Recent reports indicate that a significant number of high-tech companies have established operations in Da Nang due to a comprehensive set of incentives and special mechanisms. As the main economic hub of Central Vietnam, Da Nang is poised to become a hub for startups and technology firms in Vietnam, fostering an innovation hotspot for a wider region.
As of July 2025, official statistics show nearly 70 businesses, both international and local, have joined the ecosystem of Da Nang, many of which are well-established firms such as Marvell, Synopsys, Uniquify, Synapse, Savarti (the US), Renesas (Japan), and FPT Semiconductor (Vietnam).
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The presence of these leading firms is an affirmation for newcomers of the favorable environment of Da Nang for innovative and high-tech industries, especially the semiconductor, microchip, and artificial intelligence (AI) sectors. This article explores the vibrant business landscape in Da Nang and outlines the key incentives creating the attractiveness of the city, thus examining opportunities for prospective businesses and investors.
Robust economic growth led by industry and service developments
According to its latest official socio-economic report, Da Nang continued to witness steady developments across all its socio-economic activities in the first half of 2025, achieving a 10.5 percent growth rate in its gross regional domestic product (GRDP). The industry and construction sectors were the most crucial contributors to this robust performance, asserting a 11.3 percent increase, followed by a 10.2 percent growth of the service industries and a 2.7 percent increase of agriculture, forestry, and fisheries.
This growth trend aligns with the city’s trajectory of economic structure shift, which revolves around three main pillars of tourism, high-tech industries, and the marine economy. In the first half of 2025, the city reported upbeat results in several key performance indices demonstrating its growing industrial strength, such as:
- Achieving a US$1.76 billion trade turnover, a 10.9 percent increase year over year;
- Recording a US$997.5 million export turnover, a 7.1 percent increase year over year;
- Total logistics revenue reaching US$11.47 trillion in the first five months of 2025, a 16.4 percent increase compared to the same period last year;
- Total capital mobilization by credit institutions in the city reaching VND 237 trillion (US$9.05 million) by the end of May 2025, a 7.52 percent rise from the end of 2024;
- The industrial sector contributing approximately 11.8 percent to GRDP; and
- The estimated industrial production index (IIP) growth for the first five months of 2025 reaching 11.81 percent year-over-year.
This strong performance showcases the city’s ability to meet its strategic goals consistently, providing much-needed stability to foster long-term development for businesses.
Rapidly enhanced supporting infrastructure for high-tech sector
To bolster its goal of becoming a regional innovation hub, Da Nang is speeding up the development of key infrastructures for high-tech incubation. Major corporations are positioning Da Nang as a national hotspot for science and technology development, with key projects such as the semiconductor Lab-Fab facility led by VSAP LAB, valued at VND 1.8 trillion (US$68.73 million) and expected to launch in January 2026.
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Da Nang’s high-tech park is set to host a large-scale data center project backed by the International Data Center Corporation. With nearly VND 800 billion (US$30.54 million) in investment and 1,000 server racks, the facility is expected to become a regional data hub with advanced technology solutions. The project offers startups and research and development (R&D) teams access to shared infrastructure, coworking facilities, and incubation resources, enhancing the city’s appeal as a national center for innovation.
The city is also upgrading its Biotechnology Center with modern lab equipment to support advanced research in genetics, food technology, bio-processing, and smart agriculture, contributing to a more diversified tech ecosystem.
Ambitious targets to build a high-skilled, competitive workforce
Da Nang is pursuing a strategic shift in human capital planning with the goal of cultivating over 300,000 high-quality workers. Its emphasis is on advanced technical skills, digital fluency, and international readiness. By aiming to certify more than 85 percent of the workforce, the city intends to move from cost-driven growth to development driven by productivity and innovation.
This approach is vital for attracting investment in sectors like digital finance, smart logistics, creative industries, and green technologies. Da Nang has ambitious plans to establish a permanent community of over 5,000 experts, including 1,000 foreign professionals, to support the city’s transformation into a regional innovation hub.
A vibrant entrepreneurial ecosystem is already on the horizon, with plans to have 3,000 startups, 50,000 private firms, and 300 globally-minded entrepreneurs by 2035.
