Da Nang is now seeing a significant decrease in foreign direct investment (FDI) inflows.  Last year, the city authorities granted investment licences for 30 new FDI projects, with a total registered capital of around 126.4 million USD.  Approval was also given for 16 existing projects to raise their investment capital by a total of 30.26 million USD.  This was a decrease of nearly 50% in the total newly and additionally registered investment capital compared with the previous year.

Work in progress at the Da Nang Hi-tech Park

Over the first 3 months of 2015, the city has attracted FDI projects worth only 3.389 million USD.  Of this, over 2 million USD has already been disbursed.

Currently, there are many vacant land lots at the construction sites of delayed seaside projects.  Meanwhile, local industrial parks all have only small-scale production premises which are unable to satisfy the demands of investors.  In addition, foreign businesses now find it very hard to seek suitable construction sites for their projects in healthcare, education, trade and other aspects.

Another challenge facing the city is that the local support industries have yet to be developed, whilst the city’s preferential polices for attracting investment have clearly not been attractive enough.  The city’s investment promotion programmes have yet to be implemented effectively due to a shortage of funding from the city’s budget.

In addition, the city is now facing a shortage of high-quality human resources to meet the demands of foreign investors.