Why Da Nang is Now the Top Choice for High-Tech Investment in Vietnam

August 26, 2025

Da Nang is actively targeting chip and AI companies with a groundbreaking set of benefits: a five-year break on corporate and personal income taxes, investment support up to 200 billion VND (about $8 million USD) for each project, salary packages of 100 million VND (about $4,000 USD) per month for top experts, and a new pilot program to create Vietnam's first Free Trade Zone. What’s drawing giants like Nvidia, Intel, Synopsys, and Marvell to Da Nang isn't just a list of perks; it's a complete and carefully designed plan to become Southeast Asia's new "Silicon Valley."

Key takeaways

Da Nang’s talent strategy combines special national policies, ready-to-use infrastructure, and a strong partnership between the government, companies, and schools.
These policies cut investment costs, speed up time-to-market, and ensure a steady supply of skilled workers.
The city mixes strong investment incentives with a great quality of life to pull in both money and talent.
An existing tech community, with major global companies already present, makes it less risky for new businesses to enter the market.
The local government shows its commitment with real action and significant funding, not just promises.

In Vietnam’s high-tech race, Ho Chi Minh City has its 913-hectare Hi-Tech Park and a large business network. Hanoi has the 1,586-hectare Hoa Lac Hi-Tech Park and a strong research community. Instead of competing on size, Da Nang’s growth plan focuses on creating a unique appeal through four key elements: special policies backed by the national government, ready-to-use infrastructure, competitive costs, and a flexible local government. These policy changes have quickly made Da Nang one of Southeast Asia’s top cities for science and technology, right alongside Ho Chi Minh City and Hanoi.

1. A unique legal framework and compelling investment incentives

Da Nang’s benefits are much more than typical local offers. The city has a special legal framework from the National Assembly’s Resolution 136/2024/QH15, creating a unique environment that no other province has:

5-year tax exemption for both companies and individuals.
Cost support for up to 5% of the total investment (with a 200 billion VND cap per project).
A 50% discount on infrastructure rent for the first two years.
A pilot plan for a Free Trade Zone to improve supply chain operations.

This national-level support provides excellent legal stability and a clear competitive advantage. For businesses, it means their investments are backed not just by local promises but by a national commitment, greatly reducing the risk of policy changes.

For a CEO, this is more than just good numbers; it’s a real chance to restructure the business, improve the balance sheet, and set up an efficient manufacturing and export hub in the middle of Southeast Asia.

2. Turnkey infrastructure ready for high-tech operations

A big problem for tech companies entering new markets is waiting for infrastructure to be built. Da Nang has already solved this problem by investing heavily in a ready-to-go, “all-in-one” system.

The 1,128-hectare Da Nang Hi-Tech Park is not just empty land; it’s a complete “tech city” with everything needed for manufacturing, R&D, training, management, housing for experts, and logistics. This lets companies get started right away, avoiding the usual construction delays:

Software Park No. 2: 90,000m² of office space ready for move-in.
Data Center: A 2 trillion VND facility built for AI and Big Data.
Air Travel: 23 routes with 111 flights a day.
Faster Setup Time: Project timelines are cut from 18-24 months down to just 6-8 months.

This strong infrastructure includes direct connections to Singapore, Japan, South Korea, and the US, and its deep-water port makes exporting goods easy. For managers, this readiness means a faster return on investment and a valuable head start in the market.

3. A talent incubator that reduces hiring and training burdens

Despite having some of the fastest-growing salaries in Vietnam, the high-tech industry’s biggest challenge remains attracting and retaining talent. Rather than leaving companies to solve this problem on their own, Da Nang’s talent attraction policy proactively builds a talent pipeline through a three-way partnership between the government, businesses, and academic institutions.

Training goals by 2030:

5,000 semiconductor engineers to meet industry demand.
2,000 AI engineers to support the growth of artificial intelligence.

Most importantly, the city has a powerful incentive for graduates to stay: students can get tuition loans up to 180 million VND, which are completely forgiven if they work in Da Nang for three years after graduating. This policy helps secure a skilled workforce and encourages long-term commitment.

Training programs in key fields like chip design and AI are created with help from industry leaders like FPT, Synopsys, Nvidia, and Intel, making sure students learn the skills companies actually need. On top of that, policies that cover 30% of the cost of hiring experts (up to 1 billion VND/year) and offer salary packages of 100 million VND/month for top talent allow Da Nang to compete directly with places like Singapore and Hong Kong for hiring skilled professionals.

