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A new destination for high technology in Vietnam!

DANANG HI-TECH PARK. A new destination for high technology in Vietnam!. OVERVIEW OF DANANG CITY . The city of Danang. ▪ Area : 1,283.42 km 2 ▪ Population : 967,925 persons (201 2 ) ▪ Administrative unit: ▫ 06 urban districts (Hai Chau, Thanh Khe, Lien

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A new destination for high technology in Vietnam!

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  1. DANANG HI-TECH PARK A new destination for high technology in Vietnam!

  2. OVERVIEW OF DANANG CITY

  3. The city of Danang ▪ Area: 1,283.42 km2 ▪ Population:967,925 persons (2012) ▪ Administrative unit: ▫ 06 urban districts (Hai Chau, Thanh Khe, Lien Chieu, Son Tra, Ngu Hanh Son and Cam Le) ▫ 01 rural district (Hoa Vang) and 01 archipelago district (Hoang Sa) A center of economics, culture and sports, education and training, science and technology in the Central Region and Western Highlands of Vietnam Danang City Ranking number one in the readiness for ICT application in 4 successive years (2009-2012) Country leader in Provincial Competitiveness Index for 3 successive years (2008-2010)

  4. Economic Structure by sectors (%) GDP Growth Rate (%) Total FDI capital (million USD) Number of FDI projects • Source: 2011 Danang Statistical Yearbook

  5. Danang’s advantages for hi-tech development Danang City

  6. Da Nang Hi Tech Park Danang City Danang City Danang City ▪ Top 5 cities in Viet Nam ▪ Right in the center of the country ▪ Right on the North South communication axis for roads, rails and air ▪ The end point of the East West Economic Corridor (EWEC) ▪ Eastern gateway to the Pacific Ocean The powerhouse of the Key Economic Zone in the Central Vietnam

  7. Danang Port (Han River Port) Tien Sa Seaport Danang International Airport ▪ Capacity:1million ton/year ▪ One of the key gateways to the East Sea of the Sub-Mekong Region and the eastern gateway of the EWEC ▪ The largest seaport in Danang and the Central Vietnam ▪ Capacity: - As of now: 3-4million tons/year - 2015: 5 million tons/year - 2020: 5.5 million tons/year • Source: http://www.danangportvn.com/, http://wikimapia.org ▪ The largest airport in Central Vietnam and Western Highlands, one of the three largest ones in Vietnam ▪ 3km from downtown area ▪ Capacity: 6.5 million arrivals/year ▪ From Danang, there are many direct international flights to: Guangzhou, Beijing (China); Singapore; SiemReap (Cambodia); Hong Kong; Incheon, Seoul (Korea); Kuala Lumpur (Malaysia); and charter flights to Novosibirsk, Irkutsk, Krasnoyarsk (Russia); Paske (Laos) Lien Chieu Port ▪ Development plan: for vessels of 50,000 – 80,000DWT ▪ From now to 2020: investment of 2 newly-constructed depots for vessels of 50,000DWT. - Through capacity: 2.5 - 3.5 million ton/year (2020) Source: Danang Portal, http://danangairportonline.com/

  8. Post and Telecommunications Power Supply Provided with electricity through the North-South 500KV high voltage line to meet the local demand for consumption and production ▪ One of the three major centers of the national post-telecommunication network ▪ One of the three vital last linking points of the national axis trunk network and the direct linking point with the international sea cable station (SEA-ME-WE 3) with the capacity of 10Gbps, connecting Vietnam and 40 Asian and European countries Water Supply Danang City • Source: Danang Portal

  9. Qualification of workforce in 2011 Forecast of workforce qualification in 2020 • (Source: Danang Statistical Yearbook 2011)

  10. Scale of training by priority industries into DHTP • ▪ A: Bio-tech • ▪ B: Microelectronics, • mechanical-electronics, • opto-electronics • ▪ C: Automation • -Precision mechanics • ▪ D: New energies, • new materials • ▪ E: ICT • ▪ F: Technology applied • for petrochemistry • ▪ G: Other special • industries Annual average number of graduates within last 5 years Number of lecturers for priority industries • Source: Danang University, as of Sep 2012

  11. ► Administrative Reform • ▫Danang Portal with many channels : • office, SMS, email, portal • (dichvucong.danang.gov.vn) • ▫ Public service online • Administrative procedures • - Dossier search • ▫ “One-stop shop” in issuance of investment certificate e-Regulations ►E-Government - 2015 ▫ Data Center Installation Project,a “brain" of IT system, playing a crucial role of technical infrastructure of E-Government ▫ Location: Software Park ▫ Total capital: 4 million USD Model of Data Center ▫ 12 ICT applications: - Management of driving license - Civil status - Poor subsidy - Fishes catch - Registration of land use right - Business registration • Investment project • Issuance of construction license • E-shopping • Geographic information • Heath management • E-district, E-ward • Source: Danang Portal

