Danang FTZ policy drives investment surge

Danang FTZ policy drives investment surge

The National Assembly's concessions to allow Danang to apply certain policies, including piloting a free trade zone (FTZ), has created a positive effect on attracting investment, as well as increasing the pace of large-scale projects in the city.

Thuan Phuoc Bay Urban Investment JSC began construction of Thuan Phuoc Danang New Urban Area in Nai Hien Dong and Tho Quang wards in Danang's Son Tra district on March 21.

Photo: Cap Vuong

The development will take place over an area of ​​97 hectares and will cost approximately $460 million. Previously, the project was called Northern Man Quang Bay Urban, Commercial and Tourism, and was approved in 2010.

In 2023, Danang People’s Committee approved the first adjustment to the investment policy and designated Thuan Phuoc Bay Urban Investment JSC as the investor, meaning that after 15 years of planning, Thuan Phuoc New Urban Area is finally under construction.

Thuan Phuoc Danang New Urban Area is one of several large-scale projects in Danang to be re-started or started in the first and second quarters of this year, with a total investment reaching $4 billion.

The long-stalled Danang Real Estate and Marina Complex restarted development on March 4, following many years of stagnation.

The marina covers 11.7ha and is located beneath Thuan Phuoc Bridge in Nai Hien Dong ward, Son Tra district, and developed by Danang Marina JSC, a subsidiary of multi-field Quoc Cuong Gia Lai JSC. The first phase began construction in 2016 with more than 100 shophouses built and sold out.

Vipico Co., Ltd. held a groundbreaking ceremony last February for Legend City Danang Commercial Centre, Hotel and Apartment Complex, also in Son Tra district. The site will include two high-rises with a 29-storey hotel and apartments, costing $120 million.

Other projects in Danang include Lang Van international resort valued at $1.76 billion; Asia Park and International Fireworks Complex worth $1.6 billion; FPT Group's developments valued at $200 million; and Viettel Group's IT Park at $80 million.

Regarding the implementation of the FTZ, Nguyen Thi Tuyet Mai, deputy director of Investment Promotion Support Centre of Danang spoke to VIR on March 29, saying that the city is currently studying 10 potential locations to begin construction.

"We are calling for strategic investors to build infrastructure for three main functional zones of the FTZ, which are the production zone, the trade-service zone and the logistics zone," said Mai.

Mai confirmed that investors in the FTZ will enjoy incentives as well as significant support throughout the life cycle of the zone, potentially up to 70 years

Furthermore, the procedures for foreign businesses investing in the FTZ are the same as domestic investors; regarding preferential customs regimes and incentives on exemption and reduction of land rent, corporate income tax, and taxes on goods and services purchased and sold in the zone.

With more than 30 years in Danang, Richard Leech, deputy general director of Phu Long Real Estate JSC believes that Danang has the potential to become a top tech centre not only in Vietnam, but also in the Asia-Pacific region.

"We believe that Danang can provide additional investment opportunities in key areas such as new technology, finance, infrastructure, tourism. All are developing in a sustainable direction," said Leech.

Ngo Pham Tran, president of the Vietnam-Taiwan Business Association, spoke of the eagerness of Taiwanese electronics businesses to do business in Danang and to invest in the FTZ.

"In addition to the electronics sector, Danang is also a very attractive place for semiconductor and microchip investors," said Tran.

"Danang has a software park, a high-tech park, and a platform to combine life sciences and AI. We are looking for opportunities to promote the development of the life sciences industry on this infrastructure," said Janette Phi, CEO of Philogix Consulting,

VIR