Da Nang After Merger: A New Industrial and Investment Landscape

Da Nang City is one of Vietnam’s six centrally governed cities and a designated national growth pole, playing a pivotal role in the South Central Coast and Central Highlands.

Historically known for tourism and services, Da Nang is now strengthening its position as a multi-functional economic hub, focusing on high technology, manufacturing, logistics, and international trade.

The administrative merger, effective July 1, 2025, marks a defining moment in the city’s development, reshaping its economic geography and investment profile.

After the merger: A larger, unified administrative and economic footprint

The administrative merger that expanded Da Nang’s local government area to include parts of Quang Nam Province represents one of the most consequential structural shifts for the city’s development in decades.

With a combined area of approximately 12,000 km² and an estimated population of about 3 million people, the post-merger Da Nang now encompasses 94 commune-level units under a single governance and planning framework.

This restructuring has streamlined governance and, more importantly for investors, unified the industrial land fund. We are now seeing the Central Key Economic Zone operate with the scale and administrative efficiency required to host high-tech global supply chains” – Peter Frieske, Managing Director of Central Vietnam Realty (CVR).

Da Nang’s revised master plan through 2030, with a vision to 2045, refocuses the city on innovation-led growth and sustainable industrialization. The plan supports major development axes, including industrial clusters, export logistics corridors, and innovation precincts tightly linked with the city’s logistics infrastructure. This long-term vision reflects a structural shift from service-led urban growth to multi-sector competitiveness.

Strategic planning and special support

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Positioned as the key hub to incentivize the economic growth of Vietnam’s Central Region, Da Nang is rewarded with an array of special mechanisms and preferential policies to attract investments.

At the center of these policies are the resolutions on key supporting policies for the city. On January 9, 2026, Da Nang officially promulgated Resolution No. 259/2025/QH15, amending and supplementing Resolution No. 136/2024/QH15 on piloting special mechanisms and policies for the city’s development.

The changes aim to enhance policy effectiveness, attract strategic investors and high-quality talent, accelerate urban infrastructure development, and support Da Nang’s next phase of growth.

The key zoning plans supporting the modern industrial development of Da Nang include:

• Da Nang Free Trade Zone
• Da Nang’s International Financial Center
• Chu Lai Open Economic Zone

Infrastructure and industrial ecosystem highlights

A central reason for Da Nang’s growing attractiveness to investors is its rapidly improving infrastructure and industrial ecosystem, especially in transport and logistics connectivity, utility development, and urban integration.

Seaport system

Its seaport system, including expansions at Lien Chieu Port and related deepwater facilities, improves the ability to handle larger cargo ships and a variety of freight types.

The project to build shared port infrastructure at Lien Chieu deepwater port, including expanded shipping channels and marine facilities, is a key part of bolstering Da Nang’s export logistics platforms.

Land connectivity

Da Nang’s position on the East–West Economic Corridor offers logistical benefits that reach beyond the local economy, benefiting ASEAN markets as well.

On land, Da Nang is improving road connectivity, especially with the National Highway 14B Interchange, which links the highway network to the Da Nang–Quang Ngai Expressway. This infrastructure helps reduce transport costs and transit times for industrial shipments and supports hinterland access to central Vietnam’s supply chains.

Air cargo expansion

Da Nang International Airport is also being developed to support cargo expansion, with a terminal investment aimed at increasing capacity to nearly 100,000 tonnes per year. This expansion has clear implications for export-oriented manufacturing and logistics investors seeking efficient air freight routes for high-value goods.

Industrial land and cluster development

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Facilitating seamless market entry and global expansion

Da Nang’s strategy for industrial growth includes a significant expansion of industrial zones and clusters, both within its traditional urban-industrial footprint and in newly integrated areas following the merger.

The number of planned industrial clusters is set to increase significantly. Under current provincial planning, Da Nang aims to have 126 industrial clusters covering a combined area of more than 3,700 hectares by 2030. This includes both traditional industrial parks and smart, eco-friendly zones tailored to technology-intensive enterprises.

FDI profile and sectors likely to benefit

The expanded and reoriented Da Nang is quickly becoming a destination of choice for foreign direct investment (FDI), particularly in sectors aligned with national industrial priorities and regional competitive advantages. Da Nang’s role as a launchpad for exporting goods and as an integrated logistics hub has become increasingly clear.

Export growth and trade orientation

Da Nang’s export performance through much of 2025 underscores its growing role in Vietnam’s external trade. Local exports span a wide range of products, including textiles, footwear, wood, machinery, and electronics, with trade networks reaching more than 120 countries and territories. These trends position Da Nang as a key regional platform for exporters targeting both ASEAN and global markets.

FDI in manufacturing and technology

Da Nang is seeing increasing foreign investment in advanced manufacturing, high-tech production, and industry-supporting activities. Key projects have surfaced in electronics assembly, automotive components, aerospace supply chains, and semiconductor support services, reflecting both global demand and Vietnam’s evolving industrial base.

Notable trends include:

• Electronics and high-tech manufacturing: Investor interest in science and technology manufacturing facilities is rising alongside national strategies to build digital economies and smart manufacturing clusters.
• Export-linked production: The city’s improved export logistics and integrated industrial zones are attracting companies that require seamless supply chain connections and quick market access.
• Technology infrastructure: Investments in data centers and digital infrastructure underscore a growing focus on cloud services and information technology platforms, strengthening Da Nang’s appeal to tech-driven businesses.

Key industrial zones of Da Nang

Da Nang’s evolving industrial landscape includes a mix of established zones and newly planned facilities, offering investors land, utilities, and plug-and-play options.

