The orientation of investment attraction activities set forth by the Da Nang administration is to overcome limitations, remove bottlenecks in terms of land fund and high-quality human resources as well as say ‘no’ to projects with outdated technology, excessive consumption of energy and natural resources, especially those adversely affecting national defence - security. Da Nang also aims to attract US$7 billion worth of registered investment capital by 2030.

Da Nang removes bottlenecks to boost investment attraction

As reported by Mr. Pham Truong Son, Head of the Authority of Da Nang Hi-Tech Park and Industrial Zones (DHPIZA), up to now, the Da Nang Hi-Tech Park has attracted 24 projects, of which 12 are domestic ones totalling VND6,291 billion and the rest are FDI ones worth more than US$545 million in total.

Till date, the Da Nang Hi-tech Park and industrial zones (IZs) have attracted a combined total of 496 projects with a total registered investment capital of more than VND26,561 billion and more than US$1.7 billion.

Projects here have contributed more than VND 3,648 billion to the Da Nang budget, equal to 65% of the figure recorded in 2020, creating jobs for 65,217peoples in the city and neighboring provinces and cities.

In a bid to handle the existing inadequacies and limitations to pave the way for the investment attraction in to the Da Nang Hi-tech Park and IZs in the coming time, the DHPIZA will deploy groups of efffecive solutions.

Focus will be on attracting investment flows and select projects involved in the aspects using advanced and environmentally friendly technologies, clean and renewable energy, especially in IT, electronic component manufacturing and hi-tech industries such as biotechnology, automation technology and mechatronics, supporting industries in the field of mechanical engineering and precision mechanics.

At the same time, priority is also given to attracting large projects producing export goods that participate in the global value chain.

In particular, the city says ‘no’ to projects that use outdated technology and are energy and natural resource-consuming, unfriendly to the environment and labor-intensive, especially those affecting national defence and security.

As for FDI attraction, Da Nang will multilateralize and diversify its FDI attraction schemes to attract more investment from important foreign markets such as Japan, the Republic of Korea and the U.S., with a focus on targeting large corporations belonging to the Forbes 500 and businesses headquartered in developed countries, including those in the Group of Seven (G7) and the Organisation for Economic Cooperation and Development (OECD).

With regard to domestic investment attraction efforts, importance will be attached to attracting investment from large domestic corporations and enterprises and effectively exploiting financial and technological resources from overseas Vietnamese in the R&D, IT and hi-tech industries.

It is known that, during the early days of 2022, the DHPIZA appraised the US$60 million Micro-Electro-Mechanical Systems (MEMS) factory developed by the US’s Vector Fabrication Inc that is expected to be carried out at the Da Nang Hi-tech Park.

This Da Nang agency also sent an official letter to the functional local bodies on recommending the suitable location for the ASIA HIGH TECH., JSC.-developed Stem Cell Research Centre project worth US$20 million at the Research, Development, Training and Incubation Zone, and the VND500 billion AQUANAM high-tech machine factory developed by the Viet Thai International Import-Export Trading Co., Ltd at the Da Nang Hi-Tech Park’s Production Zone.

Under the project on attracting investment into Da Nang in the 2021-2025 period with a vision towards 2030, the city identifies domestic and FDI flows as an important driving force for its socio-economic development.

The city, therefore, will ensure investment attraction in tandem with guaranteeing national defence and security, the protection of natural resources and the environment, increasing the number of FDI projects capable of forming new supply chains and linking with domestic investment in order to accelerate the process of technology transfer and participate in global value chains.

According to the Da Nang Investment Promotion Agency, Da Nang aims to attract about US$7 billion worth of domestic and foreign investment by 2030 (about US$3 billion in the 2021 - 2025 period and US$4 billion in the 2026 - 2030 period).

The key aspects calling for investment flows include IT, high-tech industry, supporting industries, logistics services, commerce, tourism, high-value real estate, and high-quality education, healthcare and financial services.

The rate of enterprises using advanced technology, modern management and environmental protection methods will increase by 50% by 2025 and 100% by 2030 as compared to 2018.

The localization rate will go up by 30% by 2025 and 40% by 2030.

The proportion of trained workers in the employment structure will reach 75% by 2025 and 80% by 2030.

Reporting by KHANH HOA – Translating by A THU