Part 1. Background of The Investor: Socialist Republic of Vietnam Independence - Freedom - Happiness

SOCIALIST REPUBLIC OF VIETNAM
Independence Freedom Happiness

____________________
INVESTMENT PROJECT PROPOSAL
PART 1. BACKGROUND OF THE INVESTOR
HUNG VIET CO., LTD

Business code: 0800755634 first registered on November 19, 2009 at the Business
Registration Office from the Department of Planning and Investment of Hai Duong
Province. Registered for the second time on December 17, 2014.
Headquaters address: Phuc Tan village, Gia Tan commune, Gia Loc district, Hai
Duong province.
Authorized capital: 19.000.000.000 VND.
Information of the legal enterprise representative :

Full name: TANG XUAN TRUONG Gender: Male
Nationality: Viet Nam.
ID number: 141946236
Date of issue: July 4, 2013 Place of issue: Hai Duong provinces Police
agency.
Permanent address : Phuc Tan village, Gia Tan commune, Gia Loc district, Hai Duong
province, Viet Nam.
Curent address: Phuc Tan village, Gia Tan commune, Gia Loc district, Hai Duong
province, Viet Nam.
Hung Viet Co., ltd 1

PART 2. INVESTMENT PROJECTS PROPOSED IMPLEMENTATION
1.1. Legal grounds :
- Investment Law No. 67/2014/QH13 issued on November 26, 2014;
-The Governments Decree No. 118/2015/ND-CP issued on November 12, 2015 detaily
define and guide the implementation of some articles from the investment law;
- Enterprise Law No. 68/2014/QH13 issued on November 26, 2014;
- Land Law No. 45/2013/QH13 issued on November 29, 2013;
- Construction Law No. 50/2014/QH13 issued on June 18, 2014;
- Environmental Protaction Law No. 55/2014/QH13 issued on June 23, 2014;

- Decree No.32/2015/ND-CP issued on March 25, 2015 of the Government on
management of construction investment costs;
- Decree No. 43/2014/ND-CP isesued on May 15, 2014 of the Government detaily
define the implementation of some articles from Land Law;
- Decree 44/2014/ND-CP issued on May 15, 2014 of the Government define the land price;
- Decree No. 45/2014/ND-CP issued on May 15,2014 of the Governmnet define the
usage of land with payment;
- Decree No. 46/2014/ND-CP issued on May 15, 2014 of the Governmnet define the
lease of land and water surface with rental payment;
- Decree No. 47/2014/ND-CP issued on May 15, 2014 of the Governmnet define the
compensation, support and resettlement when the State retrieve land;
- Circular No. 45/2013/TT-BTC issued on April 25, 2013 of the Ministry of Finance
guide the management regime, usage and fixed assets depreciation;
- Decision No. 1173/2013/QD-BTC issued on May 21, 2013 of the Minister of Finance
on the amendment of the Circular 45/2013/TT-BTC issued on April 25,2013 of the
Ministry of Finance guide the management regime, usage and fixed assets depreciation;
- Decision No. 11/2010/QD-UBND issued on June 22, 2010 of Hai Duongs People
Committee on management decentralization in some fields: construction planning,

management of construction investment projects, quality management of construction
programs in Hai Duong province;
- Decision No. 33/2014/QD-UBND issued on December 20, 2014 on promulgating

regulations on land prices in Hai Duong province in 2015;
- Decision No. 29/2016/QD-UBND on November 1, 2016 on regulating some contents

on the collection, manegement and use of money for protection and development rice-
growing land when changing its purpose to non-agricultural land in Hai Duong province;
- Based on the business functions, financial and management capacity of enterprises;
- Other polices according to current regulations.
1.2. Projects name and place:

1.2.1. Place:
Gia Tan commune, Gia Loc district, Hai Duong province.
1.2.2. Area:
Area: 29.773 m2.
Detailed description:
- East: Affiliated with Hung Viet Co., ltd;
- West: Afiliated with farrming land;
- North: Afiliated with farrming land;
- South: Afiliated with 395 provincial highway.
1.3. Investment goals:
No. Activitys target Code according to VSIC

1 Prepare and preserve vegetables 1030
2 Process vegetables 1030
1.4. Investment scale:
Based on the actual needs of the market in the future and the business capacity, we
expects a one-year scale as follows:

No. GOODS UNIT QUANTITY
1 Carrot Ton 15.148
2 Cabbage Ton 9.053
3 Potato Ton 5.812
4 Cauliflower Ton 1.053
5 Red pumkin Ton 9.476
6 Zucchini Ton 5.724
7 Onion Ton 1.578
8 Vietnamese onion Ton 43
9 Garlic Ton 11
10 Radish Ton 2.780
11 Courgettes Ton 8
12 Sweet corn Ton 6
13 Ginger Ton 25
14 Turmeric Ton 14
15 Lemongrass Ton 5
16 Kohlrabi Ton 1.143
TOTAL 51.879
1.4.1. Investment construction categories:

