The magnet from new decisions

The Vietnam-U.S. Comprehensive Strategic Partnership has been steadily strengthened and elevated across various sectors, especially in economy, trade, and investment. This creates a valuable opportunity for localities in both countries, particularly in central Vietnam, to promote investment attraction and socioeconomic development.

The Da Nang Young Entrepreneurs Association, in collaboration with AmCham Vietnam, organizes the forum "Harnessing U.S. Investment Power in Central Vietnam", June 23, Da Nang

In the past time, many provinces in central Vietnam have carried out preferential policies on corporate income tax, land rent, labor training support and imports of equipment for fixed assets. Especially, Da Nang City - known for its strategic location, dynamic investment environment and sustainable development approach - has long been an attractive destination for both domestic and foreign investors. The city’s recent approval to launch several key projects such as a free trade zone and an international financial center has further drawn strong interest from U.S. businesses.

Impressed by these dynamic projects, U.S. businesses have expressed their interest and willingness to expand investment in green transition, technology, innovation, digital economy, AI, e-commerce and sustainable development in the region. These projects are expected to become new drivers of balanced regional growth.

According to U.S. Ambassador to Vietnam Marc E. Knapper, these new business models will strengthen the Vietnam-U.S. partnership at various levels, from national to local. He emphasized that now is the time to further deepen bilateral ties, particularly in high-tech, energy, cloud computing and semiconductor sectors.

“Currently, many U.S. corporations are looking to invest in Vietnam, contributing to sustainable development for both sides. Central Vietnam in general and Da Nang in particular are focusing on developing high-tech industries that U.S. businesses have great interest in,” Ambassador Knapper noted.

From the business perspective, Mr. Richard Mclellan, Founder and CEO of RMAC Advisory, said that bilateral cooperation between Vietnam and the U.S. has achieved significant milestones and is opening up new opportunities for businesses from both countries. Especially, Vietnam’s recent directives and resolutions aim at ensuring a brighter future, illustrated through the government's increasingly open and active approach to the private sector and its efforts to connect with global semiconductor hubs.

“Vietnam is one of the countries with numerous large-scale projects in transportation, logistics and energy, which serve as a driving force for attracting investment and present an opportunity for Da Nang to draw in resources that contribute to the city’s development. The establishment of international financial centers in Ho Chi Minh City and Da Nang will open up significant opportunities for U.S. partners to participate in and contribute to the growth of these centers,” he added.

Da Nang will become a hub connecting and converging new economic development models, he added. Therefore, the locality should also focus on promoting projects in energy, finance and innovation, alongside the free trade zone and seaport. In the coming time, RMAC Advisory may give priority to investing in innovation in this region.

Priority sectors

From a local perspective, Mr. Ho Ky Minh, Standing Vice Chairman of the Da Nang People’s Committee, said the U.S. is always considered one of Da Nang’s key partners, playing an important role in promoting strategic areas of cooperation. The city is currently home to 89 U.S. investment projects with a total registered capital of over US$511 million, ranking third in foreign direct investment (FDI) in Da Nang.

“The city is expanding its domestic and international market connections, integrating deeper into global production networks and value chains, thereby improving labor productivity, technological capabilities and competitiveness, and driving economic restructuring. In the future, Da Nang will invite U.S. investors and businesses with financial and technological capacity to collaborate in information technology, high-tech, automation, semiconductor, artificial intelligence, healthcare, education, vacation property and supporting industries,” he added.

Mr. Matthew McGarvey, Co-founder of Xylem Capital, said that Da Nang is currently shifting from simple manufacturing to restructuring and re-manufacturing to integrate into global supply chains, particularly in energy. However, he also pointed out challenges in the hydrocarbon energy transition, noting that businesses may face income traps.

“It will be difficult for businesses to ensure sustainable energy sources, especially small-scale energy firms. Localities in central Vietnam need to further explore energy projects, with priority given to capital planning. They should consider attracting investment in nearshore wind power and liquefied natural gas (LNG) energy projects,” he suggested.

Regarding the free trade zone and international financial center, U.S. businesses recommended applying risk-sharing mechanisms. While many businesses affirm their strong internal capabilities, concerns remain regarding the legal and policy frameworks.

Michael Vu Nguyen, Director of Boeing Vietnam, said that aviation is a promising market in Southeast Asia, including Vietnam. Data shows that Southeast Asia's aircraft demand accounts for 5% of the global market, and this is expected to double to 10%, or about 4,000 aircraft, over the next 20 years.

“Boeing is committed to supporting the development of the supply chain in Vietnam, especially in Da Nang, and will help train a high-quality workforce for the local business community to engage in this sector. Da Nang should implement training policies for human resources in aviation and AI as well,” he emphasized.

Mr. Le Quang Dam, General Director of Marvell Technology Vietnam, which is operating in Da Nang, expressed his confidence in the city's future development potential in semiconductors and AI. Marvell Technology has set a goal of training 50,000 high-quality information technology engineers.

“Vietnamese students are very capable in science and technology, and more solutions are needed to grow the workforce in this field. Marvell will establish partnerships with universities to train human resources while offering financial support to disadvantaged yet talented students and potential learners to improve their know-how. For those who are not currently studying semiconductors, high-quality specialized training programs should be introduced to develop human resources,” he added.

Ms. Ly Nguyen, Manager of the Tony Blair Institute for Global Change, emphasized that local authorities need to clearly demonstrate their commitment and determination in developing high technology, thus providing a strong momentum for local growth in the near future.

“The city should also promote the development of green and sustainable energy. Localities in central Vietnam still have much room for growth in these sectors,” she said.