- News in Vietnam
- 8 December 2021
Da Nang calls for Korean businesses to invest in ICT, bringing in nearly $2.5 billion in revenue.
Striving to 2025, the information technology and telecommunications industry will become a required field bringing in 2.34 billion USD. Da Nang identifies Korea as one of the key partners and wants to call for investment more from the business origin “kimchi.”
LOTS of PRIORITY POLICIES
Responding to the comments of some Korean businesses related to the city’s investment attraction policy, Mr. Pham Truong Son, Head of the Management Board of Da Nang Hi-Tech Parks and Industrial Parks, said: “Information technology is one of the six sectors prioritized for investment and the city’s high-tech park.”
In addition to the general policies prescribed by the State of Vietnam, Da Nang also has many other preferential policies to attract, such as land rent exemption from 15-19 years, depending on each type of production and business.
Besides, reducing corporate income tax from 20% to 10%, exempting personal income tax for sound professionals. Exemption of ground compensation for enterprises with significant investment capital of 3,000 billion VND or more.
For Da Nang, Korea has been an essential partner in investment, trade, and tourism.
Mr. Tran Phuoc Son, Vice Chairman of the City People’s Committee. Da Nang, affirming that Korea is one of the strategic markets in Da Nang’s investment promotion.
City leaders highly appreciate and recognize the positive contributions of Korean businesses and investors to the city’s socio-economic development achievements in the past time, contributing to the construction of the city. for the extensive strategic partnership between the two countries.
In particular, the Consulate General of the Republic of Korea, KOTRA in Da Nang, made efforts together with departments, agencies, and sectors to convey problems and propose measures to work with the city government to solve difficulties encountered during the epidemic. Covid has affected the investment, production, and business activities of enterprises in the past two years.
ATTRACT KOREAN INVESTORS IN ICT
South Korea, which is well known as the world’s leading information and communication technology center, ranks first in the 2021 index of most innovative countries with its advanced technology infrastructure and fast Internet. They have famous companies such as Samsung, LG, SK Hynix, Naver… and invest heavily in innovative technologies such as the 5G network, artificial intelligence, big data, and security network.
Up to this point, Korea is one of the five countries and territories with the highest number of projects and total investment capital in Da Nang, with 233 projects with a total investment capital of more than 378 million USD.
In addition, in the years before the Covid-19 epidemic took place, there were 19 international routes with 214 flights/week from Korea to Da Nang.
With about 1.5 million visitors, accounting for more than 50% of the total number of international visitors to the city, it shows that many Korean tourists and business people choose Da Nang as an ideal destination for tourism activities and business.
These are essential bases for Da Nang to continue to promote attracting investors in general and Korean businesses in particular in information technology to achieve higher efficiency in the coming time.
“Da Nang identifies South Korea as one of its key partners with strong financial and technical potential and wishes to promote connectivity, calling for more investment attention from Korean businesses in the field of the city’s ICT sector.”
Mr. Tran Phuoc Son, Vice Chairman of the City People’s Committee in Danang.
Over the past years, Da Nang has been one of the country’s leading cities in information technology (ICT) and has been recognized and appreciated by many domestic and international organizations, such as 12 consecutive years leading. Vietnam ICT rankings, Vietnam Digital Transformation Award, Vietnam Smart City Award, ASOCIO Smart City Award…
Although the Covid-19 pandemic has hurt the economy and society in the past two years, Da Nang’s ICT industry is still developing, with total revenue exceeding $1.3 billion, software export turnover reaching nearly 90 percent of million dollars.
According to the city’s development orientation to 2030, with a vision to 2045, it will become an intelligent eco-city, a center for entrepreneurship, innovation, and a livable coastal city of the European level. In Asia, Da Nang focuses on developing three main pillars, including tourism, high-tech industry, and the marine economy.
In particular, the information technology, electronics, and telecommunications industries associated with the digital economy will continue to be the key areas focused on development.
“Da Nang strives to earn $2.34 billion in total ICT revenue by 2025, and by 2030, the ICT industry will contribute 15% of the city’s total GRDP. To achieve this goal, the city prepares infrastructure, human resources, living and working environment and focuses on attracting investment in 3 contents including infrastructure investment, investment in data, and smart applications”, emphasized Mr. Tran Phuoc Son.
In the coming time, Da Nang hopes to welcome more and more Korean businesses to invest and develop new business opportunities through the forum. The city government is committed to always creating favorable conditions for Korean investors to learn about the investment environment, set up and implement practical projects in Da Nang.