DEEP C INDUSTRIAL ZONES Exploring Vietnam 2.0

DEEP C INDUSTRIAL ZONESExploring Vietnam 2.0

INTRODUCING DEEP C

VIETNAM

MAKING A DIFFERENCE

China + 1

INTRODUCING DEEP C

HOW TO STUDY VIETNAM

MAKING A DIFFERENCE

Coastal Expressway

3386 ha

ECONOMIC POWERHOUSES OF THE NORTH

10

10.96% 11.03%

8.12%

7.15%

8.90%10.18%

13.47%14.01%

16.27%16.68%

12.30% 12.06%

7.40%

7.50%

8.80%

11.00%

10.10% 10.20%

11.10%

12.10%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Hanoi Ho Chi Minh city Hai Phong Da Nang Quang ninh Can Tho Vietnam

Hai Phong

Quang Ninh

ECONOMIC GROWTH OF HAIPHONG AND QUANG NINH COMPARED TO NATIONAL AVERAGE

2016 2017 2018 2019 National(2019)

HP QN HP QN HP QN HP QN

Economic Growth Rate 11.0% 10.1% 14.0% 10.2% 16.3% 11.1% 16.68% 12.1% 7.02%

Manufacturing Growth Rate

16.6% 20.35% 21.88% 4.95% NA 12.7% 25.06% 13.15 11.29%

Service Growth Rate 9.8% 10% 11.0% 14.5% 9.7% 14.2% 11.3% 13.1% 7.3%

Industrial Growth Rate 16.9% 13.07% 20.6% 7.5% 25.3% 9.8% 24.3% 13.5% 8.86%

GDP per Capita (USD） 2,661 4,050 2,963 4,528 3,587 5,110 5,300 6,131 2,587

Source： JETRO, Haiphong, Quang Ninh

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CHINA

Why the North ?

1: Location

2: Location

3:

INFRASTRUCTURE

13* Source: Hai Phong People Committee (2018, Socioeconomic report)

CHINA

JAN 2018

FEB 2019

12 hours

HAIPHONG – HA LONG HIGHWAY (2018/9)

・Length: 25km・30 minutes to Halong・150km from Halong to the border of China

VAN DON – MONG CAI HIGHWAY (2020/4 COMPLETION)

・2019/4: Start of Construction・Length: 80km・Final Section to the China Border

POWER SUPPLY IN VIETNAM

38.12%

18.48%

35.06%

7.16%1.18%

Power Sources in Vietnam (2018)

Coal

Gas & Oil

Hydropower

Renewable Energy

Import17000

85000

75000

32000

70000

95000

0 20000 40000 60000 80000 100000

CENTRAL

SOUTH

NORTH

Power supply and demand in Vietnam (2017)

Supply Demand

› Vietnam will face severe power shortages from 2021: Ministry of Industry and Trade› Vietnam’s demand for electricity will exceed its supply by 6.6 billion kWh in 2021, increasing to 15

billion kWh by 2023

Source: EVN17

RENEWABLE ENERGY vs GRID supply

→ Supplement 50% of DEEP C’s electricity demand with renewable energy by 2030.

→ Target first wind and solar operational in Q3 2020.

DEEP C Quang Ninh I & II315 MVA

DEEP C Hai Phong I98 MVA

DEEP C Hai Phong II +121 MVA

DEEP C Hai Phong III97.5 MVA

EVNCoal-fired and

hydroelectricity

626 MVA

Solar farmsDEEP C HYBRID POWER

GRID

Excessive power for e-barge

Wind farms

Waste-to-energy Battery storage

Hydrogen storage

AVAILABLE INDUSTRIAL LAND

WAREHOUSING & WORKSHOP

› Expected to complete within 2020

› Land area: 5,022m2

› Phase-able subject to demand

› Office for PO, Engineering, Land Reclamation

› Office space, meeting rooms, seminar room for rent

› Canteen, coffee shop, restaurants, ATM booths

DEEP C II SERVICE COMPLEX

INVESTMENT INCENTIVETax Incentives: Economic Zone Tax Package

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Year 4 Year 15 Year 13

Economic zone incentive CIT=10%

Year 0

20%

Tax exemption 50% reduction of payable CIT

CIT=0% CIT=5% CIT=10%

4.35%

*Remark: Economic Zone Tax Package to be effective in DEEP C Quang Ninh from 2020

0

100

200

300

0

10

20

30

2019 2020 2021

GW

h

MW

/MW

p

Total Baseload MW Potential Solar MWp

Operational Solar MWp

SOLAR ENERGY

INDUSTRIAL SYMBIOSIS

› 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.

INDUSTRIAL SYMBIOSIS

› In cooperation with DOW Chemicals to build Plastic Road

› 200m in DEEP C II completed in Sep 2019, 1.2km to be completed in Nov 2019.

› Target: use plastic waste to cover the surface of road to create more durability.

FIRST PLASTIC ROAD IN VIETNAM

INTRODUCING DEEP C

HOW TO STUDY VIETNAM

MAKING A DIFFERENCE

JAN 2018

JUN 2018

JUN 2019

DEEP C II TODAY

Partners5th Floor, Harbour View Office Tower12 Tran Phu Street, Ngo Quyen Dist., Haiphong, Vietnam

My Gia 4-8, 9 Vinhomes Dragon Bay, Ben Doan, Ha Long city, Quang Ninh

T: +84 225 3836 169F: +84 225 3859 [email protected]

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THANK YOU FOR YOUR ATTENTION!