Vietnam - A promising destination investment | Chapter 2: Da Nang

1. A promising investment destination
Chapter 2

2. TABLE OF CONTENTS
I. OVERVIEW
II. WHY DA NANG?
III. DA NANG HI-TECH PARK
IV. DA NANG IT PARK

3. I. OVERVIEW
1. Da Nang – The Driving force of central key economic zone.
Total area Population GRDP/capita
1,285 Km2 1.1 Million 4,095 USD
FDI Projects Total registered investment capital
813 3.47 Billion USD
Japan is the biggest foreign investor in Da Nang
Project Revenue Jobs
200 900 Million USD 20,000
Manufacturing 1
Services & Real Estates 2
Information Technology 3
Education 4
Key
Industries

4. 2. Strategic market access.
ACCESSIBLE – STRATEGIC - IDEAL
The location of Da Nang, combined with a strong
physical infrastructure, makes it a smart location
for business destination.
• Connecting to Asia via sea and air ways
• Connecting to East Asia, South East Asia, Idian
Ocean via East-West Economic Corridor
(EWEC)
• EWEC is the 1,450 km route linking the Pacific
Ocean and the Indian Ocean
STRATEGIC DISTRIBUTION MANUFACTURING HUB
• Hub for distribution to Central Vietnam
• Easy access to North and South Vietnam
3. Developed infrastructure.
Da Nang international airport is the
largest airport in central Vietnam.
Tien Sa Port is the largest container
port in Central Vietnam.
Industrial infrastructure is
well-developed.

5. 4. A qualified workforce.
581,400 (51% population)
• Population growth rate: 2.54%, expected to
reach 2 million in 2030
• Labour supply arriving from other Central
provinces
• Tech workforce is growing
• Stable (low turnover rate, almost no strike, <1%)
University,
college graduates
Technical workers
Professional secondary
school graduates
Others
21%
33%
16%
30%
17.07%
48.81%
1.6%
32.52%
QUALIFICATIONOF
WORKFORCEINDANANG(2018)
FORECASTOFWORKFORCE
QUALIFICATIONIINDANANGBY2020
5. A peaceful living environment.
• Green, clean, safe and friendly city
• No traffic jams, almost no natural disasters
• Reasonable cost of living compared to other
cities
• High-quality, international standard hospitals,
schools, recreation centers,…

6. 6. A pro-business environment.
• E-Government
• Administrative reforms
• Regular dialogues between city leaders and
businesses
• One-stop service for investors at IPA Da Nang

7. 7. Vision 2045.
5Key development sectors
Tourism and high
quality services
associated with real
estate and resorts
Seaports and
airports
associated with
logistics services
High-tech industry
associated with
smart city and
start-ups
Information
technology industry
associated with
digital economy
High-tech
agricultural and
fishery products
3Main pillars
Encouraged investment sectors
4 ICT
Hi-tech
Industries
Supporting
industry
Education
Healthcare
Marine
Economy
High-tech
Industry
Tourism
and high-
quality
services

8. Located at the heart of Central Vietnam and the crossroads of the north-south trading
routes, Da Nang provides easy access to the country’s largest market such as Ho Chi Minh
City and Hanoi, all within an hour flight radius.
II. WHY DA NANG?
AT THE HEART OF CENTRAL VIETNAM
1
Da Nang’s workforce, accounting for nearly 50% of the City’s population, is young, dynamic
and well-trained.
TALENT
Da Nang offers one of the most developed business infrastructure in the Central region. The
City’s international airport, deep-water seaport and road networks offer unparalleled
connectivity for both passengers and cargo, facilitating economic activities, investment
and tourism on national – and regional-scale in addition, Da Nang’s advanced telecoms
infrastructure allows users to work at very affordable rates.
ADVANCED INFRASTRUCTURE
The business climate and policies have been continually improved to offer the best
conditions to investors.
PRO-BUSINESS ENVIRONMENT
Da Nang is a young and vibrant city, a great place to live and work. Excellent world-level
schools, decent healthcare facilities, a fascinating culture, green and clean environment all
combine to offer expatriates one of the best living experiences in Vietnam.
PEACEFUL LIVING ENVIRONMENT
2
3
4
5

