The biennial Da Nang International Fireworks will be held every year from 2017 and will last for three weeks instead of only two days as in the past.
Sun Group will organize the event in March when the central city celebrates its liberation day March 29, Da Nang's government announced Friday.
The city began to host the annual event in 2008 but it became a biennial competition in 2013 due to financial difficulties. There have been mix results and the competition in some years failed to attract as many tourists as expected.
Sun Group now believes it can successfully run the event every year.
According to the group, eight teams are expected to compete next year, including Da Nang and past champions.
There will be other events to attract tourists including a food festival, paragliding shows and an international music festival, a company spokesperson said.
Sun Group said it will spend around VND50 billion (US$2.25 million) for the 2017 competition.
Official statistics showed the number of tourists visiting Da Nang during the fireworks event surged from 50,000 in 2008 to 460,000 last year.