Top 10 reasons to invest in Danang, Vietnam
In recent years, Danang emerges as one of the leading investment location in the Central Region of Vietnam. With its strategic locations, comprehensive infrastructures, young and aspiring labor force, business-friendly environment and a focus on green and hi-tech investment projects, Danang has succeeded in attracting more and more investors coming to the city. In addition, Danang has a reputation for being one of the best places to work and live in Vietnam. Here are the reasons why investing in Danang is an ideal move for investors to gain access to Vietnam’s market.
City key demographics
- Region: Central Vietnam
- Population: approximately 1 million
- Area: 1,285 km2
- Gross City Production: $2.6 billion (2013)
- Tourism revenue: $369.6 million (2013)
- City's export turnover: $1.38 billion (2013)
- Latest Unemployment Rate: 4.45% (2013)
- Per Capita Personal Income: $2,686
- Administrative units: 8 districts (rural, suburban and urban)
- No. of expats: more than 1,500
- An International Geographical Exciting Destination
Strategic location and easy access to the regional and global market
Location is a pivotal factor for investors when selecting their investment destination. Located in the center of Vietnam, Danang is one of the five biggest cities in Vietnam under Central management. The city is also an important transportation hub of Vietnam, lying on the north-south transport axis of land, rail, sea and air routes. It is the Eastern gateway to the East-West Economic Corridor (EWEC), connecting Laos, Northeast Thailand, Myanmar and Central Vietnam. Danang is located on the World Heritage Road stretching along the coastline of Central Vietnam. From Danang, visitors can drive easily to four of seven UNESCO-designated World Heritage Sites which are Hoi An Ancient Town, My Son Sanctuary, Hue Imperial City and Phong Nha-Ke Bang National Park.
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Well-developed and modern infrastructure
When investing in Danang, investors can enjoy the most advanced infrastructure system in Vietnam. Danang Port is the most well-equipped container port in the Central region, and one of the biggest commercial ports in Vietnam. From Danang Port, there are many direct international shipping lines to Hong Kong, Singapore, Japan, Taiwan, South Korea, Europe, America and other countries in the world.
Danang International Airport is one of the three biggest and most modern airports in Vietnam. The new three - storey terminal on an area of 36,600m2 has enabled it to meet the standards of the International Aviation Transport Association and accommodate 4 - 6 million passengers per year.
Apart from domestic flights, there are 20 direct international flights from Danang to Singapore, Siemriep (Cambodia), Incheon/Seoul (South Korea) and chartered flights to Laos, China, and Russia. Especially, the Danang – Narita (Japan) direct flight was officially launched in 07/2014, and there would be 04 scheduled flights/week on this route.
Advanced ICT and telecommunications infrastructure
In term of ICT infrastructure, Danang is an important telecommunication hub of the country and in the world. It is also one of the three most important end points of the national trunk network and the international direct connecting point. The world standard IT and Communication Infrastructure System in use comprises a Metropolitan Area Network (MAN), a Data Center, and an IT R & D and Training Center, and a public wireless connection system in the whole city. In 05 years (2009-2013), Danang ranked number one in the availability for ICT application (Vietnam ICT Index). Danang plans to become an, “E-government”, “E-city” by 2020.
A focus on green and hi-tech investment projects
In recent years, the city's investment attraction policy has shifted towards favoring projects using advanced and green technologies. There are 06 industrial zones which have been in operation with complete and comprehensive infrastructure, meeting businesses’ production demand. With that aim, Danang Hi-tech Park (1,129.76ha) and Danang IT Park (341ha) have been established as a place to incubate and nurture new technologies and innovative start-ups companies. In order to encourage more green and hi-tech companies to invest in the city, the government give many incentives for investors if they choose to invest in the Hi-tech Park such as low corporate income tax, land rental reduction and other free supporting services. In addition, there are 380 companies operating in IZs including 294 domestic companies and 86 FDI companies.
Stable economic growth
Despite the global economic recession, Danang still enjoys a relatively stable economic growth. The average GDP growth rate of the city reached 11% over the period of 2006-2010. In 2013, it stayed at 8.1%, higher than the average national GDP growth rate of 5.43%. The service sector accounted for 59.43%, industry sector: 28.75%, and agriculture, forestry and fishery sector: 2.32% (2013).