Constructions which had been done and being prepared as follows :
Unit: 1000 vnd
No. Categorys name Unit Quantity Price Total price
Products exhibition house

1 m2 750 2.500 1.875.000
(05 houses)
2 Operation house m2 720 3.500 2.520.000
3 Factory1 m2 7.200 2.000 14.400.000
4 Factory 2 m2 7.200 2.000 14.400.000
5 Storehouse m2 200 2.000 400.000
Canteen, resthouse for
6 m2 720 3.000 2.160.000
wokers (2 floors)
7 Garage m2 200 1.000 200.000

8 Guard house m2 12 1.200 14.400
9 Rest room m2 48 500 24.000
Waste water treament
10 m2 200 500 100.000
facilities
11 Lake m2 604 200 120.800
12 Backfill m3 35.728 100 3.572.760
13 Fence m2 492 300 147.600
14 Internal courtyard m2 11.070 750 8.302.500
15 Trees m2 2.173 10 21.730
Total 48.258.790
1.4.2. Facilities :
The company invests in machinery and equipment for production as follows:
No. Equipments name Nation Unit Q. Price Total price
33.801.800.00
I Production machinery 0
syste
1 IQF machine system Japan m 4 6.200.000.000 24.800.000.000
Fruits washing machine: 1.522.500.00 4.567.500.00
2 D3230xR1350xC1510 Japan piece 3 0 0
Peeling machine: D1900x 707.000.00 2.121.000.00
3 R700x C 800mm Japan piece 3 0 0
Slicing machine:
D597xR1180xC1490 555.500.00 1.111.000.00
4 mmm Japan piece 2 0 0
Square-cut machine: 505.000.00 505.000.00
5 D901xR756xC1329 Japan piece 1 0 0
348.650.00 697.300.00
Vacuums machine 2-95
6 Netherland piece 2 0 0
II Equipment 194.500.000
joint- 50.000.00 50.000.00
1 Testing equipment venture piece 1 0 0
Humidity measuring joint- 15.000.00 30.000.00
2 device venture piece 2 0 0
Cooling measuring 5.000.00 25.000.00
3 device Japan piece 5 0 0
8.700.00 43.500.00
4 Computer LG piece 5 0 0

11.500.00 46.000.00
5 Air-conditioner panasonic piece 4 0 0
III Transportation 6.280.000.000
700.000.00 2.800.000.00
1 Forklift Japan 4 0 0
560.000.00 2.800.000.00
2 2.5 ton car Korea 5 0 0
340.000.00 680.000.00
40.276.300.
TOTAL - 000
1.4.3. Technolory process of preparing, preseving, freezing the agricultural goods:
Process explaination:
Production plan:
Planning team receives requests from customers, thus creates daily, weekly, monthly
plan; deploys production plan in the factorys display in order to implement the
production (Refer to the production planning process).
Material checking:
Manual checking.
Input materials are randomly taken out to check refer to the regulated standards.
Use normal eyes and personal experiences to choose and evaluate, thus calcutale
percentage of materials which are not up to standards.
Based on standard specifications, use visual method to compare then select standard
products, calculate non-standard materials level (which has been less than 15%).
Raw materials are gathered to the factory which can be placed outside from 4 to 5
hours under cool weather conditions, then put into production or cooling storage; from 2
to 3 hours under summer weather conditions (with 2 10 Celsius degree cooling storage).
Material cleaning: use technical machines
The selected materials will pass through the impurity separation system, then
through the vibration separator for the first unsuitable materials removal.
The materials are taken down to the aeration tank and the water will remove mud
and sand in their surfaces.

The required materials are put into the temperature sterilization process.
Auxiliary equipment:
Inox conveyor belt (4600 x 780 x 2400) with 5.5kw engine power produced in
Vietnam.
Inox vibrating floor (2200 x 1000 x 1420) with 0.37kw engine power produced in
Vietnam.
Inox Jacuzzi by water and air (7300 x 1480 x 1960) with capacity of 0.75kw
produced in Vietnam.
Clean water supply system directly washes raw materials and discharges to the water
treatment tank.
Sterilization by temperature: use a steam sterilization boiler.
Steam heating system.
Materials sterilization process: raw materials through the rough selection process,
automatically into the conveyor belt, then pass through the vortex of steam sterilizer.
It is necessary to pay attention to the stability of input products quantity during the
sterilization process (not too much or too little which is affect the sterilization), automated
conveyor belt has the number of grooves.
Sterilization temperature is around 98-100 steam degree, the display of temperature
meter should be expressed outsite, adjusted when necessary (usually after 1.5 hours).
The time of sterilization for normal products is 70 125 seconds.
The color of products after sterilization should be visualy seen fresh. Steam pressure
must be guaranteed at 2kg/cm2.
2.5 ton boiler system made in Vietnam.
Cooling down: by water at normal temperature.
Clean water is directly supply into the tank to cool the products.
It is necessary to concern the cooling process immediately after temperature
sterilization to avoid being softened by excesssive sterilization and the effect of
temperature.
Water for products washing must be pumped continuously to cool and discharged to
the treatment tank.

