Da Nang, the largest city in the central provinces, serves as a dynamic economic and cultural hub in the central region. Its strategic location, robust infrastructure, skilled labor force, and diverse investment opportunities make it an attractive destination for foreign investors.

Location

Situated along Vietnam’s eastern coast at the mouth of the Hàn River, Da Nang occupies a prime position as a port city. It lies approximately halfway between Hanoi to the north and Ho Chi Minh City to the south, making it a pivotal gateway for trade and tourism. The city is enclosed by Quảng Nam Province to the south and Thừa Thiên–Huế Province to the north, and within reach of several UNESCO World Heritage Sites, including the Imperial City of Huế, the Ancient Town of Hội An, and the Mỹ Sơn Sanctuary. Da Nang’s strategic location provides easy access to key domestic and international markets, strengthening its position as an economic center in central Vietnam.

Da Nang city in national map

Source: Wikipedia

Infrastructure

Da Nang boasts a modern and efficient infrastructure system, ranking 4th in Vietnam for infrastructure development in 2022[1]. The city’s transportation infrastructure is highly regarded, with Da Nang International Airport being one of the three largest international gateways in Vietnam, offering flights to numerous domestic and international destinations. The city is also a key intersection of National Route 1A and the North-South Railway, facilitating easy connectivity across the country. Its port system, including Tiên Sa Port and Song Hàn Port, plays an important role in cargo transportation and boosting regional trade.

Da Nang is actively developing its industrial infrastructure, with major industrial zones such as Hòa Cầm Industrial Zone and Liên Chiểu Industrial Zone, which contribute significantly to the city’s economic development. The city currently has a diverse network of industrial zones, including 6 main industrial zones and one high-tech park, attracting both domestic and foreign investors. These industrial zones focus mainly on sectors such as agricultural processing, seafood, mechanical engineering, electronics, and high technology, further driving the development of key industries.

Looking ahead, Da Nang’s infrastructure development strategy focuses on expanding and upgrading the transportation system, developing smart industrial zones, and building infrastructure to support tourism, trade, and Industry 4.0. Industrial zones will continue to expand, especially new industrial zones and industrial clusters such as the Hòa Liên Industrial Zone and Hòa Khánh Nam CCN, aiming to strengthen the city’s position both regionally and internationally.

Labor Market

Da Nang’s labor force is notably young and dynamic. The labor force comprises over 66% of the population, totaling around 633,600 workers[2], which is 1.2% of the national labor force in 2023. The average monthly income per capita is about 6.2 million VND.  The city’s labor force focuses on trading, repairing, manufacturing and processing industries, and accommodation and food services. In recent years, the proportion of trained labor in Da Nang has steadily increased, rising from 41.73% in 2015 to 48.15% in 2021. Notably, the share of workers with university and intermediate vocational training has seen the most significant growth. By 2021, over a quarter of the workforce in Da Nang had a university degree or higher (up from 22.08% in 2015), and more than 10% had intermediate vocational training (up from 5.53% in 2015). Compared to the national average, Da Nang ranks highly in terms of the proportion of trained workers with qualifications, achieving the highest rank in 2010 and second place in 2020.[3]

Breakdown of the Labor Force in Da Nang by Industry in 2023 (%)

100%=633,184 labor

Source: Congdulieu

Economic Landscape

As the leading industrial center of Central Vietnam, Da Nang has demonstrated consistent economic growth over recent years. Although the city experienced negative growth in 2020 due to the impact of the COVID-19 pandemic, it has since achieved a strong and rapid recovery. During the 2019–2024 period, Da Nang’s Gross Regional Domestic Product (GRDP) grew at an average annual rate of 3.02%. By 2024, the city’s GRDP had reached 151.3 trillion VND, ranking 17th out of 63 provinces and cities nationwide, while GRDP per capita rose to 119 million VND per person.

For the economic contribution share, the sector is highly diversified, with significant contributions from service (accommodation and food services, entertainment activities, etc.) and manufacturing – construction industry and IoT industry.

Da Nang aims to become a major socio-economic center of Vietnam and Southeast Asia, focusing on key sectors such as high technology, logistics, tourism, and the digital economy. By 2030, the city targets an average GRDP growth rate of 9.5–10% per year[4] and a per capita GRDP of around USD 8,000–8,500[5]. The digital economy is expected to contribute at least 30% of the city’s GRDP, with more than 8,950 digital technology enterprises. In 2025, the total state budget revenue is projected to exceed VND 30 trillion. These targets reflect the city’s strong commitment to sustainable development and improving the quality of life for its residents.

Da Nang GRDP Growth 2020-2024

Source: B&Company synthesis

Investment Opportunities

Da Nang is emerging as an attractive destination for foreign investors, offering diverse investment opportunities and strong growth potential.

In 2024, Da Nang attracted USD 243.4 million in foreign direct investment (FDI), marking a 33.2% increase compared to 2023. This included 71 newly licensed projects with a total registered capital of 233.6 million USD and 26 projects with adjusted capital totaling an additional 7.9 million USD[6]. By the end of 2024, the city had 1,015 valid FDI projects with total capital exceeding USD 4.1 billion. South Korea led the way with 268 projects worth over USD 362 million, mainly concentrated in the manufacturing and service sectors[7].

Da Nang is now focusing on the development of high-tech industries, information technology, and semiconductor design. In 2024, the city welcomed five new semiconductor design companies, raising the total in this field to 13[8]. Major global corporations such as Synopsys, Marvell, and Renesas have already established a presence in Da Nang, while others like Nvidia, Qualcomm, Intel, and Mediatek are currently exploring investment opportunities and human resource training partnerships in the city.

Major FDI projects in Da Nang

Source: B&Company synthesis

Conclusion

Da Nang is rapidly emerging as a key economic and investment hub in Vietnam, offering a range of opportunities across diverse sectors. Its strategic location, modern infrastructure, and skilled labor force create an ideal environment for foreign investors looking to capitalize on the city’s growth potential. With a focus on high-tech industries, tourism, logistics, renewable energy, and education, Da Nang is poised for sustainable economic development. Additionally, the city’s commitment to innovation and sustainable practices, particularly in agriculture and aquaculture, presents exciting prospects for investors. As Da Nang continues to evolve with its 2045 vision, it is an attractive destination for businesses looking to expand in one of Southeast Asia’s most promising markets.

[1] https://als.com.vn/thay-doi-thu-hang-ve-cac-tinh-co-chat-luong-co-so-ha-tang-tot-nhat-viet-nam

[2] https://congdulieu.vn/

[3] https://www.baodanang.vn/channel/5404/202303/vi-sao-nguon-lao-dong-doi-dao-nhung-cac-doanh-nghiep-van-khong-tuyen-dung-duoc-3939868/

[4] https://danang.gov.vn/chinh-quyen/chi-tiet?id=55087&_c=9,11

[5] https://danang.gov.vn/chi-tiet?id=56308&_c=3,9

[6] https://baodautu.vn/doanh-nghiep-danh-gia-da-nang-la-diem-den-dau-tu-hap-dan-dang-tin-cay-d238228.html

[7] https://investdanang.gov.vn/vi/web/guest/chi-tiet-tin-tuc?dinhdanh=1413885

[8] https://www.danang.gov.vn/web/guest/chinh-quyen/chi-tiet?_c=3&id=62097