Following recent approval from Prime Minister Nguyen Xuan Phuc, the Supporting Industrial Park project serving the Da Nang Hi-tech Park has been added to a master plan for developing industrial parks (IPs) in Da Nang. This has created an important premise for the city to drive the development of supporting industries, and promote investment attraction.

Picture taken at the surface-mount technology (SMT) assembly and manufacturing plant, located in the Da Nang Hi-Tech Park

Developing supporting industries, facilitating to attract industrial projects

According to the Authority of Da Nang Hi-Tech Park and Industrial Zones, the Vietnamese Prime Minister has given an approval for Da Nang to use its medium-term investment capital for the 2016-2020 period on implementing the 58.531ha Supporting Industrial Park project serving the Da Nang Hi-tech Park.

Till date, the construction of the project’s infrastructure has been basically completed.

Head of the Authority Pham Truong Son highlighted the significance of the project to drive the development of support industries, provide ancillary services for the Hi-tech Park, create a closer link amongst businesses operating here, attract more foreign investment, and transfer advanced and modern technology and production skills through cooperation between domestic and foreign companies involved support industries.

“Given a convenient position in terms of airways, waterways, roadways and railways, along with the establishment of the Supporting Industrial Park, an industrial ecosystem is highly predicted to be created in the Hi-tech Park in the coming time” Mr Son remarked.

Mr Son also pledged that his unit would make greater effort to accelerate the infrastructure development at the project in a bid to create the most favourable conditions for both domestic and foreign investors to seek investment opportunities, as well as expand their operations.

Apart from adding the Supporting Industrial Park project to a master plan for developing IPs in Da Nang, the national government leader has approved some adjustments to the master plan.

In particular, the area of the Hoa Nhon Industrial Park in suburban Hoa Vang District's Hoa Nhon Commune will be reduced to 360.59 ha from 393.57ha.

Similarly, the Hoa Cam IP, Hoa Ninh IP, and the 2^nd stage of the Hoa Cam IP will have their areas reduced by Da Nang government.

Workers at the Hifill JSC, one of the city-based businesses operating in the supporting industries

Specific policies needed to boost development of supporting industries

Data published by the Da Nang Industry and Trade show that, as of late 2020, the city had about 120 businesses operating in the support industries, accounting for about 6.3% of the total number of industrial manufacturers in the city. Most of them were micro and small-sized enterprises, and had non-competitive and low value-added products. However, support industries account for about 20% of the added value of Da Nang processing and manufacturing sector.

Ms Nguyen Thi Thuy Mai, Deputy Director of the municipal Department of Industry and Trade, remarked that although supporting industry is considered as one of Da Nang's spearhead industrial sectors, the growth of this field is still lower than expected.

Ms Mai highlighted the importance of the ongoing Supporting Industrial Park project to help the city deal with its severe lack of production premises for such supporting industry enterprises or manufacturers, as well as promote the development of satellite enterprises for hi-tech industrial enterprises in the Da Nang Hi-tech Park.

Director of the city branch of the Viet Nam Chamber of Commerce and Industry (VCCI) Nguyen Tien Quang underlined a must-do for Da Nang to issue specific policies to drive the development of supporting industries as well as support businesses operating in the supporting industries.

By KHANH HOA - Translated by M.D