Da Nang seeks investment in Hi-Tech Park

09:30 | 19/10/2018 Science - Technology

(VEN) - The central city of Da Nang has granted an investment license to a project providing ready-built factories for rent at the city’s Hi-Tech Park in order to draw additional investors to the compound.

da nang seeks investment in hi tech park

An artist’s view of the Da Nang Hi-tech Park

The project, which secured a VND1.05 trillion investment from Long Hau JSC, will begin construction in the fourth quarter of this year. It will offer 29.6 hectares of international-standard workspace for domestic and foreign businesses.

Japan’s Hatsuta Seisakusho company has become the first to sign a factory lease contract for an area of 6,000 square meters, on which it will build a fire extinguisher equipment project with an investment of VND60 billion.

Incentives

Da Nang has designated 2018 as Investment Promotion Year during which it is encouraging quality investment and prioritizing investment in non-polluting industries and industries with a high added value.

In January, Prime Minister Nguyen Xuan Phuc signed Decree 04/2018/ND-CP stipulating preferential policies for the Da Nang Hi-Tech Park. The decree, which took effect on February 20, 2018, provides domestic and foreign investors in the park with incentives in terms of land rent, corporate income tax, import tax, and investment credit.

Enterprises implementing new investment projects in the park pay corporate income tax of 10 percent for the first 15 years, and those with capital of VND3 trillion up pay 10 percent tax only for the first three years. Enterprises in the park are also exempt from taxes on goods imported to create fixed assets in the park. In addition, they benefit from preferential policies on land rent, visas for foreign specialists and other workers in the park, and capital mobilization.

Although the Da Nang High-Tech Park attracted 15 new investment projects this year totaling almost US$390 million in capital and 82 hectares of land, investment in the park remains incommensurate with the government’s incentives and small in terms of scale.

Opportunities

At a recent seminar in Da Nang on improving creativity and startups, and creating a driving force for economic development, Deputy Prime Minister Vu Duc Dam said the government had chosen the Da Nang Hi-tech Park as a pilot zone for startup and innovation development.

Tran Van Son, Director of the Da Nang Department of Planning and Investment said the city would encourage investment in support industries in the Da Nang Hi-tech Park. “Investment licensing procedures in the park are very simple, while many preferential policies are available there. If enterprises are not financially strong, they should enter a joint venture with other companies. The city will create favorable conditions for businesses to invest in the park,” Son said.

Transport routes to the Da Nang Hi-tech Park have been completed, including the Da Nang-Quang Ngai Province highway, while the city is promoting the Lien Chieu Port construction to facilitate investment in the park.

The city leadership expects the park to become an innovation and start-up hub, and a catalyst to the development of Vietnam’s central region including the Central Highlands.

Vu Le