A. NATURAL CONDITIONS
1. Geographical position
Danang city includes both mainland and archipelago in the East Sea. The mainland is located from 15o55' to 16o14' north latitude and from 107o18' to 108o20' east longitude. The city borders Thua Thien – Hue province to the north, Quang Nam province to the west and the south, and the East Sea to the east. The Hoang Sa archipelago is located from 15o45' to 17o15' north latitude and from 111o to 113o east longitude that is about 120 knots south of Ly Son island.
The city is 764 km south of Ha Noi, 964 km north of Ho Chi Minh City and 108 km northwest of Hue city.
Danang is situated in the region of tropical monsoon climate with only two seasons: the rainy season (August-December) and the sunny season (January-July).
Average temperature is around 25.9oC except for Ba Na Hills with the height of 1,500m where the temperature is about 20oC.
Average humidity is 83.4%; average rainfall 2,504.57 mm per year, and average sunshine 2,156.2 hours per year.
Being favoured by nature, Danang City has a wide range of terrain with plain, mountains, rivers and sea. The total natural surface of the city is mainly covered by mountains and hills (over 70%) with the height of 700-1,500m and the gradient of above 40o. The mountainous area is also the hub of watershed forest, greatly contributing to the protection of the city ecology. The rivers in the city are mainly characterized as being short and sloped, coming from the west, the northwest of the city and Quang Nam province. The coastal plain that has been affected by the saline seawater is the hub of agricultural, industrial, service, military areas and other functional zones of the city.
4. Land area - Population
Land area: 1,283.4 km2.
Danang City has 6 urban districts (Cam Le, Hai Chau, Lien Chieu, Ngu Hanh Son, Son Tra, and Thanh Khe), 1 rural district (Hoa Vang) and 1 archipelago district (Hoang Sa) with 56 wards in total.
Population: 951,572 persons. Population density: 757.8 persons per km2 (2011).
B. SOCIO – ECONOMIC CONDITIONS
1. Strategic position
Danang City has a favorable location for fast and sustainable development
Danang City is situated in the middle of Vietnam, on the North – South communication axis by road, rail and air, 764 km south of Ha Noi, 964 km north of Ho Chi Minh City. Danang City has the advantageous location for developing international sea and air routes.
Danang – The growth engine of the Key Economic Zone in Central Vietnam
The Key Economic Zone in Central Vietnam was established pursuant to Decision dated August 13th 2004 by the Prime Minister including Thua Thien – Hue, Danang, Quang Nam, Quang Ngai and Binh Dinh for the purpose of exploiting the advantages and potentials of the Zone and step by step making the Zone become one of the most dynamic economic regions of Vietnam. In particular, Danang plays an essential role as the powerhouse for the growth and development of Central Vietnam and Western Highlands.
Danang – The Eastern gateway of the East West Economic Corridor (EWEC)
East West Economic Corridor (EWEC) is one of the five economic corridors initiated by the Asian Development Bank in the Greater Mekong Subregion. It is the 1481-km route connecting the Pacific Ocean with the Indian Ocean running across 13 provinces/cities of 4 countries, starting from the cityport of Mawlamyine to the border town of Myawaddy (Myanma), running across Thailand, Laos and Tien Sa Seaport (Danang) of Vietnam as the end point.
EWEC not only generates a huge opportunity for countries it runs across to accelerate regional cooperation and improve the standard of living of habitants, but also provides enterprises with better access to raw materials, service markets, capital, technologies and labour, etc., thus facilitating cross-border investment and trade, diversifying economic activities and exports; and accelerating tourism development.
Danang – The entrance for exploring the World Natural and Cultural Heritages
The city of Danang is nestled in the centre of “World Heritages Road” connecting world heritages in Central Vietnam, including: Phong Nha Ke Bang National Park (Quang Binh); Hue Imperial City with the historical vestiges of Hue Imperial City and Hue Royal Court Music; Hoi An Ancient Town and My Son Sanctuary (Quang Nam). Together with the two other world heritages, namely Luang Prabang (Laos) and Angkor Wat (Cambodia), this program makes up a larger tourism program called "Vietnam - Laos - Cambodia, 3 countries, one destination".
Danang – Hoi An Ancient Town : 30km to the south east
Danang – My Son Sanctuary : 70 km to the south west
Danang – Hue Imperial City : 100 km to the north
Danang – Phong Nha Ke Bang National Park : 300km to the north
Tien Sa Seaport is the third biggest commercial port in Vietnam besides Sai Gon and Hai Phong ports. With the capacity of 4 million tons per year, Tien Sa seaport can accommodate 45,000DWT cargo ships and other kinds of vessels such as containers ships, passenger ships, super-sized cruise ships, heavy-lift ships. There are regular direct international shipping lines from Tien Sa seaport to Hong Kong, Singapore, Japan, Taiwan and Korea.
Danang International Airport has been defined as the transit point of the East West air route. Danang International Airport has the capacity of 6 million passengers per year. The Middle Airports Corporation has prepared for the expansion of this terminal to attain the capacity of 10 miliion passengers per year in 2020.
