In 2021, Da Nang achieved a number of initial results from the implementation of the Government’s Resolution No. 02/NQ-CP dated January 01, 2021 on improving the business environment and the national competitiveness.

A view of a supporting industrial park serving the Da Nang Hi-tech Park in the west of the city. Photo: TRIEU TUNG

Flexibility in attracting investment and creating development resources

According to a recent report released by the Da Nang People's Committee, from January 1, 2021 to November 15, 2021, the municipal administration granted investment policy decisions and investment licences to, as well as approved the results of selection of investors with land use rights for, 24 new domestically-invested projects with a total registered investment capital of VND 6,808 billion.

Of which, 7 projects were out of industrial parks with a total investment of more than VND 6,145 billion, whilst the remaining 17 projects, worth VND 663.4 billion in total, were located in industrial parks, Hi-Tech Park, and Dedicated Information Technology Park.

Last year, US$ 149.503 million worth of foreign direct investment from 34 foreign-invested projects were channeled into Da Nang, an increase of 21% in the investment capital against 2020.

To date, Da Nang has attracted 911 valid FDI projects from countries and territories worldwide, with a total investment standing at US$3.866 billion.

The investment attraction activities in Da Nang in 2021 were severely affected by the COVID-19 pandemic. Along with that, businesses operating in the city were forced to reduce production and business, cut worker numbers, operate moderately or suspend temporarily due to lack of raw materials and narrowed export markets.

In particular, the fields of commerce - services, education and training, travel, food and beverage services, accommodation, textiles and garments, and footwear were  hardest hit by the pandemic.

Also, COVID-19 affected several service industries such as retailers, supermarkets, restaurants, and transportation services due to the sharp decrease in the number of tourists and shoppers over COVID-19 fears.

As a result, the city's economy in 2021 couldnot maintain the growth rate as previous years. Last year saw a deep decline of many major economic indicators. The scale of the city’s GRDP in 2021 at current price was estimated at VND105,050 billion, and the city’s average GRDP per capita at current price by late 2021 was an estimate of VND87.9 million VND, equivalent to US$3,753.

In term of investment promotion activities, direct investment promotion activities in world markets were suspended due to COVID-19, so the city had to access potential and strategic investors through online investment promotion activities.

Many city-based businesses took a handful of solutions to maintain production and business activities. Included were promoting e-commerce activities, transforming key products and services, and actively looking for new consumer markets.

Innovation regarded as important factor for growth

In order to continue promoting effective and in-depth development of its economy in the coming time, Da Nang has proposed to the National Government, the Ministry of Science and Technology, and the Ministry of Planning and Investment to assist it to improve the efficiency of innovation programmes and attract more investment resources.

Specifically, Da Nang has asked for assistance from the Ministry of Science and Technology to pilot a so-called ‘innovation zone’ in the city. The special zone will feature investment and financial activities and pilot new technological and economic models, thereby contributing to developing Da Nang into a startup and innovation hub in the whole country.

Moreover, the city proposed the Prime Minister direct relevant ministries and sectors to continue implementing support policies for businesses during the period affected by COVID-19, especially policies related to capital, interest rates, taxes, fees and charges.

Also, top priority should be given to urgently reviewing and proposing adjustments to the State's policies and laws, especially the obstacles and overlapping of current laws.

In its recent report sent to the Ministry of Industry and Trade, Da Nang requested the National Government to direct ministries and sectors to coordinate with localities to quickly handle enterprises’ petitions under its jurisdiction of ministries and branches in order to create favourable conditions for enterprises to feel secure during their production and business activities.

Particularly, the city suggested the Prime Minister direct the Ministry of Science and Technology to support the city to become a national destination for innovation startups, and an open innovation market in the AESAN region.

Emphasis should be on assisting Da Nang to develop a so-called ‘innovation zone’ on a trial basis, and to cooperate with foreign partners in a bid to attract investment capital and technology, as well as bring Vietnamese-made products to the USA.  

Reporting by TRIEU TUNG - Translating by M.DUNG