Investors moving out of China, many big companies planning to shift or expand production to Vietnam such as Apple, Google, Microsoft… will be a great opportunity to strengthen Vietnam’s participation in global supply chain.
In that context, Da Nang Hi-tech Park will most likely become a magnet to attract investors, especially in electricity – electronic and precision engineering industries.
A push from “multinational giants”
According to Asian Review, some 3 million to 4 million units, or around 30% of total classic AirPods production this quarter, will be “made in Vietnam.
The company has been posting many job openings over the past few months, from senior role like regional operations and new product manager in Hanoi to camera ops test engineering in Saigon. The recruitment move adds credence to reports that Apple could increase outsourcing manufacturing to the country.
Google and Microsoft are also reportedly making plans to begin or expand production in Vietnam this year. Some retailers like Amazon and Home Depot have stepped sourcing in Vietnam recently.
Apple expects to produce 3-4 million Airpods in Vietnam
The US International Development Finance Corporation (DFC) is interested in supporting development projects in the Greater Mekong Sub-region, as well as those specialising in producing strategic products in the US’s supply chain, CEO of the DFC Adam Boehler stated.
The DFC always attaches a great importance to and considers Vietnam a preferred partner in US cooperative projects.
Those good news demonstrate Vietnam’s efforts over the years to be on the world technology map, to become a new device production hub of many big brands. That is an achievement, a spectacular shift of Vietnam in attracting quality FDI inflows.
Opportunities for Da Nang Hi-tech Park
In the context of production relocation to Vietnam, Da Nang Hi-tech Park is considered a promising destination in attracting investors in the near future.
Danang Hi-tech Park owns a strategic location, easily accessing to seaports, airports, railway and main routes. This great advantage would save transport cost and time for investors. In additions, the connectivity with industrial parks and urban areas becomes more convenient.
The hi-tech park has a large industrial land fund for precision engineering, electrical and electronics manufacturing. Other advantages are resonable rental costs and abundant skilled workers.
In addition, when investing in Danang Hi-tech Park, the enterprises will be entitled to corporate income tax incentives for 15 to 30 years and exemption on corporate income tax for 4 years, and reduction of 50% for 9 years later to enterprise having new investment projects. Goods imported to be fixed assets in Hi-tech Park or machinery and equipment which cannot be produced at domestic will be exempted from import tax.
Moreover, foreign experts and workers working in the hi-tech park and their family members may be considered for issuance of multiple entry and exit visas with appropriate time limits for entry purposes in accordance with the laws.
Virtual tour of High-tech Factory in Da Nang Hi-tech Park:
Speeding up the largest rental factory project in Da Nang Hi-tech Park
Da Nang is striving to improve the investment environment and administrative reforms in order to promptly solve problems for businesses and help them soon start production. The hi-tech park is also accelerating to complete the infrastructure and preparing space for manufacturing.
In particular, there’s the largest rental factory project in Da Nang Hi-tech Park, developed by Long Hau Corporation – the investor of Long Hau Industrial Park in Long An province. The factory aims to serve high-tech and supporting high-tech industries, such as precision engineering, electricity – electronics, new materials…
High-tech Factory has a total scale of 29.6ha, providing completed ready-built factories including a spacious column-free factory and a two-storey office block with modern design.
Master plan of High-tech Factory
Perpective of High-tech Factory – Expansion phase
Phase 1 of the project with an area of 10,000m2 at Lot J4 has been 100-percent completed and handed over to Japanese investors. The expansion phase with an area of 10,000m2, providing factories ranging in size from 1,500 – 3,000m2 is expected to be completed on this Octorber.
In addtion, LHC offers a wide range of support services such as investment and business registration; recruitment and training; factory repair and maintenance, etc.