The national government-approved Decree No 04/2018/ND-CP regulating preferential mechanisms and policies for the Da Nang Hi-Tech Park will officially take effect from 20 February.

An artist's impression of the park

In particular, new investment projects in the park will enjoy an incentive corporate income tax rate of 10% in 15 years.

Any new project with a total investment capital of 3 trillion VND (over 132 million USD) or above will enjoy a rate of 10% for a period of 30 years.  In addition, these projects will be entitled to corporate income tax exemption for 4 first years of their operation, and a 50% tax reduction for 9 subsequent years.

Especially, investors will enjoy land lease fee exemptions over the whole life of their projects which use land to develop civil engineering and technical infrastructure works, tree planting areas, public parks, facilities for State-owned agencies, hi-tech human resource training centres, accommodations for experts and employees working in the park, and other projects involved in a list of priority aspects.

Further preferential policies and investment support mechanisms are available at http://baodanang.vn/english/business/201801/preferential-mechanisms-for-citys-hi-tech-park-2585956/.

Addressing at Wednesday’s press conference on the Decree, the Head of the Da Nang Hi-tech Park Authority, Mr Phung Tan Viet, remarked that the Decree 04 is an important mechanism enabling the Park to attract even more domestic and foreign investment inflows. 

It is clear that, as stipulated in the Decree, some investment incentives regarding corporate income taxes, compensation, site clearance and many other issues are even better than those applied for similar venues in Ha Noi and Ho Chi Minh City.

Mr Viet noted that, to be eligible to operate in the city’s Park, new projects are required to meet the criteria set by the Authority in terms of production technologies, products, and research and development activities.

With regard to the city’s own investment attraction policies, the Park’s Deputy Head, Mr Doan Ngoc Hung Anh, remarked his unit has become actively engaged in assisting businesses in completing their administrative procedures in a bid to help them save time and expenses.

Notably, work is expected to start on the construction of research and development (R&D) and business incubation centres in the Park in the coming months.

Special attention will be paid to realising a series of already-signed Memoranda of Understanding (MoU) between the Authority of the Da Nang Hi-tech Park and universities from both home and abroad. 

Under these agreements, mutual cooperation programmes on training human resources, R&D and hi-tech business incubation activities will be deployed so as to implement effectively the strategies for ensuring the sustainable development of the Park in the years ahead.

Currently, employees and workers at the Park are enjoying subsidised bus fares, and by late this year, a new bus route linking the city centre with the Park will have been put into operation.

According to the Authority, the Park is aiming attract 4 or 5 new investment projects by the end of this year with a total investment capital of between 70,000 and 80,000 USD. 

The Authority recently issued action plans to appeal for even more domestic and foreign investment into the venue, in active response for the city’s key campaign ‘The Year of Investment Promotion’.

Established in 2010, the 1,010ha Da Nang Hi-Tech Park in Hoa Vang District is the first of its kind in Central Viet Nam, and the third of its kind in the country after Ha Noi and Ho Chi Minh City.