Vietnam: Former provincial capital struggles with fragmented development post-restructuring

The recent administrative restructuring in Quảng Nam province, which saw the former provincial capital of Tam Kỳ reorganized into four wards, has inadvertently created significant challenges for local development and connectivity. As reported by Tuổi Trẻ, the transition to a two-tier local government system, while intended to streamline administration, has resulted in a fragmented development landscape. The absence of a unified coordinating body, previously embodied by the provincial city, has led to a noticeable lack of overall linkage between the newly formed wards.

This administrative division has had tangible consequences for the region's economic and social fabric. With the city no longer serving as the provincial administrative hub, there has been a marked decrease in political, administrative, and cultural events. This reduction has directly impacted the commercial and service sectors, which relied heavily on the consistent flow of officials and a stable, higher-income population. Consequently, purchasing power has diminished, markets have become sluggish, and many businesses are struggling, affecting employment and livelihoods.

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The development space is fragmented and lacks linkage.

In response to these challenges, local authorities are advocating for a strategic approach to revitalize the southern region of Da Nang. They propose the creation of a special mechanism to foster the development of a dynamic urban cluster. This cluster would encompass the four former Tam Kỳ wards and surrounding areas, aiming to establish a new growth pole that can drive development for the entire southern region. This initiative seeks to leverage the historical significance of Tam Kỳ while integrating it into a broader, more dynamic development framework for Da Nang, ensuring that the area's potential is fully realized and its economic vitality restored.

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We propose that the city consider and approve the construction of a special mechanism to develop the southern dynamic urban cluster of Da Nang.