The structure of added value of Da Nang’s industry has shifted in the direction of increasing aspects and products boasting competitive advantages, high technology and added value, and using a lot of technical labour, with a focus on developing spearhead fields including high-tech industry, information technology -electronics industry.

Da Nang;s industry is restructured in the right direction, contributing to bringing great added value to the city's economy. Production activities are pictured at the Da Nang Rubber Joint Stock Company. Photo: KHANH HOA

Increase the proportion of products with high technology, great added value

As reported on industry restructuring by the Da Nang Department of Industry and Trade, the proportion of industries and products with high technical - technological content and added value includes.

Notably, the proportion of electronics, electrical equipment, mechanical engineering creating, manufacturing - assembling cars and vehicles has leapt from 25.5% (in 2015) to about 30% (at present), whilst that of a number of industries and products with competitive advantages including food processing (aquaculture, dairy) and beverages (beer, soft drinks) has increased from 11.4% to about 16.5%.

In the opposite direction, the proportion of industries that mainly rely on resource extraction, causing the risk of causing environmental pollution, such as metallurgy and cement production has plummeted from 7.8% to 5.3%. Likewise, the proportion of some industries that use a lot of unskilled labour, including garment, leather and footwear, has also decreased from 10.6% to 9.3%.

Since 2016, there have been many large-scale projects taking the shape in the city such as the US$170 million Sunshine aerospace components plant, the US Key Tronic EMS Group- developed US$70 million factory which manufactures automobile signal lights for export, the US$80 million South Korea-invested Dentium ICT Vina medical equipment factory, the US$28 million Japan-invested Yamato Sewing Machine Manufacturing company and the VND798 billion ATOMA Technology factory,

Ms. Vu Thi Bich Hau, Deputy Director of the Da Nang Department of Science and Technology, said that, over the past five years, Da Nang has been one of the pioneer localities in forming and developing an innovation ecosystem. The city now houses one Innovation Startup Support Centre, six incubators, two creative spaces, nine co-working spaces, ten startup clubs and three investment funds in the field of startups.

Located in the Da Nang Hi-Tech Park, the High-Tech Incubation Centre has effectively implemented the incubation of high-tech enterprises, helping promote the formation of more hi-tech enterprises in the city.

Workers are seen working hard at the Huynh Duc Production, Trade and Service Co., Ltd based in the Hoa Khanh Industrial Park, Lien Chieu District. Photo: KHANH HOA

Developing infrastructure for the sake of industrial progress

In order to step up industrial restructuring, the city is constantly pouring more fundings and calling for investment into developing technical infrastructure.

Starting with only two industrial zones in 1997, up to now, the city has one multi-functional national high-tech park, two centralised information technology parks (IPs), six industrial parks and a number of industrial clusters covering with a total area of about 2,500 ha, creating jobs for more than 100,000, with the occupancy rate in IPs reaching 87.10%.

In addition, housing a system of university and college as well as qualified vocational training establishments, it is a great advantage for Da Nang in attracting investment into hi-tech industrial projects and high-quality services.

The city’s industry and trade sector sets a goal to complete and exceed the main targets in the 2021 - 2025 period, specifically the industrial production index up 8 - 9% per year and the annual growth of export turnover of goods increased at 8-9%/year.

The city targets more investment flows channeled into such aspects as information technology, hi-tech industry, supporting industries in the fields of mechanics, precision mechanics, electricity – electronics, research and development (R&D), logistics services and international yachts.

In order to achieve the above-mentioned objectives as well as continue to restructure the industry according to the already-set orientation, the city will set a sight on accelerating the attraction of investment resources to develop industrial infrastructure, promptly propose solutions to remove difficulties, speed up administrative reform, and create maximum advantages for production and business activities.

For the time being, the city is appealing for investment into the development of new industrial zones, namely the Hi-tech Supporting Industrial Zones, the expansion of the Hi-Tech Park and the centralized Information Technology Park as well as forming a number of industrial clusters. With regard to innovation activities, Da Nang campus of the National Innovation Centre will be developed with the application and testing of outstanding mechanisms and policies.

Along with that, the city will soon deploy the CMC Creative Space Complex and science parks, and cooperate with large domestic corporations such as Viettel, VNPT and FPT.

Under the project to calling for investment into Da Nang during the 2021 – 2025, with a vision towards 2030, the city will attract more investment from important foreign markets such as Japan, the Republic of Korea and the U.S., 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) as well as large domestic corporations and enterprises, overseas Vietnamese.

Also, strategic development projects such as a financial centre, the development of yacht-related industries and services, logistics centres and non-tariff zones will be carried out.

Reporting by KHANH HOA – Translating by A.THU