 7,800ha, a total of 781 global customers and an estimated investment of $33.2 billion.

Since its establishment in 1988, it has operated in pioneering industrial clusters for automotive, petrochemicals, electronics, consumer products and other export industries in Thailand’s Eastern Seaboard.

Overview of WHA Industrial Zone 1 – Nghe An

Today, it is a key player in the Eastern Economic Corridor (EEC) initiative, which aims to promote new high-tech industries, including Next-Generation Automotive, Aviation and Logistics, Smart Electronics, Automation and Robotics, and many others.

Another strong element of WHA Group’s reputation is its commitment to protect and care for the environment. WHA Group always believes its industrial estates must co-exist with the environment in a harmonious and sustainable manner. Therefore, the company carefully designs its infrastructure and manages all its utilities to ensure minimum environmental impact.

WHA Industrial Zone – Nghe An has been established and developed with the same stringent world-class standards. An initial area of 145ha– as part of the 498ha Phase 1 – is now available to investors. Another six phases, representing a total area of 3,200ha upon completion, are scheduled for development 2020 to 2038.

“We are applying in Viet Nam the same world-class standards as in our 11 industrial estates in Thailand,” confirmed David Nardone, Vice Chairman of the Board of Directors and Group Executive Industrial and International. “Thanks to the favourable business environment created by Vietnamese authorities, including special incentives for investors, we foresee a very promising outlook for the development of our operations in Nghe An.”

Optional - Appendix 1

One-Stop Service and Special Incentives for Investors

An initial area of 145ha is now available to investors who can benefit the practical One-Stop Service provided by the Dong Nam Economic Zone Authority (DNEA). They may also receive special incentives in terms of Corporate Income Tax and Import Tax:

Investor support

One Stop Service at Dong Nam Economic Zone Authority (DNEA)

Investment Incentives

Corporate Income Tax (CIT):
Special Tax rate: 10 per cent for 15 years
CIT exemption for the first four years
50 per cent tax reduction in the subsequent nine years
Import Tax:
Exemption for machines and equipment imported to create fixed assets
Five-year exemption for goods imported for production, including raw materials, supplies and components that cannot be produced in Viet Nam

Optional - Appendix 2

Target industrial sectors of WHA Industrial Zone – Nghe An include:

Industrial: Automotive, Plastics, Light Metals, Textiles/Garments, Building Materials
Consumer: Food Processing, Beverages, Value-Added Agriculture, Fast Moving Consumer Goods (FMCG), Electrical Appliances
Technology: Electronics, Medical Assembly, Software, Smart Phones, Communications
Logistics: Cold Storage, Inland Container Depot, Modern Warehouse, Logistics, Shipping and Freight

For more information, please contact:

Industrial Management Services Vietnam Company Limited.

Nghe An Office:

Tel: (+84) 238 222 9999

Address: Lot AC1-1, WHA Industrial Zone 1 –Nghe An,

Nghi Long Commune, Nghi Loc District, Nghe An Province, Viet Nam

Ha Noi Office:

Tel: (+84) 243 574 6999

Address: 11th floor, Daeha Business Center, 360 Kim Ma Street,

Ba Dinh District, Ha Noi, Viet Nam

E-mail: invest@whavietnam.com

www.whavietnam.com