Modern infrastructure, outstanding policies, accessible funding, and a thriving creative community form the foundation for a world-class technology hub and are part of the strategic vision central Da Nang city has been actively pursuing to welcome innovative companies and global talent.

“In 2023, Da Nang laid the first bricks on its journey to realizing its dream of becoming the ‘Silicon Valley of Southeast Asia’,” said Mr. Ho Ky Minh, Deputy Chairman of the Da Nang City People’s Committee. “Just one year later, in 2024, the city made its debut on the list of the world’s top 1,000 startup ecosystems, as ranked by StartupBlink - the global startup ecosystem map and research center.”

This marked a key milestone in Da Nang’s long-term ambition, reflecting years of strategic planning and consistent policy execution. According to the city’s People’s Committee, between 2021 and 2024 alone, Da Nang issued 59 documents, mechanisms, and policies aimed at advancing science, technology, and innovation. Over 30 spaces and support organizations for startups have also been established, including centers, incubators, creative hubs, and investment funds, to build a vibrant and deep-rooted startup ecosystem.

Since 2021, Da Nang has implemented a total of 105 science and technology projects at various levels, with nearly VND140 billion ($5.38 million) in total funding. Of this, VND107 billion ($4.12 million) came from the city’s science and technology budget, VND11 billion ($420,000) from central government sources, and VND22 billion ($850,000) from other funding channels.

Building a launch-pad

Among the key foundational policies supporting businesses in Da Nang, the National Assembly’s Resolution No. 136/2024/QH15, dated June 26, 2024, on the organization of urban administration and the pilot implementation of special mechanisms and policies for the city’s development, stands out. The Resolution introduced a range of preferential and breakthrough mechanisms tailored to the fields of science, technology, and innovation, including investment incentives, tax exemptions and reductions, funding support, and an unprecedentedly open legal framework for tech enterprises and startups. This marked a rare effort at the time, especially as many other localities were still grappling with institutional and fiscal decentralization barriers.

In parallel with policy development, Da Nang has been investing thousands of billions of VND to enhance its physical infrastructure. R&D centers, laboratories, startup incubators, innovation spaces, and digital infrastructure have received priority in terms of budget allocation and investment facilitation. Notably, the Da Nang Innovation Space project - a complex spanning over 2,000 sq m - has entered its initial operational phase, bringing together AI, the Internet of Things (IoT), and blockchain research teams, along with a vibrant community of startups, experts, and venture capitalists.

In terms of digital infrastructure, Da Nang consistently leads the country in fixed and mobile internet quality, with modern high-speed connectivity and the presence of large-scale, high-performance data centers operated by Viettel, VNPT, and others. These form a critical foundation for ensuring operational stability for digital enterprises.

The city is also making strong investments in a shared data platform, aimed at seamlessly connecting government, businesses, and citizens. The Da Nang Data Center, built to Tier III international standards at an estimated cost of VND2 trillion ($76.92 million), will act as a hub for storing and processing data for smart city platforms. It will also provide vital infrastructure for startups deploying AI and big data solutions, without the need for separate investment in data facilities.

Da Nang’s innovative spirit is reflected not only in its policies but also in its strategic embrace of risk to test and develop emerging technologies. The city is among the few localities in Vietnam proactively establishing legal sandboxes for cutting-edge technologies such as blockchain, AI, big data, and, especially, Web3 - the foundation for the next generation of the internet.

Administrative barriers are being dismantled, replaced with a mindset of co-creation and partnership with businesses. A series of startup support programs and investor-startup-university linkage initiatives have contributed to a dynamic and increasingly professional entrepreneurial ecosystem.

The city has also set an ambitious target of developing 150,000 IT professionals by 2030, with a high proportion meeting international standards. Da Nang is home to over 20 universities and colleges, many of which specialize in information technology, engineering, and innovation, including the Da Nang University of Science and Technology, FPT University, and the Vietnam-UK Institute for Research and Executive Education at the University of Da Nang. Industry-linked training programs and practice-oriented learning models have been narrowing the gap between academia and the labor market.

Da Nang has also built strategic partnerships with global tech hubs, including Singapore, South Korea, and Japan, enabling it to access cutting-edge knowledge, technology, and international capital.

Golden moment

As Da Nang continues to take decisive, well-structured steps in policy reform, infrastructure development, resource allocation, business environment improvement, and international collaboration, the city is emerging as a compelling destination for testing and nurturing innovative ideas. It is also becoming an increasingly attractive market for venture capital investment.

Nonetheless, the journey to realizing Da Nang’s vision of becoming the  “Silicon Valley of Southeast Asia” is not without its hurdles. Large-scale projects still require stronger efforts to attract investment and build out complementary infrastructure. Several major developments have stalled or faced prolonged delays, highlighting the need for tighter oversight and more assertive project management. Meanwhile, the advancement of research and the production of high-tech products require substantial capital, and local startups continue to face significant challenges in global integration and competitiveness.

Mr. Le Trung Chinh, former Chairman of the Da Nang City People’s Committee, has acknowledged these limitations. He noted that the city’s scientific and technological capabilities, as well as its innovation capacity, remain relatively modest. Though the city has made significant investments in science and technology infrastructure, these have yet to fully meet the demands of the existing development landscape. Data connectivity and sharing are still limited, sector-specific databases lack consistency and quality, and the current workforce is not yet fully aligned with evolving industry requirements. While the city’s startup and innovation ecosystem has been taking shape, both the quantity and quality of innovative startups remain limited.

Despite these ongoing challenges, Da Nang is undergoing a strong and visible transformation. Coupled with the global trend of tech capital shifting towards Vietnam as a strategic destination, the city is now in a golden window of opportunity for technological development.

With its high quality of life, a growing talent pool, increasingly modern infrastructure, and firm commitment to institutional reform, Da Nang is steadily creating an enabling environment for innovation. Many experts believe it is this combination of internal readiness and external momentum that positions it to become not only a national but also a regional center for technology and innovation.

The city has clearly outlined three key strategic objectives in alignment with Politburo Resolution No. 57-NQ/TW, which calls for breakthroughs in science, technology, innovation, and national digital transformation. These include becoming a national hub for startups and innovation, a center within Southeast Asia for digital transformation, and an international financial hub. According to Mr. Nguyen Van Quang, Secretary of the Da Nang City Party Committee, science, technology, and innovation are crucial to realizing the city’s ambition of becoming a major socio-economic center for both Vietnam and the wider region. In the years ahead, it will continue to implement a range of cohesive policies and initiatives aimed at developing innovation clusters, particularly in fields such as semiconductors, advancing its long-term goal of becoming a national high-tech center.