Quang Nam Province, an exciting investment destination in Vietnam, is located in Central Vietnam, bordering Laos, Quang Ngai, and Da Nang. As a vital spot for international trade and a population nearing 2 million people, Quang Nam Province has seen an increasing socio-economic development over the years. This province has also been considered one of the most competitive provinces within the Provincial Competitiveness Index for three years consecutively.
Significantly expanding foreign direct investment (FDI) projects and capital are the reason for Quang Nam Province’s significant development. In 2020, the province received an US$ 89.34 million provincial budget from FDI, employed more than 55,000 local staff, and exported goods worth US$ 751.24 million. Despite the COVID-19 pandemic, approximately US$19 million of FDI poured into Quang Nam province in the first three months of 2020.
Investing in Quang Nam, Vietnam: Top Sectors and Projects for Foreign Investors to Explore
This section details the top four sectors and factors that contribute to Quang Nam province’s attractiveness for foreign investments:
1. Green Projects
Green projects have contributed significantly to the province’s overall development. To pursue long-term green growth and attract more foreign investments, Vietnam’s government gives project priority to renewable energy, communications and electronics, and manufacturing and processing. There are incentives provided on land surface, land renting exemption, reduction, CIT or import-export tax.
2. Chu Lai Open Economic Zone
Chu Lai Open Economic Zone (OEZ) is an integral part of Quang Nam’s industrialization and economic growth. In 2018, the manufacturing industry in Quang Nam grew 14% thanks to the Chu Lai OEZ. In 2019, the total foreign investment amount was recorded at US$702 million.
Foreigners investing in Vietnam’s Chu Lai OEZ can enjoy benefits from the Vietnamese government’s financial support. These financial supports are a one-price policy in goods, services, land rental, access to an assistance fund for state development, and corporate tax rate reduction.
- Tax: corporate tax rate reduction/exemption, personal income tax reduction, import-export tax.
- Land: exemption/reduction on land rent, land use fees and land use tax.
- Financial support: compensation and ground clearance costs; costs of construction of housing for workers; costs of labor training of compensation clearance.
3. Tourism and Hospitality
Hoi An, the most popular tourist center of the province, is showing a strong recovery coming off the back of a pandemic which crippled the tourism industry.
Therefore, local authorities put in a lot of effort to promote this sector. Main initiatives to boost the tourism and hospitality industry and sustain its growth include ecotourism, digital marketing, and human resource training.
According to a recent report by Vietnamplus, the province’s gross domestic product (GRDP) growth rate continues to be high, averaging approximately 11.3 percent annually, greater than the average GDP growth rate for the entire nation. Notably, the province’s GRDP increased by 5.04 percent in 2021 and by 12.8 percent in the first half of this year despite the pandemic’s devastating effects. In 2021, the GRDP per person was 67.6 million VND.
Thanks to the Vietnamese government and Quang Nam’s strategic location in Vietnam, fisheries are among the most critical sectors in Quang Nam Province for its economic development.
In 2019, the fisheries sector recorded a growth rate of 4.28%. In the same year, the province also exported 35% of its total aquatic animals – contributing to 30% of its Gross Domestic Regional Product (GDRP).
The government’s policies to support the fisheries industry in Quang Nam include shipowners’ incentives and subsidies for freshwater fish productions.
Starting a Business in Vietnam with Company Registration
The first step to investing in Vietnam is to register your company. There are four familiar legal entities in Vietnam suitable for your company registration:
- Limited liability company: ideal for small and medium-sized businesses, one member (founder) or multiple members (<50).
- Joint-stock company: suitable for medium and large-sized enterprises, requires at least three founding members.
- Representative office: perfect for a market research before expansion, income generation is prohibited
- Branch office: serve as its parent company’s extension in the country
Hassle-free Business Incorporation in Vietnam with Cekindo
At Cekindo, we understand the challenges and pressures that entrepreneurs and business owners encounter when investing in Vietnam.
With many years of consulting experience behind us, our investment specialists can help you gain insights and provide the necessary support, such as business incorporation in Vietnam. Besides, we can help you implementing and execute the right solutions for the best investment outcome.
Whatever stage of development your business is, from new start-ups through to medium or large enterprises, our outstanding business consulting team has the perfect solutions for you. We will turn your business challenges into opportunities when investing in Vietnam.
Send us a message and learn how Cekindo can help you achieve your investment goals.