In order to attract investors to Danang and invigorate the region's industrial parks, the city is pushing ahead with an expansion of infrastructure. This includes the construction of a new deep-sea harbor for container ships and a hydroelectric power plant. By constructing a modern waste disposal facility, Danang is also showing its commitment to modern waste disposal concepts.
The city of 1.3 inhabitants has a good economic foundation to build on. In 2015, real economic growth was 9.8% and per capita income was 2,908 US dollars, 38% higher than Vietnam's average income. The regional government's goal is to attract foreign investors and establish itself as an attractive business location alongside Ho Chi Minh City and Hanoi. In seeking to become a modern, future-oriented destination, the city is building one of the country's three high-tech parks, the Danang Hi Tech Park.
With the development of the 300-hectare site, the first phase of development is complete. After completion, the park will cover a total area of 1010 hectares. Two software parks, an IT park and the complex of IT industry giant FPT are already operational.
Foundation in electronics and telecommunications
The production of technology-intensive products for the electronics and telecommunications industry and the supply industries form the foundation for economic development. The region is also seeking to further promote its service sector. Tourism, along with IT industry services, already account for more than 60% of the region's gross national product.
Vietnam is increasingly developing into an IT location. Several prominent Swiss companies already have locations there, including Magnolia, Elca, Aarenet and Axon Active.
"Nonetheless, Vietnam is certainly not the easiest country to start doing business in. The bureaucracy and language barrier necessitate finding a good partner for an export project. In general, having a good network of contacts is actually the to successful market entry in Asia," says Angela Di Rosa, Southeast Asia consultant at S-GE.
