Da Nang aims to be strategic investment destination with IFC plan

The central city of Da Nang is stepping up efforts to become a strategic investment destination, with ambitious initiatives including the development of an International Financial Centre (IFC) and a free trade zone focused on green finance, digital assets, and artificial intelligence. According to Dr Eduard Muller, former Austrian Minister of Finance, Vietnam is among Asia's most dynamic economies. He noted that Da Nang's transformation is driven by ambitious initiatives, emphasizing that success hinges on a well-designed policy framework and strong institutional capacity, which includes decision-making, policy implementation, monitoring, and adaptation. He also stressed the need for clear and transparent criteria for regulatory sandbox models to protect investors, prevent money laundering, and ensure data security. Dr Urs Lustenberger, Chairman of SwissCham Asia, acknowledged Vietnam's institutional capacity but advised clearly defining priorities to address bottlenecks. He cautioned against fragmented investment and unhealthy competition arising from multiple localities pursuing similar development goals, stressing the need for transparency and equal treatment for private and state-owned enterprises to attract international capital. He suggested Da Nang establish business incubators to support young entrepreneurs, particularly in finance-related start-ups. Le Quang Dam, General Director of Marvell Technology Vietnam, highlighted human resources as a key asset and pointed to significant opportunities in Vietnam's semiconductor industry. He suggested Da Nang strengthen training in AI application, soft skills, and teamwork to boost labor productivity. Marvell Technology Vietnam currently employs 75 Vietnamese engineers and plans to increase the number to 100 next year. Professor Paul Romer, a Nobel laureate in economics, underscored the crucial role of authorities in creating effective economic models and stressed that developing modern cities with adequate housing is essential for economic growth. For Da Nang, expanding urban infrastructure and development space is key to ensuring that all residents have access to both employment and housing. He also urged support for AI development and broad public access to knowledge and technology. Nguyen Manh Hung, Chairman of Da Nang's People's Committee, cited the city's strategic location, infrastructure, special policy mechanisms, and digital governance foundation as key advantages. Da Nang aims to become a regional innovation hub by fostering an ecosystem centered on science, technology, AI, semiconductors, data centers, high technology, and the digital economy. The city's pilot reforms and new development models, including the planned IFC and free trade zone, are expected to contribute to improving the national institutional framework. Da Nang will focus on attracting high-quality investment, prioritizing projects that drive innovation and technology.