Da Nang City: Exploiting Investment Potential

Da Nang City: Exploiting Investment Potential

Da Nang is a dynamic developing city with an increasingly improved infrastructure, industrialisation oriented restructuring and ever-improving living conditions. In recent years, the city has developed a comparative edge, attracting investment and human resources of high quality and creativity.

Geographical advantages

Da Nang is located in Central Vietnam, on Highway 1A and is in the central key economic region. Major projects are under implementation to attract investment and accelerate economic development in Central Vietnam such as the Hai Van tunnel, the Da Nang - Quang Ngai highway, the Chu Lai open economic zone, Da Nang international airport and Dung Quat industrial zone.

Da Nang is also a key location of the East-West economic corridor linking Vietnam, Laos, Thailand and Myanmar. When the ASEAN liberalisation of trade and investment is implemented, Da Nang will be a convenient centre for economic exchanges between those countries.

Da Nang has also advantages in developing tourism, with a long coast, beautiful beaches, the Jade Mountains and famous stone carving villages. Ba Na Mountain top is 1,428 metres high with a moderate climate and a forest abundant in bio-diversity. The Champa culture museum is unique in Southeast Asia and is located in the city. Da Nang also lies between the world heritage sites of Hue ancient capital, Hoi An ancient streets, My Son holy land and Phong Nha - Ke Bang national park.

Socioeconomic advantages

The infrastructure in Da Nang is complete and modernised. Da Nang and Tien Sa seaports with their upgraded warehouses and facilities can receive large vessels and can handle 3-4 million tonnes of cargo a year. Meanwhile Da Nang airport is one of the three biggest airports in Vietnam operating domestic and international flights. Da Nang has a good local and national communication network. Roads are currently being built along the coast to expand the city to the sea.

The city is one of the three main centres of post and telecommunication in Vietnam. It has installed an international submarine optical cable linking to SEMEWE 3 to increase the capacity and quality of communications. The city also has other services, including financial, banking and insurance, offered by major companies.

Da Nang plans to develop the five industrial zones of Da Nang, Hoa Khanh, Lien Chieu, Hoa Cam and an aquaculture logistics centre with a total area of 1,300 hectares.

The city has an abundant labour force with 80 per cent of the population living in urban areas and 57.9 per cent of them working in the socioeconomic sectors. It has a developed education system and offers high levels of education. The city trained thousands of workers each year for itself and neighbouring provinces.

With better infrastructure and preferential treatment, Da Nang has made great achievements in attracting FDI. FDI enterprises now make up 20-25 per cent of the total industrial value, 30-35 per cent of the export value and supports 17-20 per cent of the budget revenue.

Enterprise Year 2004

To attract more investment, Da Nang People’s Committee has taken 2004 as its Enterprise Year. The city will diversify investment resources, improve efficiency and apply new technology to increase production and product quality. The city will also help enterprises in their development strategy, training and management.

The city will continue to improve the investment environment and accelerate administrative reform reducing the time for granting business licenses from 15 to 5 days and preferential treatment certificate to 10 days. The city will also share the funding for test operations, training, trade promotion, fairs, trademark registration and marketing. In addition, Da Nang has also a programme to develop science and technology, train managers and workers, and assist businesses during Vietnam’s process of integration into the international community.