Danang: A Rising Star in Vietnam's Economic Landscape
Viettonkin Consulting
One-stop solutions for FDI enterprises and local businesses in ASEAN
Strategic Hub for Growth and Innovation
Da Nang, a vibrant coastal city in central Vietnam, is fast emerging as a hub for innovation, investment, and economic growth. Spanning 1,284.9 square kilometers, the city is strategically located and bordered by Thua Thien Hue to the north, Quang Nam Province to the south and west, and the East Sea to the east. Its central position connects it seamlessly to major cities like Hanoi and Ho Chi Minh City, amplifying its role as a critical economic link.
Key Economic Highlights
With a population exceeding 1.276? million residents, Da Nang is home to a robust and dynamic workforce. Approximately 320,677 workers are employed across 24,552 enterprises, a testament to the city’s vibrant economic activity. The city’s Gross Regional Domestic Product (GRDP) growth rate of 7.51% in 2024 placed it second among Vietnam's centrally governed cities, showcasing its resilience and adaptability in a rapidly evolving global economy.
Investment-Friendly Environment
Renowned for its progressive urban planning, Da Nang has consistently received international recognition for fostering a business-friendly atmosphere. Its recent initiatives aim to position it as a leader in high-tech and AI industries, which include:
Issued on 24th January 2019, Da Nang's development policy is stated in Resolution 43-NQ/TW with the goal of building and developing the city by 2030, with a vision to 2045. To orient to their resolution, Da Nang will focus its economic development on three main pillars: tourism, technology industry, and services. In addition, the National Assembly has also issued Resolution 136/2024/QH15 pertaining to the organization of urban government and piloting specific mechanisms and policies for the city's development.
These developments underscore Da Nang’s commitment to aligning with Vietnam's national development priorities and building a global reputation as a technology and innovation hub.
A Rich History of Economic Development
Da Nang’s rise as an economic powerhouse stems from its ability to adapt. From 1997 to 2015, the city thrived in real estate, tourism, and construction, but market stagnation in the 2010s led to diversification. The 2010 establishment of the Hi-Tech Park, with tax incentives and infrastructure, marked a pivotal shift, becoming a key driver of Da Nang's long-term economic strategy.
FDI: The Driving Force Behind Growth
In 2024, Da Nang attracted USD 213.4 million in foreign direct investment (FDI), reflecting a 17.9% year-on-year increase, along with VND 70.9 trillion in domestic capital. The investments have fueled growth in key sectors such as:
While land shortages and global economic uncertainties present challenges, Da Nang has proactively addressed these concerns by optimizing the use of its industrial zones and simplifying administrative processes.
Strategic Investment Priorities Under Resolution 136/2024/QH15
To accelerate economic growth, Resolution 136/2024/QH15 introduces special urban governance reforms and investment policies aimed at attracting strategic investors. The city has prioritized innovation and high-tech research, focusing on the establishment of innovation centres, data centres, and R&D facilities linked to training and technology transfer. These efforts are geared toward advancing IT, artificial intelligence (AI), biotechnology, automation, new materials, and clean energy, with investments starting from VND 2,000 billion. Another major focus is the semiconductor and advanced manufacturing sector, which includes semiconductor chip technology, integrated circuits (IC), flexible electronics (PE), high-tech batteries, and defence-related high-tech industries. Approved by the Prime Minister, these projects require a minimum investment of VND 4,000 billion, highlighting the city's ambition to become a leader in cutting-edge technology production (baochinhphu.vn, 2024).
Infrastructure development within the Da Nang Free Trade Zone is also a priority, aiming to enhance industrial efficiency and global trade connectivity. Investment opportunities in this area include the construction of commercial-service centres, logistics hubs linked to Lien Chieu Seaport, and production facilities, each requiring a minimum capital of VND 3,000 billion. Additionally, the city is focusing on inland waterway tourism, attracting investments of at least VND 8,000 billion to develop high-quality tourism infrastructure that leverages Da Nang’s scenic waterways. Complementing this effort is the Lien Chieu Seaport project, which involves comprehensive construction and modernization to strengthen Vietnam’s logistics and maritime trade capacity, requiring a significant investment of VND 45,000 billion .
