Tourism remains the driving force
According to Troy Griffiths, Deputy Managing Director, Savills Vietnam, as hosts for this year’s APEC summit, Danang has thrust itself to the center of the world stage. With 21 member countries participating in predominantly trade discussions the benefits to Danang are enormous. The most tangible is ‘Danang brand’ that will be recognized globally, accelerating already strong tourism growth. The benefits of warm climate, golden beaches, and rich culture, have made Danang hotels and resorts highly compelling tourism destinations.
Danang is already prosperous with increasing registered FDI. The hospitality boom continues as more international and domestic flights are added and major hospitality brands jostle to enter.
“Tourism has been the driving force of the city and in the first half of 2017. The opening in time for APEC of infrastructure projects such as the airport expansion and Dien Bien Phu tunnel are examples of pulling forward infrastructure that will serve future growth. The rapid expansion of resort projects along the entire coast now gives Danang truly world-class capacity to service particularly the proximate northern Asian markets,” said Troy Griffiths.
To the south, the recently completed Hoi An bridge and the US$4 billion casino, golf and entertainment complex well underway, then even more drawcards are offered.
New infrastructure will boost retail market
The central Vietnam in particular and Danang in general are still relatively new markets. Currently, such fashion brands as Zara, H&M or Uniqlo have not included Da Nang in their development plan.
“However, the impact of APEC in Da Nang, particularly the retail market, is still relatively viable as the development of infrastructure has always led to retail growth. The APEC 2017 has promoted Da Nang to develop a number of infrastructures, which will be the key to the retail operations in the future,” said Pham Thai Binh, head of Retail Leasing Savills in Ho Chi Minh City.
He added that many people are also looking forward to the development of integrated commercial centers in resort and entertainment projects which are booming in Da Nang.
Da Nang has been seen as an investment destination of such large food brands as Mc Donald or Phuc Long. Currently, distributors of medium to high-end fashion brand Maison are also exploring locations for PEDRO and Charles & Keith brands in the coastal city. Many experts also expect an "unexpected leap" of the Da Nang retail market after the "APEC effect”.