Due to the great impacts of COVID-19, Da Nang’s economic growth in the third quarter of 2021 dropped sharply. During the Jan. – Sept. period, a number of key economic sectors suffered a decline as compared to the same period last year. Given the city’s effective control of the virus surge over recent days, the local economy is expected to gradually recover in the rest of this year.

Engineers are seen at SMT high-tech electronics research and production factory (Trungnam EMS) located in the Da Nang Hi-Tech Park. Photo: PHAM DANG KHIEM

Businesses expect a quicker return to pre-COVID growth levels

According to the Da Nang Department of Planning and Investment, in the first half of 2021, the city's economy grew by 4.7%, but it decreased by 13% in the third quarter of 2021.

The industrial production sector, the mainstay of growth for the city's economy, was negative effected by the virus wave in the third quarter.

For example, the Da Nang Rubber Joint Stock Company (DRC), in the third quarter, had recorded VND 958 billion worth of revenue, down 3.72% over the same period last year.

The company’s General Director Le Hoang Khanh Nhut complained that freight sea transport cost has skyrocketed in recent times, creating a financial burden for import and export enterprises, and DRC is no exception, with many export packages to America and Europe.

According to the Da Nang Statistics Department, the fourth COVID-19 outbreak caused the business community to continue to suffer many losses, not only in service industries such as tourism, transportation, restaurants and hotels but also the manufacturing industry.

A survey recently conducted by the Da Nang Department of Statistics on business trends of enterprises active in the processing and manufacturing industry in the third quarter of 2021 showed that, 5.4% of the enterprises hoped for a better performance in their production and trade activities in the third quarter than the previous one, whereas 87.8% raised a fear over more potential difficulties and hurdles.

Meanwhile, General Director of Foster Electronics Co., Ltd. Nguyen Quan Hoang said that, on average, each month, this company reaches an estimated revenue of US$ 2 million. It is expected to see the revenue go up by more than 30% in the fourth quarter thanks to a growing vaccination rate for its employees. 

Manufacturing aerospace components at the Da Nang Hi-Tech Park –based Universal Alloy Corporation Viet Nam Co., Ltd (UAC). Photo: TRIEU TUNG

Da Nang strive for a GRDP rise of 3.6% in fourth quarter of 2021 

According to the forecast made by the Da Nang Institute of Socio-Economic Development, with its first and second dose vaccination rates reaching 93% and 22.1% respectively by the end of October 2021, the city is highly likely to secure a year-on-year rise of 0.14% in the gross regional domestic product (GRDP) this year which means 3.6% in the fourth quarter.

As for ways to promote the city's economic growth from now until the end of the year, the municipal Department of Planning and Investment has proposed 7 groups of solutions and tasks. 

In detail, importance will be attached to speeding up vaccination against COVID-19 for the city’s entire population, fulfilling commitments with enterprises and drastically accelerating the disbursement of public investment capital set for this year.

Also, heed will be paid to removing difficulties in completing procedures for large and key projects with spillover effects, maintaining stable production and business activities, improving the investment environment, strengthening social welfare policies, enhancing people's living standards and improving efficiency of administrative reforms.

Reporting by TRIEU TUNG – Translating by A. THU