As reported by the Da Nang Statistics Office, in the first quarter of 2022, the city's economy recorded positive changes with the value of gross domestic product (GRDP) estimated to increase by 0.89% over the same period last year.

The economy in the first quarter of 2022 showed many signs of prosperity, bringing positive results in the process of socio-economic recovery of the city. Here is a scene of tablet production at Trung Nam EMS Joint Stock Company based in the Da Nang Hi-Tech Park. Photo: TRIEU TUNG

Enterprises are gearing up making greater efforts to boost production and business in order to quickly regain economic growth momentum after 2 years full of difficulties triggered by the COVID-19 pandemic.

Da Nang’s economic growth in the first quarter of 2022 climbed by 0.89% over the same period in 2021. Of this, industry and construction increased by 1.96%, trade - services up 0.18%; the agriculture, forestry and fishery sector up 2.6%, whilst the product tax down 0.71%.

The scale of the city's economy in the first quarter was estimated at VND 26,769 billion, expanding by more than VND 830 billion as compared to the same period in 2021. Of this, the added value of the service sector was more than VND 481 billion whilst the construction industry went up by VND303 billion.

The trade and service sector accounted for 67.13% of the city’s economic structure, whilst the construction industry accounted for 20.12%, the agriculture, forestry and fishery sector with 1.75% and the product tax with 11%.

In the industrial sector, the value added in the first quarter of 2022 increased by 1.18%, whilst the industrial production index of the whole industry soared by 1.98% over the same period in 2021.
Notably, the manufacturing and processing industry was on the trend of recovery and positive growth.

The consumption index of the processing and manufacturing industry went up by 0.3%, the inventory index down 3.9%, the labour utilization index up 0.7%.

The total turnover of goods in the first quarter of 2022 stood at VND15,767 billion, up 3.63% over the same period in 2021.

The added value in the commodity trade recorded a rise of 3.26%, contributing of 0.39 percentage points to the city’s GRDP growth.

Tourism services have gradually improved, although the total number of tourists coming to tourism and staying is still low.

However, the reopening of a series of activities, especially the restoration of domestic and international routes, has created a favourable condition for the non-smoke industry to accelerate in the second quarter of 2022.

Import and export turnover of the city in the first quarter of 2022 was estimated at US$823.4 million, up 18.3% over the same period. Of this, export was estimated at US$495.8 million, up 29.8% whilst imports soared by up 4.3% to hit US$327.6 million.

The trade balance was expected to reach a surplus of US$168.2 million.

In the first 3 months of the year, the city attracted 6 domestic investment projects with a total registered capital of VND2,644 billion and 5 FDI projects worth a sum of US$ 5.5 million.

The construction progress of many key projects across the city are being speeded up whilst a number of projects have been inaugurated and put into operation such as the expanded APEC statue garden park, the traffic infrastructure project at the western end of the Tran Thi Ly Bridge, hereby creating favourable conditions for economic recovery.

A view of infrastructure development of FPT Urban Area project in Hoa Hai Ward, Ngu Hanh Son District Photo: TRIEU TUNG

Boosting production and business recovery

The results of surveying business trends of a number of processing and manufacturing enterprises showed that 49.3% of enterprises assessed that their production and business situation in the first quarter of 2022 was more stable than in the fourth quarter of 2021.

The first quarter of 2022 was loaded with many difficulties due to the complicated developments of COVID-19 pandemic that caused the supply chains of raw materials to fall in short supply, drove international transportation costs to increase sharply, and led to hikes in world gasoline prices, thus putting pressure on businesses.

Despite the above-mentioned challenges, the majority of manufacturing enterprises (88.4%) believe that the production and business situation in the second quarter would be better and more stable than the first quarter of 2022.

In particular, many enterprises have invested in machinery and equipment to increase production capacity and take the lead in the market in tandem with contributing to reducing the pressure of increasing product output prices when input material prices are still high.

Director of Daiwa Vietnam Co., Ltd. Nguyen Van Phu said that the reopening of international routes has created great conditions for businesses when the team of foreign managers and experts are facilitated to return to work. Also, goods import and export activities will be favourable for businesses, and the chances of meeting production and business targets will go on upward.

More recently, ITL Logistics Da Nang Company Limited held a groundbreaking ceremony for the Da Nang ITL Logistics Centre project at the expanded Hoa Khanh Industrial Park.
The VND200 billion project will provide ready-built factories for lease according to international standards, warehouse system, logistics services and shared infrastructure.

Mr. Le Van Bich, Director of Dong A Petroleum Trading Joint Stock Company based in Hoa Khanh Industrial Park said that, facing the opportunity to increase production and business activities, the company has urgently completed the paint factory project.

Accordingly, on March 9, 2022, in Da Nang, the company put the third paint factory into operation.
Not only manufacturing enterprises, commercial and service units are also actively promoting trade and tourism promotion to create positive momentum for economic recovery.

“We are restoring many tours and routes and have received positive feedback from customers. The company is also recruiting more personnel to prepare for the recovery of tourism from the second quarter of 2022,” said Director of Truong Sa Le Trading and Tourism Company Limited Thai Bao Long.

Reporting by TRIEU TUNG – Translating by A.THU