Benefits of Setting Up Business in Danang

Da Nang – one of the strategic economic centers of Vietnam’s central region

The Vietnam prime minister has established central region’s strategic economic center, including 05 provinces and cities: Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh to promote potential, geographical location and competitive advantages and step by step develop this economic region to become one of the most dynamic economic region in the country. In particular, Da Nang is defined as the role of nuclear motivation for promoting the development of the central region and the highlands.

Da Nang – eastern gateway of east – west economic corridor (EWEC)

EWEC is one of five economic corridor developed by the initiative of the Asia development bank in the greater Mekong sub – region.

Currently, the road system in Laos, Thailand and the road line from Da Nang to Savannakhet are completed. The second international bridge spanning the Mekong river was completed in the end of  2006 to facilitate the circulation of goods and passengers by road line from Da Nang to the northeastern provinces of Thailand and vice versa. East-west economic corridor not only provide an opportunity for the country on the path of promoting regional cooperation and improve living standards for the people but also enable businesses better access to the raw materials market services, capital, labor and technology with the purpose of creating favorable conditions for investment and trade across the border and diversifying economic activity and exports and promoting tourism development

Da Nang – entrance of the cultural heritage and natural wonders of the world

Da Nang is located in the heart of the “world heritage road”, stretching from the central coast of Vinh city to Da Lat city. From Da Nang, along the national highway 1A, visitors can access quickly and conveniently four of five world heritages in Vietnam, including Phong Nha – Ke Bang national park (about 300 km from the north of Da Nang), the ancient capital of Hue (about 100km from the north), Hoi An (about 30km from the southeast) and My Son (about 70 km from the southwest).

With the advantage of geographical location and potential economic development in tourism, Da Nang is an ideal destination for tourists as well as investors.

Infrastructure is step by step improved

Da Nang is an important traffic hub of the central  – highlands and country with system of international airports, deep sea ports, roads, north-south railways  developed conveniently.

Da Nang port is the third largest commercial ports in Vietnam after Saigon port and the port of Hai Phong. With a depth of 11m wharf, warehouse systems and equipment upgraded by capital funds of the government of Japan, Da Nang port can receive ships with a capacity of 45,000 dwt and others such as container ships, passenger ships, cargo ships. Da Nang is the international shipping route enabling to go to Hong Kong, Singapore, Japan, Taiwan and Korea.

Da Nang international airport is one of the three best airports in Vietnam. In addition to domestic flights, there are weekly international flights directly from Da Nang to Singapore, Bangkok, Taipei. In the near future, the airport will open more routes to Hong Kong, Japan and Korea. Da Nang international airport is currently being upgraded and expanded to meet the needs of increasing passengers and cargo.

The system of roads in and out of the city are constantly being expanded and newly constructed

Telecommunication systems: Da Nang is one of three major telecomunication centers of the country, international transmission speed with good quality of  Southeast Asia. Da Nang post provides various and modern telecommunication services and be capable meeting the needs of customers.

The other services supporting investment (financial, banking, insurance …): most banks and finance companies of Vietnam have large branches in Da Nang. Some branches of foreign banks and international insurance companies are operating effectively in the city. These services have increasingly been improved better to meet the needs of investors.

Trained and abundant human resources

Da Nang has abundant human resources (over 50% of the population of the city), mostly young labor. Number of employees with technical expertise trained account nearly a quarter of the labor force. Labor costs in Da Nang are lower than some other cities in the country.

Da Nang is one of the provinces in the country with the high educational development index which create a favorable platform for the development of human resources of the city to perform the goal of improving the quality of human resources, quality of life. The city has about 14 universities, 15 colleges and professional schools with nearly 140,000 students. This system performs training in most areas of science, engineering, information technology, economics, business administration, language and pedagogy… Danang university also cooperates with universities of countries with an advanced education such as France, US, Japan, Australia, Canada, New Zealand …

Software technology center in Da Nang is one of the leading software producers in Vietnam and is the leading training center of the central region. Over the years, the software technology center  has cooperated closely with companies of India (aptech) and Japan (aots) to train programmers, technicians and engineers reaching the international standard. Many IT company has chosen Da Nang to set up company in da nang to hold their talents for international projects.

In addition, the city also has about 55 vocational training centers which often provide short-term training courses in computer science, sewing, mechanics, electricity – electronics, construction techniques, etc …

Quality of life

Along with the process of urbanization, economic growth in recent years has helped to material life and spirit of the people of Da Nang continuously improved.

Unlike other large cities in Vietnam, next to the bustle of urban development, living in Da Nang always bring a sense of peace, comfort and closeness to nature. Da Nang is one of the very few cities in Vietnam having a harmonious combination between high mountains, deep forests, long beach, deep river. After work, you can easily find space to relax beside the river or on beautiful beaches.

Da Nang today is a city with a healthy cultural environment, with urban civilized lifestyle, literacy levels elevated, beautiful natural scenery. It can be said that Da Nang is an exciting place to live, work, travel  and invest in Vietnam.

