FUTURE TURNKEY

ELECTRONICS
MANUFACTURING
CENTER IN VIETNAM

HAIPHONG OFFICE QUANG NINH OFFICE

5th floor, Harbour View Office Tower, 12 Tran Phu No. 8-9 My Gia Street, Vinhomes Dragon Bay
Ngo Quyen, Haiphong Ha Long residential area, Hong Gai ward,
Tel: +84 225 3836 169 Ha Long city, Quang Ninh province
Email: info@deepc.vn – Website: www.deepc.vn Tel: +84 2033 567 848

Ref: Electronics_Brochure_rev00_202005_EN
 Competitive labor cost makes Vietnam an attractive alternative
VIETNAM
AN INTEGRATED ECONOMY WITH 8

6.5

LOW COST AND LARGE LABOR FORCE 5.51

5.78
6

Costs per hour in U.S. dollars.

5.21
4.99 4.82
Vietnam’s economy driven by these macro-economic conditions 4.45 4.66
4.16
2.91 2.99
3.82
2.73
The third-largest population in ASEAN Vietnam GDP per Capita (USD). 4 2.55
280
with 96.48 million people ranked 15th
2.38
globally. 245.21
255 260

240
223.78

Vietnam’s high and stable GDP growth 220 2

rate per Capita (USD).
205.28
193.24
200
186.2

171.22 180
Rapid improvements in connectivity by 155.82
160
major infrastructure projects. 0
135.54
140
China Mexico Vietnam
Increasing middle and affluent class.
115.93
120

100 2016 2017 2018 2019 2020

Vietnamese Government support. 2010 2012 2014 2016 2018 2020

Manufacturing labor cost per hour of China, Vietnam, Mexico from 2016 to 2020 (USD).

A large young labor force ELECTRONICS INDUSTRY IN VIETNAM

1,500 800
1,237 companies 1,237
100+ 0.0 0.0 Vietnam’s population (96,462,108) pyramid by age, 2019.
1,145

No. companies

1,000 people
95-99 0.0 0.1 600
90-94 0.1 0.2 1,000

85-89 0.2 0.4 612,000 people

613 400
80-84 0.3 0.6
Male Female 500
75-79 0.4 0.7

70-74 0.6 1.0 28.9 % of total Export 256 200

113
65-69 1.3 1.6

60-64 2.0 2.3

2000 2005 2010 2015 2016
55-59 2.6 2.8 14% of GDP
50-54 3.0 3.0 No. of companies Employment

45-49 3.3 3.3

Vietnam Electronics Industry 2000-2016.
40-44 3.6 3.6

35-39 4.0 3.9

The electronics industry plays a crucial role in the vibrant Vietnam economy, accounting for 14 % of GDP
30-34 4.4 4.3
in 2017, up from a mere 5.2% in 2010.
25-29 4.6 4.4

20-24 3.8 3.6

15-19 3.5 3.2

10-14 3.8 3.4

5-9 4.1 3.7

0-4 4.3 3.9

10% 8% 6% 4% 2% 0% 2% 4% 6% 8% 10%
Vietnam Electronics FDI and Export
LANDSCAPE IN VIETNAM
NORTHERN, SOUTHERN, AND CENTRAL INDUSTRIAL HUB
The Vietnamese government divides the country into three key
economic zones (KEZs)

The Northern Key Economic Zone

Thai Nguyen Province
The Central Key Economic Zone Bac Ninh Province

The Southern Key Economic Zone

Vinh Phuc Province

Haiphong
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Vietnam Electronics FDI and Export value.

The supply of electronic components and supporting products start to be produced in Vietnam Ha Noi
in recent years by FDI companies.

FDI generates 95% of Vietnam electronics export turnover. Hung Yen Province

Domestic enterprises participation is very low.

Global MNCs like Samsung, LG, and Intel are the industry drivers.
Main Electronic Hoang Sa

cluster locations
Paracels

Vietnam ranks #2 globally in mobile phone exports. Electronic

components
12.90% Northern provinces
Vietnam Electronics key players Industrial
(Hai Phong, Thai Nguyen and Bac Ninh) have received
the largest investment capital (Samsung and LG).
and export by category assemblies They are the center of the cluster with over 137 companies
0.22% (each project is larger than US$ 1 million).

