Da Nang City strengthens efforts to attract Japanese companies in semiconductors and AI: announced at spring buyer meeting with Japanese companies

In spring 2026, Da Nang City in central Vietnam set out a policy of stepping up efforts to attract Japanese companies in semiconductors, AI, logistics, and finance. The city's top official made the pitch directly at the spring buyer meeting with Japanese companies.

Semiconductor fab lab launches: a VND 1.8 trillion investment

In Da Nang City, construction is underway on a semiconductor manufacturing fab lab with total investment of VND 1.8 trillion (about $68.8 million) and 2,288 square meters of floor space, targeting operation in Q4 2026. With a manufacturing capacity of 10 million units a year, the facility will become the core of efforts to strengthen Vietnam's semiconductor ecosystem.

Ambitious targets for 2030

Da Nang City aims for the digital economy to account for more than 35-40% of its GRDP by 2030. It plans to train and attract more than 5,000 high-quality professionals in the semiconductor field, including a breakdown of 1,500 design engineers and 2,000 test and packaging engineers. It is also strengthening industry-academia partnerships with the University of Da Nang and FPT University.

The appeal for Japanese companies

Da Nang is Vietnam's third-largest city after Ho Chi Minh City and Hanoi, but labor costs are 20-30% lower than in those two cities, and the supply of IT engineers is also abundant. With dedicated zones such as Da Nang Hi-Tech Park and Da Nang IT Park already in place, it is a strong option for Japanese companies considering shifting production to Vietnam under a "China plus one" strategy.

Da Nang's geopolitical advantages

Da Nang is geographically located in the center of Vietnam and functions as a logistics hub linking north and south. Da Nang International Airport has direct flights from Japan's Narita and Kansai airports, making people-to-people exchange with Japan easy. Its port facilities are also well developed, giving it high potential as an export base for manufacturing.

Challenges and points to note

Da Nang's challenge is scalability. Compared with Ho Chi Minh City or Hanoi, its market size is limited, and there are infrastructure constraints on setting up large-scale manufacturing sites. Also, its semiconductor industry ecosystem is still developing, and it lags Singapore and Malaysia in the depth of its supplier network. That said, given its cost advantage and talent supply, it has ample appeal as a site for an R&D center or a test and packaging hub.

Da Nang seen in the context of Japan-Vietnam cooperation

The Vietnamese government positions Japan as one of its most important investment partners, and in March 2026 the prime minister called for stronger cooperation in a dialogue with Japanese companies. Da Nang's push to attract semiconductor and AI investment is a city-level embodiment of this national-level Japan-Vietnam cooperation, and Japanese companies currently enjoy a policy tailwind.

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