danang - glue up · saigon pearl apartment 2 900〜950 usd danang riverside hotel 2,200〜2,700 usd...
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Danang Worth living, Worth investing
Danang Investment Promotion Agency
Le Canh Duong Director 098.3134.059
Central Viet Nam - 97,363.7 km2 land - 14 million people - 07 coastal provinces - 01 coastal city - 05 highland provinces
Central Viet Nam Key Economic Zone
- 27,884 km2 land
- 6.4 million people
2
A growing region for investments OVERVIEW OF CENTRAL VIETNAM
Danang
2nd Rank in VN Provincial Governance and Public Administration Performance Index (2012 & 2014)
7 out of 11 times to be the top of Viet Nam’s Provincial Competitiveness Index
The ASEAN City of Sustainable Environment
(2011)
Top 20 the cleanest city in the world in energy
conference of APEC 2012
Excellence in City transformation 2015
by the Financial Times and the International Finance Corporation
1st Rank in Readiness for ICT application and
development (2009 – 2015)
1st Rank in the list of ”Top 10 destinations on the rise for 2015” by TripAdvisor; “Asia leading festival and event destination” by World Travel Awards Asia 2016
Da Nang
AWARDS
3
1,285 km2
Area
1.02 mil
Population
(workforce of 0.74 mil)
70 km
Coastal line
US$ 1.7 bil
Total investment capital
for development
4
OVERVIEW
32,000 No. of new jobs
3.8% Urban unemployment rate
47% Percentage of trained labor
18,680 No. of non-state enterprises
59 No. of shopping centers, supermarkets
99 No. of hospitals and health clinics
25 No. of universities and colleges
12.7
9.88
13.81
9.1 8.1
9.28 9.8 9.04
8.2 6.79
8.44
5.03 5.4 5.98 6.5 6.21
1997 2000 2005 2012 2013 2014 2015 2016
Đà Nẵng Việt Nam
GDP Growth Rate (%)
420 460
950
2016 2294 2242
2487
2908 3171
361 402 639
1169
1540 1960 2028
2109 2240
1997 2000 2005 2010 2012 2013 2014 2015 2016
Đà Nẵng Việt Nam
GDP per capita (US$)
Key industries:
Tourism: 5,500,000 no. of arrivals
710 mil USD of revenue
(up 23.5%)
ICT: 254 mil USD of revenue
Non-state Enterprises: 18,680 (98% SMEs)
ECONOMIC GROWTH
5
GRDP (current price) US$3,504 mil
Exports
US$1,115 mil
Imports
US$1,300 mil
(2016 figures)
Top 5 investors (by capital) FDI by sector
(As of May, 2017)
14.0%
17.2%
19.6%
19.7%
Japan
USA
BVI
Korea
Singapore
10.6% 53.87%
32.47%
4.67%
2.59%
2.26%
1.90%
2.23%
Real estate
Processing/manufacturing
Education
Construction
Accommodation/food
Wholesale/retail
Others
526 projects
43 countries/territories
3.03 billion USD
48,119 jobs
INWARD FDI
6
372 branches, rep. offices of
FDI enterprises
7
WHY DA NANG
Strategic Location
Rapidly Developed Infrastructure
Competitive Business Cost
High-quality Workforce
Pro-business Environment
2.6 Quality of Life
8
STRATEGIC LOCATION
Copyright © 2017. All rights reserved. 8
Indian Ocean
Pacific Ocean
Danang
EWEC
Strategically located in global supply chain
Connect to Asia via sea and air
Via EWEC, connecting
to East Asia, SEA, Indian
Ocean
Connectto
Tokyo via
direct flight
Strategic Location for Sale/Distribution
Hub for distribution to
Central Vietnam
Easy access to North and
South Vietnam
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INFRASTRUCTURE - TRANSPORT
Da Nang International Airport • Capacity: 12 mil passengers/year • Linked to 36 big cities in Asia; 24
direct routes • 390 monthly international flights • New terminal opened in May 2017
Tien Sa Port - 3rd biggest port in Viet Nam
Capacity: 07 million DWT, upgraded to 12 mil DWT (by 2018)
18–20 container ships/week; 70 cruises/year.