9. III. DA NANG HI-TECH PARK
1. Location.
1stHi-tech
park in Central
region
On the Da Nang –
Quang Ngai highway,
connecting other
economic zones in Thua
Thien Hue, Quang Nam,
Quang Ngai
DANANGHI-TECHPARK
Lien Chieu Port 5 km
Tien Sa Port 25 km
City Center 22 km
Da Nang Airport 17 km
2. Master Plan.
7Functional areas
Hi-tech
production
184.02 ha
Logistics
and hi-tech
services
28.15 ha
Admin area
41.92 ha
Green area,
parks and
sports
facilities
56.92 ha
R&D,
training and
enterprises
incubation
95.26 ha
Supporting
industries
area
30.76 ha
Technical
infrastructure
7.17 ha

10. 3. Factories inside Da Nang Hi-tech Park.
Lot Area Construction area Green area Road area
J2 4.62 ha 2.150 – 2.778 ha ≥ 0.463 ha 1.386 ha
J3 8.38 ha 4.190 – 5.028 ha ≥ 0.838 ha 2.514 ha
J4 11.00 ha 5.941 – 6.600 ha ≥ 1.100 ha 3.300 ha
J5 4.90 ha 2.663 – 2.940 ha ≥ 0.490 ha 1.470 ha
11.69 ha 8.36 ha 9.55 ha
Total area: 29.60 ha
04 06
Subvisions Factory blocks
18
Built factories

11. 4. Infrastructure.
POWER SUPPLY
110/220 kV transformer station
(capacity: 40 MVA)
IT & TELECOMMUNICATION
• High quality transmission line
• Ensure the smooth connection and
information security
• The water source for DHTP is supplied
from the Hoa Trung Lake water plant
(capacity: 10,000m3/day)
• In the initial stage, the water will be
temporarily supplied from the
pipeline on the South Hai Van – Tuy
Loan by pass road
WATER SUPPLY
• The wastewater treatment plant of
DHTP is under construction Capacity:
18,000m3/day
• Module 1 (4,500m3/day) has been
put into operation
WASTEWATER TREATMENT

12. 5. Prioritized industries.
1 2 3
4 5 6
Microelectronics,
mechatronics and
opto-electronics
Biotech ICT
Automation,
precision
machanics
New energies,
nano tech, new
materials
Tech applied for
petrochemistry and
other special
industries
6. Current investors.
17projects
09 domestic projects: 5,272 billion dongs
08 FDI projects: 330 million USD

13. 7. Investment incentives.
10% Tax exemption for the first 4 years
Tax reduction of 50% for the nest 9 years
Projects from 132 million USD
10% for 30 years
For 15 years
LAND RENT
• Hi-tech application and
production in the list
regulated by the Prime
Minister
• Manufacturing hi-tech
supporting product
• Hi-tech incubation,
enterprise incubation
• R&D, venture capital
• Human resources training
institution, etc
• Fairs, exhibitions,
supermarkets and
shopping malls
• Logistics, warehouses
(bonded warehouse, tax
suspension warehouse
• Sport centers
• Construction and
commercial operation
of infrastructures
• Healthcare, cultural
activities and other
services related to
residents life in DHTP
Exempt for the whole project life
Exempt 19 years Exempt 15 years
TAX
INFRASTRUCTURE USE
Projects in R&D, incubation
and training
Projects in the list of hi-tech
products & technologies
encouraged to develop
Projects in supporting
industries
The first 2 years
Off 100%
The first 2 years
Off 50%
The first 2 years
Off 100%
3 years
Off 50%

