Investment Incentive Policies in Da Nang Free Trade Zone

1. Investment Incentive Policies

In accordance with Clause 5, Article 13 of Resolution 136/2024/QH15 ("Resolution 136"), investors in the Da Nang Free Trade Zone (FTZ) are entitled to the following incentive policies:

• Corporate Income Tax (CIT) Incentives: The highest level of CIT incentives applicable to economic zones under the current legal framework will be applied.

• Land Rental Incentives: Maximum land rental fee exemption and reduction rates will be applied to projects involving the construction and business of infrastructure.

• Customs Duty Policies (Similar to a Non-Tariff Zone):

  • Goods and services traded within the FTZ and between the FTZ and foreign countries are subject to policies equivalent to those of a non-tariff zone.

  • Preferential regulations on export duties, import duties, VAT, and special consumption tax are applied.

• Priority Customs Procedures: Enterprises within the FTZ are granted priority status for customs procedures (export, import) within the city's jurisdiction (with the exception of turnover-related conditions).

• Application of the Highest Incentive Level: In cases where a project qualifies for multiple different incentive levels, the investor has the right to select the highest applicable incentive.

• Project Duration: The operational duration of projects is subject to the regulations applicable to investment projects in economic zones.

2. Procedures for Foreign Investors

The process for foreign investors to establish an economic organization has been simplified through the following steps:

• No Prior Investment Registration Certificate Required: Foreign investors are not required to have an investment project or complete the procedures for an Investment Registration Certificate before establishing an economic organization in the FTZ.

• Procedures Similar to Domestic Investors: The establishment process for an economic organization follows the same procedures as those for domestic investors under the Law on Enterprises.

• Project Implementation After Establishment: After the economic organization is established, the enterprise will proceed with the investment procedures for its project in accordance with legal regulations.

3. The "One-Stop" Management Mechanism

The Da Nang Hi-Tech Park and Industrial Zones Authority (DHPIZA) serves as the central point of contact, directly managing state administration and handling administrative procedures for investors through its delegated authorities in the following areas:

• Investment: Issuing, adjusting, and revoking Investment Registration Certificates.

• Planning & Construction: Appraising and approving detailed planning, issuing construction permits, and inspecting the acceptance of construction works.

• Environment: Appraising and approving environmental impact assessment reports and issuing various types of environmental permits.

• Labor: Issuing work permits for foreign employees, certifying cases exempt from work permits, and approving the demand for foreign labor.

• Certificate of Origin: Issuing Certificates of Origin (C/O) for goods manufactured within the zone.

4. Infrastructure Development Planning

The Da Nang City budget will be allocated to invest in or support the investment in constructing technical and social infrastructure both inside and outside the FTZ. This ensures the synchronous development of infrastructure to support production and business activities.

5. Conclusion

With its preferential policies on tax, land, and customs, combined with a simplified business establishment process and a centralized one-stop management mechanism, the Da Nang Free Trade Zone offers a clearly structured operational model for investors. These mechanisms and policies constitute a unique legal and operational framework. With this foundation, the establishment of the Free Trade Zone is set to become a new economic driver for the development of Da Nang and the Central Vietnam region as a whole.

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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