The investment procedure for the industrial park (IP) within Binh Phuoc province includes 8 steps, summarized in above image (subjected to each industrial park policy, the procedure may vary). In VietKieu Industrial Park, we have a service department that can assist the Investor to complete these stages. Detailed of our service can be found here.
INVESTMENT PROCEDURES FOR THE INDUSTRIAL PARKS IN BINH PHUOC
1. Land lot selection in the Industrial Park
First of all, the investor need to select a suitable site that fit with investor demand in term of size, location, time remaining for the project and especially allowed industrial type. It is important to check for the allowed industrial type because the strengthen environmental requirement has specific condition regarding the location of allowed industry within each industrial park and it may vary between each industrial park.
Then, Investor and IP’s developer will sign Memorandum of understanding or Contract Principles for land lease, an important requirement for next step.
2. Apply for Investment Registration Certificate (IRC), a Prime stage in Investment procedure
In this stage, the Investor will apply for Investment Registration Certificate (IRC), the submitted documents for this step including the proof of Land Lease; Financial Capacity; Investment details, Investor Legal Entity and also complete A.I.6 and A.I.4 forms as per Circular No. 03/2021/TT-BKHĐT. For foreign material need to have Consular authentication for the inspecting purposes.
All documents will be submitted to Public Administration Center and the process will take 12 working days.
3. Complete Land Lease procedure, where the journey actually begin
Investor and IP’s Developer will sign the official Land Sublease Contract. Then, IP’s developer will hand over the Land lot to the Investor to carry on the next stages. Depend on the IP’s policy, processing Land Use Right Certificate for the investor can be proceed in this step.
4. Environmental Impact Analysis (EIA) Approval
Depending on the type of project and the location where the project is implemented, we will need legal document to prepare EIA report. However, we list the most basic required documents to prepare EIA report as follow:
- Investment registration certificate (IRC)
- Enterprise registration certificate (ERC)
- Land use right certificate or land leasing contract or land allocation decision
- Explanations of the investment project including: scale of operation, production process, list of equipment, employee quantity…
- Technical drawings of factories…
Based on these information, the investor will prepare an EIA report and an investment project document (feasibility study report). Investor will submit these two reports along with the above documents to Public Administration Center for the appraisal and approval of EIA report. As per the publish information from Binh Phuoc Authority, it will take 12 days for the Department of Natural Resource and Environment to complete this procedure.
5. Deploy designing process and Prepare for Construction Bill of Quantity (BOQ)
According to the Environmental Impact Analysis and the requirement of Investors for their factories. The design process can be carried out. The design categories includes Foundation; Steel frame structure; Mechanical Electrical and Plumping (MEP); Waste Water Treatment Plant (WWTP). The design need to be submitted to Industrial Park management office for approval before carrying out next stages for Authority approval.
When the design process completed, Designer will issue the BOQ as per Investor requirements.
6. Preparation for Construction Permit
Before applying for Construction Permit, the investor need to Grant Fire prevention appraisal: Document will be submitted to Public Administration Center. The process will be implemented by Binh Phuoc Public Security Office. Processing time: 5 days.
Then, Investor/ Designer/ Contractor will submit the approved Fire prevention appraisal; Land Lease Contract; EIA report and Building Basic Design to Public Administration Center to apply for Construction Permit. Binh Phuoc Economic Zone Authority to proceed the documentation. It usually takes 5 days for the authority to process the document.
The construction process can begin after Granting construction permit.
7. Construction process
The investors will choose the contractors for their factories construction. Depend on project scope, list of contractors may include:
- Backfilling and Earthwork contractor
- Pipe construction contractor
- Steel frame contractor
- Mechanical and Electrical Plumbing (MEP) contractor
Most contractors will offer Engineering, Procurement and Construction (EPC) contract which will carry designing, constructing and procuring process for the investor. Although the cost of implementing EPC contract can be higher, however the investors will save management cost and effort for their projects.
According to Vietnam Construction website Top 5 Pre-engineered Buildings and Steel Structure manufactures in Vietnam for 2021 is ATAD Steel Structure Corporation, Dai Dung Steel Structure Corporation, BMB Jsc, PEB Steel Building Ltd, SBC Jsc, which relatively have the market share of 17%, 15%, 14% 13% and 9%.
When the construction process completes, the investor or contractor will apply for As Built approval. This process will be checked and approved by Binh Phuoc Economic Zone Authority. By the end of this stage, the investor can process the operation and manufacturing process.
8. Production Operation, the final stage of Investment Procedure
This is the final stage of Investment Procedure for FDI Manufacturing Industrial project in Binh Phuoc Province. Each investor will have their own plan to carrying this stage, process may include:
- Machinery procurement.
- Labor Recruitment.
- Signing Electricity, Water, Internet usage Agreement with related parties.
- Ensure the production process comply with Allowed Industry listed and other requirements in IRC; Environmental Impact Analysis/ Report; Industrial Park Policy and comply with all related Vietnamese legal materials.
These 8 steps above represents the investment process to the Industrial Park in Binh Phuoc, which is one of the provinces that have highest developing rate especially in Industrial field.
With vision to support the investor as well as develop Binh Phuoc into Industrialized province by 2030. The province has been streamlining administrative procedures, offering favorable policies for investors, carrying out activities to facilitate online investment, and adopting modern and smart administrative technologies according to Mr. Nguyen Minh Chien, head of Binh Phuoc Economic Zone Authority.