Industrial Parks and Investment Incentives

The Mekong Delta has 50 industrial parks in operation. An additional 17 are under construction and a further 28 are being planned. As of 2010, industrial parks in the Delta have attracted 494 investment projects, including 70 foreign-owned projects worth 7.66 billion USD, and 424 local projects worth 293 million USD. Together, these projects have generated over 52,000 jobs.

Despite early success in attracting tenants, the occupancy rate at industrial parks in the region remains low – only 20-30% of the land is occupied. The good news is that low occupancy rates often translate to low costs and improved incentives for investors. Great deals are widely available. Prices for land varies widely by location, with costs as low as 1 USD per m2 per year.

The majority of the region’s parks are located between Can Tho and HCMC, with only a few situated southwest of Can Tho. Long An, one of Vietnam’s best-rated industrial provinces, has 15 industrial parks occupying about 8,300hectares; 9 more are currently under construction.

Firms tend to rate industrial parks in the Mekong Delta more highly than in other parts of the country, including Hanoi. Yet quality varies by region with industrial zones in the vicinity of HCMC and in Can Tho ranking best.

Interesting Investment Incentives

To create a favorable business climate for foreign investors, the Vietnamese government offers many incentives in preferred sectors and geographic areas. Incentives include reduced corporate income tax rates, tax holidays, special enterprise zones, favorable permitting and licensing procedures, exemption from land rent and other policies that reduce costs and complexity for foreign investors.

Some incentives offered at the national level target selected industries and technologies. Others focus on regions that the Vietnamese government wants to promote; these are typically defined at the district level. There are a number of districts with spatial incentives in the Mekong Delta, many of which are in attractive locations.