Da Nang to become high-tech and supporting industry hub

In the first seven months of 2024, Da Nang’s industrial production index grew by 4.7 percent year-on-year

Accordingly, the city will focus on developing high-tech and supporting industries (SI). One of the seven key tasks outlined in the master plan is to accelerate industrial growth, especially high-tech industries and information technology, which have been positioned as one of the three pillars of Da Nang’s economy in the new era.

The city’s industrial sector has undergone positive changes in recent years. Its proportion in Da Nang’s gross domestic product (GRDP) structure increased by 1.56 percentage points from 2019 to June 2024, from 16.5 percent in 2019 to 18.06 percent in June 2024. In the first seven months of 2024, the city’s industrial production index grew by 4.7 percent compared to the same period in 2023, marking the highest seven-month growth since 2019. Notably, three out of four primary industries showed positive growth: electricity, gas, hot water, steam, and air conditioning production and distribution increased by 15.6 percent; manufacturing and processing industries grew by 4.4 percent.

The city’s master plan identifies the need to continue industrial restructuring by gradually reducing land- and labor-intensive, low value-added industries. It aims to limit and eventually eliminate environmentally polluting industries, while increasing the proportion of environmentally friendly industries using high technology and creating high added value. Da Nang will focus on high-tech industries, such as microelectronics, chip and semiconductor technology, precision mechanics, mechatronics, optoelectronics, automation, environmental technology, new energy technology, new material technology, and nanotechnology. These will be key areas of the city’s industrial sector.

Da Nang will also give priority to industries, such as automobile, aviation, yacht, electronics, manufacturing mechanics, pharmaceutical chemistry, cosmetics chemistry, and food and beverage, with a focus on refined production and processing. Additionally, the fashion industry will be linked with design, along with other high value-added manufacturing and processing industries. The manufacturing and processing industry is expected to grow by more than 12 percent per year. Supporting industries will also be developed, with a focus on manufacturing products for supply to priority and high-tech industries, while facilitating the formation and development of industry clusters.

According to the Da Nang Department of Industry and Trade, investments in technological innovation in various industries have shown significant progress. Technology has improved from a relatively low level to an above-average level, contributing significantly to the development of various industries, especially chemicals, rubber, and plastics.

To develop high-tech and supporting industries, the industry and trade sector has proposed several solutions, including ensuring adequate land and infrastructure conditions for industrial development; developing a skilled workforce to meet high-tech requirements; promoting research and development and investing in technological innovation within enterprises; connecting supply and demand for industrial products; ensuring environmental protection; and continuing to improve the investment and business environment.

Regarding industrial infrastructure, Da Nang will form new industrial parks and clusters. As for industrial clusters, a representative of the local Department of Industry and Trade said that according to Decision No.1287/QD-TTg, by 2030, the city will have 12 industrial clusters with a total area of ​​532.89 hectares and after 2030, it will have 15 industrial clusters on ​​757.89 hectares, distributed in Cam Le, Lien Chieu and Hoa Vang districts.

As for industrial parks (IPs), Da Nang IP will be converted into An Don international financial district to form a modern urban area, and become a new economic center of the city. Hoa Khanh IP will also be transformed to meet the criteria of an ecological industrial park model; and also forming the following IPs: Hoa Cam IP phase 2 (Hoa Tho Tay Ward, Cam Le District and Hoa Nhon Commune, Hoa Vang District), Hoa Ninh IP (Hoa Ninh Commune, Hoa Vang District) and Hoa Nhon IP (Hoa Nhon Commune, Hoa Vang District).

To develop supporting industries, the City People's Council has issued Resolution No. 53/2021/NQ-HDND regulating policies for developing supporting industries in Da Nang city; the City People's Committee also issued Decision No. 1927/QD-UBND approving the supporting industries development program in the city for the period 2022-2025. As a result, the city has supported VND1.88 billion (in 2022) and VND2.34 billion (in 2023) for organizations and individuals that manufactured supporting industries products; and organized conferences on supply and demand connection.