Over recent years, Da Nang has seen noticeably encouraging results from attracting inflows of domestic and foreign investment channeled into the Hi-Tech Park and industrial zones (IZs). 

Prominently, since its inception in 2010, the 8,841 billion VND, over 1,128 ha Da Nang Hi-tech Park has attracted 22 projects, of which 10 were FDI ones totalling over 400 million US$, whilst the rest were domestically invested with a combined total of 6,291 billion VND. Till date, nine of the Park's total registered projects have been put into official operation.

Picture taken at the Hoa Cam IP-based Foster Electronics Company Limited

Head of the Authority of Da Nang Hi-Tech Park and Industrial Zones Pham Truong Son suggested that the Hi-Tech Park’s development orientations ensure three basic components which are closely related to each other. In detail, they are a research and development (R&D) area, a zone for the production of hi-tech products to meet growing demand of domestic and regional industrial, scientific and technological establishments, and a commercial - service area for the commercialisation of technology products, inspection, transaction, trade, technology transfer and the trans-shipment of technology products.

In early 2018, the Da Nang High-Tech Park, along with two others of its kind in Viet Nam, officially received specific mechanisms granted by Viet Nam's national government, with the release of many support incentives for domestic and foreign investors in terms of land rental fees, corporate income taxes, and other outstanding privileges.

In detail, the aforementioned mechanisms serves as a magnet for global insdustrial firms and producers, offering flexible land rent, land clearance, income tax and import tax policies, including land rent exemption for the first three years of operation.

Also, investors in traffic, technical infrastructure and public works, or special investment projects enjoy land-rent exemption for the entire duration of their investment period in the park.

Other incentives offered to investors include a 10% tax rate for 15 years, a four-year tax exemption and a 50% cut in income tax for the following nine years. In particular, investors with projects valued at more than 3 trillion VND (133 million US$) are eligible for a 10 per cent tax rate for 30 years.

The national government-issued decision also states that businesses have to pay no import tax on materials and equipment that are not available in Viet Nam for the first five years of operation.

The park also offers investors a land-rent exemption for the initial construction period of infrastructure, while special listed projects will enjoy land rent exemption for 19 years.

Bustling working ambiance observed at the Tokyo Keiki Precision Technology Co., Ltd. located in the Da Nang Hi-Tech Park

At present, 400ha of rental land in the Park are available for both domestic and foreign investors.

Under the Park’s development orientations to 2030, the top priority will be given to welcoming new projects involved in such aspects as ICT industry, nanotech, biotech hi-tech, and research and development (R&D), with high investment rate, in light of the thriving Fourth Industrial Revolution, or Industry 4.0.

In the coming time, once the Covid-19 pandemic is better controlled worldwide, the Authority of the Da Nang Hi-tech Park and Industrial Zones will effectively organise investment promotion and cooperation programmes in a bid to attract new large-scale FDI projects from South Korea, Japan, Australia, New Zealand, the United States and Southeast Asian countries.

However, local IPs’ investment attraction schemes are still facing many difficult problems. Currently, the occupancy rate of existing IPs across Da Nang reached about 86.45%. The total remaining area that can earmarked for potential investors is about 109.40ha, mainly concentrated in Lien Chieu IP, but land funds are fragmented, scattered and modest.

In an attempt to attract new large-scale domestic and FDI projects, especially hi-tech and environmentally–friendly ones, Da Nang authorities have approved the development of new IPs in the coming times. 

As planned, construction is also expected to commence on the 2^nd stage of the Hoa Cam Industrial Park (IP), and the Hoa Nhon and Hoa Ninh IPs, and the infrastructure development of the Da Nang Software Park No 2, the Da Nang FPT Technological Urban Area (FPT City Da Nang), and hi-tech agricultural areas in the communes of Hoa Ninh, Hoa Phu, Hoa Khuong.

By TRIEU TUNG- Translated by A.T