On July 1, 2025, a significant milestone will be marked in Vietnam, opening a promising new chapter for the “Miami of Vietnam” – Da Nang. Quang Nam province and Da Nang city will officially merge, creating a new “super-metropolis” named Da Nang City, with its political and administrative centre located in the current Da Nang city. This is not merely a change in administrative boundaries; it’s a strategic, ambitious move to forge a regional economic and financial hub.
New scale, New stature
Imagine a city with a total natural area spanning over 11,859 km², making Da Nang the largest centrally-governed city in Vietnam by area. With an estimated population of over 2.7 million people, the new Da Nang City will become a vibrant residential and economic centre.
This significant expansion in both area and population will transform Da Nang into a unique and diverse “super-metropolis.” It will encompass both highly urbanized, bustling coastal areas – what we currently know as the heart of Da Nang – and vast rural, mountainous, and ethnic minority regions located in the western part of Quang Nam. This combination offers a comprehensive picture of multi-dimensional development potential, from modern urban economies to sustainable natural resource exploitation.
Two strategic zones, one development vision
To optimize this diverse potential, the spatial development plan for the new Da Nang is divided into two strategic zones:
- Eastern Zone (coastal plain area): This will be the heart of urban development. This zone is oriented towards developing a chain of functional urban areas, including administrative, heritage, tourism, industrial, seaport, airport, and educational centers. Da Nang will solidify its position as a financial, tourism, logistics, high-tech industry, clean industry, and high-tech agriculture hub. With modern infrastructure and a strategic geographical location, the Eastern Zone will be a magnet for investment and the development of key economic sectors.
- Western Zone (mountainous area, ethnic minority regions): In stark contrast, the Western Zone will focus on the sustainable exploitation of valuable natural resources. This zone is oriented towards developing into a national raw material base for forest products and medicinal herbs, while also supporting the development of high-tech agriculture. Additionally, garden economy, farms, animal husbandry, hydropower, and mineral exploitation will be prioritized. Notably, the Western Zone will be a place to preserve and promote the unique cultural values of ethnic minorities, intertwined with eco-tourism and community-based tourism, offering unique and sustainable experiences.
Economic impact and exceptional development opportunities
This merger is not just a mere administrative change but a strategic move that unlocks unprecedented economic development opportunities.
Expanded Economic Space and Industrial Land Fund
One of the primary goals of the merger is to address the limitations of Da Nang’s current economic development space, which is relatively small and features mountainous terrain unsuitable for large-scale industrial development. With the merger, Quang Nam, with its natural area of 10,438 km² and a large land fund for industrial development, will provide significant resources. Currently, Quang Nam has approximately 10,000 hectares of planned industrial park land, including key industrial parks such as Tam Thang, Bac Chu Lai, Dong Que Son, and the Chu Lai Open Economic Zone – home to major projects like Thaco Chu Lai, the largest automobile manufacturing center in the country spanning over 1,000 hectares.
This merger allows Da Nang to expand its development space southward and southwestward, leveraging clean land and reasonable land lease prices from Quang Nam to attract foreign direct investment (FDI) into manufacturing and high-tech industries. This expansion of industrial space is a fundamental solution to transform Da Nang’s economic development model from a limited urban center to a stronger regional industrial hub. The readily available land fund and reasonable lease prices are powerfully attractive factors for FDI.
Development of Industry, Logistics, and Financial Services
The economic structures of the two localities are highly complementary, creating a perfect synergy. While Da Nang’s GRDP primarily comes from the service sector (62.3%), with industry accounting for only 15.2%, Quang Nam’s GRDP sees 48.4% from industry and construction, notably automobile manufacturing and assembly, mechanical engineering, textiles, and electronics. This integration can form a development model similar to Ho Chi Minh City and Binh Duong, where high-end financial services (Da Nang) are closely linked to strong industrial production and export capabilities (Quang Nam).
The merger will facilitate the formation of an inter-regional transport corridor encompassing sea, road, and air routes, significantly enhancing logistics capacity. This system includes Tien Sa Port, Lien Chieu Port (under construction), Ky Ha Port, Da Nang International Airport, and Chu Lai Airport (expected to become a major cargo logistics hub for Central Vietnam). Da Nang is also being planned to become an international financial center in Vietnam, attracting international financial institutions, banks, fintech companies, and high-tech startups. General Secretary To Lam emphasized that the merger is a strategic step to develop a large-scale industrial, financial, and logistics center in Central Vietnam, capable of competing at the Asia-Pacific level.
This combination of complementary economic strengths creates a complete value chain from production to finance and export. A robust logistics network is a key factor in ensuring the efficient movement of goods and capital throughout the expanded region and internationally. This integrated approach will foster a self-reinforcing economic ecosystem, promoting sustainable growth and economic diversification.
Promoting High-Quality Tourism and Heritage Exploitation
The new Da Nang City will include Da Nang’s modern tourism infrastructure, extend the long beautiful beaches of Da Nang to 7 times, and combine it with Quang Nam’s rich cultural heritage, including two UNESCO World Cultural Heritage sites – Hoi An Ancient Town and My Son Sanctuary – along with the Cham Islands World Biosphere Reserve. The merged entity will possess over half a million hectares of pristine forest, the largest forest area in the country, including Song Thanh National Park, elephant and saola conservation areas, Son Tra, and the Cham Islands Biosphere Reserve. This is an invaluable resource for eco-tourism development.
The merger is expected to open a new chapter for the tourism industry, positioning the new Da Nang as a national tourism hub, connecting regionally and reaching internationally. The diversification from beach/urban tourism to heritage, eco-tourism, and community-based tourism will significantly enhance the destination’s appeal and competitiveness. This requires a unified tourism development strategy focused on marketing diverse products, ensuring sustainable activities (green tourism), and effective management of visitor flows at attractions.
Key Economic Sectors and Growth Drivers of the New Da Nang
Here’s an overview of the key economic sectors and primary growth drivers for the new Da Nang City:
| Key Economic Sector | Growth Drivers / Development Goals |
| High-Quality Tourism and Services | Beach tourism, international resort real estate, preservation of world and national cultural heritage |
| Logistics | Airport systems, seaports, economic zones, and international border gates; Chu Lai is becoming the cargo logistics hub of Central Vietnam |
| Free Trade Zone and International Financial Center | Attracting international financial institutions, banks, fintech companies, and high-tech startups |
| High-Tech and Digital Technology Industry | Aviation, semiconductors, information technology, and innovation |
| Processing, Manufacturing, and Assembly Industry | Automobiles, mechanical products, electrical, and electronics |
| High-Tech Agriculture, Forestry, and Deep Processing of Medicinal Herbs | Seafood exploitation, a modern fishing center linked to the Hoang Sa fishing grounds, protects maritime security and the islands |
Conclusion
The merger of Da Nang and Quang Nam is a strategic move, designed to expand economic development space and enhance the competitiveness of Vietnam’s Central region. The new Da Nang City will boast the largest geographical area and population among centrally-governed cities, offering immense potential to become a leading economic, financial, logistics, high-tech, and tourism hub in the Asia-Pacific region. This merger leverages the complementary strengths of the two localities: Quang Nam’s vast land fund and industrial base combined with Da Nang’s service capabilities, financial prowess, and modern urban infrastructure.
This is the moment for international investors to recognize Da Nang not just as a beautiful tourist destination but as a strategic economic center with outstanding development potential, a rising star.