Da Nang boosts FDI attraction to drive industrial growth

The central city of Da Nang is ramping up efforts to attract foreign direct investment, leveraging its upgraded infrastructure and welcoming business environment to boost industrial growth and establish a new economic driver.

Favourable investment environment

As the city targets double-digit economic growth, industry is seen as a key driver of growth, labour productivity and economic competitiveness. 

The city is prioritising infrastructure development and attracting investment in high-tech, manufacturing, processing and supporting industries, especially foreign-invested projects.

Karcher Vietnam Technology Co., Ltd., a subsidiary of Germany’s Karcher Group, has put the second phase of its cleaning equipment factory into operation at the Tam Hiep Port and Logistics Industrial Park in Nui Thanh commune, with a total investment of around VND484 billion (US$18.73 million).

The project received its initial investment registration certificate in October 2023, with its fourth adjustment made in April 2026. 

Covering 6.26 hectares, it has a total registered capital of more than VND985 billion ($38.12 million).

Thomar Wolfgang, Executive Vice President of Karcher Group, said the first phase, operational since July 2024, met the group’s production requirements and paved the way for expansion. 

The company plans to increase its workforce from around 300 to 1,000 within the next two years, while applying modern technologies and international standards on quality, safety and sustainability.

Wolfgang attributed the expansion to Da Nang’s favourable investment environment, skilled workforce and support from local authorities, affirming the group’s long-term commitment to the city.

The 417-hectare Tam Hiep Port and Logistics Industrial Park has attracted 41 secondary projects, including three FDI projects, with total registered capital of around VND10.89 trillion ($421.40 million). The projects provide stable jobs for more than 1,250 workers.

The Tam Thang Industrial Park, another key industrial hub in southern Da Nang, has attracted 19 foreign-invested projects worth more than US$823.38 million, creating jobs for nearly 14,000 workers. 

Most enterprises in the industrial park are from the RoK, Germany, and Hong Kong (China). Recently, Da Nang leased more than 30.2 hectares of land to Capella Quang Nam to expand the park.

Vice Chairman of the municipal People’s Committee Phan Thai Binh said promptly handing over cleared land with convenient infrastructure was increasingly important in attracting investors. 

For large FDI projects, delays can increase costs and risk missed market opportunities. Investors therefore look beyond land prices to ready-to-use sites, reliable utilities, logistics, skilled labour, supporting industries and streamlined procedures.

Expanding investment opportunities

According to the Chu Lai Open Economic Zone Management Board, southeastern Da Nang has attracted 286 projects with total registered capital of around VND241 trillion ($9.33 billion).

Of these, 262 projects are located in the economic zone, with registered capital of approximately VND161.89 trillion ($6.26 billion), including 67 foreign-invested projects worth VND32.7 trillion ($1.27 billion). 

The projects provide jobs for around 45,000–50,000 workers, with industry accounting for about 65% of investment activity.

Infrastructure development has drawn funding from official development assistance, central and local budgets, and businesses. 

The Chu Lai–Truong Hai port, along with its logistics and non-tariff zone developed by THACO Group, has drawn interest from 10 secondary investors, both local and international. 

Cargo throughput at Chu Lai port reached 4.6 million tonnes in 2025 and is projected to reach six million tonnes in 2026.

Nguyen Hong Quang, Head of the Management Board, said 14 industrial parks in the zone have received in-principle investment approval, covering a total area of 3,462 hectares with combined registered capital of VND19.16 trillion ($741.42 million).

Investment promotion is prioritising large-scale projects using modern, automated or semi-automated technologies to produce high-value export goods, while limiting projects with high pollution risks and processing-only activities.

In the first nine months of 2026, Da Nang attracted $681.55 million in FDI, about 2.87 times the figure recorded in the same period last year. 

The city licensed 100 new projects worth $522.2 million. It now has 1,162 FDI projects with total registered capital of around $11.28 billion.

The city has also held investment discussions with major businesses and organisations, including Vietnam-Singapore Industrial Park Joint Venture Co., Ltd. (VSIP), Amazon Global Selling Vietnam, and the German Business Association in Vietnam.