Lien Chieu Port – called for development
Capacity: 100,000DWT and 6,000-8,000TEU container ships
Da Nang
Road Infrastructure
Da Nang – Hue Highway: completed in 2018
Da Nang – Quang Ngai Highway (139 km): completed up to Tam Ky (Quang Nam)
INFRASTRUCTURE - TRANSPORT
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IT Park No.2 (56 ha)
Hoa Khanh IZ
Lien Chieu IZ (59.781ha available)
Expanded Hoa Khanh IZ (33.52ha
available)
Hi-tech Park (1,129.76 ha)
Software Park No.1
Hoa Cam IZ (2.1 ha available)
Software Park No.2 (15 ha)
Seafood Processing IZ
Da Nang IZ
Under construction In operation 11
INDUSTRIAL INFRASTRUCTURE
IT Park (341 ha)
762 Warehouses and freight forwarding companies
53 Bank branches & 30 Insurance company branches
50 stations, connected to National North-South 500KV Power Grid
Current capacity: 205,000 m3/day
Increase to 396,300 m3/day by 2020
Ranked #1 in Availability for ICT application (Viet Nam ICT Index)
(2009-2016) Connected to Asia Pacific Gateway submarine cable and 10 GBs
International Marine Optical Fiber Cable Station (SEMEWE3) MAN Network (20 Gbps), data center (100TB), IT, R&D and training
centers
Citywide wireless broadband network (439 free access points)
INFRASTRUCTURE – AMENITY SERVICES
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13
Land use fee ($US/m2/year) of industrial park including infrastructure maintenance fee
IZ/City Danang Ho Chi Minh Hanoi
IZ 1 1.45 Lien Chieu IZ • 15 km from city
center • 42 US$/m2/29yrs (till
2046)
2.05 Amata IZ (Dong Nai) • 32km from HCM City • 90 US$/m2/44yrs
1.84 ~ 2.11 Pho Noi A IZ (Hung Yen) • 24 km from Ha Noi • 70-80 US$/m2/38yrs
IZ 2 1.27 Expanded Hoa Khanh IZ • 10 km from city
center • 47 US$/m2/37yrs (till
2054)
2.375 Long Hau IZ (Long An) • 40km from HCM City • 95 US$/m2/40yrs
1.61 ~ 1.81 Dai An IZ (Hai Duong) • 50 km from Ha Noi • 58-65 US$/m2/36yrs
IZ 3 1.07 Hoa Cam IZ • 8 km from city
center • 39.5 US$/m2/37yrs
(till 2054)
1.67 My Phuc IZ (Binh Duong) • 80 mins from HCM City • 65 US$/m2/39yrs
1.35 ~ 1.74 Don Van 2 IZ (Ha Nam) • 40km from Ha Noi • 42yr contract • 58~75 US$/m2/43yrs
Source: JETRO 2016
Competitive Business Cost
14
Competitive Business Cost
Danang Hi-tech Park Hoa Lac Hi-tech Park Ho Chi Minh Hi-tech Park
Land use fee
(manufac-turing)
0.23〜0.35 USD/m2/yr *depending on method of payment
0.8〜1.2 USD/m2/yr *depending on method of payment, location *including infra usage fee *exclude VAT
0.6〜1 USD/m2/yr (Phase 1) 0.8〜1.2 USD/m2/yr (Phase 2)
Infra usage fee
〜0.2 USD/m2/yr (4,200 VND/m2/yr) *No Management fee
0.25 USD/m2/yr *As infra management/admin processing fee
0.48USD/m2/yr *Include management fee
Land use fee in Hi-tech Park
Danang Ho Chi Minh Hanoi
Grade 1 Office 18 (Indochina riverside) 44~46 (Sunwah Tower) 35 (Lotte Centre, Sunred river)
Grade 2 11~18 (Danang software park tower)
17 (Star Building) 29 (PVI)
Grade 3 8~10 (Green Plaza) 16 (WASECO) 26 (Indochina Plaza)
Rental Office Rates Unit: USD/m2/month
15
Central VN Vietnam
Manufacturing
Worker 199 (2,924) 204 (4,025)
Engineer 324 (4,276) 416 (6,651)
Manager 589 (12,185) 901 (14,629)
Non-manfacturing
Staff 204 (4,025) 443 (6,839)
Manager 901 (14,629) 1030 (16,028)
Wages of Central and Vietnam as a whole (annual real burden)
Danang Ho Chi Minh
Hanoi
Worker 158 193 180
Engineer 225 348 346
Manager 480 736 870
General (Service)
227 469 390
Wage Comparison (Danang, Hanoi, HCM)
Danang Hanoi Ho Chi Minh
Apartment 1
650〜1,050 USD Vinh Trung Plaza
1,300〜2,000 USD Indochina Plaza
1,210〜1,540 USD Saigon Pearl
Apartment 2
900〜950 USD Danang Riverside Hotel
2,200〜2,700 USD Somerset Grand
3,288 USD Norkfolk Mansion
Apartment3
700〜1,800 USD Azura
3,250〜3,800 USD Lotte Center Hanoi
3,289〜4,143 USD Saigon Sky Garden
House rent for expatriate (Monthly)
Source: JETRO Database
Competitive Business Cost
743,820 (70% of population)
– Young, hardworking and energetic
– Stable (low turnover rate, almost no strike)
40,000 well-trained and skilled graduates annually from:
– 25 universities and colleges
– 19 professional secondary schools
– 59 vocational centers
