Da Nang is the largest investment hub in Central Vietnam and brings together three groups of FDI companies with very different accounting and tax profiles: software and IT outsourcing companies, hotel and tourism businesses, and manufacturers in industrial parks and economic zones. Each group has its own “hot spot” when the tax authority reviews its books.
TrustlineAX Advisory provides accounting, tax and compliance services for FDI companies operating in Da Nang, including the former Quang Nam province, with bilingual Vietnamese–English reporting for overseas parent companies.
Foreign investment in Da Nang after the merger
From 1 July 2025, under National Assembly Resolution No. 202/2025/QH15, Quang Nam province was merged into Da Nang city. The new city covers about 11,860 km² with a population of about 3 million.
The merger combines two complementary strengths: the former Da Nang with its IT ecosystem, services, tourism and seaport; and the former Quang Nam with the Chu Lai Open Economic Zone, manufacturing industrial parks and the Hoi An heritage tourism area. According to the Da Nang Department of Finance, as of 20 May 2026 the city had 1,123 active FDI projects with total registered investment of about USD 10.9 billion.
Two special mechanisms are worth noting for foreign investors:
- Da Nang Free Trade Zone — piloted under Resolution No. 136/2024/QH15 and established by the Prime Minister’s Decision No. 1142/QĐ-TTg dated 13 June 2025, covering about 1,881 hectares across 7 locations linked to Lien Chieu Port, with functional areas for manufacturing and logistics, trade and services, and digital industry and innovation.
- International Financial Centre — under Resolution No. 222/2025/QH15, Vietnam established an International Financial Centre in Ho Chi Minh City and Da Nang, with a dedicated tax incentive regime for members that meet the conditions.
Note: the figures above are compiled from publicly available sources as of September 2026 and may change.
Tax administration after the merger
Under Decision No. 1378/QĐ-CT dated 30 June 2025, from 1 July 2025 the area is administered by the Da Nang City Tax Department through 10 grassroots tax offices. Companies in the former Quang Nam keep their tax codes, but need to confirm which grassroots tax office now manages them and update their address to the new administrative unit names on e-invoices, contracts and registration records.
Accounting and tax issues specific to FDI companies in Da Nang
Unlike Hanoi (headquarters and services), Bac Ninh (electronics supply chain) or Hai Phong (port-linked export manufacturing), FDI in Da Nang is spread fairly evenly across technology, tourism and manufacturing. Common issues:
| Typical activity in Da Nang | Accounting and tax issues to watch |
|---|---|
| Software companies and offshore development centres serving an overseas parent | Related-party transactions with the parent, cost-plus pricing and transfer pricing documentation; correct classification of software and IT services for VAT and CIT incentive purposes; evidence supporting exported services |
| Foreign-invested hotels, resorts and tourism services | Revenue recognition across multiple sales channels (online travel agents, packages); foreign contractor tax on management, brand and booking fees paid overseas; depreciation of large assets |
| Factories in industrial parks and the Chu Lai Open Economic Zone | Conditions for location-based and project-based CIT incentives; VAT refunds on exports; reconciling customs data with accounting records |
| Projects in the Free Trade Zone or registered as International Financial Centre members | Confirming eligibility and scope of the new incentive regimes; separating incentivised and non-incentivised activities in the books |
| Foreign experts and managers | Work permits, personal income tax for foreigners, tax residence, compulsory social insurance |
Further analysis directly relevant to these issues:
- Vietnam’s new transfer pricing decree
- Foreign contractor tax on services bought from overseas suppliers
- Bank payment conditions for export VAT refunds
- Personal income tax for expats in Vietnam 2026
- Work permits for foreigners in Vietnam 2026
Our services in Da Nang
1. Accounting for software, service and manufacturing companies
- Bookkeeping under Vietnamese Accounting Standards (VAS) and annual financial statements.
- Bilingual Vietnamese–English management reporting in the parent company’s format, with reconciliation between VAS and group standards.
- Project-based or cost-centre revenue and cost tracking for software companies and development centres.
2. Tax and transfer pricing
- VAT, CIT and foreign contractor tax filings, and annual tax finalisation.
- Review of the pricing model with the parent company and preparation of transfer pricing documentation.
- Identifying and maintaining CIT incentive conditions by sector, location and project.
3. VAT refunds and tax–customs reconciliation
- Reviewing VAT refund conditions for exported goods and services before filing.
- Reconciling customs declarations, inventory and accounting records for manufacturers.
4. Payroll, social insurance and foreign employees
- Payroll, personal income tax and social insurance for Vietnamese and foreign staff.
- Support with work permits, tax residence and PIT finalisation for expatriates.
5. Advisory on expansion and restructuring
- Tax impact reviews when opening a branch or representative office, or relocating into the Free Trade Zone.
- Accounting and tax health checks before a tax audit, statutory audit or capital transfer.
How we work with companies in Da Nang
Our office is in Hanoi. For clients in Da Nang, most of the work is done remotely through e-invoices, electronic tax filing and digital document storage; we work on site when a stock count, file review or meeting with the tax authority requires it.
- Initial review — investment and enterprise registration certificates, tax filing status and existing accounting records.
- Proposed scope of services and a monthly, quarterly and annual timetable.
- Documents received through a digital system, processed, and bilingual periodic reports delivered.
- Regular review of material tax risks and updates on policy changes affecting the company.
Frequently asked questions
Where do companies in the former Quang Nam province now file their taxes?
Tax codes and legal status do not change with the merger. From 1 July 2025 the whole area is administered by the Da Nang City Tax Department through 10 grassroots tax offices under Decision 1378/QĐ-CT. Companies need to confirm their managing tax office and update their address on registration records and e-invoices.
What should a software company serving its parent watch out for on tax?
The two areas most often reviewed are the service price charged to the parent (a related-party transaction) and the application of tax incentives to software activities. The company needs proper transfer pricing documentation, contracts and records that clearly describe the services, and separate tracking of incentivised income.
Do investments in the Da Nang Free Trade Zone receive tax incentives?
The Da Nang Free Trade Zone pilots special mechanisms under Resolution 136/2024/QH15, with investment incentives applied in the same way as for economic zones. The actual incentives depend on whether the project lies within the zone boundaries, the sector and the conditions in the implementing regulations, so each project should be reviewed before a decision is made.
Does TrustlineAX have an office in Da Nang?
Our office is in Hanoi. We serve clients in Da Nang mainly through digital systems and work on site when the engagement requires it.
How much do accounting services for an FDI company in Da Nang cost?
Fees depend on the type of business (software, services, manufacturing), document volume, parent-company reporting requirements and additional services such as transfer pricing or VAT refunds. We quote after the initial review rather than using a fixed price list.
Speak with our specialists
If your company operates in Da Nang and needs a review of related-party transactions, tax incentive conditions or accounting records, contact us for a free 30-minute consultation.
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This page provides general information only and does not replace specific advice on any particular file or transaction.