Da Nang’s gross regional domestic product (GRDP) in the first quarter of 2025 increased by 11.36% over the same period in 2024. The city’s GRDP growth rate was the highest among the provinces and cities in the central key economic zone and among centrally governed cities. This is a positive result for the city's economy to accelerate its growth in the following quarters and throughout 2025.

The operation of the Da Nang Software Park No. 2 and other concentrated IT parks will contribute to promoting the city's economic restructuring. IN PHOTO: IT engineers work at FPT Corporation's High-Tech and Semiconductor R&D Centre located at the Da Nang Software Park No. 2. Photo: MAI QUE

Many projects put into operation

During January - March period, the city actively accelerated the progress of key projects to put them into operation.

Specifically, on January 16, the Da Nang Software Park No. 2 on Nhu Nguyet Street, Thuan Phuoc Ward, Hai Chau District, put into use the 8-storey ICT1 building which has a total floor area of ​​over 39,000m², and an exploitation area of ​​21,000m². The building targets partners, strategic investors, small businesses, and startup enterprises in the field of semiconductors and artificial intelligence.

So far, Da Nang has had four concentrated information technology parks, along with information technology parks being planned and built to promote the city's economic restructuring.

Also on the occasion, the city and partners (Marvel Vietnam Co., Ltd., FPT Corporation, Sovico Group Corporation) exchanged a quadripartite memorandum of understanding. Accordingly, the parties will invest in technology development and human resources in the semiconductors and AI industries.

In order to concretise the cooperation commitment, on March 27, the FPT Corporation inaugurated its High-Tech and Semiconductor R&D Centre covering a total area of ​​nearly 3,000m² on the 8^th floor of the ICT1 building at the Da Nang Software Park No. 2.

The centre is expected to attract 500 tech experts by 2025. 100% of FPT products will be researched and developed here, with an average of 10 new products expected to be launched each year.

Also on March 27, the Da Nang International Data Center JSC held a groundbreaking ceremony for the 1,000-rack Data Centre at Lot H4, the Da Nang High-Tech Park. The project has a total investment of VND800 billion in phase 1, and VND1,200 billion in phase 2. It has a load capacity of 18.5 MW. The building of the centre will initially form a regional data centre in the city.

Previously, the groundbreaking ceremony for a project on infrastructure development for the Hoa Ninh Industrial Park (IP), with a price tag of over VND6,200 billion, was held on February 18.

The project is implemented in Hoa Ninh Commune, Hoa Vang District with a maximum implementation period of 42 months starting from the date of land handover. The project is expected to operate for 50 years.

The project aims to establish an industrial - high technology - free trade zone ecosystem in the northwest of the city. It will enhance the supply chain, create thousands of quality jobs, and positively impact related sectors such as logistics, tourism, and services.

In parallel with the abovementioned key projects, many important traffic infrastructures were constructed and completed by the city and investors in the first quarter. Included are the technical traffic opening of Quang Da Bridge and its approach roads; the construction of Thuan Phuoc - Da Nang New Urban Area; and the construction and renovation of the drainage system, underground information cables, and street lighting on four streets in Hai Chau and Thanh Khe districts, including Phan Chau Trinh, Le Loi, Hoang Dieu, and Ong Ich Khiem.

On March 27, the FPT Corporation officially inaugurated its High-Tech and Semiconductor R&D Centre with a total area of ​​nearly 3,000m2 on the 8th floor of the ICT1 building at the Da Nang Software Park No. 2. IN PHOTO: Secretary of the Da Nang Party Committee Nguyen Van Quang (3rd, right) and delegates attended the ribbon-cutting ceremony to inaugurate the R&D Centre. Photo: M.QUE

Economic sectors with positive growth

In its socio-economic situation report for March and the first quarter of 2025, the Da Nang Statistics Office showed that in the 11.36% increase of the city's GRDP, the growth of added value of the entire service sector during that period is estimated at 10.07% against 2024, contributing 7.16 percentage points to the GRDP growth of the entire city's economy.

In the service sector, some industries with high double-digit added value in the first quarter include accommodation and catering services recording a rise of 19.45%; real estate business activities 19.24%; administrative activities and support services 15.64%; and other service activities 16.38%.

The remaining industries maintained a good growth rate compared to the same period in 2024. The aforementioned results were mainly attributed to the organisation of many activities and events in the city to stimulate domestic and international tourism.

Tourism businesses in the city have participated in many tourism fairs in potential markets such as India, Australia, and South Korea to promote the image of Da Nang, and at the same time, invested in forming an ecosystem and developing new and unique tourism products to attract the super-rich class.

In addition, the local tourism industry has strengthened tourism promotion activities in domestic localities, and implemented many programmes to advertise products and stimulate consumption.

During that period, the total retail sales of goods and consumer service revenue rose by 24% over the same period last year to hit an estimate of VND 37,530 billion. In particular, retail sales of goods grew by 19.3% year-on-year, accommodation and catering services 21.1%, tourism (after deducting household expenses) 20%, and other services 42.3%.

Industrial production activities continued to record positive results. The added value of the industrial and construction sectors in the first quarter of 2025 saw a 17.6% surge, contributing 3.06 percentage points to the GRDP growth of the local entire economy.

In particular, the industrial sector recorded a strong recovery with a rise of 9.51%, contributing 1.22 percentage points to the GRDP growth. Notably, the construction sector maintained a clear transformation since the fourth quarter of 2024 and witnessed a 39.96% increase in the first quarter of 2025, contributing 1.85 percentage points to the GRDP growth.

Mr. Tran Van Vu, Director of the Da Nang Statistics Office, assessed that the results achieved in the first quarter were favourable for the city's economy to aim for a growth target of over 10% for the whole year of 2025. However, to ensure growth results in 2025, the city needs to continue implementing synchronous solutions.

The investment and construction sector is a key driving force and a bright spot that has contributed to the city’s economic growth in the first quarter. It's essential to sustain this momentum. Therefore, the city must continue to address challenges and obstacles faced by projects and businesses, while also accelerating the progress of public investment projects to ensure timely completion. To maintain the growth rate of the tourism sector, the city should focus on enhancing the quality of tourism services and improving human resources. Additionally, it is important to develop new tourism products and offerings.

The banking sector needs to develop credit towards production and business sectors and priority sectors according to the Government's policy; as well as implement solutions to facilitate customers' access to credit capital.

Reporting by MAI QUE - Translating by M.DUNG