Competitive Advantages of Doing Business for Foreigners in Quang Nam Province, Vietnam

Quang Nam Province is emerging as a key business hub in central Vietnam, attracting significant investment. In the first five months of 2024 alone, seven foreign companies invested a total of US$124.2 million—double the amount from the previous year. The province is already home to 1,150 Vietnamese companies with a total investment of US$9 billion, alongside 199 foreign enterprises contributing US$6.2 billion. These figures highlight Quang Nam’s growing reputation as a prime destination for business expansion.

March 2024 saw the approval of 16 new projects worth US$785 million, further boosting economic activity. Major international companies are entering the market, including a German firm building a cleaning equipment factory and manufacturers from China, South Korea, and other countries setting up production facilities for glass, magnets, and audio equipment. According to Party Chief Luong Nguyen Minh Triet, these projects align perfectly with Quang Nam’s long-term development strategy.

Interested in Quang Nam Business Incorporation? Check out InCorp Vietnam’s A-Z Business Incorporation Services

Quang Nam Province Overview

Quang Nam sits in the heart of Central Vietnam, home to about 1.4 million people spread across its two main cities: the historic Hoi An and the bustling Tam Ky. The province stretches across 10,438 square kilometers and includes 15 districts, each with its own character and charm.

Nature has blessed this province with a stunning variety of rivers and mountains. Mountains cover 72% of the province, with some peaks reaching impressive heights, such as Lum Heo Mountain at 2,045 meters. Beautiful rivers flow from the Truong Son mountains to the sea, including the Vu Gia, Thu Bon, and Tam Ky rivers.

The weather here is typically warm, with an average temperature of 25°C year-round. If you are planning a visit, keep in mind that February to April brings hot and dry weather, while September to December is the rainy season. The province enjoys 1,944 hours of sunshine annually.

What makes Quang Nam rich in history and culture is the fact that it holds two UNESCO World Heritage Sites: the charming Hoi An Ancient Town and the mysterious My Son Holy Land. These places, along with Tra Kieu Old Champa Capital and ancient Cham Towers, tell fascinating stories of past civilizations.

For beach lovers, Quang Nam offers 120 kilometers of beautiful coastline. From Dien Duong to Bai Rang, you’ll find peaceful, unspoiled beaches perfect for relaxation. The province also boasts other natural attractions like Phu Ninh Lake, Thu Bon River, and Cham Island.

Getting to Quang Nam is easy. It is well-connected to major cities via National Highway 1A and the railway system. The province is 860 km from Hanoi and 947 km from Ho Chi Minh City. The popular destination of Hoi An is just a 32-kilometer drive from Danang City.

Read Related:

• 9 Reasons to Choose Ho Chi Minh City in Vietnam to Launch Your Business
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Advantages of Doing Business in Quang Nam Province, Vietnam

The success of existing investments in Quang Nam highlights its thriving business environment. Companies that have chosen to invest here have not only survived but flourished, significantly contributing to the province’s economic growth and development.

Whether you are considering manufacturing, tourism, or services, Quang Nam’s strong track record suggests a promising future for new investments. Here are some key advantages:

Strong Track Record of Success 

Quang Nam has proven itself as a thriving business destination, with an impressive portfolio of nearly 1,000 domestic projects valued at US$95,31,315 billion. The international business community has shown strong confidence in the region, with 194 FDI projects investing over US$6.06 billion. The success story is best illustrated by major companies that have made Quang Nam their home. Truong Hai has invested over US$15,75,414 billion, Hyosung has committed more than US$400 million, while Groz Beckert and Panko have invested US$100 million and US$70 million respectively. Vinpearl’s investment of US$1,89,050 billion further demonstrates the region’s appeal to major brands.

Perfect Location for Asian Business 

Quang Nam’s strategic location makes it a natural choice for businesses looking to expand in Asia. Situated in the heart of Vietnam’s Central Economic Zone and the East-West Economic Corridor, it serves as a crucial hub for transportation, trade, and international exchange. What makes it particularly attractive is its proximity to major Asian business centers. You can reach Korea, China, and Japan within just 4-5 hours by flight, making international business operations smooth and efficient.

Well-Connected Transportation 

One of Quang Nam’s greatest strengths is its connectivity. Located 820 km from Hanoi and 900 km from Ho Chi Minh City, the province is well-linked by National Highway 1A. It shares borders with Danang, Thua Thien-Hue to the north, Quang Ngai and Kontum to the south, and Laos to the west, creating multiple trade routes. Additionally, its eastern coastline along the East Sea enhances maritime trade opportunities, further strengthening its transportation network.

Diverse International Business Community 

The province has attracted investors from 30 different countries, creating a rich, multicultural environment. Singapore leads with investments over US$4.1 billion across 10 projects. South Korea has shown the most diverse interest, with 56 active FDI projects with over US$822 million. Chinese investors have established 41 projects valued at US$364 million, while Japanese businesses have invested US$140 million across 18 projects. German investment has also been significant, with 7 projects totaling US$170 million, including major players like Groz Beckert and Amann.

Read Related: The Definitive Guide to Vietnam’s 17 Active Free Trade Agreements – FTAs

Space and Population 

With its expansive area of 10,438 square kilometers and a population of approximately 1.5 million people, Quang Nam offers plenty of room for business growth and access to a substantial workforce. The province is well organized into 18 district level administrative units, including 2 cities, 1 town and 15 districts with Tam Ky city serving as the provincial capital.

