Factories are developing at the Da Nang IT Park. The city has been calling for investment from India to build the first pharmaceutical production centre in Da Nang. (Photo courtesy of Anh Huy) The Indian business group, which accounts for a 30 percent share of Indianexports, expects to build a pharmaceutical production centre and fill theshortage of material and medicines supplying Vietnam’s pharmaceuticalproduction chains.
Vice-chairman of the municipal People’s Committee Ho Ky Minh said the city’s1,184ha hi-tech park infrastructure has been flagged as a potential site forthe first Pharma Park in Vietnam.
He said the park would be a magnet for Indian pharma firms and producers as itoffers flexible land rent, land clearance, and favourable income tax and importtax policies including land rent exemption for the first three years ofoperation.
Under the Prime Minister’s decision signed in 2018, investors in traffic,technical infrastructure and public works, or special investment projects willenjoy a land-rent exemption for the entire duration of their investment periodin the park.
Investors will be given incentives as they benefit from a 10 percent tax ratefor 15 years, a four-year tax exemption and a 50 percent cut in income tax forthe following nine years, he said.
He added that projects valued at more than 133 million USD will get a 10 percenttax rate for 30 years, while businesses will have to pay no import tax onmaterials and equipment that are not available in Vietnam for the first fiveyears of operation.
Minh said the city’s education system with 106 universities, colleges andvocational centres supplies 25,000 students each year, while nearly 10,000doctors, nurses and medical staff are working at 22 hospitals.
The Indian pharma producers group has its own manufacturing centre inVisakhapatnam, and a series of companies including Hospira healthcare, Heteropharmaceutical company, Shasun pharmaceuticals, Natco Pharma and EisaiPharmaceuticals.
Da Nang Hi-tech Park, which was designed as a ‘green’ hub in central Vietnam,offers a number of benefits to manufacturers.
This includes Lien Chieu seaport, Kim Lien railway station and logisticscentre, an airport and national highway all within a radius of 20km.
It also smoothly connects with the Chan May Economic Zone in Thua Thien-Hue,the Chu Lai Economic Open Zone in Quang Nam and Dung Quat Economic Zone in QuangNgai province, Minh said.
The park’s authorities have granted an investment licence to the local DanaphaPharmaceutical Joint Stock Company for developing the first nano-technology andbiotech project with an investment capital of 1.5 trillion VND (67 million USD).
Up-to-date, Da Nang has attracted 905 foreign direct investment (FDI) projectsworth 3.85 billion USD, with the hi-tech park alone a destination for 24 ofthose projects with a total of 815 million USD./.
VNA
