In the first five months of 2024, Da Nang City secured nearly VND14 trillion (US$600 million) in investment capital. This includes 27 new foreign direct investment (FDI) projects totaling over US$22 million. This influx of investment underscores a promising outlook for the city's economic development.
Da Nang IT Park Management Board
Prioritizing microchip and semiconductor investment
With its selective investment approach, in 2024, Da Nang defined priority for microchip and semiconductor investments.
Mr. Tran Phuoc Son, Permanent Vice Chairman of the Da Nang People's Council, said: "With the focus on attracting the semiconductor chip industry, Vietnam has recently made very careful preparations. Seen to have great potential, Da Nang is resolved not to be left behind in this race. Accordingly, in 2024, the city will make mechanisms and policies to promote high-tech, semiconductor microchips, and AI technology to build a foundation for a future breakthrough."
To catch opportunities in this industry, Da Nang is concentrating on a "three-legged stool" approach, focusing on infrastructure, human resources and investor support policies. In terms of infrastructure, the city is home to various facilities such as software parks, high-tech parks and information technology parks. Notably, Da Nang Software Park 2 has recently launched its operational framework, which is anticipated to create approximately 6,000 full-time IT positions. The city plans to continue advancing the second phase of the Da Nang Information Technology Park, attract investment for the Hoa Xuan Innovative Space Park, and support the development of the Viettel High-Tech Building and Da Nang Bay Information Technology Park.
Presenting investment certificates to major projects during the announcement ceremony of Da Nang City Planning for the period 2021-2030, with a vision to 2050
At the same time, as for human resources, Da Nang has many policies and mechanisms on support and cooperation with universities on semiconductor circuits, especially Da Nang University of Technology - one of the five national key semiconductor training schools. At the same time, the city proposed many mechanisms and policies to attract semiconductor investors like promoting the work performance of the Working Group and the Consulting Group of the “Semiconductor chip and microcircuit development” Project, establishing the Da Nang Semiconductor and Artificial Intelligence Design, Research and Training Center (DSAC Center). It will soon release a draft policy on development of microchip circuit and artificial intelligence, such as the “Semiconductor and microchip development” Project.
In addition to clear directions and mechanisms, the allure of Da Nang investment environment also comes from the advantage of its central location and the growth motivation of the entire region, along with administrative reform efforts to create a fair and strong business environment.
In tandem with its targeted investment strategy toward a green economy, Da Nang City remains steadfast in its objectives: fostering the growth of high-tech, clean industries, and supporting industries. The city prioritizes new investment projects by focusing on high-tech sectors, electronics and hardware, and precision engineering. It also encourages and supports investments in component manufacturing, mechanical engineering, automotive manufacturing and assembly, value-added consumer goods production (such as pharmaceuticals, cosmetics, and functional foods), the environmental industry and clean energy production.
Da Nang establishes itself as a trusted destination for investors
To establish itself as a trusted destination for investors, Da Nang consistently enhances communication and dialogue with businesses. The city has implemented a range of support mechanisms and investment attraction policies, including assistance for constructing business premises, providing planning and project location information. Additionally, Da Nang has accelerated the application of information technology within governmental agencies, and has focused on facilitating human resource development and attracting qualified talent.
Sustainable development
Da Nang City has achieved many encouraging environmental results in the past years. Specifically, 100% of industrial parks, export processing zones and high-tech parks have centralized wastewater treatment systems that meet environmental technical standards; 100% of domestic solid waste is treated to meet environmental requirements; 97.38% of households and 98.97% of residential groups classify domestic solid waste at source; 89.9% of urban wastewater is collected and treated to meet environmental technical standards. As a result, the city is honored to receive many environmental titles and awards. Da Nang topped 63 provinces and cities in the Environmental Protection Index released by the Ministry of Natural Resources and Environment in two consecutive years. The city won the Vietnam Smart City Award for "Green - Clean Smart Environmental City" category in two years (2021 - 2023). Achieving the current clean and beautiful landscape and environment required the active cooperation of many communities and residents.
On that basis, Da Nang continued to adopt the goal of “Building Da Nang - An environmental city for the 2021 - 2030 period” to achieve eco-urban targets as per Resolution 43-NQ/TW of the Party Central Committee. This project has clear and systematic goals and criteria to ensure that resources are mobilized and the action roadmap is executed.
Accordingly, the city calls on each agency, unit, and citizen to truly be a positive factor, uphold their responsibility by taking practical action in protecting the environment in their residences, areas and industrial zones and at work.
Da Nang's investment allure stems from its central location, regional growth incentives, and strong administrative reforms fostering a conducive business environment
With a limited available land fund, Da Nang has long determined that it cannot be a major construction site for simple industrial factories but will selectively attract investment projects, with priority given to high-tech fields. The city will not attract investment at any cost, but will be persistent with its approach towards becoming an environmental city.
Vice Chairman Son emphasized: "We are dedicated to continuously refining and enhancing the business investment environment, steadfastly supporting businesses and entrepreneurs by providing optimal conditions to showcase their talent, intelligence and enthusiasm. Our goal is to foster a robust and sustainable business community. With the resolute commitment of our leadership and the proactive involvement of all agencies, we are confident that investment in Da Nang will not only experience significant growth but will also achieve remarkable breakthroughs in 2024 and beyond.”
By Han Luong, Vietnam Business Forum
Vietnamese
October 2024
Hanoi