One of the highlights that has impressively adorned Da Nang’s bright economic picture in recent years is the creation of many breakthroughs in its dynamically thriving IT industry with the presence of large domestic and foreign investors. In an attempt to attract more investment waves channeled into the IT industry industry, Da Nang is now on course to develop its IT high-quality infrastructure and human resources, making the IT industry truly become a key driver of the city’s sustainable development in the future.

The under-construction Da Nang Software Park No 2, which facades onto Nhu Nguyet Street, Thuan Phuoc Ward, Hai Chau District is on a mission to drive the software industry to ‘fly high and far’

Da Nang now houses about 7,000 IT companies, accounting for 20% of the city’s total business number. Noticeably, during 2010 – 2019 period, Da Nang IT industry has recorded a rapid and sustainable growth in terms of both revenue and output with an average annual increase of 20%. By the end of last year, the IT industry had made up for 7.7% of Da Nang's GRDP.

Last 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%.

Over the years, Da Nang has emerged as a reliable investment destination for many large domestic and foreign IT enterprises. For instance, in early June, Ubisoft, a French video game company headquartered in Montreuil with several development studios across the world, opened a studio in Hai Chau District. This high-class studio specialises on creating original mobile games and instant-games for social media platforms.

The studio is on track to recruit more employees coming from Viet Nam and foreign countries worldwide, and make the debut of its first products in early next year. The Da Nang studio’s employees now work with Ubisoft’s mobile teams around the world and create games based on established franchises in an exciting new step into the booming city.

“Da Nang is perfect, right between Ha Noi and Ho Chi Minh city, so there is this big talent pool to draw from. Da Nang also offers a great alternative to much larger cities, with an ideal balance between quality of life and work. There are so many good reasons, and we’re very pleased to be a part of the development here.”, commented the Da Nang studio’s Managing Director, Mr Aurelien Palasse.

The presence of domestic and foreign IT companies in Da Nang helps to improve the quality of local IT human resources. In the photo are staff members working at Son Tra District-based Enouvo Information Technology Solutions Company Limited

In fact, large international firms which have entered Da Nang showcase their most advanced IT training programmes, hereby helping to enhance the quality of the city’s IT human resources. The fierce competition with foreign-invested rivals in terms of manpower resources, therefore, prompts domestic ones to constantly map out ways to attract more highly-qualified personnel.

Deputy Director of the municipal Department of Information and Communication Le Son Phong said the infrastructure of local IT zones has developed considerably to meet the growing premise demand of domestic and foreign investors.

Da Nang is now home to two centralised IT parks. One is the 1.08 ha Da Nang Software Park located in Thach Thang Ward, Hai Chau District. The other is the 131 ha Hoa Vang District-based fully-operational 1^st 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. This venue is eyeing to become one of the best IT development communities in Asia in the near future.

Additionally, work started in early October on the about 704 billion VND Da Nang Software Park No 2, which facades onto Nhu Nguyet Street, Thuan Phuoc Ward, Hai Chau District with a mission to drive the local software industry to ‘fly high and far’.

Work is expected to start on the CMC Creative Space in Da Nang next March. The inception of the CMC Creative Space in Da Nang is aimed at developing the city into Viet Nam’s international gateway for data storage and connection, within the framework of CMC Corporation’s landmark strategy of highly supporting the country’s ongoing path of turning itself into a digital hub in the Asia-Pacific region.

The 12,000 billion VND, two-staged project will comprise of such functional subdivisions as research and development (R &D), software production and IT areas, an internet hub; a data centre, workplaces for staff and other high- end auxiliary facilities with sufficient modern amenities.

Da Nang is expected that the IT sector will 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 KHANG NINH- Translated by A.T