Da Nang is highly expected to deploy many solutions in a synchronous manner to support businesses and workers, an active move towards  socio-economic restorations  in the new normal.

Many Hoa Khanh Industrial Park-based businesses are making efforts to boost production and trade, thus contributing to the local economic growth. Photo: HOANG HIEP

3 GRDP growth scenarios for 2022

As revealed by Vice Chairman of the Da Nang People's Committee Ho Ky Minh at the recently-held ‘Business Dialogue’ conference held on September 24, the municipal government has drawn up 3 GRDP (gross regional domestic product) growth scenarios for 2022 at three levels: low, medium and high.

Specifically, for the low growth scenario, the GRDP growth rate in 2022 will reach 4.47% as compared to 2021, in which the fields of agriculture -forestry-fisheries, construction industry and services will record growth rates of 1.85%, 5.4% and 3.87% respectively.

With a regard to the medium growth scenario, the GRDP growth rate in 2022 will hit 5.75%, in which the areas of agriculture-forestry-fishery, construction industry and services have a growth rate of 2.5%, 6.8% and 5.4%, respectively.

As for the high growth scenario, the city will secure a GRDP growth rate of 7.01% in 2022, in which the aspects of agriculture-forestry-fishery, construction industry and services will see growth rates of 3.01%, 8.40% and 6.63%, respectively.

According to Director of the municipal Department of Planning and Investment Tran Thi Thanh Tam, regarding the development of the growth scenarios for 2022, the ‘vaccine strategy’ of great significance, according to which more than 95% of the city’s population will have received the first dose of COVID-19 vaccines by the end of September 2021, whilst 100% accessing the first dose and 22.1% getting the second dose by the end of October 2021.

Da Nang is likely to achieve a GRDP growth rate set at a high scenario level in case the current COVID-19 wave is well controlled, the international economy recovers soon, and Da Nang’s economic sectors such as processing and manufacturing industries, construction, warehouse & transportation, accommodation and food services are quickly restored, back to the same or higher growth level as compared to 2019.

Multiple synchronous policies

According to Vice Chairman of the Da Nang People's Committee Ho Ky Minh, Da Nang is expected to apply COVID-19 prevention and control measures with the operation of economic and social activities at level No. 2 according to Directive No.19-CT/TTg mandated by the Prime Minister from October 1 – 15, and then advance towards level No.1 (the new normal) under the guideline framework of the Vietnamese Ministry of Health.

In order to achieve the above-mentioned goals, in addition to focusing on effective implementation of the issued policies, the city will map out groups of new solutions in the coming time.

The field of information technology will be accelerated once the social distancing restrictions are eased. FPT Da Nang has successfully deployed software research and development activities. Photo: TRIEU TUNG

Accordingly, in addition to effectively implementing the issued policies on speeding up vaccination, providing subsidies on premise rental for traders operating in wet markets within 6 months, facilitating businesses to access the post-investment interest rate support policies and financially helping employees in businesses affected by COVID-19, more many groups of synchronous solutions will be deployed in the near future.

Specifically, importance will attached to subsidising infrastructure use fees in 2021 at the Hi-Tech Park and industrial parks, the concentrated Da Nang Information Technology Park, releasing a interest rate support mechanism for working capital loans for enterprises operating in the fields of tourism, transportation, logistics, hi-tech industry, hi-tech applied agriculture, reducing the costs of COVID-19 tests for their staff and giving the priority to vaccination against the disease for their new employees.

Also, small and micro enterprises will be facilitated to access preferential loans from the Da Nang Development Investment Fund to restore production and business. Housing development programmes dedicated to workers only will be carried out in the coming time.

Besides, the municipal administration will make coefficient reduction adjustment for land plots with special locations, and allow businesses to extend land lease according to current land-use status and adjust the timelines of projects amid the negative impact of COVID-19.

Chairman of the Da Nang Association of Small and Medium Enterprises Pham Dac Binh said that the city leaders' interest in gradually easing social distance restrictions is very necessary, meeting the expectations of the local business community. The coverage of COVID-19 vaccination for the entire local population and corporate employees helps businesses feel more secure to head towards the goal of ensuring safe production.

A series of support policies for businesses such as land rent exemption and reduction mechanisms and subsidies on COVID-19 testing costs have been effectively implemented by the local government.

Reporting by TRIEU TUNG – Translating by A.T