LOGISTICS CENTER

Danang Investment Promotion Center

www.investdanang.gov.vn

Copyright © 2014 IPC Danang. All rights reserved.

• To build the first Logistics Center of Danang City and Central Region in Vietnam

Project objective

•US$75,000,000 Estimated investment capital

• Joint venture with Danang Port Joint Stock Company

• Foreign ownership can reach up to 50% Form of investment

•50 years Project duration

•20 ha land lot in Hoa Nhon Commune Hoa Vang District, Danang City

Planned project site

Project overview

Project site - Map

12km

City Center

Project site - Map

Logistics Center

Hoang Van Thai Road

Danang – Quang Ngai

Highway

14B

National

Road

Land

80% of land has been cleared by Danang Port JSC

Power supply

Supplied by the available 500KV national power grid

Water supply:

Supplied by the city water works which have the current total capacity of 205,000 m3/day & night

Telecommunication

Good ICT infrastructure

The 10 Gbps SEAMEWE 3 cable landing station is based in Danang

Project site - Infrastructure

Project site - Infrastructure

Transport

Danang International Airport:

• 36,600 m2 terminals

• capacity of 6 million visitors/per year

• 21 international routes

Danang Seaport:

• capacity of 7 million tons per year

• accommodate 50,000 DWT bulk ships; 3,000 TEUs container vessels and 100,000

GRT liners

• 14 international container ships/week

Roads: Close to Danang – Quang Ngai Highway, 14B National Road

Supporting services

59 bank branches, 30 insurance company branches in Danang

Market outlook

0

10

20

30

40

50

60

70

2005 2008 2009 2010 2011 2015

Forecast

2020

Forecast

Millio

ns

ton

s

Cargos through Danang

Road Total

Cargos via Danang Port (2009 – 2013)

Road cargos via Danang

(2002 – 2011)

No. of forwarding firms

in Danang (2002 – 2011)

31%

18%

13.4%

Danang Port JSC (warehouse16,979 m2, yard 154,181 m2)

Danang Port Logistics JSC (warehouse12,225 m2, yard 29,141 m2)

Danang Port General Services JSC (warehouse 2,000 m2, yard 5,000 m2)

International Trade Co., Ltd. (warehouse10,000 m2, yard 20,000 m2)

Vinatrans Co., Ltd. (warehouse 4,000 m2, yard 6,000 m2)

Local market players 54 Warehouses and Freight Forwarding companies

Average Growth Rate

Project Scope

A multi-functional 20ha

logistics center

Forwarding & warehousing

Value-added services

Technical supports

Main Construction Items

Cargos yard & Container Yard: 9ha

CFS, ICD warehouses: 4ha

Bonded warehouses: 2.2ha

Customs office

Admin Office

Labour

Quality of workforce

Danang has a comprehensive training system of 24 universities and colleges, 19 professional secondary schools, 59 vocational centers

Cooperating with foreign universities

Main providers of logistics human resources: • Danang University of Technology (1,900 grads/year)

• College of Transport II (1,400 grads/year)

• Danang College of Vocational Training (1,550 grads/year)

Recruitment of labour

Contract with local labour recruitment agencies

Recruited by enterprise on the spot and/or at monthly job fairs

Some investment costs

Cost of labour

• Average wage of a labor working in logistics: above 300 USD/month

• Enterprise pays:

- 18% of total salary for social insurance

- 3% of total salary for health insurance

- 1% of monthly salary of workers for unemployment insurance fund

Land cost

• Danang Port JSC has been assigned the 20 ha land by Danang People’s Committee and will contribute capital to the partnership in the form of value of land use rights equivalent to 13 million USD for 50 years

Utility cost (for business & services)

• Power: 0.061 – 0.17USD/kwh

• Water: 0.64 USD/m3

Construction cost: 120 – 350 USD/m2 (varying by construction items)

Tax

Corporate Income Tax

22% (reduced to 20% since Jan 1, 2016)

Value Added Tax

0% -10% depending on types of products

Export – Import Tax

Varies by types of products

Personal Income Tax

5% - 35% depending on level of taxable income

Favorable conditions

Transparent and streamlined administrative procedures

One-stop shop for investment licensing

E-business registration

E-tax declaration and settlement

E-custom clearance

Site clearance is conducted by the local government

Utilities are provided to the project site

Danang is of safe and comfortable living conditions

2011 ASEAN City of Sustainable Environment

2013 Asian Townscape Award

2013 Top 10 holiday destinations in Asia (Smart Travel Asia Magazine)

Contact

Danang Investment Promotion Center 18th Floor, Danang Administrative Center

24 Tran Phu Street, Danang City, Vietnam

Tel: +84 511 3886243/3886244

Fax: +84 522 3810056

Email: ipc@danang.gov.vn

Website: www.investdanang.gov.vn