Attracting Strategic Investors in Danang City, Vietnam
On June 26, 2024, the National Assembly passed Resolution No. 136/2024/QH15 on the organization of urban government and piloting a number of specific mechanisms and policies for the development of Da Nang city. Accordingly, Da Nang city is attracting strategic investors to create momentum for the development of the city and the Central region.
Table of contents:
- 1. List of priority industries, trades, and projects attracting strategic investors in the City, including:
- 2. Conditions to become a strategic investor:
- 3. Based on the list of priority industries, trades, and projects to attract strategic investors as prescribed in Clause 1 of this Article, strategic investors or competent state agencies propose investment projects in accordance with the following regulations:
- 4. The order and procedures for registering to implement the project and selecting strategic investors for projects not falling under the cases specified in Clause 4, Article 29 of the Law on Investment are carried out as follows:
- 5. Strategic investors are entitled to the following incentives:
- 6. Strategic investors have the following obligations:
1. List of priority industries, trades, and projects attracting strategic investors in the City, including:
a) Investment in building innovation centers, data centers, research and development (R&D) centers associated with training; investment in research and support for high-tech transfer in the fields of information technology, artificial intelligence (AI); biotechnology, automation technology, new materials technology, clean energy with a minimum investment capital of VND 2,000 billion or more;
b) Investment projects in the field of semiconductor chip technology, semiconductor integrated circuit industry, manufacturing of components, integrated circuits (ICs), flexible electronics (PE), new technology batteries, new materials, defense industry, high-tech products and categories approved by the Prime Minister with a minimum investment capital of VND 4,000 billion or more;
c) Investment in the construction and trading of infrastructure of functional zones belonging to the Da Nang Free Trade Zone according to the planning approved by competent authorities, including Commercial - service area with a minimum investment capital of VND 3,000 billion or more; Logistics center associated with Lien Chieu Seaport with a minimum investment capital of VND 3,000 billion or more; Production area with a minimum investment capital of VND 3,000 billion or more;
d) Investment in the construction and trading of inland waterway tourism with a minimum investment capital of VND 8,000 billion or more;
e) Investment in the construction of the overall project of Lien Chieu Seaport with a minimum investment capital of VND 45,000 billion or more.
2. Conditions to become a strategic investor:
A strategic investor must have a written commitment to comply with obligations and responsibilities; have a written commitment to training and developing human resources, meeting the conditions to ensure national defense, security, and environmental protection in accordance with the provisions of Vietnamese law, and must satisfy one of the following conditions:
a) Having a charter capital of VND 500 billion or more when implementing investment projects as prescribed in Point a, Clause 1 of Article 12 of Resolution No. 136/2024/QH15 and having experience in investing in projects in similar fields with a total investment capital of VND 1,000 billion or more;
b) Having a charter capital of VND 1,000 billion or more when implementing investment projects as prescribed in Point b, Point c, Clause 1 of Article 12 of Resolution No. 136/2024/QH15 and having experience in investing in projects in similar fields with a total investment capital of VND 2,000 billion or more;
c) Having a charter capital of VND 2,000 billion or more when implementing investment projects as prescribed in Point d, Clause 1 of Article 12 of Resolution No. 136/2024/QH15 and having experience in investing in projects in similar fields with a total investment capital of VND 2,000 billion or more;
d) Having a charter capital of VND 9,000 billion or more when implementing investment projects as prescribed in Point e, Clause 1 of Article 12 of Resolution No. 136/2024/QH15 and having experience in investing in projects in similar fields with a total investment capital of VND 25,000 billion or more.
3. Based on the list of priority industries, trades, and projects to attract strategic investors as prescribed in Clause 1 of this Article, strategic investors or competent state agencies propose investment projects in accordance with the following regulations:
a) For projects in the field of artificial intelligence (AI) technology, semiconductor chip technology and semiconductor integrated circuit industry in Point A, Point B, Clause 1 of Article 12 of Resolution No. 136/2024/QH15, proposing the State to lease land: strategic investors are leased land by the State without going through land use rights auction, bidding to select investors, competent authorities approve investment policies and investors without requiring land use rights auction or bidding to select investors. The investment order and procedures are carried out in accordance with the provisions of the law on investment. The determination of land prices and financial obligations shall be carried out in accordance with the provisions of the law on land and relevant laws;
b) For projects prescribed in Clause 1 of this Article which are not subject to the provisions in Point A of this Clause, the competent authority approving the investment policy shall implement the order and procedures for approving the investment policy in accordance with the provisions of the law on investment and the provisions in Clause 4 of this Article.
