DA NANG CITY - Export Processing Zone
A developed area with infrastructure and pre- planned sites dedicated primarily for the production of goods for export.

Industrial Zone
A developed area with infrastructure and pre-planned sites to accommodate factories and support services for small, medium and large scale enterprises. Allows the flexibility for the production of goods for export as well as for domestic market.

Industrial Lots
The land area of the industrial lots range from 3,000 m2 to 16,000 m2. All lots have road frontage. The width of the service roads in the IZ is a minimum of 7.3 m, excluding pathways and shoulders.

Port Facilities
Tien Sa Sea Port is the third largest in the country. Located just 7 km north of IZ Danang, it has a warehousing space of 15,000 sq. meters and can accept vessels up to 30,000 DW tons. The Han River Port which is linked to the seaport allows access of feeder vessels up to 6,000 DW tons.

One Stop Services
The great support and encouragement from the local authorities has made it possbile for potential investors to get approval within two weeks. The one-stop agency takes care of all ancillary needs and conditions that the potential investor may need to fulfill. These efficient services help save investors' time and money.

Utilities

Power supply
The power supply is 110KV/22KV. Power available: 20MW. Consumption rate of electricity: VND 1,020.kwh.
Water supply
The water main to the IZ will be a 300mm pipeline connecting to 1 50mm internal distribution pipes. Water pressure is approximately 8 to 15 m which will be improved with the use of a suction tank and a booster pumping station. The average water demand for light industries is 30m3/Ha/day. The capacity of the reservoir at the Son Tra Water Station is 15,000m3/day.
Consumption rate of water
Industrial consumption: VND3,300/m3 Deep water wells may be drilled subject to relevant approval.
Telecommunications
The IZ is serviced by the French INTELSAT satellite. Each factory is able to have three direct telephone lines and one fax line.
Rates - Installation: US$ 60.00 per line. Rental: US$10.00 per month. Fax line: US$ 10.00 per month.
Waste Water Treatment
After treatment, the treated effluent must be: ? BOD5 - 50mg/ltr ? COD - 100mg/ltr ? SS - 100mg/ltr.

FINANCING FOR QUALIFIED CLIENTS

Danang City has a number of local and international banks to cater to the needs of the investors who hail from various parts of the world. Financing for qualified clients can be arranged through these banks.

PRICING
(i) Yearly payment of US$ 1.00/m2/year;
(ii) US$ 36.00/m2 for lease up to year 2043;

PAYMENT TERMS

Payment terms for item (ii) can be made in the following ways:

Option 1

• 10% on signing Land Reservation Agreement;

• 30% on approval of Investment License;

• 40% on occupation of land OR six months from date of Investment License; whichever is earlier.

• 20% shall be paid 18 months from date of Investment License.

Option 2

• 10% on signing of Land Reservation Agreement;

• 30% on approval of Investment License; ? 20% on occupation of land OR six months from date of Investment License; whichever is earlier;

• 40% shall be paid over three (3) consecutive years commencing one year from start of business operations OR 18 months from date of Investment License (whichever earlier) with interest of 10.5% per annum Other payment terms are negotiable on a case-by-case basis.

CONSTRUCTION COST

The estimated cost of construction of an industrial building excluding M & E, etc. is approximately US$ 60.00/m2.

Source:  Da Nang city - industrial parks, Vietnam (Danang website)

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