4. An established tech ecosystem with major global players

When Synopsys, Nvidia, Intel, Renesas, and Marvell all choose Da Nang, this is not merely coincidence but evidence of a complete semiconductor ecosystem taking shape. Da Nang has built a comprehensive semiconductor value chain from design and R&D to assembly and testing – something few locations can achieve.

FPT has inaugurated its High-Tech R&D Center and Semiconductor Chip facility at Software Park II, bringing together 500 specialists and developing 10 new products annually. Vingroup is also investing heavily in semiconductor R&D, AI, and specialized workforce development programs.

VSAP Lab – Vietnam’s first semiconductor packaging and testing center – is officially located at Software Park II with an investment of VND 1.8 trillion. This represents a strategic breakthrough as Vietnam masters advanced packaging technologies for the first time, including Fan-out Wafer Level Packaging (FOWLP), 2.5D/3D IC, and Silicon Interposer – core technologies for AI chips, biosensors, and high-speed communication devices.

VSAP Lab’s integrated “lab-fab” model serves not only manufacturing but also connects research, training, and technology transfer. This creates a closed-loop ecosystem from concept to final product, helping enterprises reduce time-to-market and maintain quality control throughout the entire process.

From a risk management perspective, having a complete value chain in one location reduces dependence on external suppliers, optimizes logistics costs, and ensures product information security. This is the unique competitive advantage that Da Nang offers compared to other technology centers in the region.

Da Nang's smart talent attraction policies and unique advantages — Da Nang’s smart talent attraction policies and unique advantages

5. Strategic location and high quality of life

In the global search for talent, attracting people is only the first step. The real challenge is keeping them and their families for the long run—and this is where Da Nang has a key advantage.

Known as Vietnam’s most livable city, Da Nang offers clean air, great beaches, and modern city services. The city has high-quality international schools, modern healthcare, and a safe environment for families.

Location and cost advantages:

Central Location: Just a 1.5-hour flight from both Hanoi and Ho Chi Minh City.
GMT+7 Time Zone: Perfect for working with partners in Asia and Europe.
Lower Cost of Living: Much more affordable than Singapore, Hong Kong, and even Ho Chi Minh City, with competitive salaries for the region.
A high quality of life at a reasonable cost.

For any company, having a location that both attracts and keeps global talent is a huge competitive edge. The cost to replace a senior-level expert can be hundreds of thousands of dollars, plus the loss of their knowledge and experience. Da Nang’s smart retention strategies are an effective solution to the “brain drain” problem.

6. Strong and active government support

The final, and perhaps most important, point is the Da Nang government’s attitude and commitment. Instead of waiting for investors to come to them, city leaders are actively traveling to the US and other countries to personally invite top tech companies to invest.

A public budget of 3.5 trillion VND (about $137 million USD) for science and technology from 2025-2030 shows this isn’t just talk; it’s a serious plan with real funding behind it.

Da Nang consistently ranks first in Vietnam’s Digital Transformation Index (DTI), with nearly all public services available online. This shows a modern approach to government and a real ability to use technology to make doing business easier.

The city government is also flexible, creating policies that fit the specific needs of each business. They offer “custom-fit” solutions instead of a one-size-fits-all approach. This is especially important for overcoming the common investment challenges in Vietnam, which often require special support from local government.

Da Nang has proven that to become a top tech hub, you need more than good incentives; you need a complete, supportive system. From its special national policies to its ready-made infrastructure and talent development programs, Da Nang’s talent strategy has one clear goal: to create the best possible conditions for high-tech companies to succeed.

Choosing Da Nang isn’t just a financial decision—it’s a strategic one that positions your company for the future of the tech industry. With its clear growth plan and long-term vision, the city is well on its way to becoming Southeast Asia’s new “Silicon Valley” by focusing on promising investment sectors to draw in high-quality foreign investment.

To ensure full regulatory compliance and optimize operational deployment in Da Nang, contact Talentnet’s compliance advisory specialists for comprehensive human resources solutions and effective market entry strategy development.

Explore detailed investment opportunities, preferential policies, and the high-tech ecosystem in Da Nang through our comprehensive report.