In its efforts to realize its dual goal of effectively controlling the COVID-19 outbreak and driving local economic growth, Da Nang in the remaining months of 2021 reinforced its online contact with foreign investors in the Middle East and India, especially in India, through investment promotion programs in order to attract foreign direction investment (FDI) into such aspects of information technology and pharmaceutical chemistry.

Da Nang has great potential to attract foreign investors into information technology and hi-technology projects. IN THE PHOTO: A view from FPT Danang Urban Area located in Ngu Hanh Son District. Photo: TRIEU TUNG

The potential and opportunities for cooperation between Da Nang and Middle Eastern investors

Amid unprecedented complex developments of the COVID-19 pandemic, the Middle East and India continue diversifying their economies and tend to invest abroad in order to implement a green economy and the sustainable development goals associated with digital transformation. High priority is given to investing into such aspects as tourist resorts, green real estate, finance, clean energy sources including solar power, green hydrogen, advanced technologies, and smart farming technology.

Data published by Vietnamese Ministry of Planning and Investment show that Viet Nam has attracted 135 FDI ​​projects worth more than USD 900 million from the Middle East over recent years. India now ranks 26^th among foreign investors in Viet Nam with 286 projects totaling nearly USD 900 million.

In Da Nang, investors from the Middle East are carrying out the DAP - DAP1 - DAP2 marine tourism project complex project which covers an area of 39ha in Hoa Hai Ward, Ngu Hanh Son District and costs close to VND 5,000 billion. The DAP - DAP1 - DAP2 marine tourism project complex is set to be an in leading magnet project to attract more Middle Eastern investment to Da Nang.

The Ministry of Foreign Affairs on August 26 worked with the Ministry of Planning and Investment to organize a webinar themed “Fostering investment cooperation between Vietnam and the Middle East: potential, opportunities and new approaches”.

In his remarks at the virtual event, Da Nang People's Committee Vice Chairman Ho Ky Minh said that the countries in the Middle East are renowned for their vast oil reserves and they are home to some of the world’s biggest sovereign wealth funds.

Mr Minh stated that the opportunities for cooperation between Da Nang and the countries in the Middle East across such areas as tourism and commerce are huge but the full potential of their relations has not yet been tapped.

He proposed a number of solutions to increase cooperation between Da Nang and the Middle East. Included are asking for more support from ministries and government agencies to organize more investment promotion programs, promote Da Nang, and Viet Nam at large, as an attractive travel destination through cultural and diplomatic activities to stimulate demand for travellers in Viet Nam, including Da Nang, and the Middle East.

Attracting high quality investment

The Viet Nam Embassy in India on July 27 coordinated with India- based Sri Avantika Company to organize a webinar to attract investment into establishing a pharmaceutical industrial park in Viet Nam.

Addressing the online event, the Ambassador Extraordinary and Plenipotentiary of Viet Nam to India Pham Sanh Chau stated that Da Nang has great potential to attract investment from India.

Da Nang emerged as a bright spot for Indian businesses to set up the first pharmaceutical industrial park in Viet Nam. India ranks 14^th globally in terms of value and third in terms of volume. Leading Indian pharmaceutical companies have received international certifications from the US, EU and Australia.

Vice chairman Minh said the city’s 1,184ha hi-tech park infrastructure has been flagged as a potential site for the first Pharma Park in Viet Nam.

He said the park would be a magnet for Indian pharma firms and producers as it offers flexible land rent, land clearance, and favourable income tax and import tax policies including land rent exemption for the first three years of operation.

Da Nang is calling for investment in developing the infrastructure with an area of ​​more than 400 hectares in Hoa Ninh Industrial Park and ​​more than 360 hectares in Hoa Nhon Industrial Park.

Mr Minh pledged that the Da Nang government is committed to creating the most favorable conditions for foreign investors to seek investment opportunities and effectively operate in Da Nang.

Mr Pham Truong Son, the Head of the Authority of the Da Nang Hi-Tech Park and Industrial Parks said that high priority is given to attracting FDI projects with over USD 100 million in size into Hi-tech Park and allocating USD 15 million per ha in this venue. This is the basis for Da Nang to attract FDI projects that are really effective with high investment capital and the low land-use efficiency, thereby creating an attractive investment environment for foreign investors.

Reporting by TRIEU TUNG – Translating by H.L