Proposing the Prime Minister to approve Vinhomes Vung Ang Industrial Park

The project to invest in construction and business of infrastructure of Vinhomes Vung Ang Industrial Park has a land use scale of 964.84 hectares, implemented in the Central Industrial Park of Lot CN4, CN5 of Vung Ang Economic Zone, Ky Anh town, Ha Tinh province.

The Ministry of Planning and Investment has just issued Official Dispatch No. 1569/BKHĐT - QLKKT to the Prime Minister regarding the dossier approving the investment policy for the Project on investment in construction and business of infrastructure of Vinhomes Vung Ang Industrial Park.

Accordingly, based on the project dossier, appraisal opinions, additional explanations of the ministries and the People's Committee of Ha Tinh province, the direction of the Deputy Prime Minister and the appraisal opinion of the Ministry of Planning and Investment in Official Dispatch No. 5812/BC-BKHĐT dated July 21, 2023, the Ministry of Planning and Investment finds that the project dossier is eligible to be submitted to the Prime Minister for consideration and approval of the investment policy and at the same time approval of the investor according to the provisions of Clause 4, Article 33 of the Investment Law, Clause 8, Article 31 of Decree No. 31/2021/ND-CP, Article 9, Clause 1, Article 10 and Clause 4, Article 74 of Decree No. 35/2022/ND-CP.

It is known that among the additional clarification report contents mentioned in Official Dispatch No. 1569, the most notable is the handling plan for 54.5 hectares of land that has been cleared at the Vinhomes Vung Ang Industrial Park Infrastructure Investment, Construction and Business Project.

Based on the opinions of the ministries: Finance, Natural Resources and Environment; Ha Tinh Provincial People's Committee, the Ministry of Planning and Investment found that the 54.5 hectares of cleared land met the conditions specified in Point b, Clause 1, Article 119 of the Land Law to complete the procedures for auctioning land use rights.

However, this land area is only a part of the land area for the Project (in the case of land leased by the State without auctioning land use rights). Therefore, it is not feasible to auction land use rights for the 54.5 ha area alone without adjusting it down or separating this area from the Project, and so far, the People's Committee of Ha Tinh province and the investor have not proposed this.

Pursuant to the provisions of Point b, Clause 4, Article 69 of the Investment Law; Clause 3, Article 23, Clause 2, Article 33 and Point a, Clause 5, Article 34 of the Land Law; Clause 3, Article 6 of Decree No. 31/2021/ND-CP dated March 26, 2021 of the Government detailing and guiding the implementation of a number of articles of the Investment Law, the People's Committee of Ha Tinh province has the authority and responsibility for the accuracy of land statistics and inventories, current land use status and the contents approved, appraised and ratified by the People's Committee of Ha Tinh province.

Based on the regulations and reasons stated above, the land lease for the Project, including the area of 54.5 hectares of cleared land without auctioning land use rights to implement the Project, is in accordance with the provisions of current land law and the reality of the Project.

Regarding the refund of the state budget for compensation and site clearance costs for the area of 54.5 hectares, the Ministry of Planning and Investment recommends that the People's Committee of Ha Tinh province preside over and coordinate with the Ministry of Finance and the Ministry of Natural Resources and Environment to implement in accordance with the provisions of law, to avoid loss of state assets.

Previously, at the end of July 2023, the Ministry of Planning and Investment issued Appraisal Report No. 5812/BC - BKHĐT on the investment policy decision dossier for the Vinhomes Vung Ang Industrial Park Infrastructure Construction and Business Investment Project.

Based on the appraisal opinions of relevant ministries, branches and localities, the Ministry of Planning and Investment recommends that the Prime Minister consider approving the investment policy of the Project to build and operate infrastructure of Vinhomes Vung Ang Industrial Park with a land use scale of 964.84 hectares in the Central Industrial Park, Lot CN4, CN5, Vung Ang Economic Zone, Ky Anh Town, Ha Tinh Province.

The total investment capital of the Project is 13,276,491 billion VND, of which the investor's contributed capital is 1,991,473 billion VND and mobilized capital is 11,285,017 billion VND. The progress of the Project implementation is no more than 72 months from the date of land handover by the State.

The Project's operating period is 70 years from the date the Project is approved for investment policy and the investor is approved. The investor implementing the Project is Vinhomes Industrial Park Investment Joint Stock Company.

This is a project following the model of a specialized industrial park (automobile and auto parts manufacturing), a new type of industrial park regulated and encouraged for development in Clause 4, Article 2, Article 31 and Article 32 of Decree No. 35/2022/ND-CP and the automobile and auto parts manufacturing industry and occupation is in the List of industries and occupations with investment incentives prescribed in Decree No. 31/2021/ND-CP and in the List of priority supporting industrial products for development prescribed in Decree No. 111/2015/ND-CP.

The project has a large investment scale, with strict commitments and constraints on conditions, land handover progress and attracting investment projects to implement the inter-industry cluster with the total investment capital of projects in the industry cluster equivalent to at least 2 billion USD.

According to the project dossier submitted on February 16, 2023, Vinhomes Industrial Park Investment Joint Stock Company plans to have 662.17 hectares (68.63%) of land for factory and warehouse construction; 31.45 hectares (3.26%) of land for operation center, services, and accommodation facilities; 135.04 hectares (14%) of green trees and water surface; 18.72 hectares (1.94%) of technical infrastructure land; and 117.46 hectares (12.17%) of traffic land.

The investor expects that when the Project is put into operation, it will pay the state budget an average annual corporate income tax of VND 1,203 billion; the internal rate of return is 23.97% and the net present value - NPV is VND 15,392 billion; the capital recovery period is 7 years and 9 months.

Vinhomes Industrial Park Investment Joint Stock Company plans to complete legal procedures on the Industrial Park and planning in the third quarter of 2023; from the fourth quarter of 2023 to the first quarter of 2026, it will clear about 500 hectares of land, build and put the built infrastructure of the Industrial Park into operation; in the second quarter of 2026 to the fourth quarter of 2029: clear the remaining area (464.84 hectares), build the infrastructure of the Industrial Park for the remaining area of the Industrial Park; from the fourth quarter of 2030: complete the infrastructure project of the Industrial Park.

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