Da Nang Offers Massive Tax Incentives for Dutch Businesses
By My Nguyen
Nov. 23 – Da Nang Hi-Tech Park is the newest among three high-technology zones in Vietnam, besides Hoa Lac Hi-Tech Park in Hanoi and the Ho Chi Minh City Hi-Tech Park.
Da Nang City is calling for foreign investment in its hi-tech park by promising attractive incentives. The Vice Chairman of Da Nang Phung Tan Viet presented in front of the Dutch business representatives in an event recently held by the city’s People Committee and the Netherlands general consul that the city shall offer them 100 percent land tax and 100 percent land-use tax exemptions for investment projects in infrastructure, hi-tech research and accommodation for on-site workers.
The event was held with the purpose of boosting co-operation and investment between the Netherlands and the city. Mr. Phung Tan Viet also encourages further investment from Dutch firms in the city’s 1,010 hectare park.
In the event, many questions regarding projects covering sea ports, energy, electronics, health care and chemicals were raised actively by Dutch businessmen. In particular, Phillips Electronics expressed concern about the city’s energy-saving wind power and solar energy, as well as medical care equipment in city hospitals.
In response to the questions from the attendees, Mr. Phung Tan Viet said, “We have developed infrastructure projects and transport to create the most favorable conditions for investors to reduce production costs.” He also mentioned during the session that the city attracts around US$1.2 billion and US$1.5 billion from domestic and foreign projects a year.
Mr. Phung Tan Viet said that FDI capital from the Netherlands in to Da Nang was worth US$9.5 million, which accounts for 7.8 percent of the total investment from the country into Vietnam. Bilateral trade between Da Nang and the Netherlands in the first half of 2012 reached US$8.3 million, increasing 16.4 percent compared with the same period last year.
According to the city’s trade and investment promotion center, the city has drawn 234 foreign-invested projects with a total committed capital of US$3.03 billion so far thanks to improved transparency, one-stop shop policies and E-government applications. However, air transportation is an issue which many businesses still complain about due to the fact that there are only a few direct flights to the city from international airports.
Dutch firms have also asked for a ring-road transport system linking the sea ports to the national highways. As informed by the General Director of Da Nang Port Nguyen Thu, the port system of the city has been upgraded to meet the increasing demand from the East-West Economic Corridor linking Myanmar, Thailand, Laos, and Viet Nam via Da Nang Port.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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