Da Nang Hi-tech Park- Top Choice for Hi-tech Investors

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Possessing a lot of potential and advantages, actively attracting investment capital with right policies and effective support of local governments, Da Nang City is becoming an attractive investment location for foreign direct investment (FDI) businesses, especially those from Japan, South Korea and Europe. So far, more and more Japanese investors have arrived to study the investment environment and locate their projects in the city. This is a motivation for the Board of Management of Da Nang High-tech Park (DHTP) to focus its resources to attract investors and play a greater role in local socioeconomic development. Vietnam Business Forum interviewed Mr Doan Ngoc Hung Anh, Deputy Director of DHTP. Han Luong reports.Could you briefly introduce DHTP and investment projects in DHTP now?

DHTP was established under the Prime Minister’s Decision 1979/QD-TTg dated October 28, 2010, becoming the third multifunctional national hi-tech park in Vietnam, after Hoa Lac Hi-Tech Park and Saigon Hi-Tech Park. Situated on 1,129.76 ha of land in Hoa Vang District, Da Nang City, DHTP comprises functional areas that create a favourable and attractive environment in both technical infrastructure and investment incentive policy for domestic and foreign organisations, individuals and businesses to conduct research and development, incubate hi-tech, train hi-tech human resources, and provide and supply hi-tech products and services.

The objectives of DHTP are to attract domestic and foreign hi-tech resources, create the growth engine for hi-tech development; associate training, scientific research and technological development with manufacturing, business and services; promote technological innovation, technological incubation and hi-tech enterprises incubation and develop scientific and technological market; create and promote hi-tech industries, dramatically contributing to the enhancement of economic effect and the competitiveness of products and services in Da Nang City, Central Coast, and Central Highlands.

Since early 2013, the DHTP Management Board received and worked with nearly 100 domestic and foreign delegations exploring the investment environment in DHTP. Many investors came from Japan, South Korea, Germany and France. Visiting companies were reportedly engaged in precision engineering, information technology, computer software, new energy, new materials, and other fields.

To date, DHTP granted investment certificates to three projects, including two wholly Japanese-invested projects, namely Tokyo Keiki Precision Technology and Niwa Foundry Vietnam. With a combined investment capital of US$70 million, both projects are specialised in precision engineering. In September 2014, Tokyo Keiki Precision Technology broke ground to build its factory in DHTP and expected to bring it into official operation in May 2015. Niwa Foundry Vietnam commenced construction in March 2015. President Tatsomi Niwa of Niwa Foundry Japan stressed that, in spite of existing difficulties, the company was confident that DHTP will develop with a lot of outstanding advantages over other places in Southeast Asia. Hence, the company chose Vietnam and DHTP for its investment location.

Currently, the Management Board is considering and examining some investment projects on solar energy, new materials and information technology.

As the third national multifunctional high-tech park in Vietnam, what are advantages and disadvantages of DHTP?

As the third national multifunctional high-tech park in Vietnam, what are advantages and disadvantages of DHTP?

Aimed to become a high-tech centre in Vietnam, DHTP now has many advantages as well as difficulties and challenges. Established later than Hoa Lac Hi-tech Park and Saigon Hi-tech Park, DHTP has learned much from the construction and development experience of the two forerunners.

DHTP Project drew the attention, guidance and support of both central and local authorities. For Da Nang City, DHTP is one of 10 key projects. High-tech development is defined as one of five strategic breakthrough directions to social and economic development of Da Nang.

DHTP also faces with numerous challenges. Infrastructure construction has been slowed on investment capital shortage. Hi-tech supporting industries are underdeveloped. Tax incentives are largely similar to ordinary projects, large-scaled projects and projects with superior technologies. Moreover, the flow of FDI into regional countries like Malaysia, Myanmar and Thailand also poses plenty of challenges to DHTP.

Would you be kind enough to introduce the current incentive policies to attract more hi-tech investment projects into DHTP and create breakthroughs in hi-tech production to meet domestic and export demands?

To attract more investors into DHTP, the Da Nang People’s Committee issued Decision 19/2012/QD-UBND dated April 25, 2012, then replaced by Decision 36/2013/QD-UBND dated November 13, 2013, on investment incentive and support policies in DHTP. Accordingly, land rent is only VND5,250-10,500 per square metre per year, depending on the type of project and payment method. Tenants are exempted from land rents in three or 11 years, depending on the field of investment. Hi-tech R&D, hi-tech business incubation and hi-tech personnel training projects are exempt from infrastructure fees in two first years and granted a half reduction in the following three years.

In addition to investment incentives provided by the city, tenants are also granted preferential treatments from the central government. They will enjoy a preferential income tax of 10 percent for 15 years dating from the year with revenue from investment projects in DHTP, be exempted from corporate income tax in the first four years dating from the year with taxable income and reduced 50 percent in the next nine years.

Besides, the Management Board will actively advise the municipal government to implement measures to train high-quality human resources, develop supporting industries, establish and develop technology market in Da Nang, and call venture funds to invest in investment projects in DHTP.

How has the Management Board built technical infrastructure works, related services and investment promotion into DHTP to make it a new destination for high technology in Vietnam?

Regarding construction, site clearance and ground levelling in the first phase has been basically completed with 300 ha of land. The central road, 51 metres wide, was built in January 2013 and basically completed. Feeder roads are being built. The 22-KV power lines, water service and telecom lines are ready to serve tenants. Currently, DHTP has 150 ha of land with ready infrastructure for investors. Besides, to serve hi-tech projects, the Management Board is actively calling for ODA funds to build wastewater treatment plants with a daily capacity of 18,000 cubic metres.

With respect to investment promotion, every year, the Management Board has investment promotion plans in the country and in the world. The board also runs websites displayed in Vietnamese, English, Japanese and Korean and attends domestic and foreign investment promotion events. It also expands relations with Vietnamese embassies in some countries, consulting companies, foreign investment promotion agencies like JETRO, KOTRA, JICA, and chambers of commerce and industry in Japan, South Korea, the US, Australia and other nations.

Could you please tell us the missions, goals and orientations set for 2015 and beyond?

In 2015, the Management Board will complete the site clearance of the first phase (328 ha), complete the construction of the 51-metre wide central road and branch roads, seek investment sources for infrastructure construction, wastewater treatment facilities, and business incubators, and introduce business performances in DHTP to attract 2-3 new projects.

Besides, the Management Board will develop specific plans and programmes for the second phase (2016-2018). DHTP will expand site clearance and ground levelling, build roads, hi-tech business incubators, administrative buildings and logistics zones; build training centre, R&D centre and general service centre; attract more investment capital, particularly foreign sources.

Đăng ký: VietNam News