The impact of the Covid-19 pandemic on Da Nang’s economy is becoming increasingly visible. The current coronavirus (Covid-19) crisis means this is a challenging time for all businesses operating in Da Nang.

The latest figures released by the municipal Department of Industry and Trade showed that, as of 15 April, the municipal authorities have granted business registration certificates to a total of 1,187 new domestic and foreign businesses, branches and representative offices, with a total registered charter capital of 6,265 billion VND. The figures represented a 38% drop in the number of newly-established firms and a 44.5% decrease in total registered investment capital against the same period last year.

Also, 238 businesses were dissolved, whilst 991 had their business activities temporarily suspended.

The virus has also hit society like a global tsunami, disrupting travel, cutting off communities, shuttering factories and shaking up businesses around the world.

In Da Nang, 2,383 businesses in total are suffering from the impact of coronavirus.

Around 57,361 people are financially struggling amid the pandemic. Of this, 7,090 have their employment contracts terminated, and 18,421 are temporarily unemployed.

Statistics show that Da Nang’s tourism sector is among the hardest hit by the Covid-19 crisis. In the first quarter of this year, the room occupancy rates at accommodation establishments across the city went down by 25% compared to the same period last year.

During that period, the revenue from accommodation and catering services declined by 23.7% to stand at 3,569 billion VND, whilst the revenue from travel services reached 435.5 billion VND, down 19.5%.

The total loss of the tourism sector is likely to reach more than 1,859 billion VND in the first quarter, and its accumulated losses are estimated at 5,672 billion VND in the first half of the year.

The city’s total retail sales of goods and services, mainly medical goods and preventive care, in the first three months were estimated at over 14 trillion VND, up 6% compared to the same period last year. Meanwhile, the purchasing power of other items decreased sharply.

Supermarkets and traditional markets across the city ensure that there are sufficient supplies of essential goods at stabilised prices for local residents.

In the three-month period, the value of the city’s exports declined by 6.5% to stand at 332.9 million USD, whilst the import turnover was 256.7 million USD, a decrease of 14.7%.

The index of the city’s industrial production in the first quarter of this year increased by 0.73% against the same period last year, and down by 14.95% against the 4^th quarter of 2019.

By TRIEU TUNG - Translated by MAI DUNG