Da Nang: Emerging as Vietnam’s High-Tech Powerhouse

Da Nang, the vibrant coastal city in Central Vietnam, is rapidly establishing itself as a premier destination for high-tech investment. The influx of diverse, high-tech companies is a testament to the city’s robust economic environment, driven by comprehensive incentives and innovative mechanisms. As the main economic hub of Central Vietnam, Da Nang isn’t just attracting local startups—it’s becoming a focal point for international tech firms, creating a thriving ecosystem for innovation.

A Tidal Wave of High-Tech Investments

As of July 2025, close to 70 companies, including major players like Marvell, Synopsys, and Renesas, have set up shop in Da Nang. These firms represent a blend of local and international talent, signaling the city’s favorable conditions for the semiconductor, microchip, and AI sectors. This growing community is more than just numbers; it reflects vibrant collaboration and competitive spirit aimed at fostering technological advancements.

The establishment of these companies is a strong vote of confidence for newcomers looking to tap into Da Nang’s innovative landscape. The city’s enticing business climate, supported by strategic incentives, is attracting not only investment but also a pool of skilled professionals eager to contribute to groundbreaking projects.

Economic Growth Driven by Industry and Services

According to the latest socio-economic report, Da Nang has witnessed an impressive 10.5% growth in Gross Regional Domestic Product (GRDP), with the industrial and construction sectors marking a remarkable 11.3% increase in the same period. The service sector also showed a healthy growth rate of 10.2%, while agriculture, forestry, and fisheries contributed moderately at 2.7%.

Key economic indicators, such as a trade turnover of US$1.76 billion and an export turnover of US$997.5 million demonstrate Da Nang’s growing industrial strength and its capacity to support long-term business development. This economic momentum underscores the potential of Da Nang as a central player in Vietnam’s ambition to become a regional technological leader.

Infrastructure: Laying the Groundwork for Innovation

To further solidify its status as a high-tech hub, Da Nang is investing heavily in infrastructure development tailored for technology industries. Upcoming projects, like the semiconductor Lab-Fab facility led by VSAP LAB and a large-scale data center spearheaded by the International Data Center Corporation, aim to create advanced technological solutions.

These initiatives will not only enhance the local business landscape but will also provide essential resources for R&D teams and startups. Upgrading the Biotechnology Center illustrates Da Nang’s commitment to broader technological diversification, supporting advancements in genetics, food technology, and bio-processing.

Building a Future-Ready Workforce

Recognizing that human capital is key to sustainable growth, Da Nang is actively developing a high-skilled workforce. The city has set a strategic target of cultivating over 300,000 quality workers with advanced technical skills. This aim is not just about meeting current demands but about preparing for future innovations in digital finance, smart logistics, and green technologies.

Plans are underway to establish a community of 5,000 experts, including 1,000 from abroad, to foster an entrepreneurial atmosphere that nurtures creativity and innovation. By 2035, the vision is to have 3,000 startups and 50,000 private firms, highlighting Da Nang’s ambition to become a hotbed for entrepreneurial talent.

Incentives and Support for High-Tech Investment

Da Nang’s attractiveness for high-tech investments is significantly enhanced by targeted incentives from the government, particularly noted in Resolution No. 136/2024/QH15. This regulatory framework details the special policies available to investors, aiming to bolster strategic sectors including semiconductors, robotics, and digital infrastructure.

Key incentives include corporate and personal income tax exemptions, priority in land access, and generous subsidies for R&D efforts. This framework offers investors a predictable and favorable environment for growth and expansion.

Key Sectors and Investment Thresholds

Da Nang prioritizes investments in specific sectors, such as innovative infrastructures (R&D centers, data hubs), semiconductors, and Free Trade Zone developments. The investment thresholds range from VND 2 trillion (approx. US$76.34 million) to VND 45 trillion (US$1.72 billion), reflecting the city’s commitment to attracting serious players in these fields.

Navigating the Land Acquisition Process

Investors can gain access to land through either direct allocation or auctions, based on their project approvals. The selection process is managed through a transparent bidding system, ensuring fair competition among qualified investors.

Exciting Tax Incentives

Da Nang offers attractive tax incentives, such as a 5-year corporate income tax exemption for eligible startups. Additional benefits include tax exemptions on capital gains for unlisted startups and a focus on aiding skilled professionals in the semiconductor and AI spectrum.

Advancing Through a Regulatory Sandbox

The city is pioneering a regulatory sandbox model, permitting three-year testing periods for emerging technologies. This approach fosters innovation by allowing companies to trial their solutions without cumbersome regulations, with support from city agencies for oversight and feedback.

Supportive Scientific and Technological Ecosystem

Da Nang facilitates entrepreneurship through publicly funded infrastructures, like co-working spaces and shared laboratories that can be leased to startups without auction requirements. Financial support for training programs ensures that users of these assets are well-equipped to leverage the available resources effectively.

Focus on Semiconductor and AI Sectors

To support firms in the semiconductor and AI domains, the city is offering a suite of specialized incentives, including direct contracts for equipment procurement and training support for skilled workers. These efforts are designed to strengthen the technological ecosystem while enhancing the city’s global competitiveness.

Attraction and Retention of Talent

In a bid to attract and retain top-tier talent, Da Nang has flexible salary policies that may increase remuneration for public officials and key professionals significantly. This approach is vital for aligning talent expertise with the city’s ambitious growth objectives in high-tech fields.

Da Nang is forging ahead as a high-tech investment hotspot combining strategic infrastructure, supportive policies, and a focus on cultivating talent. The city’s ongoing commitment to fostering a dynamic environment offers a wealth of opportunities for innovative enterprises looking to thrive in Vietnam’s burgeoning tech landscape.