Hoa Ninh Industrial Park

Hoa Ninh IP is a flagship new industrial park spanning approximately 400 hectares, and has been planned as an eco-industrial zone adjacent to Da Nang’s high-tech ecosystem. It aims to attract technology-intensive manufacturing and innovation-led investors by integrating modern utilities and environmental standards into project design.

Da Nang Hi-Tech Park

Da Nang Hi-Tech Park is one of three national multi-functional hi-tech parks in Vietnam, located in Da Nang City, the Central Highlands, and the Central Region.

Established in 2010, the high-tech park is set to become a world-class science and technology urban area with high competitiveness, an attractive destination for domestic and foreign investors in high-tech fields.

Lien Chieu IP

Lien Chieu IP covers approximately 289 hectares, with around 205 hectares allocated for industrial development. Located in Lien Chieu District, Da Nang, the park benefits from direct access to National Highway 1A and close proximity to the Hai Van Pass, supporting efficient North–South logistics and domestic market access.

The park primarily serves investors in heavy industry, construction materials, chemicals, and mechanical manufacturing.

I and II Tam Thang IPs

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The I and II Tam Thang Industrial Parks are among the key industrial zones of old Quang Nam Province.

In 2018, Tam Thang I was approved for expansion, with a total investment of about US$30 million. The project, developed by CIZIDCO, is set to add 242 hectares, bringing the total to nearly 440 hectares, to create a high-tech industrial cluster. The expansion builds on established anchor tenants, including Hyosung Quang Nam (automotive materials), Panko Tam Thang (integrated textiles), and Ducksan Vina (high-tech eco-fabrics).

Additionally, Tam Thang II is a VND 600 billion (US$23.5 million) investment by Capella Quang Nam to develop 111 hectares of high-tech industrial land in Thang Truong. The expansion is underpinned by strong 2025 investment momentum from a range of international manufacturers and developers across ready-built factories, electronics, sporting goods, advanced materials, precision components, and lighting.

Ready-built factory and warehouse options

As investors increasingly prioritize speed-to-operation and predictable costs, ready-built factories (RBFs) and ready-built warehouses (RBWs) are becoming more prominent.

These facilities often include pre-installed infrastructure such as power, water, and logistics access, making them well-suited for export-focused and contract manufacturing businesses.

Long Hau Hi-tech Factory

Developed by Long Hau Corporation (LHC), the Long Hau High-Tech Factory offers ready-built factories for lease in Da Nang Hi-Tech Park, with flexible unit sizes ranging from 500 to 3,000 square meters and dedicated office space. The project targets high-tech and supporting industries seeking fast, compliant market entry.

Tenants benefit from Da Nang Hi-Tech Park’s investment incentives, strategic regional connectivity, and international-standard infrastructure.

Central Vietnam Ready Built Factory (CVRBF)

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Located in Tam Thang II, CVRBF offers modern ready-built factory and warehouse facilities designed to meet growing demand in Central Vietnam. The project benefits from strong regional connectivity, including proximity to Tam Ky City and railway (7 km), Chu Lai Port (25 km), Chu Lai International Airport (30 km), and Da Nang CBD (65 km).

Building over 8,000 sqm with plug-and-play rental and warehouse facilities, CVRBF will support expanding companies in North Chu Lai OEZ. Set to operate in early 2026, this development seeks to attract global investors and accelerate their entry into the new Da Nang market.

Expert’s Take: Bright industrial outlook for post-merger Da Nang

Da Nang’s post-merger trajectory reflects a city in transition: from tourism and services toward a diversified, export-oriented industrial and logistics hub. The combination of expanded administrative scale, strategic infrastructure investments, export-led growth dynamics, and a supportive policy framework positions Da Nang as a compelling destination for both domestic and foreign manufacturing investment.

Industry experts see Da Nang’s post-merger evolution as a structural turning point rather than a cyclical upswing, marking its transition into a diversified, export-oriented industrial and logistics hub.

The Central Coast has matured into a Tier-1 industrial destination. For investors, the combination of ready-built flexibility and the breakthrough incentives of the FTZ makes the Da Nang-Quang Nam corridor a highly compelling entry point into Vietnam’s next economic chapter” – Peter Frieske, Managing Director of CVR.

Peter Frieske, managing director of CVR, said the July 1, 2025, administrative merger between Da Nang and Quang Nam represents “the most significant shift for foreign direct investment in decades.” He noted that investor behavior is also changing, with manufacturers increasingly favoring ready-built factories and warehouses over traditional long-term land leases to reduce upfront capital expenditure and accelerate market entry.

Frieske added that the combination of ready-built industrial supply and Free Trade Zone incentives has elevated the Da Nang-Quang Nam corridor to a Tier-1 destination for manufacturing investors.

Austin Weyers, deputy director of CVR, attributed much of this momentum to proactive government policy following the merger and the launch of the Da Nang Free Trade Zone. He pointed to major infrastructure upgrades, such as Lien Chieu Deep-Sea Port, highway interchanges, and expanded air cargo capacity, as critical enablers of logistics efficiency.

Weyers also highlighted strong investment flows into the Da Nang Hi-Tech Park, where semiconductors, data centers, aerospace components, and advanced electronics are anchoring new industrial clusters, while spillover benefits are increasingly visible in neighboring industrial zones in former Quang Nam.

The experts agree that Da Nang’s trajectory is being reshaped by scale, speed, and specialization, positioning the city for sustained industrial growth through the end of the decade.

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