Understand the opportunities of Haiphong and Quang Ninh– Gateway to Northern Vietnam Koen Soenens, General Sales and Marketing Director DEEP C INDUSTRIAL ZONES CONTENTS › Overview of Haiphong and Quang Ninh › Opportunities for international manufacturers HAIPHONG CITY Gateway to North Vietnam and South CHINA China Fastest growing city in Vietnam 2019 GDP growth rate: 16.68% (Vietnam: 7.02%)* Stable CPI (2019: 2.64%) 6 million people within 30 km Total FDI investment capital: nearly 18 billion USD/720 projects* 4 universities & 25 vocational colleges International banks, schools, accommodation, restaurants, hospitals * Source: Socioeconomic report , Hai Phong People Committee 3 QUANG NINH PROVINCE 1st rank on Provincial Competitiveness CHINA Index (PCI) 2018 GDP growth rate: 12.01% (Vietnam: 7.02%)* Untapped labor force ~300,000 people in the surrounding area 3 universities & 9 vocational colleges International school, accommodations, hospitals, etc * Source: Quang Ninh’s Socioeconomic Report 4 SHARING BORDER WITH CHINA › Hai Phong and Quang Ninh are a possible international seaport entry to South China QUANG NINH Friendly business environment › Leading PCI performer since 2013 Provinces’ PCI performance › Winning categories: 90.00 » Transparency, 80.00 70.00 » Fair competition, 60.00 50.00 » Proactiveness, 40.00 30.00 » Labor Training and Education, 20.00 10.00 » Quality of Legal Framework and Social 0.00 Security 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Bắc Ninh Bình Dương Hà Nội Hải Phòng Quảng Ninh TP.HCM OPPORTUNITIES INFRASTRUCTURES TAX PACKAGES LAND LOGISTICS COST IN VIETNAM Logistics cost/GDP (%) 30% 25% Average trucking speed on 25% Vietnam National Roads 20% 18% Comparative logistics cost (per 40’ container) 15% 14% 11% 10% 8% 200 USD / 3000km From Shanghai Port to Haiphong Port 5% From Haiphong Port 200 USD / 160km 0% to West of Hanoi Global Singapore Japan China Vietnam (Quotation by SITC Dinh Vu @ Jan 2020 Source: Vietnam Logistics Association INFRASTRUCTURE 2015 Hanoi – Haiphong Expressway 2016 Cat Bi Int’l Airport 2018 Haiphong – Ha Long expressway 2018 Haiphong – Ha Long expressway 2018 Van Don Int’l Airport 2021(est.) Coastal Expressway (est.) *Footnoot/citation: Italic Calibri light, 14 2022 Ha Long – China border Expressway INFRASTRUCTURE LACH HUYEN PORT HAI PHONG International shipping routes: Before 27-30 days 28-30 days 32-35 days HaI Phong’s river port HAI PHONG International shipping routes: After 17-19 days 23-25 days 27-30 days HICT 100.000 DWT EXTENSIVE INFRASTRUCTURE SPENDING Roads › Inter-provincial connectivity: 11.8 million USD Promoting flows of goods and people into Hai Phong 85 million USD 17 million USD 328 million USD 7.3 million USD 7.2 million USD 148 million USD 8 million USD On going infrastructure project in Hai Phong EXTENSIVE INFRASTRUCTURE SPENDING Airport › Expanding capacity of Cat Bi airport (passengers and cargo) 13 million passengers/year 250.000 tons of 4 million cargo/year passengers/year INVESTMENT INCENTIVE Tax Incentives: Economic Zone Tax Package 4.35% Economic zone incentive CIT=10% 20% CIT=0% CIT=5% CIT=10% Year 0 Year 4 Year 13 Year 15 Tax exemption 50% reduction of payable CIT *Remark: Economic Zone Tax Package to be effective in DEEP C Quang Ninh from 2021 15 LAND SUPPLY 5000 100% 4500 90% 4000 80% 3500 70% 3000 60% Quang Ninh Bac Ninh 2500 50% 2000 40% Ha Noi 1500 30% Hai Phong 1000 20% Hung Yen 500 10% Hai Duong 0 0% Hai Phong Quang Ninh Bac Ninh Hung Yen Hai Duong Ha Noi Total leasable area Occupancy Rate (RHS) Source: JLL Vietnam’s Property Market Brief AVAILABLE INDUSTRIAL LAND JAN 2018 JUN 2019 JUN 2018 DEEP C II TODAY READY BUILT WORKSHOP/WAREHOUSE • Ready-built Workshop/Warehouse • Built-to-suit RENEWABLE ENERGY & GRID supply Coal-fired and EVN hydroelectricity Solar energy DEEP C HYBRID POWER GRID Waste-to-energy Storage Excessive power for e-barge Wind energy SOLAR ENERGY 30 300 20 200 10 100 GWh MW/MWp 0 0 › Solar permit for the first 20MW 2019 2020 2021 Total Baseload MW Potential Solar MWp › Approved in master plan Operational Solar MWp › First solar in 2020 21 WIND ENERGY 22 Waste Water Treatment plant › Treated water: 20,000m3/day › Raw water: 20,000m3/day › Waste water treatment: 12,000m3/day with ISO 9001 & 14001 › Recycled waste water for Nam Thuan cooling tower and PVTEX. ECOPARK 24 CUSTOMER SUPPORT • Business licensing support › Cleaning • Recruitment support › Facilities management • 24/7 security › Bus services • Office space › Waste collection THANK YOU FOR YOUR ATTENTION! 5th Floor, Harbour View Office Tower Partners 12 Tran Phu Street Ngo Quyen Dist., Haiphong, Vietnam T: +84 225 3836 169 F: +84 225 3859 130 [email protected] www.deepc.vn.