Vietnam's central hub Danang needs $350 bln for new long-term development plan

Vietnam’s central city of Danang will require an estimated $350 billion in long-term investment to implement a draft master plan extending to 2050 with a vision to 2075.

Shaping a multi-centered urban system

The proposed master plan, presented at a public consultation conference last Thursday, outlines a development framework based on a “three zones, three growth poles, two strategic axes and four economic corridors” model aimed at transforming Danang from a concentrated coastal city into a multi-centered urban system.

Under the proposal, the three development zones comprise a central urban core, a marine economy zone integrated with industrial and logistics activities, and an ecological conservation area.

The three growth poles include the existing city center, the Lien Chieu high-tech industrial and port complex in the north, and the South Hoi An-Chu Lai Open Economic Zone in the south.

Two strategic development axes are planned: a coastal economic and urban corridor, and a western ecological and cultural corridor.

At the same time, four economic corridors would connect logistics, industrial, commercial and green-space networks across the wider region.

The planning strategy is designed to create new growth capacity and capitalize on opportunities arising from recent administrative restructuring, officials said. Danang and Quang Nam province were merged last July to form the new Danang.

Nguyen Ha Nam, director of Danang’s Department of Construction, said preliminary estimates showed substantial funding requirements to realize the plan.

Essential technical infrastructure alone would require around $30 billion, while urban development and other economic sectors would need an estimated $320 billion, bringing total long-term investment demand to approximately $350 billion.

Speaking at the conference, Danang People's Committee Chairman Nguyen Manh Hung said the plan was intended not only to meet current development needs but also to define the city's future trajectory for decades to come.

“In the new context following the administrative merger, Danang needs a longer-term vision that extends beyond 2050,” Hung said.

The city is studying proposals including the development of new growth centers, a new administrative hub, and expanded above-ground and underground urban spaces to address future infrastructure challenges, he added.

“We need to shorten the planning process without compromizing quality. The plan must be developed through broad consultation and social consensus so that its implementation can generate meaningful changes in development,” Hung said.

Easing pressure on the existing urban core

Hoang Su, a former deputy director of Quang Nam’s Department of Construction, said Danang’s central urban area was facing increasing pressure as rapid urbanization threatened to overload technical and social infrastructure systems.

He proposed locating some free trade zones within the Chu Lai Open Economic Zone to leverage the advantages of Chu Lai-Ky Ha Port and Chu Lai Airport. Additional free trade areas could be developed in South Hoi An to help create a “New Danang” with extensive, flat and flood-free land suitable for large-scale commercial and industrial development.

Dang Viet Dung, chairman of the Vietnam Association of Construction, proposed establishing three key urban centers based on existing urban areas and emerging development hubs.

Under the proposal, Danang Urban Area would encompass the former Danang municipality and expanded areas of Dien Ban and Dai Loc, serving as the administrative center of the city.

It would be developed as a multi-centered metropolis featuring a central business district; an international financial center; a science-technology, startup and innovation hub; and national-level centers for commerce, tourism, education and healthcare.

Hoi An Urban Area, comprising the former Hoi An town and expanded areas of Dien Ban and Duy Xuyen, would be positioned as a heritage urban area and a national center for culture, heritage and tourism.

The proposal envisions Hoi An becoming a Class II smart city with an urbanization rate exceeding 45% and eventually achieving recognition as a creative urban area.

Meanwhile, the Tam Ky-Nui Thanh Urban Area would include four wards, namely Tam Ky, Quang Phu, Huong Tra and Thach Ban, and four communes, namely Nui Thanh, Tam Hai, Tam Anh and Tam Xuan.

It is planned as an industrial, urban area, national logistics hub, and center for manufacturing, processing, high technology, digital industries, supporting industries, research and innovation, as well as international cargo transit.

The Tam Ky-Nui Thanh area is expected to follow a green and smart urban development model, achieve an urbanization rate above 65%, and contribute approximately 45% of the city’s gross regional domestic product (GRDP), according to the proposal.