Danang and Quang Nam: A United Front for Central Coastal Development

On June 12, the National Assembly voted to pass a resolution on merging provinces and cities, resulting in a reduction to 34 provinces and cities. This includes the merger of Quang Nam Province and Da Nang City into a new city that will retain the name Da Nang City.

Recently, the Vietnam Real Estate Research Institute organized a seminar and online exchange with the theme “Seaside Apartments on the Da Nang – Hoi An Heritage Axis: The Coordinates of Prosperity Attracting the Elite.”

During the seminar, experts asserted that the coastal area of Da Nang – Hoi An is becoming the new focal point for investors and high-end residents due to a series of infrastructure developments, policies, and urban development visions.

According to a report by the Vietnam Real Estate Research Institute, there is a growing wave of international experts, entrepreneurs, and investors moving to Da Nang. This group of elite residents demands high standards of living environments, amenities, culture, and infrastructure, creating both challenges and opportunities for the region’s real estate market.

Notably, Da Nang is currently expanding its urban space, investing heavily in financial and free trade zones, transportation infrastructure, and particularly, the plan to merge with Quang Nam. With an area of nearly 12,000 km2 and two international airports, the new urban space will become the largest city among the centrally governed cities, boasting 200km of coastline – a highly valued potential for development by professionals.

The merger of Da Nang and Quang Nam brings about strategic changes to the southeast region of Da Nang, especially in Ngu Hanh Son District.

Experts agree that the southeast coastal corridor of Da Nang, stretching from Son Tra, My Khe, and Ngu Hanh Son to the ancient town of Hoi An and the Chu Lai open economic zone, converges three layers of value: nature, culture, and comprehensive connectivity. This will become a strategic belt and a “future convergence point” attracting domestic and foreign investment.

Assoc. Prof. Dr. Tran Dinh Thien, a member of the Prime Minister’s Policy Advisory Council, emphasized that the expansion of the geographical scope provides a “institutional springboard” for Da Nang, allowing for more flexibility in management and investment. This will create a modern chain of urban, port, industrial, and tourism areas capable of competing with leading centers in Asia.

From a planning perspective, Architect Tran Ngoc Chinh, President of the Vietnam Urban Planning and Development Association, asserted that future Da Nang must pivot towards the sea, aligning with the country’s sea-oriented development strategy. This is not only an urban conundrum but also an economic and social imperative in the long term.

However, alongside these advantages, the report also pointed out a concerning reality along the Truong Sa Street real estate axis, where most of the condotels, beach villas, and high-end resorts are concentrated. The majority of projects are granted only a 50-year land use right, face legal limitations, experience delays or are left abandoned, resulting in resource waste and an eyesore for the city.

In this context, the Vietnam Real Estate Research Institute suggested that the southeast coastal corridor, especially the Truong Sa Street area, needs to be restructured towards more sustainable and comprehensive development. Removing legal barriers for condotels and developing seaside urban areas with clear legal frameworks that cater to both vacation and long-term residential needs are key to reviving the market and creating sustainable appeal for the region.