Cooling machine at normal temperature with capacity of 2.2kw imported from
Japan.
Cooling: by cold water
Cooling tank (9000 x 2030 x 2130): clean water filled, which has rapid cooling
platform inside.
Thus the products is cooled at 5-10 Celsius degree before freezing, make the
products gradually cool outside before being deeply frozen to avoid rapid temperature
difference that damages the products.
Refrigeration equipment system has ammonia compressors with total capacity of
2245kw imported from Japan.
Water pumped engine with capacity of 1.5kw imported from Japan.
Motorized engine with capacity of 2.2kw impoeeted from Japan.
Products drying by water- seperated vibration floor:
The products are dried by the water- separated vibration floor before put into rapid
freezing to avoid products stick together causing by water remains on the products
surface.
Vibration floor (2300 x 950 x 3430) with capacity of 0.74kw imported from Japan.
IQF cooling machine:
Products in IQF cooling machine are rapidly cooled in order to make sure the
products temperature is 17 Celsius degree.
Refrigeration equipment system using ammonia compressors with capacity of
2245kw imported from Japan.
The system consists of 7 fan motors (capacity of 15kw/ motor)
The conveyor motor consists of 7 motors (capacity of 4kw/ motor)
Conveyor belt (30000 x 1000 x 3200)
Packaging: semi-automatic
Foklift trucks take the products from cooling storage into packing rooms.
Some workers suppling the products to the conveyor belt by using tools so that the
products can meet the speed of classification workers (to avoid congestion on the
conveyor belt).

Workers suppling semi-finished products besides supply raw materials to the chains,
also have to fold the used semi-products to the arranged place. It is necessary to clean
surrounding area for a certain time (about 1 hour).
A semi-finished product workers stand for 3 machines (to supply raw materials).
Sorting by the conveyor belt:
Workers standing on both sides of the conveyor belt will select, classify products
which are not up to quality, then put into a plastic box next to the conveyor belt, then to a
bag. Whenever it is filled, the workers will close and put to the panel and change the bag.
Packaging tablei: There are 6 workers on each table, 3 people each side, the first 2
to get the number of goods to classify, then the next 2 people will classify for the second
time, then to the next 2 people to pack if it is meet standards; select and pack, weigh, then
put into tray to weld the bags if it is not meet standards.
Workers who weld the bags put them into the conveyor belt to be boxed.
Metal check: automatic machine
After packing, the products will pass through a metal detector, then put into the
barrel to be boxed if not having metal.
Once the standard products have been tested then returned to the bag package
department for further processing.
Products which are not meet standards will be preservated awaits processing.
Metal detectors (1600 x 500 x 1200) with capacity of 1.5kw imported from Japan.
Barrels: semi-automatic
Workers standing to get the boxed products, have vibrators to close boxes tightly,
then tape and put into pallet and cooling storage for preservation.
Vibrator (1000 x 500 x 1200) with capacity of 2.2.kw imported from Japan.
Notice: disinfection workers have to wear protective clothes and wash their hands
while working (wear gloves and wash hands then spray sterilization water).
Cooling storage:
The boxed products will be placed in the pallet then put in the storage arranged by
layout, with the temperature of -17 Celsius degree.
The cooling engine capacity is 2245kw including 6 compresor engines and ammonia
tanks.

1.4.4. Market:
The hygene materials source was contracted by the company with producers from the
beginning of the growing seasons. Our nation is a agricultural country so the supply
source is relatively abundant.
The company has signed contracts with groups of producers and cooperatives in and
outside the province, specializing in providing clean vegetable products.
2. Output market:
The output markets of frozen vegatables are mainly Japan, Korea, Dubai, according
to the orders signed by partners. Currently, the company has signed a number of contracts
in pricinple with companies purchasing frozen vegetables.
1.4.5. Architectural construction scale:
1. Site planning:
Construction works are arranged in the rent land to ensure safety corridors,
construction boundaries, usage capacity, relationship between departments, harmony of
beauty.
Total area: 29.773 m2
Construction density: 55,5%
Green space: Arrange green trees around the site to contribute a clean enviroment for
factory area, reduce dust and noise, create a clean space.
The layout of the site is made following some basic principles:
- Create relationship between factory- warehouse- good transportation.
- Optimize the road area.
- Devide clearly administration, management, production, support area.
- Set up green and clean public spaces.
The internal road sections shall ensure the fire prevention and fighting regulations
for vehicles to transport safely.