Globally integrated
• Da Nang University provides training programs in cooperation with foreign university
• 03 international schools
– Pegasus (Singapore)
– APU (America)
– VNUK (British)
Workforce by qualification (2015)
16
HIGH QUALITY LABOUR FORCE
17
Business-friendly Environment
Danang Admin Center • Ranked top in Vietnam Provincial
Competitiveness Index (PCI) 7/11 times since 2006
5
5.5
6
6.5
7
7.5
2012 2013 2014 2015 2016
ダナン ハノイ ホーチミン
Trend of the administrative transparency index on PCI (past 5 yrs)
Investment environment risk
Central (N=25)
All (N=624)
North (N=295)
Undeveloped legal system · Unclear operation 42.1 48.4 51.2
Complexity of administrative procedures (such as licensing)
28.0 41.8 42.7
Investment environment risk in Vietnam
Source: JETRO 2016 Survey
Annual Dialogue with Jnese investors
DN HN HCM
18
Business-friendly Environment
IPA Danang provides supports to all foreign investors as one-stop shop for investment
Via Japan Desk, IPA Danang provides supports in Japanese for investors
Supports from Japan Desk, IPA Danang
Briefing Services
Introduction of vacant land/office
Arrangement of meetings with relevant government agencies
Translation services
Arrangement for site visit
Support in investment licensing
DPC
Investor
Danang Hi-tech Park or DPI
Related agencies
Quality of life
19
2.6
• Lifestyle and entertainment infrastructure development and environmental protection are progressing • International schools and international hospitals are also in operation • Compactness where airports, urban areas and beaches are connected within 15 minutes is also
advantageous • There is a Japanese community such as Danang Japan Business Association
Singapore Intl School Lotte Mart
3 world-class golf courses 70km coastline
Tanpopo Kindergarten VINMEC Hospital
Processing & Manufacturing
• Food processing
• Consumer goods
• Electronic products
• Spare-parts of vehicles
• Supporting industries
• Investment into Hi-tech Park
- ICT equipment & spareparts
- Software production
- Optoelectronics
- Precision mechanics
- Biotech-applied products
- New materials, new energy
- Environment technology
Services • Hotels, resorts, restaurants
• Recreation falicities
• Shopping malls, supermarkets
• Hospitals and schools of world standards
• Logistics services
• Banking and finance, insurance
• Tourism (MICE, ecotours, culture, adventure, recreation tourism)
• Environmental projects
Infrastructure • Industrial park, hi-tech park, IT park, EZ
• Seaport , airport
• Mass public transport (Monorail/tram/metro)
• Waste water and solid waste treatment
20
ENCOURAGED INVESTMENT SECTORS 3
Focused Sectors
21
High-tech Tourism
3
ICT
Admin 7.87 ha
Residential area
31.24 ha
R&D, training and business incubation
95.26ha
Technical infrastructure
area 7.17 ha
Production area 184.02 ha
Supporting industries 30.76 ha
Logistics and hi-tech services 28.15 ha
Green area, parks, and sport facilities
56.92 ha
Total area: 1,128 ha
Location: Hoa Lien District
22
HI-TECH PARK – PLANNING & CURRENT PROGESS
300 ha of land with sufficient
utilities available for rent
3
23
HI-TECH PARK – INFRASTRUCTURE
Under construction
Completed area
TRANSPORT
• Basically finishing the infrastructure construction in the 1st phase with 328 ha
• Central Road with cross-section width of 51m, grid roads in functional areas with cross-section width of 22.5m
Central Road
3
Projects in R&D, incubation and training
Projects in the list of encouraged hi-tech products and technologies
Projects in supporting industries
Off 100% Off 50% The first 2 years 3 years
Off 100% The first 2 years
Off 50% The first 2 years
2. Land rents (as per Decision 36/2013/QD-UBND)
~0.2 USD/m2/year
1. Infrastructure using fee
HI-TECH PARK – INCENTIVES
0.36 $US/m2/year
0.23 $US/m2/year
One off payment Annual payment
PRODUCTION PROJECT
0.45 $US/m2/year
0.31 $US/m2/year
Annual payment
SERVICE PROJECT
One off payment
24
3
Other projects
(Healthcare, cultural activities and other services related to residents' life in DHTP)
Exempt
11 years
