Overseas Vietnamese strengthen Danang’s investment climate

On August 12, Danang People's Committee in collaboration with the State Committee for Overseas Vietnamese Affairs (SCOV) held a seminar in Ho Chi Minh City to introduce Danang’s investment climate.

The event attracted overseas Vietnamese to participate online from 19 countries and territories including the United States, Canada, Japan, South Korea, China, Taiwan, Australia, Germany, Russia, Poland, Slovakia, England, France, Italy, Belgium, Switzerland, Hungary, Thailand, and Mongolia. The event also saw the participation of 100 enterprises run by Vietnamese abroad.

At the seminar, Do Thi Quynh Tram, deputy director of the Investment Promotion and Support Department shared a report about Danang’s strategies for development and called for investment in the city.

The report covers preferential policies as well as projects calling for investment in the fields of high-tech industry, IT, supporting industries, and industrial park infrastructure construction.

She also introduced a number of key investment projects in the city such as Lien Chieu Port, a financial, commercial, entertainment, casino, and high-class apartment complex, a creative space, the International Trade Center, an international hospital, a nursing home, and an international school.

Most overseas Vietnamese business owners are excited to propose many solutions for investment fields in Danang.

Bao Hoa, an American overseas Vietnamese shared, “After 10 years of living in Danang, I have brought seven US companies to Vietnam for an investment survey. Among them, two companies have invested in Hoa Khanh in Danang and Chan May in Hue, which create 5,000 jobs for the local area. Another company is investing in the northern region. The remaining companies are preparing to invest in the south.”

He pointed out four reasons to invest in Danang. First, the city has an open government with clear administrative procedures. Secondly, the city enjoys improved connectivity with the international seaport and airport. Thirdly, the city has stable human resources, allowing businesses to expand their operations. On top of that, Danang has long been recognised by locals as one of the most attractive places in Vietnam to live.

Karen Kieu Nguyen, Italian overseas Vietnamese

Danang is also calling for foreign investments in the fields of high-tech agricultural production, microelectronics, mechatronics, optoelectronics, biotechnology, ICT, and new energy.

Other fields of investment include nanotechnology, new materials, petrochemical technology, infrastructure development projects, tourism services, real estate, and commerce.

In particular, the centralised information technology park in Danang is an attractive investment destination. Trung Nam Group is expected to put the second phase of the project into operation soon, which covers 210 hectares.

Ngo Pham Tran, chairwoman of the Taiwan-Vietnam Economic, Cultural, and Educational Development Association, said that the association has brought a lot of Taiwanese businesses to invest in Vietnam.

One Taiwanese investment group will attract 10 satellite companies to the country. Since 2016, Taiwan has had a policy of moving electronic manufacturing corporations to Vietnam. Thus, the association has brought Taiwanese investors to the north. The first phase of Taiwanese investments is associated with component projects, which have been approved by the Vietnamese government.

“In the second phase, Taiwanese groups are expanding their investments in the central region. The association still focuses on Nghe An and Thanh Hoa but has yet to study Danang as a potential investment location. We propose to Danang leaders that they should share more information about Danang High-Tech Park to facilitate partnerships and investments in the city,” said Tran.

According to Tran Ba Phuc, chairman of the Vietnam Entrepreneurs Association in Australia, Australian investments remain limited in Vietnam. However, the two countries are expected to reach $10 billion in total import-export value in 2022.

Recently, an Australian firm invested in a waste-to-energy incineration plant in Vietnam. This high-tech project is located in a district outside of Hanoi. The firm is carrying out a feasibility study. They also have a plan to develop two more plants in other regions to ensure capital returns. The association will connect Danang with this potential business in the coming time.

Interim president of the Vietnam Entrepreneurs Association in China Nguyen Tra My said, "China established diplomatic relations with Vietnamese provinces very early and Danang is an attractive investment destination for Chinese businesses. Every year, Danang attracts about 100 foreign direct investment projects from Hong Kong, Taiwan, and Macau in the fields of electronics, restaurants, agricultural products, and others."

The association is carrying out a project to guide Chinese enterprises to invest in Vietnam. One project is a wind power equipment factory which mainly produces wind power blades with an investment capital of $100 million.

The second project is to build a 30-ha industrial park for building materials in Vietnam, which is in the survey phase.

The third is to build a processing factory to produce welded steel pipes. Covering an area of 60,000 square metres, the factory has to be located about 40m from the port. Once completed, it is expected to generate 1,000 jobs for local workers.

In addition, the association is keen on a number of wind power projects by Trung Nam Group in Danang. Most Chinese investors are often interested in tax exemption and reduction policies, land leases, and land purchases in Vietnam.

Many overseas Vietnamese entrepreneurs want to invest in Vietnam to build assets for their children.

Chairman of the Business Association in Germany Vo Van Long lauded the favourable investment environment in Danang.

“We are continuing to invest in Vietnam. I myself specialise in logical investment. I need an area from about 25,000sq.m to 10ha for building a distribution centre, online operations, and smart device storage centres. We are looking at Danang to expand across the country. We hope to establish a deeper presence in Danang’s logistics industry,” said Long.

“Our main concern is that our children of foreign nationality are not entitled to inherit our assets and investments in Vietnam. This problem deters many overseas Vietnamese from making investment decisions,” he added.

According to Duong Quan Phu, representative of the Vietnam-Korea Association of Entrepreneurs, Vietnam has established several relationships with South Korea. Indeed, South Korean localities which share some similarities with Danang would like to promote cooperation. Thus, the two sides can sign agreements to support the areas and boost trade promotion in South Korea.

Ambassador Ngo Huong Nam, the SCOV’s vice chairman, addressed the concerns of overseas Vietnamese. Among them, nationality is the main issue for overseas Vietnamese investing in Vietnam. SCOV has organised forums to collect opinions from all overseas Vietnamese for the citizenship building programme. There will be amendments to the Vietnamese Nationality programme of the 15th National Assembly.

“On September 9, SCOV will work with the Vietnamese community in Europe to hear opinions on citizenship policy. Overseas Vietnamese enterprises at home and abroad have raised many viable ideas. We hope that after this seminar, more ideas will be brought into reality,” he added.

Through the seminar, Danang had the opportunity to share a lot of information about the investment environment between Danang and overseas Vietnamese. Despite the clear opportunities, the city needs to address some issues to meet the demands of overseas Vietnamese in the new era.

Danang prepared for much-needed tourism influx The central city of Danang is attaching great importance to sustainable development by exerting its efforts to promote the recovery of the local tourism industry.

Danang high-tech parks achieving wider attention High-tech parks are becoming a stronger lever to drive Danang’s economic growth.

Danang pinning hopes on delivery of eco-smart city To successfully convert into a smart city, Danang must create a breakthrough and reinvent itself in light of the current mechanisms and policies.