1.4.6. Construction scale and architectual solutions:
- Operation house: a two- floor buiding with total area of 720m2 according to the
permanent style housing which has structural framework, concrete roof, heat resistant
roof, brick wall, yellow sand cement built and plastered. The floor is made of broken
concrete, ceramic tile, the main door is the hydraulic glasss door. Their fuctions are the
workplaces of the company departments.
- Products eshibition house (5 houses): a one-floor construction scale with total
area of 750m2 according to the permanent style housing which has structural framework,
concrete roof, heat resistant roof, brick wall, yellow sand cement built and plastered. The
floor is made of broken concrete, ceramic tile, the main door is the hydraulic glasss door.
Their fuctions are the workplaces of the company departments.
- Workers canteen : a two-floor construction scale with total area of 720m2
according to the permanent style housing which has structural framework, concrete roof,
heat resistant roof, brick wall, yellow sand cement built and plastered. The floor is made
of broken concrete, ceramic tile, the main door is the hydraulic glasss door. Their fuctions
are the workplaces of the company departments.
- Agricultural products primary processing factory (2 factories): a one-floor
construction scale with total area of 1400m2 which has zemin steel framework, steel
system roof and industrial roof, three-sided walls and one is opened space for vehicles
while production operation, to ensure the early vegetables processing, and the area,
corridors, fire fighting
Internal roads:
The internal courtyard is backfilled with K=0.9 ; the structural surface by concrete.
Details as follows :
- Concrete layer by stone 2x4, 15cm of thickness.
- The compacted layer of stone has 15cm of thickness.
- The compacted sand floor K = 0.9 and 30cm of thickness.
In the yard, the internal roads is designed sloping along a roof and two roofs to
ensure the best drainage.
Supported construction works:

Gates, fences, guard houses, garages, toilets, transformer stations, living water tanks,
waste water treatment tanks with simple struture and easy to apply.
1.4.7. Technical infrastructure solutions:
a. Water supply and drainage solutions:

Water supply:
- Water for production.
- Water for living.
- Water for fire protection.
The company has contracted with Gia Loc districts clean water supply company and
clean water will be put into pumping stations and water tanks placed on the roofs and then
piped to the places where water is used.
Drainage:
Overflowing rainwater in the total site is collected into a seperate sewer system. The
company built sewers along factories, fences to collect raiwater. Along with the sewer
system has manholes with screens to collect and deposit suspended solids and plans to
periodically collect them.
The rainwater collection and drainage system has manholes with the size of 1m x 1m
x 1m, the distance between them is about 80-100m to deposit scum, the drainage ditched
are built with knit sheets.
Periodically inspect, dredge raiwater, check for malfuction to repair in time.
To ensure the maintainance of safety corridors for rain water drainage, not to let
garbage and toxic liquid enters the system.
- Living water drainage :
+ Floor water drainage : water from the restrooms, wash basins directly drained into
the internal drainage before went to the drainage system of the area.
+ Sewage and toilet water drainage : water from sewage, sanitation and urine are
discharged into the septic tank which has 5 sheets ; after settling and decomposition time
will be directly discharged into the drainage system of the area.
b.Electricity supply:

Electricity is mainly used for living and lighting, electric source is the national grid
along with contracts of Gia Loc district. The company plans to buit a 320KVA substation,
the power supply uses the high voltage power line passing through area. Electric wire is
ACV 35 covered rope. Outdoor lighting system uses high pressure lamps. Inside electrical
system is PVC plastic pipe which has aptomat to protect electrical equipment, lighting
equipment in the house is fluorescent lamps combined with light scattered.
1.5. Investment capital:

1.5.1. Total investment capital
Total investment capital: 119.091.000.000 vnd

Fingures in words: One hundred and nineteen billions, and ninety-one millions vnd.
Details as follows:
No. CATEGORIES PRICE

A FIXED CAPITAL 109.091.315.600 VND
I Land clearance compensation 6.252.330.000 vnd
Rice-land protection and development
II 1.042.055.000 vnd
cost
III Construction cost 48.258.790.000 vnd
IV Equipment cost 40.276.300.000 vnd
V Other expenses 5.598.993.600 vnd
VI Provision 7.662.847.000 vnd
B WORKING CAPITAL 10.000.000.000 vnd
Otal investment capital 119.091.315.600 vnd
Nearly-number 119.091.000.000 vnd
Including:
1. Construction cost:
Fingures in: 1000 vnd
No. Categories Unit Quantity Price Total price
Products exhibition house