  12. Danang 2020 Dragon Bridge ▫ The socio-economic center of Central Vietnam, as the center of services, seaport, and the hub communication of transport and transit ▫ Post and telecommunications and finance-banking center ▫The center of healthcare, culture and sports, education and training, science and hi-tech in Central Vietnam ▫Strategic location of security and national defense in Central Vietnam and the whole country Hoa Xuan Sports Complex ▫Environmentally-friendly city

  13. DANANG HI-TECH PARK

  14. Danang Hi-Tech Park DETAILED SITE PLAN

  15. Danang Hi-Tech Park 25km(Tien Sa Seaport) DHTP 22km(downtown city) 17km(Danang airport) ▫ Location: Hoa Lien Commune, Hoa Vang District ▫Area: 1,129.76ha -Land for functional areas: 673.94ha -Mountains, Hoa Trung lake, Irrigation canals and green belt: 455.82ha

  16. Danang Hi-Tech Park • MISSION • R&D, transfer and application of hi-tech • Hi-tech and business incubation VISION • Training high-quality human resources • Manufacture, trade and services • in hi-tech • National center of hi-tech • Commercialization of scientific research results • Projects in R&D, training incubation • in hi-tech • Attractive working environment • Investment in venture capital • High-quality • human resources • Development of science and technology

  17. Danang Hi-Tech Park Priority Industries • Microelectronics, • mechanical-electronics • and opto-electronics • Bio-tech applied for agriculture, aquaculture and health care • Automation – • Precision mechanics • Information and Communications Technology, Computing software • Environment technology, • technology applied for petrochemistry and • other special industries • New energies • New materials

  18. Functional areas • Production area • 208.08 ha • Logistics • 29.76 ha • Technical infrastructure area • 7.07 ha • Green area, lake, parks, • cultural and sports facilities • 72.53 ha • R&D, training and incubation area • 94.51 ha • Admin • 39.29 ha • Residential area • 37.12 ha • Land for services • 39.26 ha

  19. Incentive Policies Land rental • Exempt 100% • -Projects in infrastructure construction • -Projects in R&D, training and incubation in hi-tech -Projects in residential area • Exempt 11 years • Projects on the List of domains entitled to special • investment preferences • Exempt 03 years • -Projects on the List of domains entitled to • investment preferences • -Projects in service management area, logistics area • 5% • 10% Corporate income tax • 0% • the first 4 years • the next 9 years the next 2 years 50% off • 100% off • Infrastructure use fee • 4,200 VND/m2/year • (~0.2 USD/m2/year) • the first • 2 years • the next • 3 years • Wastewater treatment fee • 4,200 - 6,300 VND • (~0.2-0.3 USD) per m3 • Supporting Policies

  20. Danang Hi-Tech Park • Criteria for determining projects in hi-tech production ▫ Products on the Hi-Tech Product Priority list ▫ Number of labourers with a university or higher degree involved in R&D work accounts for at least 5% of project’s total workforce ▫ Products with high quality, outstanding functions, high value added, environmentally friendly, replace imported products of the same kind ▫ Advanced technological chain, controlled under set programs ▫ Technical regulations and standards in environment, as prescribed by Vietnam Law ▫ Quality control system: TCVN ISO 9001:2008, CMM or GMP • Criteria for determining projects with hi-tech application ▫ Quality control system: TCVN ISO 9001:2008, CMM or GMP • ▫ Use result from hi-tech research to renovate, innovate high technology, enhance value added; produce hi-tech prototypes; manage and adapt to imported technology, make use of domestically materials and components • ▫ New generation technology and on the List of High Technologies prioritized for development investment ▫ Total average expenditure for R&D takes up at least 1% of total project revenues • Source: Circular No. 32/2011/TT-BKHCN • ▫ Technical regulations and standards in environment, as prescribed by Vietnam Law

  21. DHTP Management Board MISSION ESTABLISHMENT ▫ Set up orientation plan and development strategy ▫ Manage and organize plan implementation ▫ Manage investment, construction and using of the infrastructure; land use in DHTP; labour, residents and security; investment projects; protect natural resources and environment; ensure sustainable development ▫ Support and promote investment ▫ Cooperate with foreign investors ▫ Carry out inspections for businesses in DHTP ▫ Established as per Decision 1980/QD-TTg dated October 28th 2010 by Prime Minister FUNCTION ▫ Government Authority for DHTP ORGANIZATIONAL STRUCTURE (As of now) GENERAL DIRECTOR DEPUTY GENERAL DIRECTOR DEPUTY GENERAL DIRECTOR PLANNING, CONSTRUCTION AND ENVIRONMENT DIVISION OFFICE PLANNING – INVESTMENT DIVISION INVESTMENT SUPPORT AND PROMOTION DIVISION PROJECT MANAGEMENT UNIT ACCOUNTING – FINANCE DIVISION

  22. Thank you! DANANG HI-TECH PARK MANAGEMENT BOARD 6th Floor, #228 2/9 Street, Danang City Tel: (84) 511.3626703 – (84) 511.3626704 Fax: (84) 511.3626705 Email: dhtp@danang.gov.vn Website: www.dhtp.vn, www.dhtp.gov.vn

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