Da Nang’s great efforts in boosting market promotion and ensuring a transparent, favourable investment environment were really paid off as it recorded fruitful results from investment attraction in the first quarter of this year.

Da Nang recorded fruitful results from investment attraction in the first quarter of this year. Here is a photo taken at the Da Nang Hi-Tech Park.

Arrival of many large-scale projects

In the first quarter of this year, the Da Nang government granted investment licences to nine new FDI projects with a total registered capital of US$ 146.41 million. Also, the existing five FDI projects raised their capital with a total additional sum of US$ 9,372 million.

The municipal authorities handed over an in-principle approval on investment policy to five new domestically-invested projects worth a total of VND 393,822 billion inside and outside industrial parks (IPs).

As of March 15, the city had lured 895 FDI projects totalling more than US$3.8
billion.

Also in the three-month period, business registration certificates went to 776 new domestic and foreign businesses, branches and representative offices, with a total registered charter capital of VND 6,017 billion, up 23.2% in capital as compared to the same period last year.

Accumulatively, there are 32,552 businesses, branches and representative offices currently operating in the city with a total registered charter capital of VND 221,314 billion.

Noticeably, in February alone, the municipal administration granted investment licences to six investment projects, including three foreign-invested ones, in the Hi-tech Park and IPs in the city. This was dubbed as a good sign, opening up more opportunities for the city to welcome a new wave of foreign investment.

The three aforementioned FDI projects are developed by Japanese and US investors. In detail, a 110 million US$ semiconductor factory jointly invested by US nationals- Ha Vinh Ly and Nhe Thi Le, and the 35 million US$ Fujikin Da Nang research-development-production centre, both of which will be developed in the Hi-tech Park. Meanwhile, the 300,000 US$ EPE Packaging Viet Nam project is slated to take shape in the expanded Hoa Khanh Industrial Park (IP).

Focusing on fully tapping key investment markets

The production scene captured at a high-tech incubation factory in the Da Nang Hi-Tech Park

According to Master Vo Van Toan, Director of Ky Viet Technical Construction Design Consultancy Company, the recent public announcement of decrees and decisions already approved by the national government and Prime Minister for major future developments for Da Nang has positively impacted the city’s investment environment, especially creating an ‘investment magnet’ attractive to domestic and foreign investors. 

In particular, following recent approval by the municipal People’s Committee, the price of land for commercial services is adjusted from 80% to 70%, whilst the price of land for production and business purposes is decreased from 60% to 50%. These adjustments are expected to facilitate the reduction of the value of land rental payment made by investors.

In a bid to attract more investment inflows from international markets, Da Nang is scheduled to organise 12 investment promotion webinars targeting such its foreign partners as the U.S., Europe, Japan, South Korea, Singapore and Taiwan (China), in the rest of this year, according to their actual needs and recommendations, as prescribed in the municipal government’s adopted plans, the Da Nang Investment Promotion Agency (IPA Da Nang) said.

The total cost for the above-mentioned webinars will come from the city budget and fundings from private businesses and sponsors.

IPA Da Nang will be tasked with joining forces with relevant local agencies to organise investment promotion webinars to attract more investment inflows from the U.S., Europe, Japan and South Korea in IT, high technology, and high-quality services.

There are 57 key projects in Da Nang calling for domestic and foreign investment over the 2020 - 2025 period, notably including a massive public transportation system featuring metros and tramways worth VND 54,500 billion in total.

Reporting by THANH LAN – Translating by A.T