When deciding on a place to start doing business in Vietnam, investors do not just opt for Hanoi and Ho Chi Minh City nowadays. Being the fourth biggest city in Vietnam, Danang has now become foreigners’ favourite destinations due to the many investment opportunities this city has to offer.
Over the years, Danang has been developing as a comprehensive social and economic center in Vietnam that is sustainable and constantly evolving. Thanks to the local government’s flexible policies, foreign investors are attracted to this booming investment environment and they have been establishing their businesses and building factories in and around the region.
In this article, you will see why establishing a business in Danang can help you reap the highest benefits.
Doing Business in Vietnam: Why Danang
East-west Economic Corridor (EWEC)
As one of the economic corridor initiatives in greater Mekong sub-region developed by the Asia development bank, Danang serves as the eastern gateway of EWEC to many countries. Many road systems, including those spanning across Laos and Thailand and connecting Mekong and Danang, have been completed.
EWEC is critical for Danang’s development as it encourages more regional co-operations and creates supportive investment environments for trades and services, including tourism development.
Strategic Economic Hub
Situated in central Vietnam, Danang is made one of the strategic economic hubs in the region by the prime minister, along with cities and provinces including Quang Nam, Thua Thien Hue, Binh Dinh and Quang Ngai. Danang as a strategic economic hub is to boost the geographical advantages and the economic development of the highlands and the central region.
Investors can now enjoy the ever-developing infrastructure in Danang. Danang serves as an important central transportation hub, well-equipped with international airports, the third largest commercial ports, railways and roads.
Danang’s port has many direct international shipping routes to Singapore, Hong Kong, Japan, South Korea, Europe, America and Taiwan, with a capacity of 45,000 dwt for ships and containers. As for Danang International Airport, it is one of the biggest and most developed airports in Vietnam with a capacity to welcome 12 million visitors every year.
Abundant Trained Workforce
Nearly 50% of the city population is potential workforce in Danang. They are dynamic, young and well-trained with qualifications from universities and vocational institutions. A survey has shown that Danang has one of the highest educational development indexes in the country with more than 24 colleges and universities, and 50 vocational training schools with more than 140,000 students.
These institutions work with other foreign educational organisations and are equipped with modern and complete infrastructure, in order to provide quality training and education to these innovative young human resources. Approximately 40,000 people will graduate from colleges and universities every year in Danang.
Technology and Telecommunication Center
Danang is also one of the best technology and telecommunication centers in Vietnam, particularly in software and internet. In recent years, software technology firms in Danang have collaborated with leading companies from Japan and India to offer training to the local engineers, technicians and programmers.
Furthermore, the city works with many international IT firms on projects to keep up with the international standard and to meet the local market needs.
How Cekindo can Help
Cekindo provides ground assistance and streamlined solutions for foreigners who wish to establish and maintain businesses in Danang. Depending on your business needs and market conditions, we will guide you on choosing the right legal entity when doing business in Vietnam.
Our services also include permit and license applications, intellectual property rights protection, recruitment solutions, and other necessary legal compliance.
Let Cekindo assist you from scratch to hatch. Talk to one of our international business consultants now by filling in the form below.