With its open investment environment and synchronous infrastructure, Danang City has become very attractive for major foreign investors, especially Korean investors.
With its advantages, over the past years, Danang has always been one of the four leading investment attracting localities. By the end of September 2011, Danang had attracted more than 200 foreign direct investment projects with total registered capital of US$3.2 billion, more than 25 of which were developed by Korean investors with total registered capital of US$500 million, accounting for about 16 percent of total registered foreign direct investment capital into the city. Furthermore, they manufacture a wide range of products from consumer products to value added items such as automobile and motorcycle parts and equipment. Mr Lam Quang Minh, Director of Investment Promotion Centre of Danang City, said that the Centre has coordinated with the Danang Export Processing and Industrial Zone Authority to call investors from Japan, the United States, and especially South Korea to invest into Danang Hi-tech Zone Project (Hoa Vang district), mainly focusing on high technology industry, bio-technology, and meteorological technology for weather forecasting.
According to Mr Phung Tan Viet, Vice Chairman of People’s Committee of Danang City, the relationship between Vietnam and Korea in general, and between Danang city and Korean localities in particular, has significantly improved in recent years. In Danang, Korean enterprises have favourable access not only to markets in the central coastal area, but also to the east – west economic corridor linking Laos, Thailand and Myanmar. Mr Viet also affirmed that Danang has always created the most favourable conditions for long-term investors. The city is applying many flexible and preferential policies, as well as always encouraging Korean investors to use clean, high technology to create value added products. Additionally, Danang has been striving to become a high quality service city giving first priority to investments in finance, banking and real estate. “Thanks to this, each side will have an opportunity to study more closely investment conditions and policies of the other side, to promote investment, build up business relationship and exchange culture,” added Mr Viet.
When studying the city, many Korean enterprises highly appreciate its investment environment. Investors have received enthusiastic support from the city’s authorities in investment licensing, land clearance, construction, business activities, cargo transport, import and export. Mr Huynh Duc Tho, Director of Planning and Investment Department of Danang, said that most Korean enterprises have great potential, efficient performance, comply closely with environment regulations and pay due attention to public interest. The 20th Congress Party of Danang has set a target to turn Danang into an industrial city by 2020, to confirm itself as a first – class urban area of Vietnam and the economic development centre of the whole Central Highlands. To realize the target, the city must attract much investment, including from Korea, in modern technology, especially in high-tech industries, supporting industries and other sectors such as infrastructure and services.
Mr Kim Ho Kyun, Director of Korean Chamber of Commerce and Industry, confirmed that as a leader in the provincial competitiveness index (PCI) in Vietnam with good ability to lure investment, Danang is attracting great attention from Korean investors. The advantage of abundant human resources and synchronous infrastructural system has also increased the attraction of this central city. Mr Kim Ho Kyun also said that in the future there will be many more Korean enterprises coming to Vietnam to expand business opportunities, increase investment into key industries such as industrial production, infrastructural construction for industrial parks, real estate, and light industry. Moreover, small and medium-sized enterprises will also increase investment or relocate branches from neighbouring countries to Vietnam.
Thanh Tan
Vietnamese
