Central Vietnam hub pushes ahead with sea encroachment project to strongly attract FDI

A sea encroachment project in Danang will be vital to the city's strong foreign investment attraction, said Chairman of the municipal People’s Committee Pham Duc An.

At the cost of VND366 trillion ($13.89 billion), the project is designed not only to expand Danang's urban space but also to serve as a symbolic development that will reshape the city's coastal identity and investment appeal, An told a conference on Thursday.

He acknowledged ongoing debates regarding the project’s environmental impact and arguments that after the Danang-Quang Nam merger in July this year, the city now has ample land reserves so a sea encroachment project is not necessary.

However, the chairman emphasized that the sea encroachment project is a major policy of the Party, the State, and the city itself, and has been under thorough review.

Drawing comparisons with Dubai, he noted that even cities with abundant land continue to reclaim the sea because the integration of land, water, and mountains creates a uniquely attractive environment for international investors.

"Even after the merger which leads to Danang having large development space to the south, implementing a symbolic project like the sea encoachment project is necessary to strongly attract foreign investment capital," An argued.

According to the city’s plan, the project will reclaim approximately 1,428 hectares from Danang Bay, forming five major artificial islands modeled after Dubai’s famous Palm Islands.

The islands will include two international tourism islands, one free-trade and innovation island, one international financial center island, and one entertainment island featuring modern, multi-functional coastal urban facilities.

In April 2025, the Danang People’s Council approved the inclusion of the sea encroachment project in the 2025 public investment plan, marking a key step toward implementation.

An emphasiszed that the sea encroachment project will play a decisive role in positioning Danang as a regional investment hub capable of attracting global capital.

The city is expected to complement other major planned southern-expansion initiatives such as the VND260 trillion ($9.86 billion) Chu Lai Airport upgrade and the VND50 trillion ($1.9 billion) Danang-Chu Lai urban railway, contributing to a connected urban-industrial-service corridor between Danang and Quang Nam.

Danang is also attracting a series of large-scale investment projects from the private sector, including the Lien Chieu container port with a total investment of VND44 trillion ($1.67 billion) and a resort and entertainment park project worth VND80 trillion.

The National Assembly issued Resolution 136/2023 on special mechanisms for Danang. However, localities such as Hai Phong and Ho Chi Minh City have since been granted new mechanisms with greater incentives, making Danang’s policies become “outdated”, according to An.

Therefore, the city Party Committee is proposing that the National Assembly soon amend and supplement Resolution 136 to ensure competitiveness and alignment with the current context.

One of the key tasks Danang is focusing on is preparation to establish the International Financial Center, An said, adding according to the plan, after the Government issues eight guiding decrees in December, the city will begin the initial phase of operation, with 5-10 international organizations registering to participate.