Central Vietnam hub Danang seeks to attract Japanese investment for semiconductor strategy, international financial center

As part of its strategy to build an international financial center and develop a high-tech ecosystem, Danang city is stepping up efforts to attract Japanese investment in sectors such as semiconductors, artificial intelligence, logistics, and financial services.

The message was highlighted by city leaders at the “Meeting with Japanese Businesses – Spring 2026” program, organized by the municipal Department of Foreign Affairs in coordination with the Consulate General of Japan in Danang on Friday. The event aimed to strengthen connections and promote investment cooperation between the business communities of both sides.

According to Mori Takero, Consul General of Japan in Danang, Japanese investment has played an important role in the city’s economic development for more than 30 years. Since early projects such as Vijachip in 1993, many Japanese companies have continued to operate effectively in the central city.

In addition to direct investment, Japan has been a major provider of official development assistance (ODA) to the city, supporting key infrastructure projects such as the Hai Van Tunnel, Tien Sa Port, and the Danang-Quang Ngai Expressway.

Even during the Covid-19 pandemic, Japanese companies continued to expand their investments in the locality. The Mikazuki Resort, which began operations in 2022, is considered a notable example of the long-term presence of Japanese investors in the city.

According to Pham Duc An, Chairman of the Danang People’s Committee, Japan is currently among the top three sources of FDI in the city, with 301 projects and total registered capital of more than $1.22 billion. Several large-scale projects are operating effectively, including Murata, Mabuchi Motor, and Mikazuki Resort.

At the Danang Hi-Tech Park and the city’s industrial parks alone, there are currently 69 projects by Japanese enterprises with a combined investment of about $835 million, accounting for nearly two-thirds of Japan’s total investment in Danang. This indicates that Japanese businesses are increasingly focusing on technology manufacturing and supporting industries in the locality.

Since its merger with Quang Nam province in July last year, Danang’s development space has expanded significantly. The city now covers nearly 12,000 square kilometers with a population of more than 3 million, along with a strategic infrastructure network that includes two airports and four seaports, creating favorable conditions for the development of industrial zones, logistics centers, and financial services.

Notably, the Danang Free Trade Zone (FTZ), the first of its kind in Vietnam, was announced in mid-2025. In addition, the Vietnam International Financial Center in Danang officially began operations at the beginning of 2026. These new economic institutions are expected to give Danang a competitive advantage in attracting international investors, including those from Japan.

In the coming period, the city will prioritize attracting Japanese investment in the International Financial Center, the Free Trade Zone, high-tech industries, semiconductors, AI, logistics, high-tech agriculture, education, healthcare, and high-quality tourism.

City leaders affirmed that they will continue to support and promptly address difficulties faced by the Japanese business community, creating a favorable environment for them to expand operations and develop sustainably in Danang.

According to the Foreign Investment Agency under the Ministry of Finance, Japan is currently the third-largest foreign direct investor in Vietnam, after South Korea and Singapore. As of the end of February 2026, Japanese investors had launched 5,738 projects in Vietnam with total registered capital of nearly $79 billion.

In the first two months of 2026 alone, Japanese enterprises initiated 35 new projects, adjusted capital for 19 existing projects, and conducted 44 capital contributions/stake purchases, with total investment exceeding $732 million, ranking fourth among countries and territories investing in Vietnam.