No longer confined to traditional hubs in the Northern and Southern Economic Zones, foreign direct investment (FDI) is showing a clear trend of expansion into Central Viet Nam with Da Nang emerging as a key driver in the strategy to attract new-generation FDI.

Central Vietnam: From a Trade Gateway to a Production and Financial Hub 

A Trade Gateway with Multimodal Connectivity 

Strategically located along the North–South economic corridor, with proximity to key international maritime routes and critical transport links to the Central Highlands, Laos, and Northeast Thailand, Da Nang functions as a pivotal logistics and trade gateway for the region.  

A recent surge in infrastructure investment, coupled with robust government incentive policies, is propelling the city into a significant new phase of economic transformation, strengthening its role in the Central Vietnam industrial real estate market 2025. 

Surge in Foreign Projects Across Key Central Provinces 

According to Savills, the first half of 2025 saw 20 foreign-invested industrial manufacturing and processing projects licensed across Quang Nam, Quang Ngai, Quang Tri, Thua Thien Hue, and Da Nang.  

Investors originate from Asia, (Singapore, Japan, and Taiwan) but also American and European enterprises, reflecting a growing diversification and rising confidence in the region. 

Key Industrial Developments Reshaping the Region 

Industrial zones in Da Nang playing a pivotal role in the city’s economic development strategy. Currently, the city has three new industrial zones and six operational ones, including Da Nang, Hoa Khanh, Expanded Hoa Khanh, Lien Chieu, Hoa Cam, and the Da Nang Seafood Services covering a total area of over 1,160 hectares(ha). 

One of the most highly anticipated developments is the Da Nang Free Trade Zone (FTZ), approved in June 2025 and covering 1,881 ha. The FTZ is designed to streamline customs procedures, offer preferential tax incentives, and integrate seamlessly with Lien Chieu Port and the Da Nang Hi-Tech Park, creating a synergistic ecosystem for export-oriented manufacturing and logistics.   

Another exciting development is the Da Nang International Financial Centre (IFC), a three-phase plan to incorporate a 27,000 sqm office tower, and attract investment and pilot asset models. Between 2025 to 2027, core assets such as Vo Văn Kiet Street (6.2 ha), the Fintech Hub (9.7 ha), and a 1.9 ha site near Software Park No.1 will undergo development. By 2030, the 62-ha An Don Financial District and the 1,500-ha Da Nang Bay reclamation zone is expected to be launched. 

Equally transformative of Lien Chieu Deep-sea port, slated for completion by 2025. This key infrastructure will shift Da Nang’s freight logistics away from the congested Tien Sa Port and facilitate large-volume cargo flows from the Central Highlands, Laos, and Northeast Thailand. It will enable multi modal connectivity with the logistics corridor. 

Da Nang: An Attractive Destination for New-Generation FDI 

High-Tech Industry and Digital Infrastructure on the rise 

Da Nang’s rapid development signals a significant shift in urban planning and development mindset:  from a tourism-centric city to an integrated economic hub, with high-tech industry, finance, and innovation as its key pillars. 

The Da Nang High-Tech Park (3,656 ha) continues to attract high-tech tenants including Universal Ally Corporation (USA), alongside Japanese, Korean and Singaporean firms. A second-phase expansion is underway, with incentives such as land leases of up to 50 years and CIT exemptions, making it a magnet for clean-tech advanced manufacturing. The surrounding area is seeing an increase in demand for worker housing, serviced apartments and logistics hubs. 

Da Nang’s largest data centre (Da Nang International DC) broke ground in April 2025 within the Hi-Tech Park. Spanning 2 hectares with a designed capacity of 18.5 MW and built to Tier III standards, the facility will serve as a vital backbone for the digital transformation of domestic and international enterprises. It also signals the city’s readiness to welcome a new wave of high-tech investment. 

Opportunities and Challenges for New-Generation FDI 

Thomas Rooney, Deputy Director, Industrial Services, Savills Ha Noi, comments, “The convergence of transport and logistics infrastructure, digital readiness, open investment policies, and clear planning orientation is positioning Da Nang as a compelling destination for new-generation FDI investors. These investors are not only seeking low costs, but also prioritise operational capacity, regulatory environment, and workforce quality.” 

However, he also notes that challenges remain if Da Nang is to make a true breakthrough including the need to upgrade logistics capacity, address delays in site clearance, and improve the quality of technical and managerial labour. Administrative reform, particularly in streamlining coordination between provincial and municipal levels, will also be key to enhancing the investment climate. 

In the context of global supply chain restructuring and the ongoing “China +1” strategy driving manufacturing capital out of China, Da Nang if it seizes the moment is well-positioned to become the new FDI capital of Central Viet Nam and a rising star on the country’s investment map. This will also serve as an important testament to the growth trend of the industrial real estate market in Central Vietnam 2025. 

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