In the first half of 2021, Da Nang well performed in terms of controlling the COVID-19 resurgence in tandem with beefing up economic recovery in a prompt yet effective manner. Thanks to this, the city’s gross regional domestic product (GRDP) in the first half of this year climbed by 4.99% as compared to the same period of 2020. The city’s economic scale expanded by nearly VND 2,000 billion from the year-ago period.

In the first half of 2021, industrial production makes a positive contribution to the city's economic growth. Electronic components production is seen in the Da Nang Hi-Tech Park. Photo: TRIEU TUNG

If the coronavirus resurgence is put under control in the coming months, the economic growth target of 6% growth in 2021 is likely to be within the city’s reach.

Reaching economic recovery goals

Tran Nam Trung, the Deputy Director of the Da Nang Statistics Office, said that the results of a recent survey on the business trends of enterprises in the processing and manufacturing industry showed that about 50% of the enterprises forecasted their activities in the third quarter of this year would be better; 21% predicted that it would be more difficult and 29% expected that the production and business situation would remain stable.

According to a recently-released report of the Business Registration Office under the Department of Planning and Investment, in the first half of 2021, business registration certificates were issued to a total of 2,251 enterprises, branches and representative offices with a total registered charter capital of VND 11,694 billion, up 0.9% in number of enterprises and down 6.9% in the capital from the same period last year.

With regard to the aspect of operation, the number of enterprises established in the first half of this year as compared to the same period last year increased in the agriculture, forestry and fishery sectors by 133.3%, real estate 39.13%, transportation and warehousing 32.88%, education and training 27.08%.

The average capital per enterprise in the 6-month period reached VND5.2 billion VND.
For the time being, there are a total of 33,744 businesses and branches and representative offices in operation with a total registered capital of VND225,662 billion. Gross regional domestic product (GRDP) in the city in the first half of 2021 increased by 4.99% over the same period of 2020, an increase of 1.05% as compared to the same period of 2019.

Currently, many businesses are actively adapting themselves to the COVID-19 crisis by effectively promoted the implementation of “dual goals” in containing the virus and spurring production development.

Deputy Head of the Authority of the Da Nang Hi-Tech Park and Industrial Zones Tran Van Ty said that production activities in industrial parks are approaching quickly and effectively to the “Three on-site” model (manufacturing, eating and sleeping right in the working place) to ensure production as well as fighting against the pandemic with the highest cooperation and unity of employees.

In production, enterprises must seek new orders through e-commerce activities and promoting consumption in traditional markets, in tandem with maintaining strict preventions procedures against COVID-19 during production processes to prevent the risk of infections.

Production activities at Foster Electronics Da Nang Co., Ltd., based in Hoa Cam Industrial Park, Cam Le District. Photo: TRIEU TUNG

Solutions to achieve growth goals

Mr Huynh Huy Hoa, Director of the Da Nang Institute for Socio-Economic Development said that an important solutions to promote economic growth in the second half of the year in the city are to continue promoting the effectiveness of the consumer demand stimulus programme and to accelerate disbursement of public investment capital associated with construction activities. A special attention must be paid to soon deploying policies for supporting businesses.

In his perspectives, Director of the Department of Industry and Trade Le Thi Kim Phuong said that the industry's current priority is to focus on building a database for digital transformation, with a focus on building a commercial database on commercial centers, supermarkets, markets, retail stores, restaurants; distributors/commercial enterprises, plus domestic trade, import and export in a bid to stimulate consumption demand.

At the same time, it is a need to support businesses to build e-commerce platforms to promote their products to more potential customers, make connections with major domestic and international e-commerce ones and introduce participating businesses on world-renowned e-commerce platforms such as Amazon and Alibaba.

Till date, the Da Nang People's Committee has asked for approval from the Prime Minister on the establishment the Supporting Industrial Park for the Da Nang Hi-Tech Park and the development of 3 new industrial parks (IPs), namely the second stage of the Hoa Cam IP and the IPs of Hoa Nhon and Hoa Ninh with a total area of more than 880 hectares and an estimated total investment of nearly VND15,800 billion.

According to Director of the Department of Planning and Investment Tran Thi Thanh Tam, the city has urgently implemented investment preparations for many medium-term investment projects in the coming time.

The municipal People's Committee is implementing 55 key and dynamic projects with a total investment of VND 47,960 billion funded by the municipal and national budgets.

The municipal administration has also developed 3 development scenarios for the second of this year and applied appropriate economic management solutions depending on the actual situations. The spirit of consistency is to reaching an annual growth target of 6% in 2021.

Reporting by TRIEU TUNG- Translating by A.T