Projects in the list of domains entitled to special investment preferences
(Hi-tech application, Hi-tech production, Hi-tech incubation, R&D…)
Exempt
15 years
Exempt
entire period
Projects in the list of domains entitled to investment preferences
(Construction of apartment complex for workers, investment and commercial operation of: Infrastructure of education and training institutions, logistics, bonded warehouse, tax suspension warehouse…)
HI-TECH PARK – INCENTIVES
3. Land rent special exemptions
25
3
81 108
152
351
434
534 580
2010 2011 2012 2013 2014 2015 2016
ICT Revenue (mil USD)
10.3 13.8
20.8 25
33
49.38
58
2010 2011 2012 2013 2014 2015 2016
Software Export Revenue (mil USD)
Y2016 Up by 10%
Y2016 Up by 17.5%
700 companies
3 OVERVIEW OF ICT INDUSTRY
26
DOMESTIC CUSTOMERS INTERNATIONAL CUSTOMERS
48%
18%
21%
13%
Private
Government
Social
Others
36%
36%
12%
16%
US
Japan
EU
Others
3 ICT MARKET ANALYSIS
27
28
ICT WORKFORCE
Sales and Marketing
5%
Admin 8%
Digital content
14%
Hardware 27%
Software 28%
Other services
18%
By Sector
20,000 Employees 23 Local training facilities
• Da Nang University of Technology • Duy Tan University • FPT Polytechnics (English and Japanese
Curriculum)
• College of Information and Technology • Training cooperation
― University of Technology & Portland State University
― Duy Tan University & Carnegie Mellon University training cooperation
― College of Information and Technology ― Viet Nam – Korea Friendship IT College
& Korean Education Institutions
• Training facilities for international programmers Aptech, NIIT
• University of Forgein Language Studies
University-College
84%
Postgrad 5%
Prof. Secondary School 9%
Untrained 2%
By qualification
3
ICT INFRASTRUCTURE
29
3
Corporate Income
Tax
0% 5% 10% First 04 years Next 09 years Next 02 years
15 years
Import Tax
0% for machinery, equipment and materials used in
software production that have not been produced in Vietnam yet
*** These incentives are subject to whether the ICT enterprise satisfies certain conditions about types of software products and production procedure *** Recently Vietnam Government has just announced in Resolution No. 49 a 50% personal income tax reduction for IT workers. This has not been put into law in the near future.
ICT – INCENTIVES FOR SOFTWARE COMPANIES
30
3
Infrastructure
• 20% off office rental in Da Nang Software Park
• 30% off website hosting fees
• 20% off server leasing fee, MAN leasing fees, data storage fees, data security service fees
• 20% off common infrastructure usage fees
Labor training
• Subsidy for 30% of initial training expense
• Subsidy for CMMI level 3 development
Sales & promotion
• Subsidy for 100% of registration costs of software copyright protection domestically
• Support in attending international expos
ICT – OTHER SUPPORTING POLICIES
31
3
82 297 370
630 955
1250
1660
232
807
1770
2660
3800
4600
5510
1997 2005 2010 2012 2014 2015 2016
International
Domestic
Total
Visitor Arrivals (‘000)
8000
2020
16.5% Tourism Revenue Growth Rate (2016)
16% Visitors Growth Rate (2016) Top Foreign
Markets
2006
$20.7 mil
2010
$52.1 mil
2016
$672 mil
Tourism revenue
FAST GROWING TOURISM INDUSTRY 3
32
14
11
48
575 hotels (2016)
21,648 hotel rooms (2016)
Copyright © 2017. All rights reserved.
Average Daily Rate (ADR): from $58.73/night for 4-star City hotels to $173.04/night for 5-star (2016)
Average Occupancy Rate at 63.3% for
5-star hotels and 50% for 4-star hotels
in Q1, 2016.
HIGH-QUALITY ACCOMMODATION SUPPLY
33
3
Position Years of experience
Malaysia Thailand Ho Chi Minh Da Nang
Average n/a n/a n/a 340
Junior Developer /Engineer
0 – 4 798 – 1026
551 – 1100
580 – 1270
400
Senior Developer /Engineer
5+ 1254 – 2394
1380 – 2480
1 400 – 2500
825
Project Manager
7 - 10 n/a n/a n/a 1370
Source: Self-surveyed data & Luxoft 2015
ICT WORKFORCE – LOW COST
Average Wage of an IT employee (Unit: US$)
34
3
18th Floor, Danang Administration Center
Tel: (84-236) 3886243 / 3886244
[email protected] www.investdanang.gov.vn
Danang Investment Promotion Agency
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