Chu Lai Open Economic Zone: Driving Regional Industrial and Investment Expansion

Chu Lai Open Economic Zone (OEZ), now under Da Nang City, is advancing with logistics infrastructure and high-tech investment, set to spearhead the economic growth of Central Vietnam.

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The recent merger of Quang Nam province into Da Nang City marks a major change for central Vietnam. This shift brings the Chu Lai OEZ under Da Nang’s management.

For the past two decades, Chu Lai OEZ has been a key driver of regional growth. It is known for its strong base in industry, logistics, and high-value manufacturing. Now, with Da Nang’s support, the zone is set to benefit from better connectivity, new infrastructure, and stronger policy coordination. These changes will help position Chu Lai as a leading hub for trade and innovation in Vietnam’s central economic corridor.

Overview of Chu Lai OEZ

Established over 20 years ago, the Chu Lai OEZ was Vietnam’s first coastal economic zone and has grown into one of the country’s most dynamic industrial hubs. Over the years, it has attracted a diverse mix of industries, becoming a center for manufacturing, trade, services, and logistics.

As of late 2023, the zone hosted 197 investment projects with a total registered capital of about VND 74 trillion (US$3 billion), including 48 foreign direct investment (FDI) projects worth approximately VND 17 trillion (US$694 million) and 149 domestic projects valued at VND 57 trillion (US$2.3 billion). More recent updates from mid-2024 put the total at 218 projects with over VND 87 trillion (US$3.5 billion) in registered capital. 

Despite its growth, the zone faces several challenges, including difficulties in land clearance, high land prices, delays in land lease contracts, and rising production and logistics costs. The city is working with relevant agencies to address these issues and maintain a stable investment environment.

Key sectors in Chu Lai OEZ

Logistics and freight industry

Chu Lai Port serves as a crucial node for major logistics routes in Central Vietnam. It connects with National Highway 1, the Da Nang – Quang Ngai Expressway, the coastal road (which links Da Nang, Hoi An, and Chu Lai airport), and Ho Chi Minh Road from north to south. From east to west, it links with National Highway 14E, 14B, and 14D. These routes carry a high volume of traffic and freight, as they are part of the freight route from the southern provinces of Laos, connecting the Bo Y International Border Gate (Kon Tum) and Nam Giang International Border Gate to Vietnam’s seaport.

In 2024, Chu Lai Port highlighted its strategic growth by launching direct connection service routes to major ports in India and the US. These shipping routes provide businesses with faster access to key markets in Asia and the US, Vietnam’s largest export destination.

Most notably, with demand for exports to the US rapidly increasing, Chu Lai Port has successfully partnered with various international shipping lines to expand its shipping routes. Chu Lai now connects with many major ports on both the East and West coasts of the US, such as Savannah, Los Angeles, Long Beach, Chicago, New York, Jacksonville, and Seattle, with a frequency of four trips per month.

Also read: Vietnam Port System: Major Upgrades Planned

Industrial production

Besides logistics and transportation, Chu Lai’s industrial base spans key sectors such as automotive and mechanical engineering, high-tech manufacturing, and industrial services. Its contributions to the local economy are substantial. In 2022 alone, budget revenue from the zone reached VND 77.7 trillion (US$3.16 billion), accounting for more than 60 percent of the province’s total. The zone has also created over 30,000 jobs, playing a central role in both economic growth and social development in the region.

As of mid-2024, Chu Lai OEZ hosts 14 established industrial parks covering over 3,400 hectares, with an additional area of about 1,145 hectares. Under provincial planning, investment is prioritized for IP development within Chu Lai, with infrastructure upgrades and investor attraction targeted for sites. Preferential policies in Chu Lai have drawn significant investor interest, with seven operational IPs maintaining an average occupancy rate of 53.3 percent by 2023, specifically:

• Chu Lai Automotive Mechanical IP – 73.9 percent;
• Tam Thang IP – 72.4 percent;
• Tam Hiep Port and Logistics IP – 62.3 percent;
• North Chu Lai IP – 60.0 percent;
• Chu Lai – Truong Hai (Thaco) Port and Logistics IP – 38.3 percent;
• Tam Thang 2 IP – 12.1 percent; and
• Tam Anh – Korea IP – 5.3 percent.

Additionally, several IPs are currently in the infrastructure development and site clearance phase, including Tam Anh 1, Thaco Chu Lai, Tam Anh – An Hoa, and the Tam Thang expansion. These projects are expected to enhance Chu Lai’s industrial capacity and diversify its manufacturing and logistics base in the coming years.

