Da Nang is witnessing many encouraging achievements in investment attraction, especially in the information technology (IT) and high tech which are on track to affirm their stature as spearhead economic sectors, effectively contributing to economic restructuring towards sustainability.

The Da Nang IT Park is on track to attract large investors. Photo: HOANG HIEP

It can be said that, since the start of 2021, Da Nang has made a mark on the domestic IT map with the attraction of investment inflows into the building of the Data Centre and the accelerated progress of IT infrastructure construction.

Da Nang has emerged as a potential investment destination in the eyes of investors from both home and aboard thanks to its great potential, qualified human resource and key IT infrastructure available there.

The CMC Creative Space is an outstanding IT project to be developed by the telecoms and IT giant CMC Corporation in Da Nang.

Also, the Da Nang IT Park Development JSC - DITP under the Trung Nam Investment JSC - Trung Nam Group) and Infracrowd Capital has entered into a memorandum of understanding on strategic partnership in green data centre development in Viet Nam, with a focus on developing a data centre worth US$ 100 million meeting Tier 3 Plus standards in the centralised Da Nang IT Park, Hoa Lien Commune, Hoa Vang District.

Under the highly practical bilateral agreement with the Xelex Technology Joint Stock Company under the Worldsoft Company, 100,000 Xelex-branded tablet products will be manufactured at Trung Nam EMS in provision for needy students so that that they can maintain online learning amid a halt to in-person education due to fears over COVID-19 outbreaks.

According to the Da Nang Department of Information and Communications, the nearly 800 billion VND Software Park No. 2 project is being accelerated. As of November 2021, around 56% of the contract value of the project has been fulfilled. It is expected that, in 2022, the first phase of the project will reach completion, totally capable of meeting about 6,000 on-site IT jobs.

In October 2021, the Da Nang Department of Planning and Investment issued an investment registration certificate for the FPT Office Complex project under the FPT Complex developed by FPT Software Central Region Company Limited (FCR) in the FPT Da Nang Urban Area at a total investment capital of more than VND1,395 billion.

On October 15, the Da Nang People's Committee assigned relevant local agencies to create conditions in terms of procedures for the development of the VNPT-developed Da Nang Bay IT Park and the Viettel Da Nang Software and Hi-Tech Centre.

According to Director of the Investment Promotion and Support Department Huynh Lien Phuong, the city currently has about 2,000 IT enterprises with a combined total of 40,000 employees and the number of businesses has increased up by an average of 35% per year.

The revenue of the IT industry in the 2015 - 2020 period grew at an average rate of 20%/year, contributing 7.5% of the city's GRDP (gross regional domestic produc)

As of October 2021, Da Nang had attracted more than 900 still-valid FDI projects with a total investment capital of more than US$3.8 billion. Of this, there were 140 IT projects worth a total of nearly US$50 million developed by investors from such countries as Japan, Singapore, the U.S., British Virgin Islands and the Republic of Korea (RoK).

By 2030, Da Nang will have become one of the three leading cities in the country in digital transformation, information security and e-commerce.

Viet Nam has been listed in top 10 emerging markets in the global data centre market by ResearchAndMarkets, the world's leading market research store. The Vietnamese data centre market stood at 858 million USD last year and is forecast to grow at a compounded annual growth rate of over 14.64 percent until 2026.

It is believed that the strong shift to the "cloud" storage centre will further promote the Data Center market in Viet Nam and promote the digital economy, in which Da Nang will be the core of green data centres and sustainable IT infrastructure.

Addressing the opening of the Da Nang R&D base of LG Vehicle Component Solutions Development Centre Viet Nam (LG VS DCV) under South Korean multinational conglomerate LG Corporation, Mr. Ahn Min Sik, Consul General of RoK in Da Nang, affirmed that Da Nang has chosen IT as its key development field and it is steadily moving forward becoming an “IT hub in Southeast Asia”.

Da Nang ICT sector is expected to achieve US$2.34 billion in revenue by 2025, contributing about 15% of GRDP by 2030. To achieve this goal, the city has been preparing infrastructure, human resources, and living-working environment, as well as focusing on developing smart infrastructure, platform and data.

Reporting by TRIEU TUNG – Translating by A. THU