Sign up for our newsletters
The best of Business news, in your inbox.
Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 34th City Enthusiastic about Foreign Direct Investment (FDI) - Da Nang City.
When manufacturing companies enter Vietnam, choosing the right industrial park in a specific region is a crucial point. There are provinces and cities that are actively working to attract Foreign Direct Investment (FDI), and I would like to introduce a few examples of these regions.
This time, I will introduce the situation of Da Nang City, the third-largest city in the country, located in the central region and known for its hi-tech park.
1. Location / Area / Population
Da Nang City is the third largest city in Vietnam, located in the central region of the country. It is a centrally governed city with an area of 1,285 square kilometers and a population of approximately 1.22 million.
2. Industrial Parks in Da Nang City
Currently, there are eight industrial parks in Da Nang City:
1. Expanded Hoa Khanh Industrial Park
2. Phong Dien Industrial Park
3. Hoa Khanh Industrial Park
4. Da Nang Aquatic Services Industrial Park
5. Hoa Cam Industrial Park
6. Da Nang Hi-Tech Park
7. Da Nang Information Technology Park
8. Da Nang Industrial Park
3. Characteristics of Da Nang City
Da Nang City can be connected by land to Laos, Cambodia, Thailand, and Myanmar through the East-West Economic Corridor (EWEC), which ends at Tien Sa Port.Therefore, Da Nang City is an essential area in the global production and supply chain network. In addition, Da Nang City is at the center of three famous UNESCO World Heritage Sites (the Ancient Capital of Hue, the Ancient Town of Hoi An, and the My Son Sanctuary) and is one of the leading tourist cities in the world.
4. Japanese Companies Operating in the Area
Major Japanese companies operating in Da Nang City include Mabuchi Motor (Hoa Khanh Industrial Zone) and NYK Logistics (Expanded Hoa Khanh Industrial Zone).
5. Living Environment
1. Housing Situation
In Da Nang City, there are many serviced apartments and condominiums, and given that it is one of the country’s top tourist destinations, the views from the rooms are outstanding.
2. Restaurant and Shopping Situation
There are many Japanese restaurants, as well as popular hamburger shops and Chinese restaurants run by Japanese people, making it easy to find dining options. Additionally, the opening of an Aeon Mall has been confirmed, which will make life even more convenient for Japanese expatriates.
6. Summary
There are only three industrial zones in Vietnam referred to as high-tech zones, and one of them is the Da Nang Hi-Tech Park, where companies can receive preferential treatment upon establishment. However, only companies recognized as “high-tech” are allowed to set up there. The rental costs for factories and warehouses are approximately 30% lower compared to industrial zones around Hanoi and Ho Chi Minh City, making it a prime location for high-tech related businesses. Additionally, as mentioned above, it is suitable for supply chain operations since goods can be transported overland to neighboring countries via the East-West Economic Corridor.
齊藤公(Saito Hiroshi)
Business Advisor
G.A. Consultants Vietnam Co., Ltd
After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.
