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Work starts on second Da Nang Software Park

Image credit: Vietnam Plus

A ceremony was held in the central city of Da Nang on October 10 to start the construction of the city’s second Software Park.

This is a significant project aimed at boosting the city’s IT industry and improving the investment environment as well as creating further momentum for economic growth, start-ups and innovation in the city. The move forms part of the city’s effort to realise its goal of developing a smart city by 2030 and becoming a smart metropolis, a centre for startups and innovation and a livable coastal city by 2045.

The city started construction on the first phase of the park worth more than US$ 30.4 million at Hai Chau district. The project will cover a total area of more than 28,500 square metres in Nhu Nguyet Street, Thuan Phuoc Ward, Hai Chau District. The project has a total investment of over VND 700 billion (US$ 30.5 million) and is scheduled to be completed in under two years.

The park will house a 20-storey ICT office building with a total internal floor area of more than 26,000 sqm and two 8-storey ICT office blocks with a combined internal floor area of nearly 66,500 sqm. Once completed, Software Park No 2 is expected to accommodate a total of about 6,000 employees.

Speaking at the ceremony, Vice Chairman of the Da Nang municipal People’s Committee, Ho Ky Minh, said the project aimed to boost the development of Da Nang’s software industry. The Danang Software Park has been officially recognised as the third “central information technology centre in Vietnam, with the other two located in Hanoi and Ho Chi Minh City.

The first Da Nang Software Park, located in downtown Da Nang, comprises two buildings with a total of 10,000 square meters of space. Currently, the Park is home to 75 IT businesses, including 25 international companies who employ 2,400+ people. The Park is significant for not only the employment it has generated but also for the over US$ 80 million it has attracted in investment from the companies that operate in it.

Trần Quang Thanh, the director of Danang City’s IT division said that the park is a key centre for the IT industry and has helped boost the city’s efforts in the areas of e-governance.

According to Danang government reports, the IT and communications industry accounts for 700 businesses and employ 22,000 people. Danang’s IT industry is expected to enjoy double-digit growth across the next 3 ~ 5 years as more companies in Vietnam and internationally move into the Business 4.0 era.

Danang has been steadily implementing IT and eco-friendly systems into its area. Notable among these has been the development of “smart city solutions” which it is implementing with a goal of making government and citizen interactions more efficient and transparent.

The city is working with companies in the areas of IT applications and infrastructure, communications companies and human resources companies. Danang’s IT industry is expected to generate significant revenues from software exports and the city is anxious to see the expansion of companies and jobs in the IT sector. Their reputation of being a clean city that offers employees attractive work with higher than average incomes and contributes to the city’s image as the “Smartest & Most Livable City” in Vietnam.

To this end, the city is calling for investment in more software parks and is looking at other initiatives that will expand the IT industry.

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