Targeted incentives to accelerate high-tech investments in Da Nang
Experts believe Da Nang’s economic and industrial strengths are greatly enhanced by the special mechanisms and incentives provided by the city. These supportive policies are issued under the National Assembly’s Resolution No. 136/2024/QH15. The resolution, which outlines the pilot implementation of several special mechanisms and policies for Da Nang’s development, is an important regulatory framework for prospective investors and businesses to explore the benefits they might gain when participating in the city’s dynamic ecosystem.
Priority sectors and investment thresholds
According to the resolution, Da Nang prioritizes strategic investments in the following sectors, with minimum capital requirements ranging from VND 2 to 45 trillion (approx. US$76.34 million to US$1.72 billion):
- Innovation infrastructure, including R&D, data centers, and hi-tech transfer;
- Semiconductors and advanced electronics, including integrated circuits (ICs), printed electronics, and batteries;
- Free Trade Zone (FTZ) development, encompassing logistics, manufacturing, and trade services; and
- Tourism and seaport infrastructure, including inland waterways and the Lien Chieu Seaport.
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Source: Resolution No. 136/2024/QH15 |
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Land access and project selection mechanisms
Investors in semiconductor, AI, and related sectors may obtain land through:
- Direct allocation or auction, based on project approval route; or
- Bid-based selection, where multiple qualified investors exist.
Investment authorities will manage disclosure, registration, and investor screening processes through the Vietnam E-Procurement System.
Tax incentives and financial support in Da Nang
Eligible entities may benefit from corporate income tax (CIT) and personal income tax (PIT) Relief, including:
- CIT exemption for 5 years for startups and support organizations in semiconductors, AI, and innovation;
- PIT and CIT exemption on capital gains for investors in unlisted startups; and
- PIT exemption for skilled professionals in semiconductor and AI roles, for 5 years.
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Additionally, strategic investors are entitled to R&D and customs prioritization, such as:
- 150 percent deduction of R&D costs against taxable income; and
- Priority handling in customs and tax procedures, subject to conditions.
Regulatory sandbox model for testing of emerging technologies
Da Nang may approve up to three-year test periods for new technologies and business models in hi-tech parks and innovation centers, which can be renewed once. The supporting policies for this include:
- Testing entities might be exempt from civil or administrative liability under certain conditions; and
- City agencies are tasked with monitoring, providing feedback, and making regulatory adjustments.
Scientific and technological asset management
Publicly funded infrastructure, such as co-working spaces, R&D laboratories, and shared equipment, may be leased without auction to eligible startups and support entities. In addition, the City Budget may subsidize usage costs and provide funding for training programs aimed at users of these assets.
Semiconductor and AI sector-specific incentives
Da Nang offers additional support to semiconductor and AI firms:
- Direct contracting for equipment procurement;
- 5 percent cost support for equipment, relocation, or new investments;
- Subsidies for high-skilled personnel, including relocation and retention bonuses; and
- Training support for students and professionals in relevant fields.
Salary and income mechanisms
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Under Resolution 136, Da Nang can adopt flexible income policies to attract and retain top talent in key sectors. The city may increase salaries for public officials and government staff by up to 80 percent of the base salary fund, depending on performance.
In parallel, tailored income schemes are being developed for scientists, technical specialists, and high-skilled professionals working in strategic fields such as semiconductors, AI, and digital infrastructure. These policies aim to enhance the competitiveness of the local workforce and align with the city’s broader innovation agenda.
See also: Da Nang Free Trade Zone: Implementation Plan, Incentives, and Investment Opportunities
Takeaway for businesses
Da Nang is rapidly positioning itself as a premier destination for high-tech investment in Vietnam, underpinned by targeted incentives, expanding infrastructure, and a strategic focus on semiconductor, AI, and digital technologies.
Businesses operating in innovation-related sectors can benefit from generous tax exemptions, prioritized land access, and talent-focused subsidies. With robust economic momentum, dedicated support for R&D, and streamlined regulatory pathways, Da Nang presents a compelling opportunity for tech-driven enterprises looking to enter or expand in Vietnam’s emerging innovation corridor.
(US$1 = VND 26.199)
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