Yen Lu Industrial Park: New Destination for Investors

Bac Giang is a destination chosen by many domestic and foreign investors thanks to its locational advantages and its most opening and favorable investment policies. Assisted by local authorities, Capella Land Joint Stock Company has effectively invested in industrial zones, especially Yen Lu Industrial Park - a new destination for investors, to contribute to the province’s success in investment attraction.

Yen Lu Industrial Park is garnering investor interest due to its strategic location and seamless connectivity with a network of many arterial roads

Building synchronous industrial zones

Capella Land Joint Stock Company, established in 2015, aims to become a leading professional industrial real estate investor in Vietnam. Capella Land is currently investing in many industrial parks in Ha Nam, Bac Ninh, Hoa Binh, Nam Dinh, Quang Binh and Bac Giang provinces.

In Bac Giang province, Capella Land invests in three industrial zones, including Nham Son - Yen Lu Industrial Complex in Yen Dung district and Doan Bai - Luong Phong 2 Industrial Complex in Hiep Hoa district. Nham Son - Yen Lu Industrial Complex with a complete infrastructure system and a wastewater treatment plant has attracted 25 domestic and foreign investors, fully occupied its rentable area. Doan Bai - Luong Phong 2 Industrial Complex is stepping up land compensation and site clearance to invest in infrastructure construction and investment attraction from the third quarter of 2024.

While carrying out Nham Son - Yen Lu project and attracting investors, in late 2021, Capella Land was trusted by the Bac Giang Provincial People’s Committee to obtain the investment license for 337-ha Yen Lu Industrial Park in Yen Dung district at a total cost of VND2,691.9 billion. This key project should receive great attention and support from Bac Giang authorities at all levels.

With a strategic location, 55km from the center of Hanoi, 15km from Bac Ninh City, 10km from Bac Giang City, 50km from Noi Bai Airport, 90km from Hai Phong Port and 120km from Huu Nghi International Border Gate (Lang Son), Yen Lu Industrial Park is attracting the attention of investors because of its smooth connectivity with many arterial roads like National Highway 17 and National Highway 18 linked to Hai Phong Port. The trunk road of the industrial park is part of Provincial Road DH5B linking National Highway 17 with National Highway 1A and part of the road leading to Beltway 4. Currently, Road DH5B is being urgently completed by Bac Giang province.

Besides, Yen Lu Industrial Park is located in the industrial hub of Bac Giang and Bac Ninh provinces and adjacent to many existing industrial parks like Van Trung, Quang Chau, Que Vo and Song Khe - Noi Hoang. Designed to be for multi-industries, the park gives priority to electrics, electronics and mechanical industries with modern, advanced and environmentally friendly technologies. Investment projects can lease land to 2071 and enjoy a two-year exemption of corporate income tax (CIP) and a 4-year 50% reduction of CIP in addition to land rent exemption and reduction incentives.

Capella Land is committed to accompanying investors and providing support services for land lease procedures, investment licensing procedures and infrastructure services to meet their production and business needs.

Siding with authorities and investors

Mr. Bui Dinh Chien, General Director of Capella Land Joint Stock Company, said: In order to have a clean site for infrastructure construction and investment attraction, Capella Land has coordinated with the Bac Giang Industrial Zones Authority, relevant agencies and the Yen Dung District People's Committee to establish and agree on a detailed action plan for the project with the goal of “Quick compensation - Quick construction - Quick investment attraction” to woo potential investors and quality projects.

Although land compensation and site clearance are quite difficult because the project lies on many old farms, with the drastic leadership of provincial authorities and the close coordination of Capella Land and local agencies, the site clearance at Yen Lu Industrial Park has positive progress. As of March 2024, Yen Lu Industrial Park had completed land compensation and site clearance of 300 hectares. Essential infrastructure like power grid, water supply system, roads and wastewater treatment plant with a daily capacity of 6,000 cubic meters have been constructed. The park has attracted two projects: Yonz Technology (Singapore) invested US$100 million in a solar panel frames manufacturing factory and Econy Vina (South Korea) invested US$20 million in a phone screen glass and electronic component manufacturing factory. Both projects were expected to go into operation and hire 2,000 workers in 2024.

General Director Chien added: Trusting the drastic direction of provincial leaders and the support and facilitation of the Bac Giang Industrial Zones Authority, competent agencies, Yen Lu Industrial Park invested by Capella Land will bring commercial success, create jobs for local people, and help attract investment fund for local economic development.

By Duy Anh, Vietnam Business Forum