Da Nang has been focusing on investment promotion activities in the field of semiconductor industry, in parallel with attracting investment in the field of high-tech industry, trade and services. Signs of attracting foreign investment right from the beginning of 2024 signal an exciting year in investment attraction for the city.

Here is a scene of the groundbreaking ceremony of the KP Vina Aircraft Components Factory project of the KP Aero Industries Co., Ltd. (South Korea) at the Da Nang Hi-Tech Park, January 30, 2024. Photo: MAI QUE

Accompanying Da Nang to develop the semiconductor industry

Da Nang is considered by national ministries and businesses to be a leading and pioneering locality in the development of the semiconductor industry. Specifically, the Da Nang Semiconductor and Artificial Intelligence Center for Research and Training (DSAC) was established and signed a memorandum of understanding with Synopsys Corporation (the United States) on cooperation in circuit design training and design.

Synopsys is one of three global leading corporations in the field of electronic design automation (EDA) specialized in the production of ICs and a semiconductor intellectual property core (IP core). The remaining two corporations are Cadence and Mentor Graphics (both in the United States). All of the three corporations control up to 70% of the global EDA market. Da Nang is aiming to train engineers to grasp advanced tools according to international standards of Synopsys, Cadence and Mentor Graphics.

Mr. Trinh Thanh Lam, the Sales Director for South Asia, Synopsys Corporation, said: "This year, Synopsys has doubled its human resources in Da Nang and is currently renting workplaces at the F.Home building. In the coming years, we hope to work at the Software Park No. 2 and would like to develop further in Viet Nam, especially in Da Nang. Over the past three months, we have advised Da Nang on the direction of development in the field of semiconductor industry and met with many universities in the city to have a human resource training programme according to national standards for this industry. DSAC was established not only with the main function of research and training, but also with two additional functions of investment attraction and international connection, especially from the United States, Taiwan (China) or any market that accepts an international standard training programme in this field in order to provide human resources as well as attract large corporations to Da Nang”.

The semiconductor circuit training centre of Da Nang-based Duy Tan University has also just been awarded a copyright certificate for circuit design software from Cadence Design Systems.

Mr. Seow Choo Han, the Sales Director of Southeast Asia, Cadence, said: “The Da Nang People's Committee and the Authority of the Da Nang Hi-Tech Park and Industrial Zones (DHPIZA) have given Cadence the opportunity to accompanies the city in the field of microchips and semiconductors. We realise that Viet Nam is facing challenges in recruiting engineers in this field, so we have worked with central ministries and agencies as well as localities and universities to cooperate and support development of human resources for microchips and semiconductors in Viet Nam, and at the same time, providing software and curriculum for training facilities and allow their access to Cadence’s online training programmes for students. In addition, Cadence also directly trains high-quality human resources as well as directly organises specific training courses and programmes. We firmly believe that this cooperation of Cadence in Viet Nam would be very successful."

Head of the Authority of Da Nang High-Tech Park and Industrial Zones Vu Quang Hung emphasised: “A series of initial events such as establishing DSAC and signing a tripartite cooperation agreement between DHPIZA, the Duy Tan University and Sun Edu International Education Joint Stock Company demonstrates the city's rapid promotion in semiconductor industry development.

Currently, the demand for human resources working in the semiconductor industry is very large whereas there is a shortage. Therefore, one of the leading solutions to develop this industry is to develop domestic professional human resources, especially highly qualified, stable, and competitive human resources to attract the world’s largest chip corporations to operate in Viet Nam. Da Nang is currently focusing on building a strategy to develop the semiconductor industry, initially focusing on IC design and developing IC human resources”.

The representative of the Authority of the Da Nang High-tech Park and Industrial Zones awards the investment certificate to the representative of KP Aero Industries Co., Ltd. with the KP Vina Aircraft Components Factory project. Photo: M.QUE

Efforts to attract more investment inflows

In the early days of 2024, the Da Nang’s administration awarded a decision on investment proposal and investors approval, and granted an investment certificate to the KP Aero Industries Co.,Ltd. with the KP Vina Aircraft Component Factory project with a total Investment value of nearly US$20 million at the Da Nang Hi-tech Park.

Work commenced on this large-scale project on January 30. The goal of this project is to produce, process and assemble aircraft parts, including APU Door, MIC tip, Wingbox, Winglet, Flap support fairing of Boeing 787 and Boeing 737 Max aircraft. This is the second project in the aerospace sector invested in Hoa Vang District-located Da Nang Hi-Tech Park after the Universal Alloy Corporation Vietnam Co., Ltd., the United State.

Mr. Lee Jai Choen, the Chairman of KP Aero Space Vietnam Co., Ltd., assessed that training human resources at educational establishments in the city can fully meet the company's development needs. In the coming time, the company hopes to soon link up to form an aviation components production cluster in the Da Nang High-tech Park.

The city has also just awarded an investment certificate to MM Mega Market Vietnam Co., Ltd. for the MM Mega Market Da Nang Commercial Center project with a total investment value of nearly US$ 20 million on the land that the company won at the auction of land right use on Nguyen Sinh Sac Street, Lien Chieu District. Director of MM Mega Market Co., Ltd. Regis Delesque said: “We are trying to complete procedures to invest in building a super complex with shops, restaurants, cinemas and cafes with a total investment capital of US$20 million and put the project into operation in 2025”.

To date, Da Nang has attracted 1,020 FDI projects inside and outside industrial parks with a total investment capital of over US$ 4.27 billion. DHPIZA, in 2023, granted certificates to 14 domestically-invested projects with a registered investment capital of VND 2,490 billion and 5 foreign -invested ones worth US$156.43 million in total.

Mr. Vu Quang Hung added that DHPIZA will continue to implement promotion and investment attraction activities, focusing on attracting projects according to the city's development orientation. In addition, the unit will implement the expansion of the Da Nang High-tech Park, selected investors for new industrial parks, thereby creating a land fund to attract more businesses and production projects.

Reporting by HOANG HIEP - THU HA - MAI QUE - Translating by A. THU, V-DUNG