Da Nang economy’s scale is estimated to be valued at only 100,000 billion VND this tough year at current prices, a plunge of 10,000 billion VND compared to last year, Da Nang Statistics Bureau announced at the Tuesday press brief.

Director of Da Nang Statistics Bureau Tran Van Vu presenting a report on Da Nang’s economic performances in 2020.

The growth rate of Da Nang gross regional domestic product (GRDP) in 2020 is expected to plummet by 9.77% compared to 2019.

The service sector is predicted to plunge by 8.21%, whilst industry - construction down by 12.23%, and the taxes less subsidies on production will go down by 15.55%.

The agro-forestry-aquaculture will be the only sector to see a rise of 2.4%.

The total social development investment recorded this year is estimated at 34,800 billion VND.

With regard to business registration, from the beginning of 2020 till mid-December, a total of 4,112 companies, branches and representative offices with a total registered capital of 21,412 billion VND were set up, a drop of 28.3% and 22.1% in the number of newly-established firms and in the total registered investment capital respectively, compared to the same period last year.

As for foreign investment attraction segment, as of 15 December, the total amount of newly registered investment and additional capital, and the capital contribution and the purchase of shares by foreign investors had reached an estimated 220 million US$, down by 49.8% against the year-ago period. 

There were 83 newly licensed projects totalling 128.9 million US$, a decrease of 50 projects against the year-ago period.

A bit encouragingly, FDI channeled into Da Nang this year is estimated to climb by 42.4% to hit 284 million US$.

Since the start of this year, Da Nang government has issued investment policy decisions for seven domestic investment projects worth a total of 16,663 billion VND outside industrial parks (IPs). Investment licences have gone to 15 projects in IPs and the Da Nang High-Tech Park with a total investment of 2,201 billion VND.

The total value of imports and exports in Da Nang this year will plunge by 7.5% to reach 2,750 million US$ against last year. Of this, the export turnover will suffer a 5.6% down to reach 1,538 million US$, whilst the import turnover will go down by 9.8% to stand at 1,212 million US$.

The trade surplus, therefore, is estimated at 326 million US$, the highest recorded in the past 9 years since 2012.

The average consumer price index (CPI) in the 12 months of this year is likely to climb by 3.34%, compared to the same period last year.

Director of the Da Nang Statistics Bureau Tran Van Vu blamed COVID-19 crisis and unfavourable weather patterns a plunge in some socio-economic segments.

Amongst the five provinces and cities in the key central economic region, Da Nang is one of the three to suffer a minus growth.

Amongst five Vietnamese centrally-run cities, despite its slowing growth, Da Nang’s economic scale and its GRDP per capita remained placed 4^th in the group.

Despite the economic downturn sparkled by the aforementioned factors, there are still bright spots on Da Nang economy picture.

Encouragingly, information and communications technology is likely to increase by 5.24%, finance, banking and insurance up 7.35%, medical and social assistance up 18.33%, the production of pharmaceuticals up 44.57%, and the manufacturing of other means of transport, except for cars and motor vehicles, up 17.64%.

By MAI QUE- Translated by A.T