Third CIT zone approved in Đà Nẵng

March 23, 2023 - 11:44
The CIT zone will be given preferential policies and regulations in attracting domestic and foreign investors, including income tax and import tax policies.
FPT Complex in Đà Nẵng is recognised as a centralised information technology (CIT) zone by the Government following the Prime Minister's decision. It's the third CIT built so far in the central city. Photo courtesy of Vân Anh

ĐÀ NẴNG — One more centralised information technology (CIT) zone, the FPT Complex, has been approved by the Government following the Prime Minister's decision on March 19, the third to be built in the central city so far.

The CIT zone will be given preferential policies and regulations in attracting domestic and foreign investors, including income tax and import tax policies.

The FPT Complex, developed on 5.9ha by the leading software giant FPT Group, will employ 6,000 people in the software industry and will eventually offer working space for 10,000 IT engineers in the third investment phase in 2024.

Following the government’s policy, investors in the CIT Zone will enjoy a 10 per cent tax rate for 15 years, tax exemption in the first four-year period after the official operation, and a 50 per cent tax reduction in the next four years.

Chairman of FPT Software (F-Soft) Đà Nẵng company, Nguyễn Tuấn Phương, said a total investment of VNĐ6.7 trillion (US$291 million) had been allocated for the development of infrastructure, apartments and offices in 2021-23.

He said a 1,300-apartment project and IT infrastructure would reserve space for at least 10,000 employees and experts and 80,000 families in the complex to boost the digital transformation process and become a leading software exporter in the region.

Phương said the CIT Zone recognition would help FPT Group earn between 25 to 30 per cent growth in income and benefits.

A report from the city’s IT and communication department, the city’s ICT industry gained VNĐ34.3 trillion (US$1.37 billion) in 2022 – a 9.6 per cent growth compared to 2021 –making a 17 per cent share of the city’s Gross Regional Domestic Product (GRDP).

The department said the city’s software industry earned $110 million in export turnover.

FPT Group alone contributed a fifth to the city’s information technology and communication (ICT) revenue and a 20 per cent growth in software export.

Đà Nẵng and FPT Group agreed on digital transformation in 2021-25, accelerating the ‘smart city’ project and putting the city on the ASEAN smart city network list by 2030.

Chairman of FPT Group, Trương Gia Bình, said the group had invested VNĐ2.5 trillion (US$108 million) in the past 20 years in Đà Nẵng.

The department said Đà Nẵng had attracted 1,900 ICT businesses that created 40,000 jobs, of which 50 per cent were in software development.

Three CIT Zones were recognised between 2017-23, including the Đà Nẵng Information Technology Park (DITP) – central Việt Nam’s ‘Silicon Valley’ - covering 341ha with an investment of $120 million in two stages by Trung Nam Group.

The 10,000sq.m Đà Nẵng Software Park comprises two buildings in the city’s downtown and has attracted nearly VNĐ1.8 trillion (US$80 million) in investment and employs 2,400 people.

The city has been developing the second software park on 2.87ha with an investment of $30.6 million for the first phase in creating a workplace for 6,000 IT engineers by the end of 2023.

Đà Nẵng is one of four cities of Việt Nam developing CIT Zones, including Quang Trung Software Park, HCM City’s Software Park, the National University’s Software centre, E-Town in HCM City; the Hà Nội-based ICT transaction centre, and Software Park in southern Cần Thơ City.— VNS