Set up a foreign invested company (FDI) in Da Nang

Foreign investment is marking a development trend and attracting foreign capital to Vietnam. As a potential city of economic development, it is not only the start-up hub for domestic investors but also for start-up individuals and organizations. Therefore,  always reaches the peak of the rank for the city which can attract the foreign direct investment (FDI) in the Central region of Vietnam. In this article below, Viet An Law would like to present the way to set up a foreign invested company (FDI) in Da Nang.

The procedure of set up a foreign invested company (FDI) in Da Nang

Step 1: Obtaining an Investment Registration Certificate

• The agencies receiving dossiers: High-Tech Park and Industrial Park Management or  Department of Planning and Investment.
• Method: Investor files 01 dossier requesting for Investment Registration Certificate to The Agency.
• Duration: 15 days from the date of receiving valid documents.
• Result: Investment Registration Document
• Fees: None

Step 2: Obtaining an Enterprise Registration Certificate

• Authority: Da Nang Business Registration Office under Da Nang Department of Planning and Investment
• Method: Offline / Online / Via online network
• Duration: 03 days from date of receiving the valid documents
• Fee:
  • Business Registration Fee: 50.000VND/time
  • Business Registration Publication Fee: 150.000VND/time

Step 3: Procedure of post establishment

• Publicizing the content of enterprise registration;
• Engraving the company seal;
• Open an account for foreign direct investment;
• Tax registration with the competent agency;
• Request for sub-licenses for conditional business lines;…

Notes for foreign investors

• In the case of sector, trades under conditional market access for foreign investors, foreign investors must meet market access conditions according to WTO Commitments and Vietnamese legal regulations.
• In case of sectors, trades have no regulation on the minimum investment capital/charter capital, the investor can decide the investment capital/charter capital based on: the financial capacity, scope, scale, and field of operation of the company; contract value;…
• Most sectors and trades are allowed for both individuals and organzition to invest in Vietnam. However, some of them are only allowed for an investor who is an organization. The background to decide whether it is an individual or organization is based on the investment field and is specified in the International Treaties for that sub-sector or in Vietnamese legal regulations on that business field.
• Economic organizations utilizing the investment project should take notice of the investment reporting for the investment registration agency and the local management agency for statistics.

Incentives for investors when investing in Da Nang

Subjects of application of investment incentives

The following investment projects that are eligible for investment incentives include:

• Investment projects in sectors or trades subject to investment incentives under the current Law on Investment.
• Investment projects in geographical areas with difficult socio-economic conditions under the current Law on Investment or areas with extremely difficult socio-economic conditions;
• Investment project capitalized at least VND 6,000 billion disbursed within 03 years from the issuance date of the investment registration certificate or the decision on approval for both investment guidelines and investor (for the project not required to obtain the investment registration certificate) or the decision on investor approval (for the project not required to obtain the investment registration certificate);
• Investment projects in rural areas employing 500 or more workers (excluding part-time workers and workers with labor contracts of less than 12 months);
• High-tech enterprises, science and technology enterprises, and scientific and technological organizations following the law on high technologies and the law on science and technology.

Application forms of investment incentives in Da Nang

• Apply corporate income tax rates lower than normal tax rates for some time or the entire implementation period of an investment project; exemption or reduction of corporate income tax;
• Import tax exemption for goods imported to create fixed assets; raw materials, supplies, and components to implement an investment project;
• Exemption or reduction of land rent, land use levy, land use tax.

For example, real estate business services, currently have the following limitations and incentives

WTO, FTAs: Not included in the Schedule.

The Law of Vietnam: The scope of activities of foreign-invested economic organizations with the function of real estate business includes:

• Renting houses and construction works for sublease.
• For land leased by the State, to invest in the construction of houses for lease; investment in the construction of houses, construction works other than houses for sale, lease, or hire purchase.
• Receiving transfer of all or a portion of a real estate project from an investor to build houses, construction works for sale, for lease, or lease purchase.
• For land allocated by the State, to invest in the construction of houses for sale, for lease, or lease purchase.
• For leased land in industrial parks, industrial clusters, export processing zones, hi-tech zones, or economic zones, to invest in the construction of houses and construction works for business purposes by the land use purposes.