Strategic development orientation of Chu Lai OEZ: 2021–2030 and beyond

Center of Da Nang’s southeastern growth strategy

Under Da Nang’s leadership, Chu Lai OEZ is set to play a central role in the city’s southeastern growth strategy. The development plan focuses on six priority project clusters designed to diversify the zone’s economy and strengthen its position as a regional growth engine. These priorities include:

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• Developing coastal and riverside urban tourism, taking advantage of the area’s natural landscapes;
• Expanding automotive and multipurpose manufacturing, building on the existing strength of Thaco and supporting industries;
• Developing high-tech and eco-industrial parks to attract environmentally sustainable and technology-driven investment;
• Enhancing aviation and industrial services, supported by the expansion of Chu Lai International Airport;
• Upgrading seaport and logistics infrastructure to improve regional and global connectivity; and
• Promoting high-tech agriculture to add value to the local farming sector and support food processing industries.

These priorities will strengthen Chu Lai’s infrastructure and sector diversity, enabling it to capture more high-value investment and generate sustainable, long-term growth.

Infrastructure expansion and integration

Chu Lai OEZ is undergoing major infrastructure upgrades to strengthen its role as a regional logistics and manufacturing hub. At the heart of these improvements is the expansion of Chu Lai International Airport, which will be developed alongside a non-tariff area in Tam Quang to boost trade facilitation and attract international investors. Notably, Indian conglomerate Adani is working with Vietnam’s budget airline Vietjet Air on a pre-feasibility study to explore a possible investment in Chu Lai airport, located in Quang Nam province.

Maritime connectivity will also be enhanced through the Cua Lo channel, designed to accommodate vessels of up to 50,000 DWT. This will support the expansion of the zone’s seaport and logistics network, creating smoother trade flows within Vietnam and to global markets.

On land, new and upgraded road networks will connect Chu Lai to Da Nang, National Highway 1A, and major expressways. These links will improve access to industrial parks, ports, and neighboring economic centers.

These projects align with Da Nang’s broader development agenda, which includes the Lien Chieu deep-sea port and the newly-established free trade zone (FTZ). These infrastructure upgrades will create faster, more reliable trade routes, helping investors reduce transportation costs and access both domestic and international markets more efficiently.

Investment attraction strategy

Chu Lai OEZ is targeting investments that will strengthen its industrial base and drive sustainable growth. The focus is on high-tech and clean industries, as well as value-added manufacturing that can boost export competitiveness. Priority sectors include advanced manufacturing, renewable energy, and high-value processing industries.

The zone is also looking to attract foreign direct investment from key markets such as South Korea, Japan, the United States, and the European Union. Strategic linkages between foreign investors and domestic firms are encouraged, including joint ventures that transfer technology and enhance local supply chains.

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To support these goals, Da Nang is taking steps to improve the business environment within the zone. This includes expanding e-government platforms to make administrative processes faster and more transparent, reforming land clearance and compensation procedures to ensure timely project implementation, and reducing unofficial administrative costs to create a more competitive, investor-friendly environment.

These reforms are designed to shorten project timelines, reduce operational costs, and give investors a more predictable, transparent business environment.

Opportunities and outlook for investors

Regulatory and policy advantages

Chu Lai OEZ is entering a new phase of development, with the Management Board proposing to elevate its legal status to a special administrative economic unit. Such a change would give the zone greater autonomy in policymaking. It would enable more flexible and investor-friendly regulations. The zone would also benefit from Da Nang FTZ, whose boundary will expand southward to include Chu Lai OEZ and link it directly to major ports, airports, and industrial hubs.

High-tech and next-generation industries

Building on its established automotive and manufacturing base, Chu Lai is exploring new high-growth sectors such as chip design, semiconductor manufacturing, and advanced logistics, in line with cooperation proposals from Fraunhofer ENAS and Da Nang’s push toward high-tech innovation.

Also read: Vietnam’s Green Maritime Sector Sails the Growth Tide

Partnership and co-development potential

The zone is also building momentum through ongoing cooperation agreements with international partners and major domestic developers. Recent memorandum of understanding (MOUs) with global corporations and Vietnamese industrial groups signal strong investor confidence and pave the way for large-scale projects in manufacturing, tourism, and infrastructure.

Strategic location for regional integration

With its strategic position, improving legal framework, and growing focus on next-generation industries, Chu Lai OEZ is set to become one of Vietnam’s most competitive investment destinations in the decade ahead.

(With inputs from Vu Nguyen Hanh.)

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