Possibility of Forming Industrial Clusters in Vietnam: Case Study of FPT City Da Nang in Da Nang

Abstract

Da Nang, which is located about half way between the north and south of Vietnam, is a port city with a population of 1,000,370 (as of late 2013) and an area of 1,283.42 km2. The city is the economic and cultural center of the Vietnamese midlands and central plateau region, and its municipality is ruled by the central government. In addition, Da Nang port is the third most important international trade port in Vietnam after the ports of Ho Chi Minh City and Haiphong. As a strategic traffic location connecting east and west on the Indo-China peninsula, Da Nang is the eastern starting point of the East-West Economic Corridor that connects the central plateau region, Myanmar, Thailand, and Laos. There are eight industrial complexes (Including the high-tech Danang IT Park) in Da Nang, and here 72 Japanese-affiliated companies have expanded their business. A Japan Business Association was established in Da Nang in October 2008. Currently about 60 companies in Da Nang and its satellite areas have joined this association. Not only does Da Nang actively accept foreign capital through direct investments; it also invests resources in its industrial clusters of domestic industrial complexes and high-tech parks. Here, I discuss the future possibilities for Da Nang’s industrial cluster, focusing on the case of the “smart” FPT City Da Nang.