One of the highlights that has adorned Da Nang’s bright economic picture in recent years is the creation of many breakthroughs in hi-tech industry. Under the strategic master plan for major developments in Da Nang to 2030, with a vision to 2045, tech sector is one of the key engines of Da Nang’s economic growth, with a focus on promoting high-tech industries associated with creative urban construction, start-ups and IT, electronics, telecommunications and the digital economy.

First stage of the dedicated Da Nang IT Park has been officially opened

Since its inception in 2010 till May, the 8,841 billion VND, over 1,128 ha Da Nang Hi-tech Park had attracted 20 projects, of which 10 were FDI ones totalling 399.6 million US$, accounting for 61.4% of the total, whilst the rest were domestically invested with a combined total of 250.95 million US$.

It is reported that, in recent times, some large-scale FDI projects have been put into operation in the Park, namely the 1st stage of the 170 million US$ Sunshine aerospace components factory, developed by the US-based Universal Alloy Corporation Asia Pte. LTD-UAC, the US Key Tronic EMS Group- developed 70 million US$ factory which manufactures automobile signal lights for export and the Mabuchi Motor Co Ltd-developed electronic components factory expansion project.

Da Nang is now home to about 3,800 IT companies with nearly 32,000 employees, accounting for 14% of the total firm numbers operating in the locality. The average annual growth rate of this industry is now 20%.

Over the past year, the IT sector generated an estimated 30,050 billion VND in earnings, up 19.2% against 2018, and exceeding the year’s target by 4%. Of this, the revenue of the IT service sector went up by 21.3% against 2018 to reach an estimated 19,570 billion VND, whilst software exports surpassed the year's target by 11% to hit around 89 million US$. Some software firms maintained an average annual growth rate of between 25% and 30%.

Covering an area of 131 ha in Hoa Lien Commune, Hoa Vang District, the fully-operational 1st stage of the dedicated Da Nang IT Park whose design is similar to the Silicon Valley model in the U.S.A., and the Hsinchu Science Park in Taiwan, China, is expected to become one of the best IT development communities in Asia in the near future.

In addition, recent commencement on the about 704 billion VND Da Nang Software Park No 2, which facades onto Nhu Nguyet Street, Thuan Phuoc Ward, Hai Chau District is on its mission to drive the development of the software industry to ‘fly high and far’.

This year, the top priority is placed on accelerating electronics, telecommunications, and IT aspects in association with the digital economy by 2030 with a vision to 2045.

It is expected that the IT sector would contribute about 10% of the city’s gross regional domestic product (GRDP) by 2025, and 15% by 2030.

In its efforts to thrive IT industry, Da Nang is eyeing for new leaps in securing a tech boom in light of the Industry 4.0, especially 5G telecommunications network infrastructure, artificial intelligence, cloud computing, e-commerce platforms and non-cash payment services.

By KIM NGAN – Translated by A.T