The growth rate of Da Nang gross regional domestic product (GRDP) in the first half of 2021 rose by 4.99% from the same period last year. The city's economy is gradually rebounding and escaping from the negative growth rate as reported last year. The Da Nang People's Committee has proposes 3 scenarios for economic development in the second half of this year.

In the first scenario, as COVID-19 is expected to be well controlled from the beginning of July, the growth rate of GRDP in the second half of this year will record an increase of about 7%, and the GRDP scale is equivalent to about 92% of the figure in the second half of 2019 and equal to the average rate recorded in 2018 and 2019. Based on these projections, the growth rate of GRDP will reach 6% this year. The State budget collection will hit over VND18,953 billion, surpassing by 4.2% of the year’s estimates.

In the second scenario with unfavourable conditions, as the current virus resurgence will be basically controlled from the end of the third quarter, GRDP in the second half of this year will climb by nearly 5%, and the GRDP scale is equivalent to nearly 90% of the figure recorded in the second half of 2019. This year’s GRDP will, therefore, will rise by 4.5-5%. The State budget collection will stand at over VND18,404 billion, surpassing by 1.2% of the year’s estimates.

In the worse-case scenario, COVID-19 is not put under control in the third and fourth quarters, the growth rate of GRDP in the second half of this year will less than 3.5%, and the GRDP scale is equivalent to about 85% of the figure documented in the second half of 2019. The entire year’s GRDP growth rate will, therefore, be less than 4%. The State budget collection will be over VND17,514 billion, fulfilling 96.27% of the year’s target.

From the three scenarios mentioned above, the municipal People's Committee said that the scenario with the GRDP growth rate of 5.5 - 6% is highly likely to happen as this figure is suitable to the actual situation, with high feasibility and shows the city’s efforts to contain the virus wave to boost economic recovery.

It is hoped that the service, construction- industry; agriculture, forestry and fisheries sectors will achieve growth rates of about 5.7%, 3.9% and 1.0%, respectively. The key to maintaining economic growth is to focus on supporting and maintaining production and business stability, thus contributing to the restoration of economic growth.

In the remaining months of this year, the city will attach importance to supporting the business community, accelerating the disbursement of public investment capital, spurring sustainable aquaculture development, restructuring agricultural fields, developing key agricultural products, facilitating enterprises to access loans from credit institutions for their production and business activities, restructuring debt repayment terms and keep debt groups unchanged, and promoteing non-cash payment activities.

Reporting by TRIEU TUNG- Translating by A.T