Representatives of the three localities affirmed offer optimal conditions to European investors in hi-tech, tourism, logistics, health care and advanced farming.
With the connection to the East-West Economic Corridor linking Laos, Thailand, Myanmar and Vietnam, Da Nang city and its neighbouring provinces of Thua Thien-Hue and Quang Nam are considered to have good investment potential with long coastal lines, world heritage sites, preferential policies, cheap land prices and abundant labour force.
They are also situated on National Highway 1, as well as having railway, sea port and airport systems and large areas for industrial zone development. A series of administrative reforms easing investment have been cleared by local administrations.
Da Nang city eyes on high tech projects
Speaking at the meeting, Mr. Le Canh Duong, director of Da Nang’s investment promotion centre, said the city has attracted 410 foreign direct investment (FDI) projects with total 3.7 billion USD. The tourist real estate remains a favourite investment magnet in the city with 25 foreign direct investment (FDI) projects worth 1.8 billion USD. Tourist real estate made up 54 percent of total 3.7 billion USD of FDI capital in the city. Da Nang city has so far developed 16 tourist property projects consisting of 749 villas, of which 609 are for sale and 140 for lease, according to Mr. Le Canh Duong.
Mr. Le Canh Duong also said 57 percent of FDI projects were in the service sector as the city eyes on developing in Information Technology, hi-tech parks and coastal property, and environment-friendly projects.
Representativesof Euro Chamber of Commerce and Industry
(EuroCham Vietnam)said the organization will start operating an office for
central Vietnam in Da Nang in January 2017. Da Nang city promises to make a
strong commitment in building available infrastructure, administrative reforms,
preferential treatment and skilled labour, for wooing foreign investors,
particularly European investors.
Quang Nam province: Competitive land prices and huge reserved land
According to Mr. Vo Van Hung, director of Quang Nam province’s Investment Promotion Centre, Quang Nam province is developing the 30,000ha Chu Lai Open Economic Zone. This economic zone is one of five key zones for investors in Vietnam.
The economic zone has competitive land prices of between 10 USD and 30 USD per sq.m for 50 years. Land costs in Quang Nam province are only half or one-third compared to Hanoi and HCM City, respectively, Mr.Vo Van Hung added. Quang Nam also have a huge reserved coast land of 10,000ha for tourism and service projects.
Up to now, Quang Nam province has attracted 128 foreign direct investment projects worth 5.5 billion USD, of which the Nam Hoi An Integrated Resort Project, invested by VinaCapital and Gold Yield Enterprises Corporations, is the biggest at 4 billion USD.
Mr. Vo Van Hung said that the province is seeking investment in automobile supportive industries, food processing industries and industrial park infrastructure.
Earlier this year, the province and the Truong Hai
Automobile Joint-Stock Company, or Thaco - started expanding the Chu Lai-Truong
Hai Mechanical Automobile Industrial Zone with a total investment of 35.3
million USD. The project is planned to produce 215,000 vehicles, including
touring cars, trucks, buses and vans starting in 2018.
Truong Hai automobile assembly and production complex in Chu Lai Open Economic Zone, Quang Nam province
Thua Thien-Hue province: Attractive financial incentivesto investors
As many as 88 for eign direct investment (FDI) projects with a total registered capital of 2.26 billion USD have landed in the central coastal province of Thua Thien-Hue so far, making the locality the 6th most attractive destination for foreign investors in the central region. One of the largest is an 875 million USD tourism complex being financed by the Banyan Tree Group of Singapore.
Hue city has 128 km of coast and 22,000ha of lagoon for tourism development in connection with UNESCO-recognised world heritage sites.
Mr. Le Van Thu, director of the Investment Promotion and Support Centre of Thua Thien-Hue, said the province hosted 3.2 million tourists, among them 1.2 million foreigners, in 2015. The province are offering investors competitive low cost, including labour cost and land, he said.
According to Mr. Le Van Thu, the land costs in Thua Thien-Hue province is around 80 percent of Da Nang city, 70 percent of Hanoi’s land, 60 percent of Ho Chi Minh City, 30 percent of Shanghai and 25 percent of Bangkok’s land. He added labour costs for manual workers and managers range from 130 USD to 320 USD per month.
Several financial incentives have been provided to attract investors, such as tax exemptions for the first four years of operation, a 50 percent tax reduction for the next nine years, and a 50 percent tax rate for high-income employees.
In the meeting, representatives of the three provinces reaffirmed put efforts to build the best business environment for foreign investors as well as solve investors’ difficulties timely to ensure their business stability. They aslo hope that European investors will continue to invest and expand business and production scales to have a strong attachment to the Vietnam’s central region in the process of building and developing a modern region.
