Danang becoming focal point in Central Vietnam investment

In late March, Japan’s Sumitomo Corporation and local BRG Group worked with Danang’s leaders to discuss projects both groups want to deploy in the city.

In 2020, Chairman of Danang People’s Committee Le Trung Chinh handed over MoUs on investment cooperation to Sumitomo Corporation and BRG Group to promote investment in a wide range of urban and infrastructure development projects in Danang.

According to BRG chairwoman Nguyen Thi Nga, Danang has the full potential for a leading global player like Sumitomo to weigh over opportunities for investment and business expansion.

“The board of directors at Sumitomo is solid with their investment orientation in Danang as they have sent several working groups to the city to shape an iconic regional-level project in Danang,” said Nga.

Beyond Japanese groups, international investors from various other countries have expressed the desire to make forays into Danang.

In a meeting with the city’s management at the end of April, Park In Sung, senior vice president of SW Development at LG Electronics’ Vehicle Component Solutions, said that with its rapid development in the city, the company is considering expanding investment scale in the forthcoming time.

South Korea is one of the top foreign investors in Danang behind Japan, Singapore, and the United States, with a portfolio of 235 projects valued at $378 million in the total registered capital in key industries like electronic components, car and motorbike parts, textiles and apparel, and more.

Danang becoming focal point in Central Vietnam investment

Reaching high

The city’s attraction lies in the blooming number of foreign investors seeking business opportunities in the central coast city. From 2016 to 2020, there were 163 domestic projects valued at $3.31 billion, of which 53 projects were outside high-tech parks and industrial zones (IZs) with the total investment value approximating $3 billion. The remaining projects were worth $319 million. The total cumulative number of projects reached 716 with a total capital volume amounting to $6.48 billion.

In the same period, Danang also counted 530 new foreign-invested projects valued at more than $1.04 billion. Of which, 44 projects were based in high-tech parks and IZs and worth $507.6 million. As of now, the city is home to 914 foreign-invested projects in operation with a total value of $3.86 billion. Last year, Danang took the leading position among localities in the central region in foreign investment attraction.

Huynh Lien Phuong, director of Danang Investment Promotion Agency (IPA) asserted that the strong performance of investment projects has provided a catalyst to the city’s socioeconomic development. “The good results show that Danang is really an ideal rendezvous for investors of all industries,” Phuong said.

By virtue of concerted efforts, Danang has also been successful in securing its spot on the global luxury tourism map and emerging as a tourism hotspot. Buoyed by its favourable position, seamless infrastructure, and attractive living environment, Danang has received high praise from the business community for offering worthwhile investment opportunities.

The city now aims to attract around $3 billion in the total investment volume by 2025 and $4 billion by 2030. Phuong of Danang IPA said that these targets are achievable as the city has been deploying a raft of drastic measures.

Nguyen Van Quang, Secretary Danang Party Committee After 25 years under central management, Danang has been developing by leaps and bounds. The city has made it to the list of localities with strong growth, with regional GDP in the 1997-2021 period averaging 9 per cent annually, and the current per capita regional GDP being more than 15 times that of 1997. Urban space swelled more than 3.5 times compared to 1997. From just 360 streets, Danang is now home to more than 1,300 roads. Danang features an open and dynamic investment environment and is always on the list of top localities nationwide in the Provincial Competitiveness Index, as well as other indices. Danang is also proud of having very practical policies to promote social wellbeing that are distinct to Danang and bring better lives to people. The Politburo enacted Resolution No.43-NQ/TW dated in 2019 on building and developing Danang to 2030, with a vision towards 2045, which notes that the city holds an important strategic position economically and politically in the region and the whole country. This spells high expectations and requirements for Danang. The National Assembly also enacted Resolution No.119/2020/QH14 on piloting an urban government model and several specific mechanisms and policies for Danang’s development. These important policies usher in new opportunities and are a driving force for the city. In this context, the city needs to make profound analyses and effective forecasts about relevant impact factors, particularly identifying and bringing into play development potential and advantages; finding new motivating forces, models, and breakthrough solutions to aid the city’s development in the new era. It is a must to materialise the city’s development aspirations of turning Danang into an upscale, smart, dynamic, and innovative urban hub at the regional and international levels. Extract from speech at the “Danang’s 25-year development: Achievements and Prosperity” seminar

Bright future ahead

Danang is accelerating the implementation of the city’s master plan to 2030, with a vision towards 2045, in which Danang’s urban areas will be streamlined into two economic development belts and 12 key functional sub-zones. Albeit still in the planning phase, scores of investors are showing keen interest in projects in these sub-zones. Danang Department of Construction unveiled that many sizable groups are eager about the opportunities and would like to hand in investment proposals.

The proposal for a 2,700-hectare hillside subzone from local Imex Pan Pacific Group has been appreciated by Danang’s management. Along with this, the group has voiced plans to develop an 850-ha smart city, among other proposals.

Sun Group also announced a proposal for a 1,110-ha smart city and non-tariff development complex that would be part of the hillside subzone. Meanwhile, BRG Group also made proposals for over 11,500ha to develop reserves, high-tech agriculture, and hillside urban development.

BRG also proposed to cover the costs for the general planning of nine communes in Nam Hoa Vang, covering an area of over 25,000ha.

“Realising these subzone plans would constitute and vigorously promote Danang’s urban development. Key projects such as the Hoa Xuan innovative space project, Lien Chieu Port, and a major financial centre would help Danang allure investors’ attention. I’m confident Danang will court sizable regional-level projects in the time to come,” Phuong said.

Trending towards a deserving place to invest, Danang has focused on expediting a raft of projects in IT and finance, high-tech, logistics, and quality healthcare and education services, among others.

As of now, Danang is penning out projects such as a financial centre, a marina, and logistics and non-tariff areas, along with relevant policies and mechanisms to create a favourable legal corridor to facilitate those projects’ implementation.

Tran Phuoc Son, Deputy Chairman of Danang People’s Committee, noted that key areas for the city’s development in the upcoming time include tourism, high-tech industries, and the marine economy. Further, spearheading areas are resort real estate, seaports, aviation, startup and innovative urban development, ICT, and telecom, among others.

“Danang will soon submit its plans to the government to turn the city into a regional-level financial centre. The government has approved the proposal to establish a national innovation centre in Danang, thus also allowing the city to engage in a scheme to turn Danang University into a national university and upgrade the passenger terminal at Danang International Airport. These are enormous opportunities and significant driving forces for the city’s development,” said Son.