The central city has significant opportunities as Vietnam enters a new stage of development. In particular, the city's expanded administrative space following the recent merger has created greater capacity in terms of land, population and resources, opening conditions for restructuring its development model on a larger scale. To realise this potential, the city is stepping up endeavours to attract investment and effectively mobilise social resources for new development models.

Strengthening policies and institutional capacity

According to Dr Eduard Muller, former Austrian Minister of Finance, Vietnam is among Asia's most dynamic economies. Da Nang, meanwhile, is embarking on a major transformation through ambitious initiatives, such as the development of an international financial centre (IFC) and a free trade zone with green finance, digital assets, artificial intelligence, and modern urban infrastructure. He said the success of this new growth model will depend on a well-designed policy framework and strong institutional capacity.

Institutional capacity, he said, encompasses the ability to make decisions, implement policies, monitor outcomes, learn from experience and make necessary adjustments. Effective public administration also requires professional, efficient procedures and the application of advanced technologies. At the same time, municipal authorities and management agencies should strengthen coordination and partnerships with the private sector.

Regarding regulatory sandbox models, he stressed the need for clear and transparent criteria to protect investors, prevent money laundering and ensure data security. Drawing on European experience, he said financial innovation policies should distinguish between innovation hub sandboxes, regulatory sandboxes and thematic sandboxes. Muller noted that a sandbox is not a law-free zone but rather a structured, time-bound and closely supervised environment for policy experimentation and learning.

Dr Urs Lustenberger, Chairman of SwissCham Asia, said Vietnam possesses strong institutional capacity and is capable of achieving the development objectives it has set. However, he suggested the country should clearly define its priorities to address remaining institutional bottlenecks.

He cautioned against competition among localities, noting that many provinces and cities are seeking to develop their own airports, seaports, IFCs and high-tech parks, which could lead to fragmented investment and unhealthy competition. To attract international capital, he added, authorities should embrace a more transparent and level playing field, ensuring equal treatment for private and state-owned enterprises.

Da Nang should establish business incubators to support young entrepreneurs, particularly in finance-related start-ups. He expressed confidence that the city will become an attractive place to visit, live, and start businesses.

Competing through human resources and technology

Le Quang Dam, General Director of Marvell Technology Vietnam, described human resources as one of the most valuable assets of any enterprise. Vietnam, he said, has enormous opportunities in the semiconductor industry, which represents a multi-million-dollar market. Investing in Vietnam offers cost advantages while providing access to a young workforce with strong knowledge, passion, and ambition in high technology.

According to him, Marvell Technology Vietnam currently employs 75 Vietnamese engineers and plans to increase the number to 100 next year. The company has built a strong engineering team with universities to train high-quality human resources. He suggested that Da Nang strengthen training in AI application skills, soft skills, and teamwork skills to improve labour productivity.

Professor Paul Romer, the 2018 Nobel laureate in economics, said authorities play a crucial role in creating economic models that better serve people and demonstrate successful approaches to the world. Developing modern cities and providing adequate housing in urban areas are essential for economic growth, as large urban centres tend to generate faster and more efficient growth than rural areas. For Da Nang, he said, expanding urban infrastructure and development space is key to ensuring that all residents have access to both employment and housing.

He also recommended that municipal authorities support AI development, while urging universities to expand research, improve AI technologies and make them widely accessible. In an economy driven by science, technology and innovation, he said, broad public access to new knowledge is the most critical factor. Authorities should ensure that everyone has equal access to knowledge, science and technology, while preventing monopolies.

Paving the way for new development models

Chairman of the municipal People's Committee Nguyen Manh Hung said the city enjoys a unique combination of advantages, including its strategic position as the eastern gateway to the East–West Economic Corridor, a network of seaports, an international airport and regional transport infrastructure, as well as special policy mechanisms and a solid foundation in digital governance and smart city development built over many years. These strengths are complemented by the municipal authorities’ continued efforts to foster a transparent investment environment and enhance their international integration.

Da Nang is leading the way in piloting institutional reforms and new development models. The approval for the city to establish an IFC, a free trade zone and other special mechanisms will provide opportunities to test modern development models in practice, thus contributing to the improvement of the national institutional framework.

In the coming time, the central city will focus on attracting high-quality investment, prioritising projects capable of driving innovation, technology transfer, workforce development and creating broader economic spillover effects. It also aims to become a regional innovation hub by developing an ecosystem centred on science and technology, AI, semiconductor microchips, data centres, high technology and the digital economy.

According to Hung, throughout its development process, Da Nang remains committed to becoming a great place to live, visit, invest in, and contribute to. At the same time, it continues to preserve its cultural values and traditions while placing residents' quality of life at the heart of its development policies. These strengths are seen as a key competitive advantage in attracting talent, businesses and strategic investors to support the city's long-term economic development.

He expressed his hope for continued support from the government, organisations, experts, scientists and domestic and international business communities to help build Da Nang into an internationally competitive city and a pioneer in developing new growth models in the country./.