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How Vietnam Telecommunications Develop in 2015

set-up business in Vietnam

There have been changes within the Vietnam telecom industry with the restructuring of VNPT and Viettel, which made the competition becoming more intense.

The year 2014 has undergone with many changes within the telecommunications industry of Vietnam. The change in personnel and structure of the two corporations that are VNPT and Viettel made the competition becoming more intense. According to experts, the year 2015 will continue to witness a lot of breaks as well as new trends in the telecommunication industry, therefore the management agencies and enterprises must change to adapt to the actual needs.

The following are update intelligence from Vietnam corporate insights for the purpose of risk management for foreign investors interested in telecom business while expanding into Vietnam.

Telecommunications industry in 2014: Many prominent imprints

To implement the Resolution No. 01/NQ-CP of the Government dated January 2nd 2014, Vietnam Ministry of Information and Communications has submitted to the Government a series of Decrees, Decision of the Prime Minister, issued many Circulars related to state management in the field of telecommunications, as well as implementing various related projects, facilitating the development of infrastructure and telecommunications services; approving a series of other important projects such as number portability; implement the systems to ensure safety and security for the national domain name servers; deployment of projects concerning data collection of telecommunication enterprises to ensure the controlling of all mobile subscribers…

In addition, 2014 was the year that telecommunication businesses leave many important marks. Although the economy is still in the recovery process, along with competition in the market, the impact of OTT… but the large telecommunication businesses like Viettel, VNPT, MobiFone still achieve high sales, maintaining the domestic market and outreaching international market.

Viettel – the goal is to become a global enterprise

End of 2014, Viettel’s revenue reached 196,650 billion VND, increased by 20% compared with 2013, profit before tax reached 40,532 billion VND and contributing to the state budget over 15,434 billion VND.

Regarding telecommunication networks, 3G network is investing to expand and improve the quality with more than 29,032 3G BTS stations (2G with 34,603 stations). The ultra-wide band fixed network has been deployed across the country. The telecommunication infrastructure can ensure to supply all telecommunication, television and information technology services to customers.

Also in 2014, Viettel has also launched services in two countries Peru and Cameroon, bringing the total number of countries that Viettel invested to 9 countries.

With these successes, Viettel has showed the determination to achieve revenue of 230,000 billion VND in 2015. Their goal in the future is to become a global enterprise. Therefore, in addition to maintain its position in the country, Viettel has to strengthen their business abroad.

As of the end of 2014, Viettel reached 57.4 million subscribers (mobile accounts for 55.5 million subscribers). Viettel’s foreign market reached 17.5 million mobile subscribers and 815 thousand of fixed subscribers.

VNPT, MobiFone – change to develop

2014 was a volatile year of VNPT when the group decided to separate Mobilefone from the system to carry out restructuring. The objective set for the board is to put VNPT back to the 1st position after being dropped into the setback phase.

VNPT’s total revenue in 2014 was 101,055 billion VND, contributing 5,850 billion VND to the state budget. Total subscribers were around 30.5 million (mobile subscribers accounted for 26 million). In addition, the total number of broadband internet subscribers reached over 3 million subscribers; total IPTV subscriber was about 1 million subscribers.

Mobifone, which was separated from VNPT, has achieved certain success. Revenue was estimated at 36,605 billion VND, profit before tax was estimated at 7,300 billion VND. State budget contribution was estimated at 3,926 billion VND.

Total active subscribers on MobiFone so far reached 40.2 million subscribers, in which in 2014 the number increased by 1 million subscribers.

MobiFone has also developed additional of 4,566 2G + 3G BTS stations, bringing the total number of BTS 2G + 3G station up to 33,939 stations (2G: 19,647 stations; 3G: 14,292 stations).

The immediate goal of MobiFone leader is still promoting the inherent strengths and successfully implementing the privatization.

Highlight trends of the telecommunications industry in 2015

With the restructuring of enterprises and the market, the competition will increase. The separation of MobiFone into independent business will create more competition, helping the market grow better and bringing more benefits to consumers.

Besides, the trend of technology convergence of telecommunication services – radio and television – information technology have also leveraged enterprises to deploy business plans, devise solutions and services to ensure the assembly convergence and services integration on one platform.

With the development of personal devices, all service applications that previously could only be implemented to agencies, businesses, organizations and households, can now be supplied to each citizen and is used anywhere. Therefore, enterprises when deploying need to mass-oriented to people, takes customer as center to provide services.

Although the telecommunications market could be considered as saturated with the monopoly of the 3 large networks mentioned above, but its development needs remain enormous. As people’s living standard is significantly improved, the demand for quality services will also increase. That’s the potential, the main development direction that Vietnam telecommunications businesses should lead to.

And with many challenges

In addition to growth opportunities, telecommunications industry also has many challenges that need to be solved as policies are insufficient and incomplete; training of human resources is limited, especially the team of skilled engineers; still heavily dependent on foreign technology… The state authorities, enterprises also need to draw from experiences in terms of mechanisms and policies to encourage youth creativity, building new business model… contributing to the overall development of the country’s telecommunications industry.

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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