Over the past 2 decades, Da Nang’s private economic sector has recorded impressive imprints, stretching over various industries and affirming its important role in speeding up the process of the city’s economic restructuring, creating employment opportunnites for locals, and making great contributions to the city budget.

The private sector has affirmed its important role in promoting the city's economic development. A corner of the Ngu Hanh Son District-based Xuat Anh stone carving establishment is pictured here.

It is worth praising that businesses have thrived at a rapid pace in terms of both quality and quantity in the 2003 - 2017 period, according to the lasted figure released by the municipal Department of Planning and Investment.

In 2003, the number of private businesses, branches, and representative offices operating in the city only stood at 1,472 with a total registered capital of 3,809 billion VND, and this figure has to date rocketed to about 29,000. Notably, the city’s economic structure has gradually shifted towards services- industry- agriculture.

In particular, in the 2003-2018 period, the proportion of the private sector increased from 27.1% to 53.7%, whilst foreign-invested sector climbed from 6.6% to 11.3%, making a contribution of 41.7% to the total State budget revenue.

There is no denying that these facts clearly show the private sector’s important role in accelerating the city’s progress.

According to Director of the Da Nang Branch of the Viet Nam Chamber of Commerce and Industry (VCCI) Nguyen Tien Quang, Da Nang now takes the lead in Central Viet Nam in terms of the number of businesses.

It is noticeable that, private businesses have penetrated in some industries which only the State-run ones undertook previously, including mechanical industry, automobile, steel production, and commodity export.

Production activities in progress at the city-based A Chau Architecture and Trading Co., Ltd

Chairman of the municipal Tourism Association Cao Tri Dung pointed out to the positive sign that, in recent years, given its breakthroughs, the private sector has helped to create a new look for the tourism - service industry. The presence of many renowned domestic and foreign brands has enhanced the quality of the service - tourism industry

In an attempt to promote the growth of the private economic sector, the city administration has taken many drastic actions to accelerate administrative reform. Accordingly, heed has been paid to shortening the time to handle online business registration procedures to 1-2 days from 3 days as previously, and widely publicising information about land use plans and the planning of industrial parks (IPs) and handicraft clusters and other related matters.

Besides, the municipal government has also issued a number of mechanisms, policies and solutions to pave the way for the development of private economic sectors. Included are the plans for opening new IPs to handle the severe shortage of premises facing some businesses, and the establishment of the municipal Development Investment Fund which serves as an effective tool for the local government to appeal for domestic and foreign sources of capital for the provision of preferential credit packages for local businesess.

In recent times, Da Nang has nationally pioneered in deploying solutions and support programmes for the sake of the private economic sector, and organising large-scale talk shows and meetings with businesspeople with the intention of grasping their recommendations and aspirations.

In fact, the great efforts made by the, municipal authorities have facilitated to create an attractive investment environment in the city for many large domestic and foreign investors, hereby ensuring the vibrant private economy.