The Authority of the Da Nang Hi-tech Park and Industrial Zones (DHPIZA) is implementing many solutions to attract investors to the Hi-tech Park, thereby creating spillover power and connecting with modern manufacturing industries.

Workers are at work at the ICT Vina Company Limited located in the Da Nang Hi-tech Park, Hoa Vang District, Da Nang. Photo: M.Q

A positive signal in mid-October was that the Da Nang Hi-tech Park successfully attracted a large project in the technology field. As reported by Mr. Vu Quang Hung, the Head of DHPIZA, Foxlink International Investment Ltd. (Taiwan, China) invested in the Foxlink Da Nang electronics factory project in the Da Nang Hi-tech Park with a total investment capital of US$135 million, reaching an investment rate of 11.8 million USD/ha and a land area of 11.35 ha.

The project has the goal of manufacturing styluses, wireless earphones, battery packs, chargers, and electronic printed circuits. It is expected that when put into operation, it will create jobs for nearly 2,000 people.

Another investor in the Hi-tech Park, the Long Hau Joint Stock Company, has deployed 4 factories covering a total area of more than 20,000m², of which two factories are rented by 2 Japanese investors and they have deployed production and exported their products.

The renting negotiation process is underway for the remaining two, thereby hoping to create more momentum to attract more investment to the Da Nang Hi-tech Park.

According to Mr. Bui Le Anh Hieu, the Director of Business Marketing of Long Hau Joint Stock Company, at the end of April 2023, the Da Nang Investment Promotion and Support Board, the DHPIZA and the Long Hau Joint Stock Company signed a memorandum of cooperation on strengthening promotion and attracting investment in the Da Nang high-tech field.

According to the memorandum of understanding (MoU), on its part, the Long Hau Joint Stock Company will introduce the Da Nang Hi-tech Park to domestic and foreign investors, connect and cooperate with domestic and foreign organisations, associations, and business associations to build effective information channels on the investment environment and investment promotion activities in the Hi-tech Park.

“Since the MoU was signed, the Long Hau Joint Stock Company has increased its organisation and participation in investment attraction activities at fairs and exhibitions on supporting industries, and especially make connections with investors from Japan, the United States and other countries with priority given to introducing Da Nang High-Tech Park to partners and businesses that are interested in doing business in Da Nang”, Mr. Hieu said.

According to DHPIZA, in the first 9 months of 2023, the Da Nang Hi-tech Park attracts 2 domestic projects with a total registered capital of VND350 billion and one FDI project worth US$135 million. Accumulated to date, the Da Nang Hi-tech Park has attracted 28 projects, of which 16 are domesticially-invested with a total registered investment capital of more than over US$7 billion and the remainder are foreign-invested with a total registered investment capital of more than US$702 million.

Attracting investment into high-tech projects aims to create spillover power and boost modern production connections. Engineers are seen at the Universal Alloy Corporation Vietnam Co., Ltd. Photo: M.Q

In a bid to promote investment attraction, the DHPIZA issued a notice on issuing a list of projects calling for investment in the Da Nang Hi-tech Park in 2023. Accordingly, the DHPIZA is calling for investment flows in 3 sub-zones: high-tech manufacturing; research - development, training and business incubation; logistics and high-tech services.

The general criterion is to prioritise attracting projects with technology consistent with Decision No. 2117 dated December 16, 2020 by the Prime Minister promulgating a list of priority technologies for research, development and application to proactively participate in the Industry 4.0.

Specifically, the investment rate in the high-tech production zone reaches a minimum of US$15 million/ha whilst at least US$5 million/ha is applied for research - development, training and business incubation zones reaches, and least US$10 million/ha is set for logistics, and high-tech services.

Investors are entitled to incentives under Decree No. 04 dated January 4, 2018 of the Vietnamese government stipulating preferential mechanisms and policies for the Da Nang Hi-tech Park.

Accordingly, businesses will be exempt from tax for the first four years, receive a 50% tax reduction for the next nine years and enjoy preferential tax rate of 10% for a period of 15 years, along with being eligible for full exemption from import taxes on machinery, goods, equipment to create fixed assets.

DHPIZA is, for the time being, focusing resources on completing the technical infrastructure of the Da Nang Hi-tech Park in a synchronous and modern direction, complete the site clearance work on the entire area of Phase 3 of the Park development.

In addition, based on the land use forecast of the adjusted Da Nang Master Plan for its development by 2030, with a vision towards 2045, the DHPIZA will conduct research on plans to expand the Park.

At the same time, the DHPIZA will continue to work with the Da Nang Investment Promotion and Support Board to promote investment promotion activities, especially in key markets, in tandem with prioritising attracting large hi-tech projects with a scale of over US$100 million worth of investment capital.

“The DHPIZA always helps investors from the meeting until the application submission stages. In order to support investors and businesses, in mid-October, we started the construction of the DHPIZA Business Lounge - a shared working space with full amenities and services necessary for reception and dialogues with investors and businesses at the headquarters of the DHPIZA at Lot A17, the Da Nang Hi-tech Park and this facility is expected to be completed in November 2023, thereby enhancing the ability to provide public services to investors and businesses in an effective manner”, Mr. Hung said.

Reporting by MAI QUE - Translating by A.THU