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Da Nang gears up IT infrastructure development for investment attraction

By DA NANG Today / DA NANG Today
February 17, 2022, 16:23 [GMT+7]

Da Nang –based Information technology (IT) parks are an important infrastructure to attract investment flows from both home and aboard for the development of the local IT industry, hereby contributing to the city's economic restructuring towards sustainability. Up to now, the construction and exploitation of IT parks across the city is showing many positive signals.

Da Nang focuses on developing IT infrastructure to attract domestic and foreign investors. In the photo is the cluster of factories, Data Centre and exhibition space for IT products at Da Nang Centralised IT Park. Photo: P.LAN
Da Nang focuses on developing IT infrastructure to attract domestic and foreign investors. In the photo is the cluster of factories, Data Centre and exhibition space for IT products at Da Nang Centralised IT Park. Photo: P.LAN

Starting in October 2020, the 986 billion VND Da Nang Software Park No. 2 located in Thuan Phuoc Ward, Hai Chau District is one of the key projects of great significance to the city in attracting investment flows into the local IT industry.

Once completed, it is expected to become a place to attract and incubate IT businesses, and train IT human resources for Da Nang as well.

As reported by Mr. Nguyen Hong Thanh, Deputy Director of the Management Board of Civil and Industrial Construction Investment Projects, the investor cum manager of Phase 1 of the Da Nang Software Park No. 2, the complicated development of COVID-19, especially during the city’s stay-at-home mandate applied to all of the local population last year, hindered the project’s construction progress. However, the consortium of contractors and supervision consultants have made every effort and concentrated all resources to ensure the on-scheduled completion of the bidding packages as committed.

Till date, the construction of 8-storey ICT 1 block with a total internal gross floor area of more than 39,000m2 had basically been completed by the end of 2021. It is expected that, by August 2022, the installation of equipment and related items will have reached completion.

Meanwhile, the 20-storey ICT block with a total internal gross floor area of over 26,000m2 and the 8-storey ICT 2 block with a total internal gross floor area of 27,000m2 will be basically completed in March 2022.

The city has called on 18 businesses to make the registration to use offices in the Da Nang Software Park No. 2.

Currently, Da Nang has 2 centralised IT parks that have been recognised by the Prime Minister, namely the existing Da Nang Software Park No. 1 in Thach Thang Ward, Hai Chau District and the Da Nang centralised IT Park - Phase 1, which is still under construction in Hoa Lien Commune, Hoa Vang District.

The Da Nang Software Park No. 1 has maintained a 100% occupancy rate for many years.
As of December 31, 2021, the total accumulated service revenue had been estimated at VND 45 billion VND, reaching 94% of the plan, making a contribution of an estimated VND16.7 billion to the State budget.

More recently, Da Nang Centralised IT Park-based SMT hi-tech electronics manufacturing and assembly factory (Trungnam EMS) under the Trung Nam Group released over 2,400 Da Nang-manufactured tablets to the market.

Tablet products are manufactured by Trungnam EMS under a contract signed with the Xelex Technology Joint Stock Company under the Worldsoft Company, its partner, within the framework of the ‘Internet and computers for students’ national programme launched by the Vietnamese Ministry of Information and Communications.

 Currently, the exploitation of the infrastructure of IT parks in the city has seen many positive signs. Engineers are seen working at the SMT hi-tech electronics manufacturing and assembly factory (Trungnam EMS) located in the Da Nang Centralised IT Park- Phase 1). Photo: PHONG LAN
Currently, the exploitation of the infrastructure of IT parks in the city has seen many positive signs. Engineers are seen working at the SMT hi-tech electronics manufacturing and assembly factory (Trungnam EMS) located in the Da Nang Centralised IT Park- Phase 1). Photo: PHONG LAN

The Trungnam Group, the investor of Da Nang Centralised IT Park - Phase 1 sets a goal in 2022 to realise the Data Centre project worth US$ 100 million meeting Tier 3 Plus standards and put into operation at least 2 electronic manufacturing factories and complete ready-built factories for lease according to international standards.

Besides, the Group will develop a research and development (R&D) zone and complete the housing area dedicated experts, an ecological park, sports facilities and a club house and other amenities in service for those working in the Da Nang Centralised IT Park.

In addition to the 2 above-mentioned centralised IT parks, Da Nang is home to the FPT Office Complex (F-Complex), belonging to FPT Software Central Region Company Limited in Hoa Hai Ward, Ngu Hanh Son District, that meets the criteria of a centralised IT park in accordance with the regulations of the national government.

Covering an area of more than 5.9ha, since its debut, the F-Complex has achieved high economic efficiency, creating jobs for more than 5,000 IT workers in the city.

As per proposal made by the Da Nang Department of Information and Communications, the municipal People's Committee is expected to submit procedures to the Prime Minister and the Ministry of Information and Communications for consideration and recognition of the F-Complex as a centralised IT park.

Once recognised, this will be the third centralised IT park in Da Nang, making an important contribution to promoting the growth of the IT industry, and the city's socio-economic performance as a whole.

Currently, the city is calling for investment into the development of the Da Nang Innovation and Digital Transformation Centre with an area of 17ha in Hoa Xuan Ward, Cam Le District, with the goal of developing R&D zones, software production areas, offices, apartments and related services.

As affirmed by Deputy Director of the Department of Information and Communications Le Son Phong, the mobilization of all resources to develop digital infrastructure and IT parks is to serve the development of the city’s IT industry, thus contributing to economic transition towards a sustainable direction.

For the rest of this year, the IT industry will issue mechanisms and policies to create a breakthrough in attracting investment from large electronic corporations such as LG and Samsung into the city’s centralised IT parks and its Hi-tech Park.

Besides, the municipal authorities will facilitate such large and prestigious Vietnamese corporations such as FPT, Viettel, VNPT and CMC to develop IT projects and zones in the city in the time ahead in a bid to attract more investment into the development of the digital economy.

Reporting by PHONG LAN – Translating by A.THU

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