"In all endeavors, provincial sectors have actively collaborated with specialized agencies to meticulously identify and prioritize projects that enhance environmental sustainability, leverage cutting-edge technology, add substantial value and bolster investment appeal," emphasized Ms. Tran Thi Thanh Tam, Director of Da Nang Department of Planning and Investment. Da Nang is steadfastly committed to retaining prospective investors and collectively forging a city renowned for its livability and investment allure.
Many optimistic signals
In recent years, Da Nang City has prioritized investment promotion in key international markets such as the United States, Japan, South Korea, and Singapore. This initiative has entailed actively encouraging major corporations to expand their investments, with a particular focus on projects aligned with the city's master plan for the 2021-2030 period and vision to 2050.
Da Nang City's growth and appeal stem from several key factors. These include the dedication of its government and people, the abundant local resources such as its strategic location and natural assets. The city has also made significant strides in developing urban and rural infrastructure, bolstering both its urban and maritime economies, which are vital to its economic vitality. Da Nang's economic landscape is characterized by dynamic progress in manufacturing and commerce across key sectors. The city is actively restructuring its economy, focusing on advancing "services - industry - fisheries, agriculture, and forestry." Effective governance, supported by political engagement and targeted policies, is pivotal in driving Da Nang's development. Moreover, Da Nang is committed to advancing its digital economy and harnessing science and technology to lead innovation and digital transformation, thereby fostering continued economic growth.
Despite facing many challenges, Da Nang City has swiftly mobilized all available resources since the beginning of the year to effectively align with the 2024 theme of "promoting administrative reform, strengthening discipline, unlocking investment resources, accelerating economic growth, and ensuring social security."
The city achieved remarkable milestones in the first half of 2024. Visitor arrivals at accommodation establishments reached an estimated 2,783,000, up 24.9% increase compared to the same period in 2023. Total retail sales surged to approximately VND23,628 billion, reflecting a growth of 10.4% year-on-year. By June 30, 2024, Da Nang City successfully attracted significant new investment capital and adjusted domestic projects totaling VND25,264,754 billion, alongside FDI projects amounting to US$27,850 million. Cumulatively, the city saw 776 domestic investment projects both inside and outside industrial parks, amounting to a total capital of VND255,135.92 billion, and 1,012 FDI projects with a combined investment capital exceeding US$4.35 billion. Notably, total state budget revenue reached VND9,248.8 billion, up by 125% over the same period.
Many solutions to attract investment
“In recent years, the Da Nang City Government has pursued initiatives to attract both domestic and international investment. Under the guidance of the Standing Committee of the City Party Committee and the City People's Council, and with contribution from the business community, the City People's Committee has focused intently on fostering a conducive environment for investment. This commitment includes proactive dissemination of investment information, effective deployment of policies, and continuous enhancement of transparency to bolster the city's appeal to investors. The city has consistently collaborated with central authorities to address challenges beyond its jurisdiction, as evidenced by its contributions to the plan to resolve project-related obstacles and proactive engagement on urban development, land management, planning, construction, and financial matters. These efforts have not only facilitated the smooth implementation of investment projects but also nurtured robust confidence among foreign investors. As a result, foreign direct investment now comprises approximately 15% of the city's total investment, significantly bolstering production capacities and fostering a balanced economic structure encompassing services, industry, and agriculture. This approach has also stimulated the emergence of key industries, fostering innovation and the production of new goods," emphasized Ms. Tran Thi Thanh Tam.
To achieve its goal of attracting approximately US$7.0 billion in registered investment capital by 2030, Da Nang City has crafted important measures:
Ensuring comprehensive compensation and efficient site clearance processes, with a specific focus on completing infrastructure in selected industrial parks and clusters by 2025. The city is enhancing its promotional endeavors to attract investments, focusing particularly on industrial clusters, industrial parks, the hi-tech park, and the IT center. Da Nang is prioritizing the attraction of high-tech industries such as semiconductor chip design, artificial intelligence (AI), big data technology, and digital innovations to stay competitive as foreign direct investment flows into Vietnam. Moreover, the city is establishing connectivity between the hi-tech park and industrial parks/clusters to develop satellite industrial parks, aiming for seamless integration of production support services. It is also aggressively promoting investment in key markets and positioning itself as a national hub for startups and innovation. Strengthening dialogue with businesses to swiftly address challenges encountered during investment, production, and business operations is another important measure of Da Nang's strategy. Furthermore, enhancing the Provincial Competitiveness Index (PCI) indicators to bolster transparency and foster an attractive business environment, alongside continuously removing barriers and streamlining procedures to accelerate the implementation of dynamic, large-scale projects, remains a priority. The city is persistently pursuing the dismantling of stagnant projects to free up resources and resolve obstacles related to projects and land across various provinces and cities, aligning with provincial inspection and examination conclusions.
Resolution 136/2024/QH15, passed by the National Assembly on June 26, 2024, is set to revolutionize Da Nang City's governance. It introduces a free trade zone and initiatives like the logistics center to attract strategic investors, showing the city's dedication to innovation. Da Nang aims for growth by developing advanced technologies such as microchips, semiconductors, AI, and ICT, bolstered by strong science and technology management.
Da Nang stands as a favored destination, renowned in Vietnam for its good quality of life, distinguished status as an attractive tourist hub in the central region and the nation, and a preferred venue for international conferences. Emphasizing proactive engagement, the city continually enhances dialogue and collaboration with businesses to swiftly address emerging issues related to their investments, manufacturing, and commercial activities. Ms. Tam said, "The success and growth of every company contributes directly to the advancement of our city. We are steadfastly dedicated to continually improving the investment and business environment, retaining longstanding investors, attracting new potential partners, and nurturing Da Nang into an increasingly appealing and prosperous urban center."
By Hoang Lam - Han Luong, Vietnam Business Forum
Vietnamese
October 2024
Hanoi