Global Lead Firms In the South, the main location is the Saigon High Tech Park
Samsung, LG, Canon, Panasonic in HCMC that hosts Intel, Samsung, Nidec, and Jabil,
Subassemblies
18.37% followed by Binh Duong province.
Communication
The southern region only accounts for 10 of the 75
equipment
Contract Manufacturers largest projects.
50.14%
Foxconn, Compal, Jabil Circuit Industrial
final products
0.15%
Platform leaders Truong Sa

Intel
Paracels
Customer Ho Chi Minh City
electronics Binh Duong Province
7.84%
Computer
equipment
Share of Vietnam Electronic categories export, 2016. Main Electronic clusters location in KEZs in Vietnam, 2015.
10.38%
Geographic distribution of the Electronics value chain NORTHERN
Electronics sector is highly concentrated
LQ Final Product
INFRASTRUCTURE
in the northern provinces. Cao Bang

Ha Giang 1.1 - 2.0

Lai Chau Lao Cai
2.1 - 5.0 Haiphong - Quang Ninh - China
Van Don
Bac Kan

Among the ten biggest

Tuyen
Quang
5.1 - 10.0 border Expressway
Noi Bai Int’l Airport Int’l Airport
10.1 - 15.0
companies in terms of revenue,
Lang Son
Yen Bai
Dien Bien Thai Nguyen

most are located in the North. Phu Tho

Vinh
Phuc Bac Giang
QUANG NINH
LQ EE Components
Son La

HANOI
Bac
Ninh Quang Ninh

DEEP C
Ha Noi
Hai

Hoa Binh
Hung
Yen
Duong
Hai 1.4 - 2.0
Quang Ninh
Phong

Location Quotient (LQ) reflects the Ha Nam Thai Binh

2.1 - 5.0 Cat Bi
economic concentration of electronics
Ninh Binh Nam Dinh
5.1 - 10.0 Int’l Airport
Thanh Hoa
10.1 - 16.5
industry in each region.
Top 10 Electronic firms
Nghe An
(income)
Cai Lan Port
A region with LQ >1 indicates the electronics Hanoi - Haiphong
10,000,000 Expressway
value-chain has a greater concentration than DEEP C
Lach Huyen
100,000,000 Deep Sea Port
average of national level.
Ha Tinh

Haiphong
LQ: Location Quotient Coastal Expressway
Quang Binh
HAIPHONG
Logistics
10 Hoang Sa
Paracels

Power
Quang Tri

Incentive
supply 8
programs Thua Thien Hue

Da
Nang

6
Quang Nam
Hanoi Noi Bai Int’l Airport
4

2 Quang Ngai

New terminal, new runways

Kon Tum
Haiphong Port 20,000DWT
# Passengers: ~21 mil./year
Investment
Environmental 0
cost
Binh Dinh

Draft: -8.4m ~ -9m

Gia Lai
# Cargos: 203,000 tons/year
# Cargos: 130 mil. tons (2019)
Possibility of expansion: ~50
Phu Yen Hanoi - Haiphong Expressway mil. passengers/year (2030)
Dak Lak

Khanh Hoa
105 km Cai Lan Port 40,000DWT
Dak Nong

Governmental Supportive Max speed: 120 km/hour Haiphong Cat Bi Int’l Aiport
Draft: -10m
Binh Phuoc
Ninh Thuan

support
Lam Dong

industry Tay Ninh

# Cargos: 74.3 mil. tons (2018) # Passengers: ~3.2 mil./year

Binh Duong

Binh Thuan
Dong Nai

Labor force
Dong Thap
Long An Ho Chi Minh

Ba Ria
Vung Tau Truong Sa
Haiphong - Quang Ninh - Planned expansion: ~13 mil.
China border Expressway
An Giang
Tien Giang
Paracels

South Can Tho

Vinh Long
Ben Tre
passengers/year & 250,000
Lach Huyen Deep Sea Port tons cargos/year
North
Tra Vinh

25km from Haiphong to Ha

Hau Giang
Kien Giang

Soc Trang
100,000DWT
Center
Bac Lieu
Long with Bach Dang bridge
Draft: -14m
Ca Mau

54km from Ha Long to Van

Detailed Rating 0-10 (10 best score) of Key Economic Zones Top 10 Electronic firms by income (USD/year). Don completed
in Vietnam.
80km from Van Don to Mong
Each region of Vietnam has its own competitive advantages which are based on the differences Cai (border to China) to be
in the trading nature and available land bank. completed in 2021
12 hours trucking Haiphong –
Shenzhen (China) by 2021
# Cargos: 419,351 TEUs (2019)
# Cargos: est. 120 mil. tons
(2030)
Operational: May 2018 (first 2
berths)