1 m2 750 2.500 1.875.000
(05 houses)

2 Operation house m2 720 3.500 2.520.000
3 Factory 1 m2 7.200 2.000 14.400.000
4 Factory 2 m2 7.200 2.000 14.400.000
5 Storehouse m2 200 2.000 400.000
Canteen, resthouse for
6 m2 720 3.000 2.160.000
workers (2 floors)
7 Garage m2 200 1.000 200.000
8 Security house m2 12 1.200 14.400
9 Restroom m2 48 500 24.000
Waste water treatment
10 m2 200 500 100.000
facilities
11 Lake m2 604 200 120.800
12 Backfill m3 35.728 100 3.572.760
13 Fence m2 492 300 147.600
14 Internal courtyard m2 11.070 750 8.302.500
15 Trees m2 2.173 10 21.730
Total 48.258.790
Machinery cost:
No. Name Nation Unit Q. Price Total price
33.801.800.00
I Production machinery 0
1 IQF machine system Japan Sysem 4 6.200.000.000 24.800.000.000

Fruits washing machine: 1.522.500.00 4.567.500.00
2 D3230xR1350xC1510 Japan Piece 3 0 0
Peeling machine D1900x 707.000.00 2.121.000.00
3 R700x C 800mm Japan Piece 3 0 0
Slicing machine
D597xR1180xC1490 555.500.00 1.111.000.00
4 mmm Japan Piece 2 0 0
Square-cut machine 505.000.00 505.000.00
5 D901xR756xC1329 Japan Piece 1 0 0
348.650.00 697.300.00
Vacuums machine 2-95
6 Netherland Piece 2 0 0
II Equipments 194.500.000
50.000.00 50.000.00
1 Testing equipment LD Piece 1 0 0

Humidity measuring 15.000.00 30.000.00
2 device LD Piece 2 0 0
Cooling measuring 5.000.00 25.000.00
3 device Japan Piece 5 0 0
8.700.00 43.500.00
4 Computer LG Piece 5 0 0
11.500.00 46.000.00
5 Air-conditioner panasonic Piece 4 0 0
III Transportation 6.280.000.000
700.000.00 2.800.000.00
1 Folklift Japan 4 0 0
560.000.00 2.800.000.00
340.000.00 680.000.00
40.276.300.
TOTAL - 000
2. Other expenses:
Including:
- Project advisory costs: project formulation cost, construction supervision cost...
- Project management costs: expenses for oranizing the formulation of investment

project, the selection of construction contractors, the pre-acceptance test and hand-over of
construction works...
- Other expenses : construction insurance cost, fees and other payables
1.5.2. Investment capital:
Total investment capital : 119.091.000.000vnd

Including:
- Paid-in capital: 35.000.000.000 vnd;
- Finance leasing capital: 84.091.000.000 vnd.

1.6. Project implementation duration:
Due to the large investment capital in the project and long-term payback period, in
order to safety invest, the company proposed to lease the land for 30 years from the date
of having investment decision.
1.7. Project implementation schedule:
1.7.1. Construction schedule:
Completed construction is put into operation synchronously after 24 months from
the date of land handover.
1.7.2. Capital mobilization schedule:
+ Paid-in capital: 35.000.000.000 vnd
+ Finance leasing capital: 84.091.000.000 vnd under the commitments with the
banks.
1.7.3. Management department:
To increase efficiency, reduce indirect costs, use experienced staff, reduce service
cost, the company will arrange a light operation department, experienced staff, one person
can cum many tasks with direct management regime, regular report the business
operation, production process to ensure smooth command, disciplined and effective
operatiton.
The number of labors in company is 321 people; of which about 21 people in

management and serve part; about 300 workers. The number can be added to meet
production needs of company when necesary.
Details as follows:
No. Position Quantity
1 Director 1
2 Indirect department 8
3 Direct worker 300
4 Security 2

5 Driver 10
1.7.4. Functions of each position:
1. Director:
Director is the general manager of all production activities of the company; must
take full responsibility in front of Law for his/her rights and obligations implementation.
The companys director manages the production through the deputy directors and
departments such as the accouting department, planning and engineering department.
2. Finance and accounting department:
This unit implements the accounting regime in the whole company in accordance with
the financial regualations of the State; responsible for financial works in front of the
Director and functional agencies.
3. Planning and engineering department:
Manage products quality, production plan, process and labor safety. This department
is responsible for production planning, supplying and stockpiling plans; responsible for
labors in the company and propose recruiting and training workers plan in the future.
4. Production factories:
Factories implement production activities under supervision of supervisor, head of

production departments and functional departments.
1.7.5. Labor salary, working regime and others:
1. Labor salary:
- Labor salary is accordance with detailed works, quality and productivity. It is

annually adjusted to suit with living expenses in order to ensure living stansards for
worker as well as companys profit.
- At the end of each business period, the company will evaluate and have a
satisfactory rewards for individuals with high contributions.
- Average salary is around 4.000.000 vnd to 7.000.000 vnd /person /month.

