Frequent Ask Questions (FAQs)

1.    What is the total area of Danang IT Park? What is the progress of development?
The total area of Danang IT Park (DITP) is 341 Ha. The project will be developed in 2 phases:
-    Phase I: 131 Ha to be developed in 4 years (2013-2017) with a total investment of
$US 82 million.
-    Phase II: 210 Ha to be developed in 6 years (2017-2023) with a total investment of
$US 196 million.

2.    What are the advantages of DITP?
-    Strong commitment from both the Central and Local Government of Vietnam.
-    Highest Tax Incentives to high-tech and IT projects by the Vietnam Law.
-    Good accessibility to Danang International Airport, Sea Port, National Highway 1A, and North-South Railroad.
-    Close approximately (20-30 minutes) to top local Technical Universities & Colleges.
-    An environment dedicated to high-tech and IT activities with the presence of high-tech leaders, supporting industries as well as local and oversea high-tech companies in research, training and incubation.
-    Authorized “One Stop Services” for high-tech status, investment licensing, permits and Custom procedures.

3.    Which high-tech and IT sectors are being encouraged in DITP?
DITP is now calling for investment in the following sectors:
-    Information Technology & Communications.
-    Software Development’
-    ITO, BPO.
-    Training facilities & Green technology.
-    Microelectronic, Optoelectronic, Nanotechnology, and Biotechnology.

4.    What is the investment registration process in DITP?
Using “One Door Services” policy, the registration process in DITP is divided into 3 key steps:
(1)    The Technical Evaluation.
(2)    The Registration for Investment certificate.
(3)    The Construction Guidance.
 All projects must go through the Technical Evaluation to prove the project high-tech nature. This assessment is instrumental to the admission as well as for the high-tech incentives.
The application for the Investment Certificate will follow the Technical Evaluation once the projects are approved technologically. The Investment Certificate will allow the Investors to operate their business in Vietnam as a Legal Entity.
Besides, DITP provides the Construction Guidance to Investors with the current DITP construction regulations to make sure that the Investors facilities and utilities are complied with DITP’s zoning.

5.    Who will evaluate our projects?
The Technical Evaluation of projects will be assessed by DITP Scientific Council, including Professors and Scientists from Research Institutes and Universities in Danang, HCM City and Hanoi.

6.    How long is the Registration process in DITP?
The Registration process could take up to 3 months including 10 days for Technical Evaluation, 45 days maximum for the Registration for the Investment Certificate and 30 days for the Construction Guidance.

7.    Which other Department or Government Agencies will I have to work with to complete the Registration and post License formalities?
DITP implement the “One Stop Services” policy to provide best support, our Investors do not have to go to any Government Agencies during the whole process.

8.    What is the minimum and maximum land area and du DITP tenantsration that I can lease in DITP?
There is no limitation on the leasing area. The current maximum land leasing term is 50 years.

9.    What is the rental rate in DITP and how will I pay?
The fully developed land rental in DITP/Phase I currently ranges from $US 0.60 – 1.00/m2/year depending on location and type of business. Investors are expected to pay 10% of the total rental amount when signing the Lease Agreement, 40% by the time the Investment Certificate is issued. The remaining 50% will pay off within 18 months from the signing of Lease Agreement.

10.    Is there any other rental options aside from land lease?
Aside from land lease, DITP offers ready-built facilities and office for lease to the DITP tenants to support the demand of small and medium projects Investors.

11.    Besides the rental, which other costs and fees will I have to pay during my operations?
Investors will pay for the utilities usage (waste water treatment, water supply, power, industrial gas, internet …) to the Private Service Providers, and the public utility maintenance fees of approximately $US 0.30/m2/year.

12.    How long is the DITP Tax Holidays? When does it start?
DITP 10 % tax incentives last for 15 years in which the corporate tax income is 0% for the first 4 years after making profit, 5% for the following 9 years and 10% for the remaining 2 years.
-    The tax incentives start when the projects begin to have taxable income.
-    Additionally, Investors are entitled to import duty exemption for the followings:
+ Equipment & Machinery imported for the formation of fixed assets of the project and spare parts & components attached thereto.
+ Construction materials imported to build the fixed assets for the project that are not produced locally’
+ Semi finished parts, components imported to assemble the finished products for export.

13.    What are the working hours in Vietnam? Any restriction on shift hours?
In Vietnam, current regulation on working hour: 08 hours/day max. and 48 hours/week, overtime working hours is allowed but not more than 200 hours/year.
There is no concrete restriction on shift hours, however, shift work should be registered with DITP/Administration Office and should be defined in Labor Contract between the Employers and Employees.

14.    Is it difficult to recruit hi-tech workforce in Danang City?
DITP is surrounded by many well-known technical Universities, Colleges and Training Centers which provide quality supply of talent hi-tech activities in the Park.
The top technical Universities & Colleges in the vicinity include:
-    Danang University of Technology
-    Danang University
-    Danang University of Architecture
-    Duy Tan University
-    Danang University of Foreign Languages
-    Danang University of Economics
-    Danang College of Information & Technology…