Attractive Investment Incentives for Strategic Investors
To support businesses and foster a competitive investment climate, Da Nang provides several key incentives to strategic investors. One major advantage is the R&D tax deduction, allowing businesses to deduct 150% of actual R&D costs when determining taxable income, ensuring strong financial support for research-intensive projects. Investors also benefit from preferential customs and tax policies, which offer streamlined procedures for exported and imported goods related to their investment projects. These incentives create an appealing business environment, reinforcing Da Nang’s position as a hub for technology, manufacturing, and sustainable development (baochinhphu.vn, 2024).
Vision 2030: A Smart City in the Making
Based on the “Project to build a Smart City in the period 2018-2025, with a vision to 2030”, Da Nang is on a mission to become a smart city integrated with other ASEAN urban centers by 2030. The city aims for its digital economy to contribute 35–40% of its GRDP. To achieve this, it is implementing transformative initiatives such as:
These efforts are designed to make Da Nang a center for innovation, a magnet for talent, and a preferred destination for investors.
By the end of 2024, Da Nang has successfully implemented all 38/38 tasks and solutions under the Smart City Project, delivering tangible products and results. Simultaneously, the city has proactively executed the tasks outlined in Decision No. 950/QD-TTg (dated August 1, 2018), which focuses on sustainable smart urban development in Vietnam. The city has essentially completed all 11/11 assigned tasks, reinforcing its commitment to digital transformation and urban modernization (T?, 2012).
The development of IT industry and digital economy, digital technology is integrated into industries and fields, creating momentum for model innovation, improving growth quality, labor productivity, and shifting the economy towards digital economy. IT industry revenue grows by an average of 10-15%/year; software export turnover grows by 15%/year. The scale of the digital economy in 2023 accounts for 20.69% of the city's GRDP (exceeding the 2025 expenditure by 20%); there are 2.3 digital technology enterprises/1,000 people (3 times higher than the national average).
The strong development of local digital technology enterprises, gradually mastering technology, developing platform products, Make in Da Nang applications, winning national and international awards and being deployed in many other localities; creating a foundation for developing new key areas such as semiconductors, artificial intelligence.
Moving Forward: Strategic Reforms in 2025
At the 21st session, on December 13, 2025, the 10th City People's Council unanimously passed the Resolution No 80/NQ-H?ND on the Socio-Economic Development Plan for 2025.
The theme for Da Nang in 2025—"The year focuses on streamlining the apparatus associated with cutting administrative procedures, effectively implementing urban government organization and specific mechanisms and policies to strongly promote economic growth."—perfectly captures its forward-thinking approach.
Key focus areas include:
Why Da Nang Deserves Attention
Da Nang’s growth trajectory and strategic vision make it a standout city in Vietnam and the broader ASEAN region. With its focus on technology, sustainability, and smart infrastructure, the city offers unparalleled opportunities for investors and enterprises looking to be part of a dynamic future. As Da Nang continues to evolve, it cements its position as a vital contributor to Vietnam’s economic success.
Let Viettonkin Consulting guide your journey in Da Nang. With our deep expertise in market entry, investment strategies, and local insights, we’ll help you unlock the immense potential this vibrant city has to offer.
References
baochinhphu.vn. (2024, July 16). Thí ?i?m c? ch?, chính sách ??c thù phát tri?n TP ?à N?ng. baochinhphu.vn. https://baochinhphu.vn/thi-diem-mot-so-co-che-chinh-sach-dac-thu-phat-trien-tp-da-nang-102240716164534428.htm
T?, P. D. (2012, October 15). Decision No. 950/QD-TTg of the Prime Minister promulgating. C?ng ty Lu?t TNHH Minh Khuê. https://luatminhkhue.vn/en/decision-no-950-qd-ttg-of-the-prime-minister-promulgating.aspx