2. Working regime and others:
- Under Labor Law: 8 hours/ day and 48 hours/ week. In the case of overtime work,
all time and working regime are also in accordance with Labor Law. Employees will be
entitled to full holidays, New year holidays, leave as prescribed.
- Besides, workers are ensured other rights such as: social and health insurance...
well-prepared clothes and safety equipments while working; receive medical
examinations and treatment; entitle to allowances as prescribed.
- Be annually educated and trained to improve major-skills works; arranged the

works properly.
3. Recruiment and training:
Employees usage under the Labor Law of the Government and the regulations of the
company.
Employees of administrative accounting, technical planning, supervisor... will be

recruited from universities, colleges and professional secondary schools. This number of
employees has been trained in basic expertise to ensure required standards, or have
experiences for over 2 years or maybe 3 to 6 month- trainning for positions that need re-
trainning.
Workers will be recruited locally and trained necessary skills to meet their assigned
work requirements.
To ensure the effective business operation, all post-recruitment workers must have a
vocational training, occupational health, safety working management. While operation, it
is necessary that factory managers and supervisors, technicians must be experts,
instructors for the workers to understand skills clearly, thus put into the production line.
The company will sign a contract with each employees. All their responsibilities,
rights and interests are clearly stated in the labor contract.

1.8. Evaluate the projects affect and socio-economic efficiency:
1.8.1. Evaluate the suitability of the project with the plan for socio-economic
development, sectoral development plan, land use plan:
- The project implementation in this land is in accordance with the socio- economic
development plan of Hai Duong province, in accordance with the 2017s land use plan of
Gia Loc district.
1.8.2. Evaluate the project affect to the socio-economic development:
- Along with many companies development in Hai Duong province, the expansion
of produciton base of Hung Viet Co., ltd also contributes to promote the socio-economic
development of Hai Duong province; in which creates more stable jobs for people,
improves their material life, preserves the social order and safety, thus contributes to the
State budget from the companys profit tax.
1.8.3. Evaluate the projects affect to enviroment:
Projects affect to enviroment:

- Dust: In production process, the most dusty area is scrap classification area.
+ Vegetables, fruits primary process: most of them have been cleanly washed when
being transprted to the company, so its unremarkble.
- Wasted water: Its necessary to use large amount of water to clean vegetables so
the wasted waster is remarkable, however they are untoxic. Most of them are domestic
and primary waste water, which is then collected to the wastewater treament plants,
treated before discharging into the drainage system of the area.
- Solid wastes arising in the preliminary proccess: the company has contracted with
Green Enviroment company to collect, transport, store and treat the wastes.
* Other solutions to protect enviroment:
+ Reduce air polution caused by transportation:
- Have a suitable car regulations.
- Have periodic inspection of vehicles participating in traffic.
- Plant broad-leaved trees around the leased area, in order to limit the spread of dust.
- Concrete the main roads in the project area to limit dust arising level.

- Not allow cars burst while delivering or recerving goods.
- Carry the corect tonnage of cargo, use the corect fuel with engine design, strictly
abide by the traffic regulations.
- Prepare face masks, gloves, eyeglasses... for those who work in potentially air
polluted areas.
- Regularly check and maitain vehicles to ensure their good technical conditions.
- All vehicles meet conditions for circulation within the permitted time limit in
accordance with regulations of the Ministry of Communications and Transport.
- All vehicles meet emission and noise standards stated in the Circular No. 02/TT-
MTg.
+ Reduce heat pollution:
Use ventilation measures for the factories.
+ Reduce noise:
- Noise suppression is installed at the foot of the fans and equipments.
- Check the balance of machines when installed.
- Regularly check maintainance for noisy equipments, lubricate moving parts of the
machines.
+ Reduce wastewater, flowing rain water:
- Periodically inspecting, dredging rainwater drainage systems, checking for
malfunction to repair in time.
- Ensure the safety maintainance of coridors for rainwater drainage systems.
- Do not let garbage, toxic liquid enter the drainage.
+ Reduce solid waste:
Workers wastes in the company will be collected and handled daily by the staff.
* Other solutions:
+ Raise environment protection awareness for wokers, built environmental protection
regulations, strictly discipline those who do not fully comply with the ragulations, have
rewards to encourage and promote the creativity of employees in the career of environment
protection.