Information on the industrial parks that have foreign direct investment  capital in Da Nang

Foreign-invested business is one of the foreign-invested economic organizations having direct or indirect investment capital and in which the investor is a member or shareholder of the company (according to Article 3.22 of the Investment Law 2020).

Up to now, the Industrial Parks in Da Nang have attracted 489 projects, 128 of which are foreign invested projects with the sum of capital being 1,589.7 million USD (nearly 47% of the city’s total FDI investment capital).

According to the statistics, Japan is the biggest investor with 230 projects and a total investment capital of over 1 billion USD, i.e. 26% of the city’s total FDI investment capital. After that is the United States of America with 85 projects and registered capital is approximately 800 million USD, i.e. 20% of the city’s total FDI investment capital.

Some of the industrial parks in Da Nang:

Hoa Khanh Industrial Park

• Hoa Khanh Industrial Park is located in Lien Chieu District, Da Nang, attracting domestic and foreign clean technology and high technology investors, currently, the occupancy rate is 100%.
• The main industries attracting investment in Hoa Khanh Industrial Park can be mentioned as Production of auto and motorbike parts, mechanical engineering, electrical equipment, chemicals, production of new construction materials …

Lien Chieu Industrial Park

• Founded on 18th April 1998, Lien Chieu Industrial Park is a big and important Industrial Park in Da Nang City, it is located nearby Hai Van tunnel facilitating the transport of goods. Lien Chieu Industrial Park has a total area of 289,35 ha, of which 205,16 ha has been planned.
• Priority fields can be mentioned as information technology, biotechnology, automation, mechatronics technology; environmentally friendly industries, supporting industries in the field of mechanical engineering and precision engineering; high-quality service sector;…

Hoa Cam Industrial Park

• Hoa Cam Industrial Park is located in the Cam Le district, invested by Hoa Cam Industrial Park Investment Joint Stock Company (IZI Corporation). This is the industrial park with the most favorable location among the industrial parks in Da Nang, located 8km from the center of Da Nang city.
• Fields attracting investment include the electronic industry, mechanical engineering, assembly; agricultural and food processing; construction materials industry, high-end interior decoration; Other industries (plastics, cosmetics, packaging…)

Information on foreign investment capital company in Da Nang

Vietnam Kanzaki Company Limited

Kanzaki is located at Street 6, Hoa Khanh Industrial Park – Hoa Khanh Bac Ward – Lien Chieu District – Da Nang

The company officially went into operation in 2012. This is an enterprise with investment capital from Japan. Kanzaki in the Vietnamese market specializes in operating in the field of heavy industrial production. The company’s strength is the production of metal processing items, synthetic plastic molds, and other metal components.

Yuri ABC Da Nang Company Limited

Yuri ABC Da Nang Company Limited is located at Street 10, Hoa Khanh Industrial Park, Hoa Khanh Bac Ward, Lien Chieu District, Da Nang City.

Yuri ABC Da Nang was established in 2011 as a local legal entity of YURI Co., Ltd. – one of the oldest handbag manufacturing companies in Japan with a history of more than 60 years. The company’s handbag products have been exported to many countries around the world from Asia and America to high-quality markets such as Japan and Europe.

D&N Foods Processing (DANANG)

D&N Foods Processing is located at 01 Nguyen Phuc, Tho Quang Ward, Son Tra District, Da Nang City.

This is a food processing and seafood supply enterprise. The company was established with investment capital from abroad. Based on Da Nang’s advantage as the largest seaport city in Vietnam, the business has set up a representative office here. The unit has also shaped the business to maximize the export segment to Japan.

Set up a foreign invested company (FDI) in Da Nang service of Viet An Law

• Consulting on conditions for establishing FDI companies in Da Nang;
• Consulting on documents and related legal documents for investors;
• Adjusting investment registration certificates, changing business registration for enterprises;
• Representing customers to carry out company establishment procedures at competent authorities;
• Tax accounting services for businesses;
• Services for applying for sub-licenses related to conditional business lines;
• Regular legal advice for businesses during their operations.

For the demand related to process to set up a foreign invested company (FDI) in Da Nang, please contact Viet An Law Firm for the best advice and support!