Coastal Highway Quang Ninh Van Don Int’l

Airport
550 km
Connecting 6 coastal provinces # Passengers: est. 2.5 mil./year
Quang Ninh - Thanh Hoa # Cargos: est. 10,000 tons/year
 12 trucking hours to Shenzhen

Haiphong - Quang Ninh - China INDUSTRIAL LAND FOR LEASE

border Expressway

Haiphong Dinh Vu Port

City Centre

Cat Bi
R
Int’l Airport

Lach Huyen
Deep Sea Port

Hanoi - Haiphong DEEP C Haiphong I

Expressway 541 ha

DEEP C Haiphong II
Coastal Expressway 645 ha

DEEP C Haiphong III

520 ha

DEEP C Quang Ninh I

487 ha
READY-BUILT WORKSHOP/ WAREHOUSE/ OFFICES
DEEP C Quang Ninh II
1193 ha

R Ready-built workshop/
warehouse/offices

DEEP C
INDUSTRIAL ZONES
STRATEGIC LOCATION
At the centre of North Vietnam’s
infrastructure developments Size of 5,400m2 | 4,050m2 | 2,700m2 | 1,350m2 Free height +9m

Floor loading capacity 2.5T/m2 Built-to-suit options available

DEEP C Industrial Zones was first established in 1997 in Haiphong City with
the development of Dinh Vu Industrial Zone (DVIZ/DEEP C Haiphong I), a
collaboration between the Belgian group Rent-A-Port and Vietnamese local Size of 5,400m22 | 4,050m22 | 2,700m22 | 1,350m22 Free height +9m
authority. Since then, we have evolved to be one of the largest industrial
zone developers in Vietnam with a total of 5 industrial zones and +3,500ha Floor loading capacity 2.5T/m22 Built-to-suit options available
of land for lease in Haiphong city & Quang Ninh province, supported by
general infrastructures and reliable utilities.
RELIABLE
UTILITIES AND SERVICES
Park Management
Power
› Reliable incoming source
(national grid & regional grid
as backup).
› Underground distribution.
› Redundant network design.
› Ongoing development of
renewable energy.
SUPPORTING SERVICES
› Dedicated customer service team.
› Support for Investment Registration Certificate and Business Registration Certificate applications.
› Post-licensing services.
Water & Waste Water Telecommunication
› Redundant treated water Network
supply. Redundant distribution
› Demineralized water and networks. Flexibility to choose
steam. between different suppliers.
› Central waste water.
treatment plant certified
with ISO 9001 & 14001. Energy Hub ECONOMIC ZONE TAX INCENTIVE
@ DEEP C HAIPHONG
Drainage › 4.35% Corporate Income Tax on average for the first 15 years.
› Applied from the first commercial invoice.
› Maximum delay of 3 years in case of no profit.
› Normal Corporate Income Tax rate: 20%.
Easy access to fuels and chemicals
supply from tenants in DEEP C Case 1: Making profit from 1st year of establishment
Hai Phong I’s Petrochemical Park.
First 4 years 9 years 2 years Y16th onwards
0% 5% 10% 20%
Fire-fighting System
Underground loop system. Case 2: Making profit from 4th year of establishment
3 years 4 years 8 years 1 year Y17th onwards
No Profit 0% 5% 10% 20%
Waste Collection Service
OUR LONG-TERM PARTNERS
+120 investors from a wide variety of industries and nationalities.

We were operating in another

industrial zone before, but we decided
in 2008 to be the first Japanese runner
in DEEP C because of three main
reasons: location, expectation of the
infrastructure development, and the
tax incentives.

Mr. Akira Yamamoto

General Director
Nakashima Vietnam Co., Ltd.

As the very first client coming to DEEP C, over 20 years we have

witnessed the growth of DEEP C as well as the continuous
improvement they have put in place, from reliable power supply to
upgraded liquids jetty condition. This has contributed to our own
growth, so we could start exporting in 2013 and expand our
operation twice.

Mr. Vu Anh Tuan

Supply Chain Manager
Chevron Lubricants Vietnam Co., Ltd.