+ Strengthen the management of raw material inputs and promote the internal
management to reduce the amount of wastes; save electricity and water as well as raw
materials per unit of products to reduce costs and improve production efficiency.
+ Regularly improve workers skills to ensure production efficiency.
+ Regularly check, maintain machines and equipments to ensure oil release, engine
noise.
+ Have reduced - sounds solutions to protect workers health and avoid affecting
surrounding areas.
1.8.4. Evaluate the projects economic efficicency:
1. Expected one year revenue:
No. GOODS UNIT QUANTITY PRICE TOTAL PRICE

1 Carrot Ton 15.148 9.000.000 136.332.000.000
2 Cabbage Ton 9.053 6.000.000 54.318.000.000
3 Potato Ton 5.812 14.000.000 81.368.000.000
4 Cauliflower Ton 1.053 18.000.000 18.954.000.000
5 Red pumkin Ton 9.476 7.000.000 66.332.000.000
6 Zucchini Ton 5.724 7.500.000 42.930.000.000
7 Onion Ton 1.578 9.000.000 14.202.000.000
8 Vienamese onion Ton 43 24.000.000 1.032.000.000
9 Garlic Ton 11 65.000.000 715.000.000
10 Radish Ton 2.780 9.000.000 25.020.000.000
11 Courgette Ton 8 40.000.000 320.000.000
12 Sweet corn Ton 6 20.000.000 120.000.000
13 Ginger Ton 25 18.000.000 450.000.000
14 Turmeric Ton 14 32.000.000 448.000.000
15 Lemongrass Ton 5 17.000.000 85.000.000
16 Kohlrabi Ton 1.143 8.000.000 9.144.000.000
TOTAL 51.879 451.770.000.000

2. Expected one- year costs:
Figures in: 1000 vnd
No. Cost Price
1 Inputs cost 376.809.500

2 Labor cost 19.582.800
3 Construction depreciation cost 3.217.253
4 Machinery depreciation cost 5.034.538
5 Electricity, water cost 2.030.350
6 Land rent cost 208.411
7 Bank interest payment cost 9.339.110
8 Other expenses 22.588.500
Annual total cost 438.810.461
Including:
- Inputs costs:
QUANTIT
No. GOOODS UNIT Y PRICE TOTAL PRICE
1 Carrot Ton 16.662 5.000.000 83.310.000.000

2 Cabbage Ton 9.958 4.000.000 39.832.000.000
3 Potato Ton 6.974 12.000.000 83.688.000.000
4 Cauliflower Ton 1.263 15.000.000 18.945.000.000
5 Red pumpkin Ton 11.560 6.000.000 69.360.000.000
6 Zucchini Ton 7.155 5.000.000 35.775.000.000
7 Onion Ton 1.625 7.500.000 12.187.500.000
8 Vienamese onion Ton 46 22.000.000 1.012.000.000
9 Garlic Ton 11 41.000.000 451.000.000
10 Radish Ton 3.169 8.000.000 25.352.000.000

11 Courgette Ton 8 35.000.000 294.000.000
12 Sweet corn Ton 7 12.000.000 79.200.000
13 Ginger Ton 28 12.000.000 336.000.000
14 Turmeric Ton 16 28.000.000 436.800.000
15 Lemongrass Ton 6 12.000.000 66.000.000
16 Kohlrabi Ton 1.137 5.000.000 5.685.000.000
Total 59.624 376.809.500.000
- Labor costs:
Working
No. Categories Workers time Salary Price
1 Indirect department 714.240.000

576.000.00
Salary 8 12 months 6.000.000 0
Social + health insurance 120.960.00
(21% of salary) 0
Unemployment insurance 5.760.00
(1% of salary) 0
Trade unions fee (2% of 11.520.00
salary) 0
18.867.840.00
2 Direct department 0
17.856.000.00
2,1 Direct workers 0
14.400.000.00
Salary 300 12months 4.000.000 0
Social + health insurance 3.024.000.00
(21% of salary) 0
(1% of salary) 0
salary) 0
119.040.00
2,2 Security 0
96.000.00
Salary 2 12months 4.000.000 0
(21% of salary) 0
Unemployment insurance 960.00
(1% of salary) 0
salary) 0

892.800.00
2,3 Drivers 0
720.000.00
Salary 10 12months 6.000.000 0
(21% of salary) 0
(1% of salary) 0
salary) 0
TOTAL 19.582.80.0
Payback period
- Annual profit = Annual revenue cost

= 451.770.000.000 - 438.810.461.167
= 12.959.538.833
- Profit before taxes = 12.959.538.833
- Profit tax (22%) = 2.851.098.543
- Net profit = 10.108.440.290
- Payback period = Investment capital/(net profit + depreciation cost)
- = 119.091.000.000/ (10.108.440.290 + 8.251.790.167)
- = 6,49 (year)
Expected payback period: around 6 years.

