Da Nang's economy has continued to recover from the COVID-19 pandemic in the first eight months of 2022 as many programs to connect supply and demand have been launched while production and business activities of self-employed individuals and business owners have been rebounding in a stable manner.

Photo: MAI QUE - Graphics: MAI ANH Source: The Da Nang Statistics Department

Positive signs of recovery across industries and aspects

Da Nang has seen a sharp rise in domestic and foreign arrivals in the first 8 months of 2022. The positive results in the city’s tourism industry were mainly attributed to an array of exciting events offered to lure tourists back. Included were the International East-West Economic Corridor (EWEC) Trade, Tourism and Investment Fair - Da Nang 2022 (EWEC Da Nang 2022) and the Da Nang Golf Tourism Festival 2022.

Data provided by the Da Nang Statistics Department showed that the revenue from accommodation and food services during the eight month period was estimated at 11,859 billion VND, up 56.1% from the same period in 2021. The number of visitor arrivals at tourist accommodation establishment was estimated at nearly VND 2.4 million, up 125.7% over the same period last year. The revenue from travel and tourism support services reached an estimate of VND 1,215 billion, up 483.9% over the same period in 2021.

Domestic and international trade and tourism activities in Da Nang continued to rebound from the pandemic. The sales value of retailing in the city in the past 8 months amounted to an estimated VND 70,676 billion, up 37.4% from the same period in 2021, and all 12 categories posted a significant increase in sales revenue compared to the same period in 2021.  The increase was driven by greater sales of gems, precious metals and products with a rise of 54.8%, cultural and educational products up 47.0%, garments up 41.9%, and oil and gas up 34.2%. Meanwhile, wholesalers sold an estimated 100,636 billion worth of goods, up 18.1% over the same period last year.

In addition, some services and industries posted stronger growth compared with the same period last year. Garments increased by 638.6%, rises of 85.3% in non-fuel products of oil and gas, 48.5% in means of transport (except for cars), 43.9% in cultural and educational products. Revenue from other consumer services was estimated at 14,475 billion VND, up 122.3% over the same period in 2021.

The value of exports from Da Nang amounted to an estimated USD 181 million in August, an increase of 38.4% compared with the same period a year earlier, bringing the total value to an estimated USD 1,406.9 million in the first 8 months of 2022, up 23.4%.

During the eight-month period, finished rubber products contributed an estimated USD 79.5 million to the Da Nang economy, up 26.6%, motors, electrical equipment and electronic products with an estimated USD 483 million, up 23.5%, textiles and garments with USD 380 million, up 22.2%. In August, Da Nang imports were worth an estimated USD 128 million, up 32.5% over the same period in 2021, bringing the total value to an estimated USD 959.6 million in the first 8 months of 2022, up 9.8%.

Da Nang’s industrial production is now on the path to recovery. The city’s index of industrial production (IIP) in August rose by 59.6% over the same period in 2021,  Accumulated in the first 8 months of 2022, the city's IIP index was estimated to climb by 9.3%. The largest increases were in the processing and manufacturing industry with a 9.2% increase, electricity production and distribution industry with a 13.5% % jump, water treatment and waste management with a 14.1% rise. Another bright spot in the Da Nang’ economy is a rise of 40.7% over the same period in 2021 in the number of businesses that have resumed their operations.

Da Nang’s economy has continued to recover from the COVID-19 pandemic in the first eight months of 2022. Picture is taken at the Universal Alloy Corporation Vietnam Co., Ltd located in the Hi-Tech Park, Hoa Vang District. Photo: M.Q

Identifying difficulties to overcome

Mr Tran Van Vu, the Director of the Municipal Statistics Department remarked that some industries saw a significant drop in output due to disruption in raw material supply. The production of beds, cabinets, tables and chairs decreased by 25.5%, a dop of 13.4% in textile industry, and a 8.8% fall in the production of chemical products. In addition, visitor numbers in the city in the remaining months of the year tend to decrease as the summer break has gone.

Furthermore, the disbursement of public investment capital and the construction progress of projects in the city are still slow. Besides, price hikes for input materials, especially gasoline, inflation around the world and slow economic recovery in Viet Nam’s major trading partner countries will also have a significant impact on Da Nang's economy, and the country’s as a whole, in the coming time.

Mr Nguyen Xuan Binh, the Deputy Director of the Municipal Department of Tourism, said that the department continues taking action to retrieve MICE tourism by implementing incentive policies for MICE travellers to attract more such tourists to Da Nang in September, as well as develop a support program to attract MICE visitors in 2023. In addition, the heed is paid to making preparations for hosting the Viet Nam International Travel Mart (VITM) 2022. Importance is attached to signing tourism cooperation programmes with Kien Giang Province and other southwestern localities, promoting tourism of the five central localities in Dak Lak Province, as well as inviting famtrip delegations from travel and media agencies at home and abroad to conduct their survey activities into infrastructure facilities, along with tourist attractions and new special products in the five central localities.

Da Nang has already held a conference to introduce its policies to promote the development of supporting industries. The city has also published criteria for the selection of investors to develop the infrastructure in industrial clusters. In addition, special attention is paid to implementing support policies to promote the development industrial and agricultural development, promote innovative start-ups, issuing preferential policies for invesment projects in the Hi-Tech Park and more in an attempt to drive the city's socio-economic development.

Reporting by MAI QUE – Translating by H.L