Driven by thriving key industries in Da Nang, January-August exports grew 20.3% over the same period in 2020 despite the COVID-19 pandemic.

Picture is taken at the Central Seafood Import-Export Joint Stock Company. Photo: KHANH HOA – Graphics by THANH HUYEN

Optimistic signal for the city in the first three quarters of 2021

Analysis from the municipal Department of Industry and Trade shows that Da Nang’s businesses have been most affected by COVID-19. Some companies operating in industrial parks suspended operations after COVID-19 cases had been detected. However, most businesses tried to maintain production to ensure timely and effective contract delivery with proper precautions in place.
 

Between January and July, 2021, Da Nang’s industrial production index rose by 3.4% compared with the corresponding period in 2020. The manufacturing sector grew by 3.3% following positive growth recorded in 14 out of 22 sub-sectors. High growth by sub-sectors has tyre manufacturing (52.4%), building of ships and floating structures (47.1%), production of wood products (43.2%), production of electrical equipment( 34.7%), production of beds, cabinets, tables and chairs (33.7%), motor vehicle parts and accessories manufacturing (31.7%), sports equipment, games and toys (29.1%), footwear manufacturing (25.1%), electronics (22.5%), paper manufacturing (11.7%).

Despite difficulties facing businesses in August due to the city’s imposition of tougher COVID-19 curbs, overall value of exports and imports in Da Nang over the first eight months of the year was estimated at US$2,029.4 million, an increase of nearly 18% compared with the same period in 2020. In which, export value was estimated at US$1,154 million, up 20.3%, and import value was estimated at US$ 875.1 million, up 15%. Da Nang recorded a trade surplus of US$279.2 million, sending optimistic signal to the city as the whole country has seen trade deficit in recent months while Da Nang’s exports were seen maintaining strong momentum, hitting its highest level since the 2015-2020 period.

Domestic enterprises continued to record a growth rate of 18.4% with total export value of an estimated US$ 524.7 million while the foreign-invested companies earned an estimated US$ 616.7 million from exports, up 19.4% over the same period in 2020. Between January and August, 2021, the value of the city’s top export products was higher than in the same period in 2020. The value of an estimated US$ 55.5 million generated from finished rubber, up 35.4% over the same period in 2020, US$377 million from motors, electrical equipment and electronic products, up 19%, US$304 million from textiles and garments, up 18.4%, USD$ 132 million from seafood products, up 18.1%, US$ 11.8 million from handicrafts and wood products, up 17.8%, 57.8 million from children's toys, up 17.6%.

Businesses in the city are exerting greater efforts to maintain production with proper precautions in place. IN PHOTO: Engineers are operating the SMT high-tech electronics manufacturing and assembly factory (Trung Nam EMS) located in Da Nang Hi-Tech Park. Photo: PHAM DANG KHIEM

Accelerating production for the rest of the year

Amid the complex developments of COVID-19, most businesses in industrial parks and industrial clusters are exerting greater efforts to maintain production and put in place strictest health measures in the workplace in order to boost their production and drive their growth in the remaining months of 2021.

Da Nang’s exporters continue to thrive despite COVID-19 as the world economy continues to recover strongly from the impact of the pandemic. Vaccination coverage in the city is being accelerated.

According to recent report from the Authority of the Da Nang Hi-Tech Park and Industrial Parks, 18,500 doses of COVID-19 vaccines have till date been administered to workers in local industrial parks. The positive results are mainly attributed to great efforts of the Da Nang government and relevant agencies to ensure the health and safety for workers, creating favourable conditions for local businesses to maintain production and drive their growth.

Reporting by KHANH HOA – Translating by H.L