Great Choices in Da Nang's Industrial Parks

Da Nang city now has five industrial parks (IP) with total areas of 1,400.3 hectares, accommodating 189 local businesses, which have total registered capital of VND7,481 billion, and 35 foreign-invested enterprises with combined capital of US$197.15 million.

Favourable investment environment

Da Nang city has favourable conditions to become one of the top industrial, trade and tourism centres in Vietnam and Southeast Asia thanks to its historical traditions, large population, advantageous geographic location and good communication infrastructure, including an international airport and a deep seaport. Da Nang also plays a key role as a gateway to the South China Sea for the East-West Economic Corridor and lies near the Dung Quat Oil Refinery.

Infrastructure of Da Nang city satisfies the demand of investors. With Da Nang international airport and its system of seaports, investors will be assured of scheduled exporting and importing of their goods. Furthermore, the system of roads and railways in the central city are often upgraded, helping investors reduce the transporting time from Da Nang to other localities in Vietnam, Thailand and Laos. In addition, the post and telecoms system and the finance system, including domestic, foreign and joint venture banks, investment consulting companies and auditing firms, are unceasingly invested in to meet the demand of investors.

Fast investment procedures

To create more favourable conditions for investors, Da Nang City set up the Management Board of Industrial Parks and Export Processing Zones (DIEPZA) under Decision 548/TTg, dated September 7^th 1995, by the Vietnamese Prime Minister. Accordingly, DIEPZA is the only state body authorised to assist local and foreign entrepreneurs investing in industrial parks in Da Nang. DIEPZA’s major tasks include supporting and promoting investment in industrial parks. The management board is also in charge of liaising with investors, guiding them in investment procedures, providing information and helping them prepare feasibility studies. DIEPZA receives and examines investment applications, and grants licences for local and foreign-invested projects in the city.

Special investment incentives

When investing in Da Nang, Hoa Khanh, Lien Chieu and Service & Fisheries industrial parks in the central Da Nang City, investors will enjoy an exemption from corporate income tax (CIT) for the first two years, and a CIT reduction of 50 per cent for two or three years following. Furthermore, investment in Hoa Cam Industrial Park, will attract a CIT tax exemption for the first two or three years and a reduction for six to eight following years. Enterprises in those industrial parks will be also free from import taxes on goods used as fixed assets. Other equipment, machines, and special-use vehicles are also exempt from import taxes. Moreover, materials for manufacturing equipment and machines which will be used in production lines, will benefit from duty-free imports. In addition, when investing in industrial parks in Da Nang, investors are also exempt from land rentals for three to 13 years.

• Le Hanh