PART 2. PROPOSED INCENTIVES, SUPPORTS FOR
INVESTMENT
1.9. Incentives on exemptions from land rent payment, land usage, land taxes:
- According to point 9 of the appendix of sectors eligible for special investment
incentives in agricultural and rural development promulgated under the Governments
Decree No. 210/2013/ND-CP issued on December 19, 2013.
- According to Clause 5, Article 3; and Clause 4, Articale 6 under the Decree No.
210/2013/ND-CP issued on December 19, 2013.
The project in the preliminary processing and preservation of agricultural

products is the encouraged project which entitled to land rent exemption for the first 11
years from the date of implementation. The company proposed to be exempted from land
rent for the first 11 year from the date of being operated, with the area of 29.773m2, in
the preliminary proccessing of agricultural products.
1.10. Incentives on imported taxes:

- According to point 2, chapter 2, article 2, category B on incentives for investment
under Decree 118/2015/ND-CP issued on November 12, 2015 of the Governmnet.
- Accroding to Clause 1, Article 14 of the Decree 134/2016/ND-CP issued on

September 1, 2016 regulated some articles and solutions for import export taxes
implementation.
The project proposed to be exempted from import duties on importes goods to

create fixed assets of the project for the primary proccessing industry.

PART 3. INVESTOR COMMITMENTS:
a) To ensure the accuracy of the contents in this investment profile.

b) To strictly abide by the regulations of Vietnamese Law and the Investment
registration certificate.
Hai Duong province, date .. month ..year

Investor


Part 1. Background of The Investor: Socialist Republic of Vietnam Independence - Freedom - Happiness

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Part 1. Background of The Investor: Socialist Republic of Vietnam Independence - Freedom - Happiness

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SOCIALIST REPUBLIC OF VIETNAM

Independence Freedom Happiness

PART 1. BACKGROUND OF THE INVESTOR

HUNG VIET CO., LTD

Authorized capital: 19.000.000.000 VND.

Information of the legal enterprise representative :

Nationality: Viet Nam.

Hung Viet Co., ltd 1

1.1. Legal grounds :

- Investment Law No. 67/2014/QH13 issued on November 26, 2014;

- Enterprise Law No. 68/2014/QH13 issued on November 26, 2014;

- Land Law No. 45/2013/QH13 issued on November 29, 2013;

- Construction Law No. 50/2014/QH13 issued on June 18, 2014;

- Environmental Protaction Law No. 55/2014/QH13 issued on June 23, 2014;

Hung Viet Co., ltd 2

- Decision No. 33/2014/QD-UBND issued on December 20, 2014 on promulgating

- Decision No. 29/2016/QD-UBND on November 1, 2016 on regulating some contents

1.2. Projects name and place:

Gia Tan commune, Gia Loc district, Hai Duong province.

- East: Affiliated with Hung Viet Co., ltd;

- West: Afiliated with farrming land;

- North: Afiliated with farrming land;

- South: Afiliated with 395 provincial highway.

1.3. Investment goals:

No. Activitys target Code according to VSIC

Hung Viet Co., ltd 3

1.4.1. Investment construction categories:

No. Categorys name Unit Quantity Price Total price

Products exhibition house

Hung Viet Co., ltd 4

The company invests in machinery and equipment for production as follows:

No. Equipments name Nation Unit Q. Price Total price

Hung Viet Co., ltd 5

1.4.3. Technolory process of preparing, preseving, freezing the agricultural goods:

Hung Viet Co., ltd 6

Hung Viet Co., ltd 7

Hung Viet Co., ltd 8

Hung Viet Co., ltd 9

1.4.5. Architectural construction scale:

Total area: 29.773 m2

Construction density: 55,5%

The layout of the site is made following some basic principles:

- Create relationship between factory- warehouse- good transportation.

- Optimize the road area.

- Devide clearly administration, management, production, support area.

- Set up green and clean public spaces.

Hung Viet Co., ltd 10

Hung Viet Co., ltd 11

1.4.7. Technical infrastructure solutions:

a. Water supply and drainage solutions:

Hung Viet Co., ltd 12

1.5. Investment capital:

Total investment capital: 119.091.000.000 vnd

No. CATEGORIES PRICE

Fingures in: 1000 vnd

No. Categories Unit Quantity Price Total price

Products exhibition house

Hung Viet Co., ltd 13

No. Name Nation Unit Q. Price Total price

1 IQF machine system Japan Sysem 4 6.200.000.000 24.800.000.000

Hung Viet Co., ltd 14

- Project advisory costs: project formulation cost, construction supervision cost...

- Project management costs: expenses for oranizing the formulation of investment