Da Nang: Vietnam's Emerging Investment Destination
Business Environment and Growth Drivers
Key Points:
- Geographical and Economic Significance: Da Nang is one of the five largest cities in Vietnam, serving as the gateway to the Central Region, experiencing rapid industrialization.
- Urban Development and Sustainability: Underpinned by a sustainable approach to urban development, Da Nang has achieved consistent economic growth while maintaining its reputation as the 'most livable city' in the country.
- Position in the Global Market: With rising production costs in China and ongoing US-China trade tensions, Da Nang emerges as an attractive alternative for international investors seeking destinations outside of Hanoi and Ho Chi Minh City.
Incentives for Investing
Key Points:
- Pro-Business Policies: The city has implemented policies aimed at reducing entry costs, enhancing transparency, and improving labor policies.
- Digital Transformation: Initiated as the first city to adopt the e-Government system, providing online administrative services, it is planning to evolve into a smart city by 2030.
- Target Industries: Focuses on incentivizing investments in high-tech manufacturing, information technology, tourism, education, shipbuilding, and textiles.
The Most Competitive Sectors
Key Points:
- Sector Dynamics: Major sectors include tourism, high-tech manufacturing, IT, education, shipbuilding, and textiles.
- Government Targets: Aims to increase the contribution of services to 55%, industry to 42%, and agriculture to 1% of the economy by 2020.
Investment Profile
Key Points:
- Record High Investments: In the first quarter of 2019, Da Nang attracted a record $500 million in total investment.
- FDI Growth: Granted 32 new Foreign Direct Investment (FDI) projects, a significant increase from the previous year.
- Diverse Industry Base: Offers a diverse range of investment opportunities across various sectors.
Growth Drivers
Key Points:
- Livability: Renowned for its clean environment, pristine beaches, and well-established public services, making it one of the cleanest and safest cities in Vietnam.
- Labor Force: Accounts for over 51% of the population, with a dynamic workforce benefitting from a strong educational system, including international schools and vocational training.
- Infrastructure and Connectivity: Supports robust business environments through strategic investments in infrastructure and enhanced regional connectivity.
This overview highlights Da Nang's transformation into a key player in Vietnam's economic landscape, driven by a combination of strategic policies, technological advancements, and a thriving, adaptable workforce.