As of August 2014, there were 36 countries and territories having investment projects in Danang with 297 FDI projects and a total investment capital of over USD 3.375 billion; the total disbursement was estimated at USD 1.6 billion. Investors invested in 16/21 economic sectors. Real estate – tourism remained the biggest sector receiving FDI investment making up 53.79% of total investment, followed by manufacturing and processing industry (32.86%), and education and training (5.08%). In term of total investment capital, South Korea ranked first with USD 709 million, accounting for 21.02% of the total investment capital, followed by Singapore (20.95%), and the British Virgin Islands (18.59%).
Long-term political stability
While the political situation in many countries in the region such as Thailand, Indonesia, and China ... has recently been complicated and uncertain, causing concerns among foreign investors, Vietnam in general and Danang city in particular still sustained its political stability and economic growth, and creating favorable conditions for businesses to operate and expand its production. Besides, Vietnamese government always tried to improve its legal framework and institution to create a transparent and fair investment environment for investors. After officially becoming a member of the World Trade Organization (WTO), Vietnam has participated in many international cooperative agreements including various free trade agreements (FTA) with many regional and global partners. Especially, Vietnam is actively negotiating the Trans-Pacific Partnership agreement (TPP).
An abundant and well-qualified labor force
Danang’s workforce, accounting for nearly 50% of the city population, is young, dynamic and well trained in universities, technical and vocational schools to meet the demand for businesses in Danang and Central Vietnam. These young individuals are innovative and motivated to work hard and change the world.
The city has more than 24 universities and colleges and 50 vocational training centers with modern infrastructure, providing high quality education. Every year, there are 40,000 graduates in the city.
To provide better services for citizens and create a favorable investment and business environment, Danang has adopted the “one-stop shop” model for administrative procedures at all levels. The administrative procedures are publicized with simplified and transparent procedures. The procedures to grant business registration certificates and investment certificates are competed using the “one – stop shop” model to help businesses save time and money.
Since 2008, Danang has been repeatedly selected by Vietnamese business community as one of the cities with the best investment environment. The city ranked first in the Public Administration Reform Index (PAR Index) in 2012, ranked second in the Vietnam Provincial Governance and Public Administration Performance Index in 2012 and 2013. The city ranked number one in the Provincial Competitiveness Index in Vietnam (PCI) from 2008 to 2010 and 2013.
Top 10 reasons to invest in Danang
- Strategic location and easy access to the regional and global market
- Well-developed and modern infrastructure
- Advanced ICT and telecommunications infrastructure
- A focus on green and hi-tech investment projects
- Stable economic growth
- Long-term political stability
- Business-friendly environment
- Abundant and well-qualified labor force
- Best place to live and work
- An environmental-friendly city
The best place to live and work
Danang is not only a great place to invest, it is also Danang an ideal place to live and work. The city has beautiful scenery with a pleasant combination of seas, mountains and rivers. Life in this coastal city usually puts people’s mind at peace and ease. Danang is one of the most attractive tourism destinations in the Central Vietnam with more than 70km of coastal lines with beautiful beaches, interesting places, famous historical relics, many traditional festivals (Avalokitesvara Festival and Cau Ngu, boat racing…) and traditional singings and folklores (Hat Tuong, Bai Choi, Ho Cheo Thuyen and Ho Khoan...). Danang has a wide range of world-class resorts managed by world-recognized hotel management groups such as Hyatt, Marriot, Novotel, InterContinental, Mecure, Furama, Pulchra... Crowne Plaza Club is the only casino in Central Vietnam; The Dunes golf course was awarded “Vietnam’s Best Golf Course”. Danang has many luxurious restaurants serving local food and food from many countries such as Japan, Korea, and the USA. The coffee shops, bars, pubs… in the city also meet the demand of local people, tourists and foreigners living in the city.
Danang has more than 23 hospitals, 05 medical centers and 56 health clinics. Many high quality hospitals and medical centers meet the health care demand of people living in Danang in particular and in the Central Region in general. The city also has several qualified international schools to cater the educational need of children of foreigners who live and work in the city. There are also many exciting things to do in the city to learn about its culture, lifestyles and gain unique experiences.
The environmental-friendly city
Danang has carried out the projects to “establish an environment city” towards 2020 to increase the green area and public space, managing air quality and water supply and solving the problems related to climate changes. In 2011, Danang was the only city in Vietnam which was awarded “the ASEAN City of Sustainable Environment” and one in two cities which was awarded “2013 Asian Townscape Award (ATA)” by UN-HABITAT.
In addition, the city plans to manage the city traffic and water supply using IBM’s “smarter city” model, and pilot the low-carbon city model. Danang’s living environment has been gradually improved with modern infrastructure and the people’s living standard has been enhanced. Unlike Hanoi or Ho Chi Minh City, there is no traffic jam or congestion in the city.