Industry Opportunities 

The province has shown particular strength in processing and manufacturing industries, while also developing a strong tourism and service sectors. This economic base means businesses can find opportunities across multiple sectors, with the potential for cross-industry collaboration and growth.

Read More: A Guide to Launching a
Manufacturing Business in Vietnam for Foreigners

Investing in Quang Nam Province: Key Sectors for Foreign Business in Vietnam

Here are the key sectors for foreign business in Vietnam:

1. Green Projects 

The province puts a strong focus on green and sustainable development. The Vietnamese government makes it easier for foreign companies to invest in areas like renewable energy, electronics, and manufacturing. To encourage these investments, they offer special benefits like cheaper land costs, not having to pay rent for land use, and tax savings on both company profits and import-export activities.

Read More: Vietnam Renewable Energy: Advantages and Growth in the Green Energy Industry

2. Chu Lai Open Economic Zone (OEZ) 

This special business zone has been key to growing Quang Nam’s industry. Thanks to the Chu Lai OEZ, manufacturing in the region grew by 14% in 2018, and foreign companies invested US$702 million in 2019. The government offers several benefits to foreign investors here, including standard pricing for goods and services, help with land rental costs, access to development funds, and lower tax rates. These benefits cover three main areas: tax savings (on company profits, personal income, and import-export), land cost savings (reduced rent and tax), and extra financial support (helping with costs like worker housing and training).

3. Tourism and Hospitality 

Hoi An, which is the main tourist spot in Quang Nam, is bouncing back strongly after COVID-19. Local officials are working hard to boost tourism by promoting eco-friendly travel options, using digital marketing, and training workers in the industry. The numbers show strong growth, the province’s economy has been growing by about 11.3% each year, which is higher than the national average. Even during the pandemic, it grew by 5.04% in 2021 and jumped by 12.8% in the first half of the following year.

Read More: Why You Should Invest in Hospitality and Tourism Industry in Vietnam?

4. Fisheries 

The fishing industry is crucial to Quang Nam’s economy because of its location along Vietnam’s coast. This sector grew by 4.28% in 2019, with 35% of its seafood being sold internationally. Fishing makes up 30% of the province’s total economic output. To help this industry grow, the government provides support to boat owners and gives extra money to people who harm freshwater fish.

Quang Nam Province in Central Vietnam Encourages Increased Foreign Investment

Big Plans for Tourism Growth 

Singapore’s Hoi An South Development Ltd is making a major move in Quang Nam province. The company plans to invest an extra US$1 billion in their Hoiana Resort & Golf project next two years. Their CEO, Steven Wolstenholme, wants to help make Quang Nam one of Vietnam’s top tourist spots. The Hoiana project, which started in 2016, is already impressive. 

They have finished the first part, which includes four luxury hotels, a golf course, and a casino. The project has been doing well with more than half a million people visiting since 2020, mostly from other countries. It is also bringing in good money for the local area and creating lots of jobs.

Manufacturing Growth 

Chinese company Guoguang Electric is also growing in Quang Nam. They make speakers at their factory in the Dien Nam-Dien Ngoc industrial park. The company started in 2019 with a US$24 million investment, and now they are doing even better than expected. They are making so many speakers that they need to build a bigger factory. This means more jobs in which they plan to hire about 8,000 more workers.

Not only that, six companies that supply parts to Gupguang have moved to Quang Nam to be closer to the factory. The company’s leader, Pang Haowen, says more suppliers might come too.

Read Related: Improving Warehouse Vietnam Operations: Insights for Service Providers and Options for Renting Warehouse Space

Government Support 

The government led by Le Van Dung, is helping these companies succeed. They are making it easier for foreign companies to do business in Quang Nam. They are also looking for companies to help develop the Ky Ha seaport and Chu Lai airport. The province is doing well with foreign investment. In just nine months this year, they got ten new foreign projects worth about US$135 million. In total, Quang Nam now has 201 foreign projects worth US$6.36 billion. Singapore is the biggest investor, followed by South Korea and China. 

All this investment is good news for Quang Nam. It means more jobs, more money for the local economy, and better facilities for both locals and visitors.

Doing Business in Quang Nam Province with Company Registration

When you want to start a business in Vietnam, you first need to choose what type of company you want to register. Here are the main types you can pick from:

Limited Liability Company (LLC): This is great for smaller businesses. You can start it by yourself or with a group of up to 49 other people. It is similar to opening a small shop or service business which is simple and straightforward.

Joint-Stock Company (JSC): If you are planning something bigger, like a larger business that might grow a lot, then a joint stock company could be your choice. You will need at least three people to start it. It is like a bigger company that can sell shares.

Representative Office: This is perfect if you just want to test the waters in Vietnam. It is similar to having a small office to learn about the market and make connections. The catch is that you can not make money directly through this office as it is just for research and planning.

Branch Office: This is like opening a smaller version of your main company in Vietnam. It works well if you already have a business somewhere else and want to expand into Vietnam. The branch can do all the same things as your main company.

Hassle-free Business Incorporation in Quang Nam Province with InCorp Vietnam

Starting your own company requires time and effort, making it a challenging task—but with InCorp Vietnam, the process becomes much easier. Our experienced experts will guide you through starting your business, making smart decisions, and navigating Vietnam’s business landscape.

With a proven track record of supporting businesses of all sizes, we provide insights and solutions to help you establish your company smoothly and overcome challenges. Let us help you get the right start—we’ll be with you every step of the way for a successful business journey in Vietnam!

We made the most detailed step-by-step guide for Company Incorporation in Vietnam for investors, now available as an interactive checklist: