Da Nang is highly likely to secure a year-on-year rise of 0.18% in the gross regional domestic product (GRDP) this year. This is a positive signal of recovery to create momentum for economic development next year. The implementation of policies to support economic recovery is an important step in the right direction to help Da Nang reach its development goals set in the growth scenarios in the coming time.

In 2022, Da Nang will continue to prioritise using public investment to stimulate economic growth. Here is a scene from the construction site at the Western Ring Road No. 2 project. Photo: TRIEU TUNG

GRDP growth rate of 0.18% estimated for 2021

Due to the heavy influence of COVID-19, the Da Nang economy in 2020 suffered a negative growth of 9.77%. Entering 2021, the city's economy gradually recovered in the first quarter of 2021 with positive changes in industrial production and an impressive growth in trade.

Specifically, the index of industrial production (IIP) in March 2021 went up by 25.52% as compared to February 2021. In the first quarter of 2021, a number of key industrial products achieved a high growth rate such as electric motors up 35.63% and new pneumatic tyres up 25.38%.

Import-export turnover has continued to be a bright spot in the city’s economic picture. The total import-export turnover in the first quarter of 2021 reached US$666.6 million, up 5.2% from the same period in 2020. Of this, the export turnover was estimated to rise up by 1.8% to stand at US$357 million whilst the import turnover was likely to climb by    9.4% to hit US$309.6 million. The city recorded an estimated trade surplus of US$47.4 million.

According to recent survey, more than 70% of enterprises are witnessing their production and business performance being stable, and even better than the fourth quarter of 2020.

According to the Da Nang Bureau of Statistics, in the first half of 2021, the city's economy grew by 4.99% over the same period in 2020 up 1.05% as compared to 2019. In particular, the service sector was estimated to increase by 5.34%, acting as the main pillar contributing to the economic recovery process. The industry and construction sectors gradually regained their growth momentum with an increase of 2.85%.

At the end of the third quarter of 2021, due to the unexpected COVID-19 resurgence, the municipal administration issued the social distancing mandate and a number of urgent measures in an effort to curb the virus spread in the community. However, according to the assessment made by relevant local agencies, the city's economic forecast, the fourth quarter of 2021 is expected to see the economic recovery with a positive growth value which leads to a GRDP growth rate of 0.18% in whole year of 2021.

The implementation of policies to support economic recovery is an important step in the right direction to help Da Nang reach its development goals set in the 2022 growth scenarios.

Many optimistic signals promised for 2022

The Da Nang People's Committee has proposed 3 scenarios for economic development for 2022 based on the implementation of socio-economic recovery, development plans in the context of safe, flexible adaptation and effective control of COVID-19.

In the first scenario, Da Nang will see a low growth rate in the context that the pandemic is well controlled but the international and national economic recovery is still slow. Some supply chains will be still limited, the number of tourist arrivals will rebound but not high as expected and the GRDP growth rate in 2022 is expected to reach 4.9% as compared to 2021.

In the second scenario, the city will witness a medium growth rate amid the fact that the pandemic is well contained and the international and national economy is still in the process of recovery. Some service industries will begin to develop in a stable manner, the number of tourist arrivals tends to go up and the GRDP growth rate in 2022 is projected to hit 6.2% as compared to 2021.

In the third scenario, the city will enjoy a high growth rate amidst that the virus surge is well controlled and the international and national economy returns to normal. Some service industries will thrive, the number of tourist arrivals tends to climb up and the city will see a GRDP growth rate of 8.11% as compared to 2021.

According to Director of the Da Nang Institute for Socio-Economic Development Huynh Huy Hoa, in 2022, the city's economic growth rate is forecasted at reach 8.11% thanks to many advantages such as a high vaccine coverage rate, the implementation of policies to support production recovery, the handling of bottlenecks in the circulation of goods and land, and the deployment of investment attraction measures.

At the same time, 2022 is highly promised to see many optimistic signals from the reopening of tourism and logistics services, all of which will help accelerate the city's economic growth.

Also next year, the city will focus on COVID-19 prevention and control missions,  actively supporting businesses, and promptly implementing social welfare goals, economic recovery and development targets

Reporting by TRIEU TUNG –Translating by A.THU