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Second Centralised IT Zone Set up in Da Nang, Vietnam

Da Nang Information Technology Park DITP
Image credit: Ministry of Information and Communications

The Vietnamese government has approved the Da Nang Information Technology Park (DITP) as a centralised information technology (CIT) zone, following the Prime Minister’s decision that was signed on 6 January.

According to a press release, the Deputy Director of the city’s Information and Communications Department confirmed the news, stating that the zone was financed and built by the Trung Nam Group with an investment of US $82 million.

It is also the second CIT zone in the city after Da Nang’s software park was approved by the Prime Minister in 2017, he added.

The second CIT zone will be given preferential policies and regulations to attract domestic and foreign investors in IT, electronics manufacturing, and telecommunications.

Following the city’s ‘master plan’, the DITP was designed as central Vietnam’s ‘Silicon Valley’, with an investment of US $120 million in two stages.

The DITP is the country’s largest CIT technology centre after launching the first stage in 2018.

According to the city’s information and communications department, the DITP expects to create revenue of US $1.5 billion each year with 25,000 jobs and an urban area for 100,000 people.

In 2018, the Trung Nam Group also started construction of an apartment and office complex for IT businesses as a prelude to the second stage.

The Director of the city’s Information and Communications Department said that the IT and communications industry made revenue of US $1.23 billion and contributed 5.5% to the city’s gross regional domestic product (GRDP) in 2018.

The city attracted nearly 900 IT businesses, creating 25,000 jobs.

Da Nang was the first city in Vietnam to launch the e-government system, which was a crucial step in building a smart city. It offered free wireless internet services for local residents and tourists at major centres and streets in the city.

Over the past few years, the IT sector has had the fastest and most impressive growth rate among any other sector in Vietnam, contributing significantly to the country’s GDP and the state budget.

Electronic hardware, software, and digital content industries have maintained a high growth rate, at an average of nearly 30% per year, as OpenGov reported earlier.

A recent report noted that Vietnam’s outsourcing market has set a certain foothold on the world map. The country has been ranked sixth in the list of destinations for outsourcing in the world, released by a globally recognised consulting firm.

Additionally, industry experts have ranked Vietnam in eighth place among the leading suppliers of IT services. Meanwhile, Ho Chi Minh City and Ha Noi have are in the world’s top 20 most attractive cities for outsourcing.

Vietnam has become an attractive destination for high-tech investment, with the presence of most of the world’s tech giants, including IBM, Microsoft, Intel, Apple, Toshiba, and Samsung.

Apart from this, many of the country’s IT companies, including Viettel, FPT, and VNPT, are well-known globally. There is an increasing number of creative start-ups in this field.

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