Vinh Phuc appeals for investments in logistics centre

Binh Xuyen Industrial Park

Vinh Phuc province looks to attract investment in the construction of Vinh Phuc ICD Logistics Center which will act as a distribution centre as well as an inland clearance depot (ICD) in a bid to provide logistics services and meet the market demand.

Regarding the logistics function, the project would serve the needs of forwarding, loading, unloading, storage, and distribution of goods while providing locations for the flow of import, export, and transit goods on the Kunming-Hanoi-Haiphong Economic Corridor, especially cargo flows from China through Lao Cai International Border Gate.

The centre would also facilitate the storage and distribution of industrial inputs and consumption activities in northern localities, including Hanoi, Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Tuyen Quang, and Ha Giang.

As per the ICD function, the centre would act as inland cargo clearance point, traffic hub, and multimodal freight forwarding of the region while performing the function of customs clearance point, carrying out customs procedures for imports and exports. It would also act as railway and road cargo terminals and an interchange point between road and rail transport systems.

It would take on additional functions aimed to support production, such as packaging and processing as required by merchants while providing financial services as well as banking and tax procedures.

The project covers the total area of some 830,784 square metres in Huong Canh township and Son Loi commune, Binh Xuyen district as part of the Vinh Phuc provincial People's Committee's Decision No.3926/QD-UBND dated December 30, 2014. The distribution centre will cover 87,633sq.m while 147,684sq.m is used for customs bonded area and ICD. Additionally, the logistics warehouse area would occupy 230,361sq.m, and road area will be 87,509sq.m and those connected with the planned railway are 137,510sq.m while 111,017sq.m would be allocated for green trees.

As per the current land use status, the land for Vinh Phuc ICD Logistics Center is mainly used for cultivation, aquaculture, and residential housing.

The project, with an estimated total investment of approximately VND3.825 trillion ($166.3 million), is designed with the combined cargo capacity of 530,000 TEU. Of note, the land clearance cost is estimated at VND221.84 billion ($9.65 million) while the estimated construction cost is VND1.7 trillion ($73.9 million); the costs for machinery, equipment, and technology VND1.128 trillion ($49 million), and costs for project management, consulting, and other expenses VND424.63 billion ($18.46 million).

Project investors must have equity of at least 15 per cent of the total project investment, equivalent to approximately VND573.76 billion ($24.95 million).

The total capital mobilised for the project cannot exceed 85 per cent of the total project investment, equivalent to approximately VND3.25 trillion ($141.3 million).

The project is scheduled to be completed 60 months after its investor is granted the investment permit.

On top of this, an investor or a consortium member or the partner of an investor must have performed one similar project with the following criteria"

- Type 1 (regarded as one standard project): A project focusing on one of the fields of logistics, technical infrastructure for dry port, urban technical infrastructure, new urban area for commercial purposes in which the investor has participated as an equity investor and absolutely meets the following conditions:

+ The project had a minimum investment of VND2.7 trillion ($117.4 million, equivalent to 70 per cent of the total project investment).

+ The investor contributed a minimum equity of VND573.76 billion ($24.95 million).

+ The project has completed the construction phase and is operating effectively (before the annoucement of this project on the national bidding network).

- Type 2 (also called one standard project): A project in one of the fields of logistics, technical infrastructure for dry port, urban technical infrastructure, new urban area for commercial purposes in which the investor has acted as the main contractor to take over the execution work and fully meets the following conditions:

+ The project items which the investor conducted were worth at least VND1.9 trillion ($82.6 million, equivalent to 50 per cent of the total project investment).

+ The contractor contract has been completed in the past five years (before the announcement of the project on the national bidding network).

- Type 3 (also listed as one standard project): A project focusing on one of the fields of logistics, technical infrastructure for dry port, urban technical infrastructure, new urban area for commercial purposes where the investor has acted as the main contractor to take over the execution work and fully meets the following conditions:

+ The project items that the investor carried out were at least VND1.9 trillion ($82.6 million, equivalent to 50 per cent of the total project investment).

+ The contractor contract has ended within the last five years (before the announcement of the project on the national bidding network).

Investors interested in the project should prepare and submit registration procedures to the Vinh Phuc Department of Planning and Investment and the Vietnam National E-Procurement System. The registration procedures comprise of documents and certification related to the investors’ legal status, competency, and experience, among others (if any).