Over recent years, Da Nang government has created new incentives to give a real boost to support industries which are highly considered vital to modern manufacturing.  The move has pave more way for Da Nang manufacturing support industries to make more remarkable progress strides, hereby bettering the performance of Da Nang industries, and brightening the city’s economic outlook as a whole.

A scene of the first-ever Supply-Demand Matching Conference in Support Industries in the Central Viet Nam and Central Highlands regions took place in Da Nang last year

Da Nang now houses about 110 enterprises operating in the support industries, accounting for about 6.3% of the total number of manufacturing enterprises in the city.  29 of them are foreign-invested companies, accounting for a quarter of Da Nang’s total providers of industrial services.

Over the 2016 - 2020 period, the city saw an upward trend in support industry project numbers, especially foreign businesses which are active in spare parts and components manufacturing, raw materials, machinery for production, and the assembly of finished products.

In particular, the Da Nang Hi-tech Park and other industrial parks (IPs) have attracted a combined total of 9 domestic support industry projects worth a total of 1,402 billion VND and 15 FDI ones totalling 311.9 million US$ (equivalent to about 7,640 billion VND).

It is encouraging that the added value of the support industries has helped modernise Da Nang’s economy as a whole, including manufacturing, hereby driving Da Nang’s economic growth. In the coming time, once new large-scale projects are put into operation, the support industries will surely make a bigger proportion in the value-added structure of the local industry.

With regard to new targets set for the 2020 – 2030 period, with a vision towards 2045, the city’s support enterprise community will grow up in terms of quantity and production capacity, showing off even more highly-competitive industrial products in hi-tech, electronics - telecommunications, automobile production – assembly and key engineering.

In more details, the 2021 – 2025 period will see at least 10% of support enterprises be fully capable of directly supplying their products to manufacturers operating in the city,

Also, at least one multinational corporation with its full manufacturing process will pour its money into the city. Meanwhile, support industries will account for about 30% of the added value of the local processing and manufacturing sector.

Currently, the construction of over 102ha, the 235 billion VND Supporting Industrial Park project serving the Da Nang Hi-tech Park is progressing well.

This project is highly expected to drive the growth of support industries, provide ancillary services for the Hi-tech Park, create a closer link amongst businesses operating here, attract new FDI projects, and transfer advanced and modern technology and production skills through cooperation between domestic and foreign enterprises involved in support industries.

Besides, Da Nang will welcome domestic and FDI investment into developing ready-built factories meeting international standards in the Da Nang Hi-tech Park and other IPs in the city.

As for other supportive incentives, heed will be paid to assisting support industry projects to enjoy more feasible access to preferential loans from the Da Nang Development Investment Fund and calling for financial support from the national government and international organisations to push up the growth of the support industries in the time to come.

By KHANH HOA – Translated by A.T