Road system has been constantly expanded and rebuilt with several large-sized projects in the city including Nguyen Tat Thanh Street, Ngo Quyen Street, Hoang Sa Street, Truong Sa Street, Han River Bridge, Tuyen Son Bridge, Thuan Phuoc Bridge, etc. Transport system link Danang City with other provinces through Hai Van Tunnel, National Road 14B, National Road 1A, and the future Danang – Quang Ngai Express Way, creating favorable condition for transport and tourism development and changing the whole image of Danang – one of the busiest cities in Central Vietnam.
Post and Telecommunications: Danang is one of the three largest telecommunications centers nationwide, one of the three vital last linking points of the national axis trunk network and the direct linking point with the international sea cable station (SEA-ME-WE 3) with the capacity of 10Gbps, connecting Vietnam and 40 Asian and European countries. The network comprises 02 host exchanges and 12 satellite exchanges with the volume of 40,000 numbers. The authority has planned to build the wireless network with 250 connection points to meet the demand of local people and tourists. As planned, this facility shall be put into operation by the end of 2012.
Power and Water supply
Power for production and domestic use in Danang is supplied from the National North-South 500KV high voltage grid. The city’s water supply works has a total existing capacity of about 120,000m3 per day. A new water supply plant which is under construction in Hoa Lien commune by the local authority is designed with the capacity of 120,000m3 per day, thus increasing the capacity to 325,000m3 per day by the end of 2020.
3. Dynamic economy
Danang has been considered as an economic center with high, stable and constant growth.
Thanks to available natural advantages and the non-stop efforts of the local authority for improvement of tourism quality, Danang has been one of the most attractive destinations in the region in recent years.
Economic structure (2011): Service 52.98% – Industry and Construction 43.84% – Agriculture 3.18%; Targeted economic structure till 2020: Service 55.6% - Industry and Construction 42.8% - Agriculture 1.6%.
(Source: The Danang Statistical Yearbook 2011)
4. Potential tourism
Tourism has been defined as one of the key industries of the city. Over the last 5 years, the local authority has determined to embed its image of a dynamic, modern and green city with strategies to develop a series of events and public festivals. With the advantage of being located on the World Heritages Road, Danang is -known as an attractive destination of events and local festivals. There are plenty of special events and traditional festivals like Bodhisattva Kwan Yin Festival, Cau Ngu Festival, Tuy Loan Communal House, Hai Chau Communal House or International Fireworks Competition, Danang International Paramotor Race that appeal to millions of visitors to Danang.
5. Qualified human resources
As of November 30, 2011, the total labor force of the city is 453,400 persons, accounting for 48% of the total city population, including:
Technical workers : 37,130 persons
Professional secondary school graduates : 25,580 persons
University, College graduates : 81,770 persons
Others : 309,000 persons
Trained workforce (estimated in 2011) : 52%
Vocationally trained workforce (estimated in 2011) : 39%
As the human resource development plan of the city stated, till 2020 Danang City will have 70% qualified labor force including 21% with university and college degrees; 16% with professional secondary school diplomas and 33% technical workers.
Danang City is the biggest education and training center in Central Vietnam and Western Highlands, ranking the third place throughout the country (after Hanoi and Ho Chi Minh City).
Danang City has one regional university, that is Danang University with 6 members (4 universities and 2 colleges); 4 separate universities and 13 colleges; 7 vocational secondary schools, 17 vocational training schools and 33 other vocational training-related centers.
Danang is one of the cities giving priority to high quality education channels and fexibly standardizing thems. In recent years, Danang University has cooperated and signed memorandum with many partners: Queensland University (Australia), Ryukoki (Japan), Zealand, HAN (The Netherlands), Grenobole (France), etc. to strengthen local education as well as sending domestic students abroad to study.
According to the development plan of Danang University towards 2015 approved by the Minister of Education and Training, many new univerisites and institutes will be built such as: International University, Medical and Pharmaceutical University, Information Technology University (upgrading from Medical and Pharmaceutical Department), Medical Technical University, Open University, Postgraduate Training Institute, etc.
6. Open investment environment
To accelerate investment attraction and facilitate the investor to work and live in Danang, the local authority has taken a lot of measures; namely: accelerating administrative reforms, improving the quality of cadres and civil servants, investing in infrastructure, enhancing the quality of education, thus the quality of human resources supply in order to make an open, attractive and transparent investment environment for the investors.
- Offering one-stop shop service for issuance of investment certificates for investment projects.
- Building e-government towards 2015.
B. THE ATTRACTION OF INVESTMENT
1. The attraction of Foreign Direct Investment (FDI) in Danang city
FDI in Danang City by Sectors (from 1 January 2012 to 30 June 2012)
2. The attraction of Official Development Assistance (ODA)
There are 7 ODA projects managed by the local authority in the first 6 months of 2012. Most projects are in the area of investment and upgrade of infrastructure, transport, information technology, environment technical assistance.
The total investment capital of these projects is more 340 million USD, of which: the capital from ODA of more 261 million USD, accounting for more 77% total investment capital, the corresponding capital of 91 million USD, taking up 23% total investment capital. At present, the authority has made effort to attract ODA in areas of infrastructure, environment, administrative reform, and infrastructure construction in Danang Hi-Tech Park.