14. 8. Investment costs.
Land rents Site clearance
Infrastructure
using fee
Wastewater
treatment fee
Minimum salary Power supply Water supply Internet, tv, gas,…
Depend on the
suppliers
(~0.417 USD/m3)
(~0.708 USD/m3)
Production
Services
(~0.042 – 0.133 USD/
kWh)
(~0.059 – 0.199 USD/
kWh)
Production
Services
~157
USD/m2month
~0.773 USD/m3
(provisional price)
~0.259 USD/m2/year
(provisional price)
1.3 USD/m2
(~0.6 – 1.1
USD/m2/50 years
(~0.78 – 1.38
USD/m2/50 years)
Production
Services
1 USD ~ 23,330 VND

15. 9. Incentives for supporting industry.
TAX INCENTIVES
Corporate income tax 10% For 15 years
Import tax Tax exemption for goods imported to create fixed assets of the projects.
(Decree No. 111/2015/ND-CP of Government)
Incentives for SMEs investing in supporting industry products in Ips and clusters
Infrastructure usage fee Wastewater treatment fee
(Decision No. 34/2016/QD-UBND dated 01/11/2016 by
Da Nang PC)
The first 2 years
Off 50%
The first 2 years
Off 50%

16. 1. IT park master plan.
IV. DA NANG IT PARK
Functional areas
Office area
87,320 m2
R&D,
technical,
training,
incubation
area
217,464 m2
Residential
area
187,471 m2
Mixed area
666,268 m2
Manufacturing
Area
745,619 m2
5
2. Infrastructure.
TRANSPORT
30 – 40m wide Central road
15.5m wide grid roads in functional areas
POWER SUPPLY
The 110/220kV transformer station
WATER SUPPLY
Supplied by Da Nang city
WASTEWATER TREATMENT
Main drainage system of Da Nang Hi-tech Park
TRANSPORT
Available international direct-dial telephone,
facsimile, broadband and data transmission
services, wireless and underground fiber -
optic facilities

17. 3. Prioritized industries.
1 2 3 4
Software
products
IT services Digital
products
Hardware
products and
services
4. Investment incentives in IT park.
10%
TAX
INFRASTRUCTURE USE
Projects in R&D, incubation
and training
Projects in manufacturing
industry (Group VI)
Projects in supporting
industries
The first 2 years
Off 50%
The first 2 years
Off 50%
The first 2 years
Off 100%
3 years
Off 50%
• 10% for 15 years (up to 30
years)
• Tax exemption for the first 4
years
• Tax reduction of 50% for the
next 9 years
• Import duty exemption for equipment
and machinery imported as fixed assets
• Export duty exemption for information
technology products and services
LAND RENT
Exemption from 5 to 50 years depending on type, size,
lifetime of the investment

18. 5. Incentives for software export.
SALE & PROMOTION
• Subsidy for 100% of registration costs of software copyright protection domestically
• Support in attending international expos
LABOUR TRAINING
• Subsidy for 30% of initial training expense
• Subsidy for CMMI level 3 development
INFRASTRUCTURE
• 20% off office rental in Da Nang software park
• 30% off website hosting fees
• 20% off server leasing fee, MAN leasing fee, data storage fees, data security fees
• 20% off common infrastructure usage fees
1
2
3
6. Investment costs.
Land Lot Ready-built Facility
(Trung Nam Land
Building)
Price (provisional price) 0.5 – 1 USD/m2/year 6 – 8.5 USD/m2
Minimum area 5000 m2 100 – 400 m2
Leasing tern 44 years maximum 2 years minimum
Payment method Flexible Every quarter

19. CONTACT US
7th Floor, Rural Today Newspaper Building, Lot E2,
Duong Dinh Nghe Road, Cau Giay District,
Hanoi, Vietnam.
No 4, Nguyen Thi Minh Khai Road, Da Kao Ward,
District 1, Ho Chi Minh City, Vietnam
3B Cluster, 1 Quarter, Hong Ha Ward, Ha Long City,
Quang Ninh Province, Vietnam
HANOI
HOCHIMINH CITY
QUANG NINH
www.asialegal.vn
+84 24 2269 3399
info@asialegal.vn
+84 84 400 8484

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