Da Nang, a port city located on the coast of South China Sea, is Vietnam’s third largest city and is the main commercial and educational center of central Vietnam. The city is well known for its clean environment, beautiful beaches, and good public services. It is often referred to as the most livable city in Vietnam. Currently, the city has an estimated one million inhabitants in its urban areas.
Da Nang is one of the fastest growing cities in Vietnam. The city has grown faster than Vietnam’s annual growth rate of seven percent. From 2006-2010, Da Nang grew at 11 percent a year. During 2011 through 2013, the city’s annual growth rate never dropped below 10 percent despite world economic stagnation. According to the Financial Times, Da Nang has the best investment environment and infrastructure in Vietnam at the moment, even better than Hanoi and Ho Chi Minh City.
Da Nang is situated in central Vietnam with 150 km of seacoast. It is 764 km South of the capital, Hanoi and 964km North of Ho Chi Minh City. Its location on the path of National Route 1A and the North-South Railway makes the city a hub for transportation.
With the fourth largest seaport in the country, Da Nang is also an important gateway city to the Central Highlands of Vietnam, the Lao People’s Democratic Republic, Cambodia, Thailand and Myanmar.
The city has a tropical climate, which is punctuated by two distinct seasons: the rainy season (August to December) and the dry season (January to July).
Agriculture, forestry and fishing:
As of 2007, four percent of Da Nang’s population was employed in agriculture, forestry and fishing industries. Da Nang has relatively little agricultural land due to its coastal location; therefore, fishing has contributed more to the economy than agriculture. On average, seafood production increases by 12 percent to 13 percent annually. In 2011, seafood export revenue reached US$110 million and seafood from Da Nang has been exported to large markets such as the US, Europe, etc.
The tourism sector is a vital component of Da Nang's economy. Located within 100km of three UNESCO World Heritage Sites, including the Imperial City of Hue, the Old Town of Hanoi and the My Son ruins, Da Nang has long been considered a pleasant pass-through point for travelers traversing Vietnam’s tourist trail. Da Nang also has its own attractions such as Ba Na Tourist Resort, Ngu Hanh Son (Marble Mountains), Linh Ung Pagoda, Non Nuoc beaches, etc. The number of tourists to the region has been growing substantially. During the first six months of 2014, there were 1.78 million visitors to Da Nang, a 15.8 percent increase year on year.
Da Nang is strongly pushing ahead with its industrialization and modernization process, and has announced its goal to become one of the key investment areas in Vietnam. The average annual growth rate of the city is 10 percent.
The main industries in Da Nang are industries machinery, electrics, chemicals, shipbuilding, and textiles. Currently, the city has six industrial parks (1141.82 ha), one IT center (341 ha), and one high-tech park (1129.6 ha).
In order to attract foreign direct investment (FDI), the city’s government has issued numerous concessions to foreign firms. FDI now accounts for 20 percent of investment in Da Nang.
Additionally, according to the city’s government, Korea Aerospace Industries, European Aerospace Defense Group (EADS), and Airbus Industries Information (AIB) have been working on a project to build an industrial zone producing aviation equipment in the region.
|GDP (per capita)||US$2,283|
|Principal Languages||Vietnamese, English|
The electricity in Da Nang is supplied by the Da Nang Power Company through the national North-South 500KV high voltage grid. Da Nang enjoys cheap energy prices, currently US$0.057 (5.7 cents) per kWh at normal hours, US$0.103 (10.3 cents) per kWh at peak hours and only US$0.035 (3.5 cents) at off peak hours.
According to the Department of Transportation’s statistics in 2010, the city of Da Nang has 1,002 streets with a total length of 848,473km. The majority of the roads are made of asphalt and concrete and have good surface quality. Da Nang has 94,276km of highway and 512,687km of urban roads. There are 27 bridges crossing the Han River, including six large ones.
Da Nang International Airport, located about 3 km from the city center, is the third largest international airport in Vietnam.
The airport has an area of 150ha, it has two runways, each over 3,048m in length and 45m in width. It is able to handle a variety of planes, such as the B747, B767 and A320.
Every week, Da Nang Airport receives more than 150 international and domestic flights. The airport served 4.4 million passengers in 2013 and expects to serve five million by the end of 2014.
The North-South railway, which passes through Da Nang, covers 42km in length from Lang Co Station to Hoa Vang District. Da Nang station is one of the biggest stations in Vietnam.
Da Nang’s port system is the third largest in Vietnam after Ho Chi Minh City and Hai Phong. In 2013, Da Nang Port handled five million tons of cargo and 167,447 TEUs of containers. During the first quarter of 2014, over 53,000 passengers passed through the port, an increase of 51.5 percent year on year.
The port system consists of two areas: Tien Sa Seaport, and Song Han Terminal. Tien Sa Seaport has a navigation depth of 11m and can handle medium tankers of up to 45,000 DWT, as well as container ships and large cruise ships. Song Han Terminal sits 12 miles (22 km) inland and can accommodate vessels of up to 5,000 DWT.
Even though the port's infrastructure is not specifically designed to accommodate cruise ships, the number of large cruise ships docking at Da Nang Port has increased in recent years.
National Highways 1A and 14B run through the city, providing road connections to Hanoi in the north and Ho Chi Minh City in the south, as well as the Central Highlands andLaos to the west. The Hai Van Pass is a mountain pass separating Da Nang and Thua Thien Hue Province where Highway 1A road passes through. In 2005, the Hai Van Tunnel was built in order to cut down on travel time in the region. At 6.28 km, the tunnel is the longest in Southeast Asia, and saves motorists between 30 minutes and an hour on traveling times. A highway between Da Nangand nearby Quang Ngaiis currently under construction.
Da Nang aims to become a large national urban area and the major socio-economic center of central Vietnam. The city focuses on the sectors of services, transportation, post-telecommunication, and finance-banking. Da Nang is also vigorously encouraging investment into high-tech industries, these include:
In order to attract FDI, Da Nang has issued numerous concessions to foreign firms, these include:
There are six main industrial zones (1141.82 ha): Da Nang IZ, Lien Chieu IZ, Hoa Cam IZ, Expanded Hoa Khanh IZ, Hoa Khanh IZ and Da Nang Seafood Services zone. The IT center (341 ha) and one high- tech park (1129.6 ha) are currently under construction.
Location: DHTP is situated on Danang- Quang Ngai highway, 17km from Danang International Airport, 22km from the City Center, and 25km from Danang Port.
Land area: 1,129.76 ha
Main functional components:
Encouraged investment fields:
Infrastructure: In progress
Investor: Rocky Lai & Associates - Danang, Inc. and U.S Investors
Project Location: Hoa Lien Ward, Hoa Vang District, Danang, 17km from Danang International Airport, 22km from the city center, and 25km from Tien Sa Seaport.
Land Area: 341 ha, to be developed in 2 phases:
Total invested capital: US$278,000,000
Main functional areas: IT Production & Manufacturing Area, R&D - IT Incubator - Consulting Services, Central Business District, Residence Area, Parks & Recreation Area, and Technical Infrastructure.
Type of investment being encouraged in Da Nang IT Park: Information Technology and Telecommunications, Software Development, Business Processes Outsourcing (BPO), IT Services, Training Facilities, Green Technology, Microelectronic, Optoelectronics, Nanotechnology, and Biotechnology.