Danang high-tech park, industrial parks attract $2 bln in FDI

Danang has so far attracted 515 projects to its high-tech park and industrial parks, including 128 foreign-invested ones with registered capital of nearly $2 billion.

The total includes 387 Vietnamese projects with registered capital of VND30,485 billion ($1.3 billion), according to the central city's hi-tech park and industrial zones authority (DHIPIZA).

In 2022, DHIPIZA granted investment certificates to 25 projects - four FDI ones worth $65.34 million and 21 Vietnamese projects worth VND3,952 billion ($168.53 million).

In addition, 94 operational Vietnamese and foreign projects raised their investments by VND804 billion ($34.29 million) and $77.5 million, respectively. Meanwhile, four FDI projects worth $15 million and six domestic projects worth VND65 billion ($2.77 million) were terminated.

The authority continues the zoning of industrial parks and high-tech parks in line with municipal instructions, such as a draft project to transform the Danang Industrial Park into a commercial center called An Don, and a draft plan to establish a commercial center within the Danang aquaculture service industrial park.

New IPs in 2023

DHIPIZA plans to submit a draft plan calling for investment in new industrial parks, namely Hoa Cam phase 2, Hoa Nhon, Hoa Ninh, and Danang Hi-tech Park’s support industry facilities. It seeks to improve land use efficiency and provide land for new investors.

The city is also striving to complete investor selection for infrastructure construction at the Hoa Cam phase 2 Industrial Park, conversion of forest land for approval of infrastructure buildup at Hoa Ninh IP, and planning adjustments for Hoa Nhon IP.

The authority will establish an institute of high technology and innovation, and other policies to aid businesses and laborers.

DHIPIZA offers incentives of low land lease fees and corporate income tax (CIT). Firms are subject to a low CIT rate of 10% for 15 years starting from the first year of revenue generation; tax exemption for four years starting from the first year of taxable income generation, and then a 50% break for nine years.

The land fees are set between $22.4-45.6 per square meter for 50 years for manufacturing projects, and $28.8-58.6 per sqm for 50 years for service projects. Besides, fee exemptions for up to the entire lease period are available for some projects, such as high-tech application regulated by the Prime Minister, venture capital, high-tech incubation, and human resources training institutions.