Central Vietnam woos Euro investors

Representatives of the three localities addressed a business forum oganised by the Euro Chamber of Commerce and Industry and EU-Vietnam Business Network in Danang on November 24.

The three, which connect to the East-West Economic Corridor linking Laos, Thailand, Myanmar and Vietnam, are considered to have good investment potential with long coastal lines, world heritage sites, preferential policies, cheap land prices and abundant labour force.

They are also situated on National Highway 1, as well as having railway, sea port and airport systems and large areas for industrial zone development.

A series of administrative reforms easing investment have been cleared by local administrations.

Le Canh Duong, director of Danang’s investment promotion centre, said tourist real estate remains a favourite investment magnet in the city with 25 foreign direct investment (FDI) projects worth US$1.8 billion.

He said tourist real estate made up 54% of total US$3.68 billion of FDI capital in the city

Duong also said 57% of FDI projects were in the service sector as the city eyes on developing in Information Technology, hi-tech parks and coastal property, and environment-friendly projects.

The city has so far developed 16 tourist property projects consisting of 749 villas, of which 609 are for sale and 140 for lease, according to him.

EuroCham Vietnam will start operating an office for central Vietnam in Danang in January 2017.

Quang Nam is developing the 30,000ha Chu Lai Open Economic Zone – one of five key zones for investors in Vietnam – with competitive land prices of between US$10 and US$30 per sq.m for 50 years, said director of the provincial Investment Promotion Centre, Vo Van Hung.

The province has attracted 128 foreign direct investment projects worth US$5.5 billion, of which the Nam Hoi An Integrated Resort Project, invested by VinaCapital and Gold Yield Enterprises Corporations, is the biggest at US$4 billion.

It is seeking investment in automobile supportive industries, food processing industries and industrial park infrastructure.

Earlier this year, the province and the Truong Hai Automobile Joint-Stock Company, or Thaco - started expanding the Chu Lai-Truong Hai Mechanical Automobile Industrial Zone with a total investment of US$35.3 million.

The project is planned to produce 215,000 vehicles, including touring cars, trucks, buses and vans starting in 2018.

Hung said land costs only half or one-third compared to Hanoi and Ho Chi Minh City, respectively.

He said Quang Nam has reserved 10,000ha of coast for tourism and service projects.

Le Van Thu, director of the investment promotion and support centre of Thua Thien-Hue, said Hue city has 128 km of coast and 22,000ha of lagoon for tourism development in connection with UNESCO-recognised world heritage sites.

“The province hosted 3.2 million tourists, among them 1.2 million foreigners, in 2015. We are offering investors competitive low cost, including labour cost and land,” Thu said.

“Our land costs around 80% of what it costs to rent in Danang, 70% of Hanoi land, 60% of Ho Chi Minh City, 30 percent of Shanghai and 25% of Bangkok land,” Thu said.

He added labour costs for manual workers and managers range from US$130 to US$320 per month.

The province has attracted 23 foreign direct investment projects with a total capital ofUS$ 2.3 billion. One of the largest is an US$875 million tourism complex being financed by the Banyan Tree Group of Singapore.

Several financial incentives have been provided to attract investors, such as tax exemptions for the first four years of operation, a 50% tax reduction for the next nine years, and a 50% tax rate for high-income employees.