Da Nang is aiming to be home to a total of around 30,000 domestic and DFI enterprises by 2020. Therefore, satisfying the growing demand for land for their production and business activities is an urgent matter.

Many businesses are still in desperate need of land resources to expand their production.

In recent months, the city authorities have considered the real demand for land amongst domestic and foreign businesses operating in the city so that the allocation of land for them will be conducted in an even more effective manner.

According to the Da Nang branch of the Viet Nam Chamber of Commerce and Industry (VCCI), hundreds of small and medium sized enterprises (SMEs) operating in the city now find it very hard to access land in industrial parks (IPs) in order to expand their production activities.

Meanwhile, manufacturing establishments located near residential areas can cause noise and harmful air effluents, which negatively affect the health and daily lives of the local residents. For this reason, the owners of these businesses are willing to relocate their production facilities far away from the residential areas to expand their production. But, how they can access business premises for production activities is still an aching issue. Mostly, each of existing business premises covers only a few hundred square metres of local residential areas.

Like domestic businesses, foreign–invested ones are also in desperate need of land for production activities.

More recently, some Japanese entrepreneurs suggested that the city authorities should consider facilitating investors to rent small land lots in IPs, citing IPs in Ho Chi Minh City as a typical example where land areas covering 3,000m² and more are being leased to small-scale projects. This new land lease policy is thought to help the city attract even more domestic and foreign businesses, including Japanese SMEs.

Regarding this recommendation made by the Japanese businesses, the Da Nang IPs and Export Processing Zone Authority noted that the Hoa Cam IP is now the only one where land areas of 3,000m² and more can be designated for SMEs.

Da Nang is now home to 6 dedicated industrial parks (IPs) covering a total area of over 1,066ha. They are the Hoa Khanh, expanded Hoa Khanh, Da Nang, Lien Chieu, Hoa Cam and Da Nang Seafood Services IPs. The majority of rentable space at these IPs and a local industrial cluster (IC) have been fully occupied by investors.

Ms Nguyen Thi Thuy Mai, the Deputy Director of the municipal Department of Industry and Trade, a total amount of unused land in IPs and land of stagnant coastal and downtown projects across the city is over 1,000ha in total. The revoked land will be leased to businesses which make commitments to use the land for production activities.

According to the municipal Department of Planning and Investment, in line with the city’s project for making adjustments to the development of local IPs by 2020, the city is completing the procedures for the establishment of 3 new IPs, namely the 2^nd phase of the Hoa Cam IP covering a total area of 125.14ha, the 405.5ha Hoa Nhon IP, and the 400ha Hoa Ninh IP.

Apart from the new large-scale IPs, the city authorities are preparing related procedures to set up new ICs for small and very small-sized businesses in the near future, including the Hoa Khanh Nam and Hoa Khanh Bac ICs.

To date, each district has seen hundreds of businesses registering to access land for their production activities.

At the recent 7^th session of the municipal People’s Council in its 9^th tenure for the 2016 - 2021 term, the delegates adopted a policy regarding the establishment of the Cam Le IC, covering an area of nearly 30ha, at an estimated cost of more than 200 billion VND. 

This is really happy news for businesses operating in the district where a total of about 500 firms are in desperate need of land resources to expand their production.

Mr Pham Nam Son, the Vice Chairman of the Cam Le District People’s Committee, remarked that his unit has to date completed preparatory documents regarding the establishment of the Cam Le IC.