Since its establishment, the Da Nang Hi-Tech Park and Industrial Zones Authority (DHPIZA) has proven to be an effective operator of industrial parks in Da Nang City and a key facilitator of investment promotion. Mr. Vu Quang Hung, Director of DHPIZA, stated, "The authority is committed to positioning Da Nang as a premier destination for both domestic and international investors. Our goal is to drive the scientific and technological advancement of Da Nang City and the Central Coast - Central Highlands region, with a vision toward developing eco-industrial parks of the future."
Could you please tell us about remarkable investment attraction results of Da Nang City-based high-tech parks and industrial parks that helped create a new atmosphere and new momentum for the city?
Currently, the authority is contacting many potential investors to persuade them to invest in the city. In 2023 alone, the agency granted investment licenses/approvals to 19 projects in Hi-tech parks and industrial parks, including five foreign direct investment (FDI) projects with US$156.43 million and 14 domestic projects with VND2,490.8 billion (US$100 million). Specially, Foxlink International Investment Ltd, a member of Taiwan-based Foxlink Group, registered to invest US$135 million in Foxlink Da Nang electronics factory project.
To date, Da Nang City has attracted 524 investment projects in high-tech parks and industrial parks, including 399 domestic investment projects with VND34,346.5 billion (US$145 million) and 125 FDI projects with US$2.07 billion. The aggregate registered investment capital was about US$3.4 billion. High-tech parks and industrial parks are employing 59,615 workers, with 58,036 workers industrial parks (accounting for 97.5%).
What makes the "appeal" of Da Nang Hi-Tech Park to investors?
Four outstanding advantages make the allure of Da Nang Hi-Tech Park to investors. First of all, it has convenient air, waterway, road and rail traffic. Along with its development orientation, high technology is one of three pillars of Da Nang's development to 2030, with a vision to 2045, and the municipal government is resolved to focus on mobilizing all resources to build and develop Da Nang Hi-Tech Park into an international, highly competitive creative science and technology urban area. By 2030, Danang Hi-Tech Park will be developed in sync with Hoa Lac Hi-Tech Park and Saigon Hi-tech Park to become a development nucleus of the Central Coast - Central Highlands regions.
One thing that cannot be ignored is the ready technical infrastructure of Da Nang Hi-Tech Park for manufacturing investors. The power supply system uses a 110/20kV, 40MVA transformer station connected to the national power grid via a 110/20kV line. Water is supplied by Hoa Trung water plant with a daily capacity output of 20,000 cubic meters. Wastewater treatment facility with a daily capacity of 4,500 cubic meters (phase 1) is expected to reach a maximum capacity of 18,000 cubic meters when completed. The road system in the park is built in a checkerboard pattern to smoothen traffic and transportation. Fire protection systems are arranged in appropriate distances. The telecommunications system is formed with an underground fiber optic cable line from the city center. Overall, Da Nang Hi-Tech Park has an environmentally friendly ecosystem with many trees and a nice-looking landscape.
Tenants in Da Nang Hi-Tech Park are entitled to incentive policies and outstanding investment support. Specifically, they enjoy a corporate income tax of 10% for 15 years, with the time extended to 30 years for large projects with over US$130 million of registered investment capital. They are exempt from tax in the first four years and a 50% reduction in the next nine years. Regarding incentives on land rent, during the construction period, they are exempt in at most three years from the decided date of land lease. In addition, land rent is exempt for projects throughout its lifetime, in 19 years or 15 years, depending on their objectives. In particular, production projects with technology and products suitable for the list of high-tech technologies prioritized for development and high-tech products encouraged for development according to Decision 38/2020/QD-TTg will be exempt from land rent for their operational time (up to 50 years).
Additionally, tenants will enjoy import duty incentives for commodities used to create fixed assets, goods and documents specifically used for scientific research and incubation and input materials and components that cannot be produced domestically; or preferential investment loans and worker support in which workers are helped to get multiple entry and exit visas with appropriate durations.
How has the authority focused on investment promotion and enhanced business connection and exchange?
The Da Nang Hi-Tech Park and Industrial Zones Authority advised the Da Nang People's Committee to launch a project to connect Da Nang Hi-Tech Park with tenants in industrial parks and economic zones in the central region in 2021 - 2025 and further to 2030. Regarding technology transfer, the authority has proactively contacted businesses in training and digital transformation in management and operations. The agency has also integrated it into investment promotion activities to strengthen existing business linkage with potential investors and effectively attracted investors for new industrial parks (Hoa Cam – Phase 2, Hoa Ninh and Hoa Nhon).
The Da Nang Hi-Tech Park and Industrial Zones Authority worked with the Quang Nam Economic Zone Authority, the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority, the Management Board of the Saigon Hi-Tech Park, the Hai Phong Economic Zone Authority and other agencies to exchange and cooperate in investment attraction. The agency supported promoting brands and products of local companies to domestic and international friends; gradually implemented the Smart City Development Project in the Hi-Tech Park, with focus on developing and managing technological infrastructure in management; launched a sector-specialized database system; operated the "Digital map application for tenants in high-tech parks and industrial parks on Google Maps” with online survey and reporting functions. And, the agency will continue to upgrade them in 2024 - 2025.
Da Nang will continue to speed up administrative reform, with focus on digital transformation, simplification and increased support to reduce the cost burden on businesses. What are the specific activities of the Da Nang Hi-Tech Park and Industrial Zones Authority?
The Da Nang Hi-Tech Park and Industrial Zones Authority will continue to accelerate administrative reforms in such fields as digital transformation and procedural simplification. Hence, electronically submitted applications increased from only 56% in 2022 to 100% from 2023. The authority will mine business database to replace business registration certificates from 2021, enabling tenants not to have to submit documents issued by it. The agency launched the digital map in 2022 and started exchanging with businesses and investors on central and local policies through its official Zalo account.
Thus, the authority has adopted many solutions to attract investors, to create spillover effects and connect modern manufacturing industries. On this journey, the most important thing today is the understanding and companionship of the government with businesses as well as support policies for industrial companies to access unsecured loans with stable interest rates.
In the future, we will strive to build an industrial ecosystem, with a harmonious combination of research - development, training and production with the living environment and sociocultural environment, all for the future development of the amazing city of Da Nang!
Thank you so much!
By Binh Minh, Vietnam Business Forum
Vietnamese
