FDI companies in Vietnam have consistently played a crucial role in contributing to Vietnam's economy and its growth. Since the authorization of foreign investment in 1988, Vietnam FDI has been pivotal in transforming the country into a highly appealing destination for international investors. The country’s robust growth in securing FDI has garnered positive feedback from […]
FDI companies in Vietnam have consistently played a crucial role in contributing to Vietnam's economy and its growth. Since the authorization of foreign investment in 1988, Vietnam FDI has been pivotal in transforming the country into a highly appealing destination for international investors. The country’s robust growth in securing FDI has garnered positive feedback from […]
2023 incentives of Vietnam on high-quality FDI projects in Da Nang High-Tech Parks
Trường Lăng
Trường Lăng, founder and 15-year director of Viettonkin, guides the company's strategic direction, makes top-level decisions, and represents the firm in key business negotiations. With over 20 years of consulting experience in Belgium and Southeast Asia, including 15 years specializing in FDI projects, he has established himself as a top expert who helps clients across industries expand their businesses. His deep knowledge of risk management and business operations, combined with his proven track record of successful consultation projects, makes him a valuable partner for investors seeking quality consulting services.
Table of Contents
Da Nang is a booming hub for high-quality FDI projects in Vietnam. The city’s strategic location, business-friendly environment, and advanced infrastructure have drawn foreign investors looking for profitable opportunities in Southeast Asia.
This article explores the most updated government initiatives to promote and support investments in Da Nang’s high-tech parks. Whether you are an experienced investor or a newcomer to the Vietnamese market, this comprehensive guide will give you valuable insights into the current investment climate and the opportunities in Da Nang’s high-tech parks.
FDI situation in Da Nang in the first 6 months of 2023
Economic and FDI situation in Da Nang
According to the Director of the City Statistics Department, for the first 6 months of 2023, Da Nang’s economy ranks third among the five centrally administered cities in terms of growth rate, which is estimated at 3.74% for the first 6 months of the year. The city’s gross domestic product (GRDP) has risen by 3.74% compared to the same period in 2022, and by 13.48% compared to the first 6 months of 2019, before the COVID-19 pandemic.
Regarding foreign direct investment (FDI) attraction, Da Nang has attracted 64 new FDI projects with a total registered capital of 10.6 million USD, an increase of 45 projects and 47% of the capital compared to the same period last year. The total capital registered in Q2 of 2023, including new and additional capital, was 27.31 million USD, which was 60.7% of the amount registered in the same period in 2022.
Additionally, 18 foreign investors participated in capital contribution and share purchase with a total value of 2.77 million USD. There were also 20 FDI projects that adjusted their capital, with an additional investment of 13.94 million USD.
High-tech parks in Da Nang
According to the Management Board of Da Nang Hi-Tech Park and Industrial Parks, Da Nang Hi-Tech Park has a total planned area of over 1,128 hectares (ha), divided into six functional sections: Production (202.58 ha), R&D (99.93 ha), Logistics - logistics - CNC service (27.45 ha), Residential (31.4 ha), Focal technical infrastructure (9.75 ha) and Administration (28.35 ha).
Source: Internet
This place has attracted 29 FDI projects with a total 905 million USD investment by the end of Q1 of 2023. The current occupancy rate in the Hi-Tech Park is 44%, with 58% in the production section, 76% in the logistics, logistics and high-tech services section, and 5.5% in the research, development, training and business incubation section.
Government initiatives on high-quality FDI projects in the high-tech parks in Da Nang
Da Nang Central Government Objectives and Directions in attracting high-quality FDI projects in high-tech parks.
According to Resolution No. 43-NQ/TW on Da Nang construction and development until 2030, with a vision to 2045, the city aims to become a smart eco-city, a hub for entrepreneurship and innovation, as well as a livable coastal city at the Asian level.
Da Nang City People's Committee approved Decision No. 3395/QD-UBND promulgating "Project on promoting investment attraction in Da Nang city in the period of 2021-2025, vision to 2030”. The project targets to attract registered investment capital of about 3 billion USD for the 2021-2025 period, and about 4 billion USD for the next 5 years. Following the project plan, it is also expected that by 2025, 50% of the enterprises will make use of modern management, environmental protection, and high technology. By 2030, this proportion is expected to reach 100%.
To reach such goals, Da Nang is keying on developing three main pillars: Tourism, High-tech Industry and Marine Economy, and five key areas: Tourism and high-quality services linked to resort real estate, Seaports and airports linked to logistics services, High-tech industry linked to creative and start-up urban construction, and the information technology, electronics and telecommunications industries linked to the digital economy.
The city sees attracting investment in the hi-tech park as the core driving force for creating breakthroughs and making a key contribution to Da Nang’s economic development. We expect Da Nang Hi-Tech Park to contribute at least 10-15% to the overall economic output during the 2025-2030 period.
Mr. Le Trung Chinh - Da Nang City People’s Committee Chairman
Particularly, Da Nang Hi-Tech Park focuses on attracting investment from leading technology groups in production chains, prioritizing large-scale projects with investment rates of 15 million USD/ha or more.
The city leaders are determined to continuously create and improve a favorable business and investment environment for investors to do business and grow. We believe that the city’s success depends on the success of businesses and investors.
