Danang ready to take off in 2024

February 15, 2024 | 10:13
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After Prime Minister Pham Minh Chinh approved the planning for the rest of this decade and with a vision to 2050, the central city of Danang is converging many factors to create rapid development momentum.

Danang has proactively sought new motivation for development. In particular, the semiconductor and AI industrial ecosystem is one of the breakthroughs that the city aims to innovate its growth model. Therefore, in recent times, many shuttle activities have been carried out by Danang to prepare infrastructure, human resources, and invite investment in this field.

Danang ready to take off in 2024

At the end of 2023, Danang High-Tech Park and Foxlink International Investment of Taiwan invested in the Foxlink Danang electronics factory project. The project will cost up to $135 million, operating in high-tech electronic equipment manufacturing.

Also within the framework of a business trip to the United States in November, leaders of Danang held meetings and working sessions with companies and corporations in semiconductor chips such as Qorvo, Marvell, Nvidia, and Intel.

According to statistics, Danang has about 250 businesses operating in manufacturing, processing, and assembling electronic components with over 10,000 employees. Currently, companies operating in integrated circuit design such as Synopsys, Uniquify, and Savarti are also present in the city.

Regarding ICT infrastructure, Danang currently has one high-tech park, six industrial and export processing parks, and three IT and software parks in operation.

The city has invested in the construction of Software Park 2, which is currently completing legal procedures to put into operation. It is also continuing to expand Danang Centralised IT Park’s phase 2, attracting investment in Hoa Xuan Creative Space, and supporting construction of Viettel’s high-tech building and Danang Bay IT Park. That infrastructure is guaranteed to be ready for corporations and electronic, microchip, and semiconductor businesses.

A centre of activity

Truong Gia Binh, chairman of the Board of Directors of FPT Group, shared that he sees a bright future for Danang, with Vietnam gradually becoming a destination for the semiconductor industry.

“Danang has many advantages. It has the highest ratio of universities per population in the country, and students account for 10 per cent of the population. Many major IT and semiconductor companies in the world are already in Danang,” Binh said.

In addition to the semiconductor industry, Danang is also aiming to become a regional financial centre. Detailed drawings of the financial centre have been completed. This year, a strategic investor will be selected to develop the centre, which will include financial centre zoning planning and other detailed plans. A mechanism will also be established to create the Vietnam International Financial Centre Development Council.

Towards 2030, a focus will be laid on completing the infrastructure of Danang’s international financial centre, including hard infrastructure such as offices, complexes, and soft infrastructure such as financials and IT.

Danang is deemed to have many advantages to form an international financial centre, with its geographical location and connectivity, and strong conditions in terms of urban infrastructure, living environment quality, and basic development needs. In addition, Danang is oriented to become a national innovation centre, with the foundation and infrastructure advantages to form a fintech centre.

There is a 6.17 hectares of available land planned for the establishment of the financial centre complex, with robust connectivity and infrastructure conditions.

Strategic vision

The planning for Danang this decade and with a vision to 2050 has oriented and created new development dynamics. It will turn Danang into a large urban area, high-tech industrial centre, and IT centre; an international financial centre on a regional scale; and a liveable coastal city at the Asian level. Danang is therefore facing a great opportunity to assert itself in the international competition.

The completion of the plans is an essential premise for the development of Danang because it will create a legal basis, orient key areas, and serve as a driving force for the next phase of growth.

Strategic investors and large domestic and international corporations are therefore also more comfortable pouring investment capital into the city. At the ceremony to announce Danang’s planning, the city approved seven projects. This included six projects with domestic investment capital and one foreign-led project, with total capital at nearly $400 million.

Le Trung Chinh, Chairman of Danang People’s Committee said, “The planning for this decade and with a vision to 2050 is an extremely important legal basis, creating a solid corridor for sustainable development of the city in the new period; is the foundation to continue exploiting and promoting local potentials and strengths.”

The results of socioeconomic development in 2023 once again reflect Danang’s efforts to overcome difficulties. It maintained regional GDP growth in 2023 by 2.58 per cent, and the scale of its economy is estimated to be around $5.65 billion, an increase of $422 million compared to 2022.

Danang has completed and been approved by the government’s city planning for the 2021-2030 period, with a vision to 2050. At the same time, 9/9 urban subdivision planning projects and 4/10 functional construction subdivision planning projects have been all but completed.

In 2024, Danang is focused on promoting administrative reform, strengthening discipline, continuing to open up investment resources, promoting economic growth, and ensuring social security. The forecast economic growth rate in 2024 is estimated to increase by 8-8.5 per cent. Of which, the added value of the service sector is estimated to increase by 8.5-9 per cent; industry-construction will be 6-6.5 per cent, and agro-forestry-fisheries is estimated to be 2-2.5 per cent.

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By Hoai Thanh

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