4. The order and procedures for registering to implement the project and selecting strategic investors for projects not falling under the cases specified in Clause 4, Article 29 of the Law on Investment are carried out as follows:
a) Based on the decision to approve the investment policy for the project as prescribed in Point b, Clause 3 of Article 12 of Resolution No. 136/2024/QH15, the competent investment registration agency of the City shall announce information about the project, preliminary requirements on the capacity and experience of investors and conditions for determining strategic investors on the National Bidding Network System;
b) Based on the content of the announced information as prescribed in Point a of this Clause, investors prepare and submit dossiers for registration to implement the project. The dossier for registration to implement the project must include: a written registration to implement the project; dossiers on legal status, capacity and experience of the investor; documents proving that the conditions prescribed in Clause 2 of Article 12 of Resolution No. 136/2024/QH15 are satisfied and other relevant documents (if any);
c) After the deadline for registration to implement the project, the competent investment registration agency of the City shall conduct a preliminary assessment of the capacity and experience of investors who have submitted dossiers for registration to implement the project. Based on the results of the preliminary assessment of capacity and experience, the competent person deciding on investor selection will decide on the method of implementation according to one of the cases prescribed in Points d, e, and g of this Clause;
d) In case there is only 01 investor who has registered and meets the preliminary requirements on capacity and experience or there are many investors registering but only 01 investor meets the preliminary requirements on capacity and experience, that investor shall be approved in accordance with the provisions of the law on investment;
e) In case there are 02 or more investors who meet the preliminary requirements on capacity and experience, of which only 01 investor is identified as meeting the conditions for strategic investors as prescribed in Clause 2 of Article 12 of Resolution No. 136/2024/QH15, that strategic investor shall be approved in accordance with the provisions of the law on investment;
g) In case there are 02 or more investors who meet the preliminary requirements on capacity and experience, of which 02 or more investors are identified as meeting the conditions for strategic investors as prescribed in Clause 2 of Article 12 of Resolution No. 136/2024/QH15, the competent state agency shall apply or select to apply the law on bidding to select investors among investors who meet the conditions for strategic investors;
h) The People's Committee of the City shall specify the form of announcement of information on projects to attract strategic investors, including preliminary requirements on the capacity and experience of investors; dossiers for registration to implement the project.
5. Strategic investors are entitled to the following incentives:
a) Deduction of expenses for research and development (R&D) activities by 150% of the actual expenses of these activities when calculating corporate income tax. Actual research and development (R&D) expenses are determined in accordance with the provisions of the law on accounting;
b) Priority in customs procedures in accordance with the provisions of the law on customs and tax procedures in accordance with the provisions of the law on tax for exported and imported goods of investment projects implemented by strategic investors in the City when satisfying the conditions for applying the priority regime as prescribed by law on customs and tax, except for the conditions on export and import turnover.
Strategic investors implementing projects in the fields of artificial intelligence (AI) technology, semiconductor chip technology, semiconductor integrated circuit industry, information technology, innovation, research and development associated with training may choose the form of the State leasing land with a one-time payment of land rent for the entire lease term. The determination of land prices and financial obligations when the State leases land and collects land rent once for the entire lease term shall be carried out in accordance with the provisions of the law on land and relevant laws.
6. Strategic investors have the following obligations:
a) Organize the implementation of the project according to the contents specified in the decision to approve the investment policy or the decision to approve the investor or the investment registration certificate;
b) Investment projects as prescribed in Points a, b and c, Clause 1 of Article 12 of Resolution No. 136/2024/QH15 must disburse investment capital within 05 years, investment projects as prescribed in Point d, Clause 1 of this Article must disburse investment capital within 07 years from the date of issuance of the decision to approve the investment policy or the decision to approve the investor or the investment registration certificate. During this period, strategic investors are not allowed to transfer the project;
c) Investment projects as prescribed in Point e, Clause 1 of Article 12 of Resolution No. 136/2024/QH15 must disburse investment capital within 10 years from the date of handover of land and water surfaces on the ground. Within 10 years from the date of issuance of the decision to approve the investor, strategic investors are not allowed to transfer the project;
d) Support funding for vocational training for workers affected in the project area; prioritize the recruitment of local laborers to work on the project; implement commitments on the application and transfer of advanced technology, new technology and high technology (if any).
During the implementation of the investment project, if the strategic investor fails to meet the conditions on capital, disbursement progress and other conditions for strategic investors, they will not be entitled to the incentives prescribed in this Resolution. Investors are responsible for the consequences arising from failure to properly implement their commitments in accordance with the provisions of law.
The full text of Resolution No. 136/2024/QH15 can be found here.
This information contained herein is of a general nature and is intended to provide updates on the Laws for information purposes only. DB Legal shall not be liable for any use or application of the information for any business purpose.
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