Mr. Le Trung Chinh.
Initiatives on high-quality FDI projects in high-tech parks in Da Nang
According to Mr. Vu Quang Hung - Head of the Management Board of Da Nang Hi-Tech Park and Industrial Parks, the city has separate policies to support investors in addition to the national policies. The city also prepares urban-level social infrastructure for foreign investors who invest in Da Nang Hi-Tech Park.
Improvement of the effectiveness and efficiency of investment management and supervision;
Renovation and improvement of investment promotion activities;
Promotion of administrative reform.
In addition, the approval for Da Nang to apply all mechanisms and policies specified in Decree No. 94/2020/ND-CP for the National Innovation Center is also suggested.
Regarding tax incentives, for new investment projects, technology enterprises in Da Nang Hi-Tech Park enjoy an income tax rate of 10% for 15 years. Meanwhile, new investment projects with a capital scale of 3,000 billion VND or more are entitled to a 10% preferential tax rate for up to 30 years. Technology enterprises also get an income tax exemption for 4 years and a 50% reduction in tax payable amount for the next 9 years.
Businesses and investors will also be exempt from tax on goods imported to create fixed assets in high-tech park projects namely machinery, components, means of transport, construction materials, among others. Along with that, import tax is exempt for a period of 5 years if investors import raw materials, supplies and components that have not yet been produced at home, or imported for production of investment projects in high tech parks.
Additionally, the Prime Minister’s Decision No. 66/2014/QD-TTg and the Government’s Decree No. 111/2015/ND-CP specify the list of industries and trades that are prioritized for investment to Da Nang Hi-Tech Park. Specifically, 6 following industry groups are given priority for investment in the high-tech parks:
Information technology, the media, computer software
New material technology, nanotechnology, new energy
Automation and precision mechanics
Environmental technology, petrochemical technology and some other special technologies
Biotechnology for health, agriculture and fisheries
Technology of microelectronics, mechatronics, optoelectronics
The management board always supports the business. We will stand by them when they come to do the investment procedures, walking them through each step of the process. We will provide the highest level of support in making the application dossier and issuing investment certificates as fast as possible.
Mr. Vu Quang Hung
Similarly, the City People’s Committee has decided to reduce the processing time by 25% (currently 11 working days) to make it easier for organizations and individuals, foreign investors and foreign-invested enterprises in obtaining and making amendments to the Investment Registration Certificate.
How to invest in high-tech parks in Da Nang
Source: Management Board of Da Nang Hi-tech Parks and Industrial Parks, designed by Viettonkin Consulting
Final Thoughts
To sum up, Da Nang's high-tech parks present a compelling opportunity for foreign investors looking to capitalize on Vietnam's growing economy. With the government's updated initiatives and unwavering support for high-quality FDI projects, the city is poised to become a hub of innovation and business excellence.
To not only explore the potential of Vietnam but also Da Nang and other regions, along with gaining deeper insights into navigating the investment landscape, we invite you to join our upcoming webinar, "Unlocking Business Opportunities in Vietnam". Our panel of experts will share the latest Vietnamese Market Regulations, Policies, and FDI trends to help you make informed decisions and maximize your investment potential.
Don't miss this chance to connect with industry leaders, network with like-minded professionals, and gain a competitive edge in the Vietnamese market. Reserve your spot today by visiting our LinkedIn or contacting our team directly. Together, let's embark on the prosperous journey into Vietnam!
Remember, the future of venturing into Vietnam awaits – and we are here to guide you every step of the way.
Vietnam is emerging as a prime destination for foreign direct investment (FDI), driven by rapid economic growth, favorable government policies, and an investor-friendly business environment. This eBook provides a deep dive into Vietnam’s economic landscape, highlighting key industries such as manufacturing, real estate, and digital banking that attract FDI. It also explores the government’s proactive measures to streamline investment procedures, improve infrastructure, and offer tax incentives for foreign enterprises. Additionally, it covers crucial insights into market entry strategies, regulatory requirements, and socio-cultural factors that influence business success in Vietnam.
Download the eBook now to gain expert insights into successfully navigating Vietnam’s dynamic investment landscape!
Vietnam is emerging as a prime destination for foreign direct investment (FDI), driven by rapid economic growth, favorable government policies, and an investor-friendly business environment. This eBook provides a deep dive into Vietnam’s economic landscape, highlighting key industries such as manufacturing, real estate, and digital banking that attract FDI. It also explores the government’s proactive measures to streamline investment procedures, improve infrastructure, and offer tax incentives for foreign enterprises. Additionally, it covers crucial insights into market entry strategies, regulatory requirements, and socio-cultural factors that influence business success in Vietnam.
Download the eBook now to gain expert insights into successfully navigating Vietnam’s dynamic investment landscape!
Founded in 2009, Viettonkin Consulting is a multi-disciplinary group of consulting firms headquartered in Hanoi, Vietnam with offices in Ho Chi Minh City, Jakarta, Bangkok, Singapore, and Hong Kong and a strong presence through strategic alliances throughout Southeast Asia. Our firm’s guiding mission is aimed towards facilitating intra-ASEAN investments and connecting investors in Southeast Asia with the rest of the world, thus promoting international business relationships and strengthening inter-nation connections.
