Production of vinyl chloride

1.1.1

Potential Plant Locations

Listed are the choices of location and Table 2.1 shows the details of the criteria for each
location.
1.

Ha noi Industrial City

2.

Da Nang Industrial City

3.

Ba Ria-Vung Tau Province Industrial City

Table Error! No text of specified style in document.-1Criteria of Potential Plant Location

Selection

Ha noi

Criteria

Industrial City

Land price

Da Nang

Ba Ria-Vung Tau

Industrial City

Province Industrial
City

85 USD/m2

30 USD/m2

35 USD/m2

100 ha

162 ha

1066 ha

Hanoi Water

Hoa Lien Water

Ba Ria Vung Tau

Supply Company

Supply

Water Supply

Company

Company

Electricity of

Vietnam

Phu My Power Plant

supplier

Vietnam (EVN)

Electricity

Ethylene

Vinchem

SP Chemical

Area
Available
Water
supplier

Electricity

supplier
Highway

Long Son
Petrochemical

Cau Dong Tru

Truong Chinh

Bien Hoa Vung Tau

Highway

Highway, Nam

Highway

Hai Van
highway
Railway

Ha Noi station

N/A

N/A

Airport

Noi Bai airport

Da Nang airport

Long Thanh
international airport

Port facility

Labor supply

Hai Phong Port,

Tien Sa port,

Thi Vai port, Cai Mep

Cai lan port

Lien Chieu port

port, Go Dau port

Large population

Large population Large population

Waste

Da nang Hi-Tech

disposal

STP

Political,

-Research

Have Provincial

Speed economic

Economic

incentives

Competitiveness

growth (GDP) of about

and Strategic
Consideration

-High technology

Index (PCI) rank 11.12 to 13.25% for

at top of

2001-2010 years, in

Vietnam in

industry increased by

-85% tax

2008, 2009 and

13.0% -14.4%,

exemption for

2010.

agriculture and forestry

statutory income

The economic

-80% allowance

structure

on

continues to shift

incentive

capital
expenditure
-100%
infrastructure
allowance
-5 years
exemption on
import
duty
-100% exemption
of raw material/
component parts

towards services
- industry agriculture. The
proportion of
service sector in
GDP in 2009
reached 50.5%,
industry construction
reached 46.5%
and agriculture
3%.

increased by about 5.1

- 6.6% and services
increased by 10.1 to
13.3%.

for local market

-Incentives For
Export Credit
Refinancing
(ECR) Scheme.
1.1.2 Weighted Evaluation

The three proposed sites are evaluated in a table as per below. The ranking was done from 1
(poor), 2 (fair), 3 (good), 4 (very good) to 5 (excellent).

Table Error! No text of specified style in document.-2 Weight Criteria for Plant Location Selection

Factors

5-4 Marks

3-2 Marks

1-0 Marks

Land price

Price of land below

Price of land more

Price of land more

USD 40

than USD 40

than USD 50

material Able to obtain large

Able to obtain large

Able to obtain large

raw material supply

raw material supply

raw material supply

locally

from near

locally or from near

Raw
supplier

neighbouring countries neighbouring countries

Water supplier

Electricity supplier

Port facility

Able to obtain large

Able to obtain large

Unable to obtain

water supply from the

water supply from the

enough water supply

same state

neighbouring state

Able to obtain large

Able to obtain large

electricity supply from

electricity supply from

the same state

neighbouring state

<10 km proximity to

<30 km proximity to

>30 km proximity to

port

port

port

unable to obtain
enough electricity
supply

Airport

facility

facility

facility

Availability of

Availability of

Unavailability of

domestic airport

airport

Complete network and

Complete network of

Unavailability of

well maintained

railway

international airport
Railway

railway

railway
Political,

Economic Excellent tax benefits

and

Good tax benefits

No tax benefits

Strategic

Consideration

Table Error! No text of specified style in document.-3 Weight Distribution for Plant Location Selection

Ba Ria-Vung Tau
Province Industrial

Ha noi Industrial
City

Da Nang
Industrial City

City

Supplier

Water supplier

Electricity supplier

Waste disposal

Facilities

c) Railways Facilities

Selection Criteria
Land Price
Raw

Materials

Transportation
a) Port Facilities
b)

Roadways

d) Airport

Incentives

Total

36

31

42

72%

62%

84%

Percentages (%)
Ranking

Based on the weighted evaluation done, Ba Ria-Vung Tau Industrial City achieved the
highest score and thus chosen as the strategic location for the plant. The deductions are
rationalized as follows:
(a)

The land availability is still aplenty comparatively for expansion. The land price is

cheaper.
(b)

It is near to the various Port; convenient and economical for export and import.

(c)

Raw material availability; near to

(d)

Numerous of attractive incentives from Vietnam Government

(e)

Good logistic facilities and infrastructures; state government always upgrades the

existing and developing new infrastructure

(f)

Efficient labour force with highly skilled, semi-skilled and unskilled labours.

Plant Layout