The effective prevention and control of COVID-19 in Da Nang has significantly contributed to driving its economic recovery. In a positive sign, 1,815 city-based enterprises resumed their operations in the first nine months of 2022, up by 39.2% over the same period in 2021.

The municipal government-issued supporting resolutions and policies have facilitated businesses to resume production and business activities in 2022. IN PHOTO: Production activities are seen at the Trung Nam EMS Electronic Factory. Photo: M.Q

The above positive result has been mainly attributed to great efforts made by the municipal authorities in issuing resolutions and policies to support businesses to drive their post-pandemic recovery in a timely manner.

After over 3 years of operating in Da Nang, the Universal Alloy Corporation Vietnam Co., Ltd based at the Da Nang Hi-Tech Park has completed its first operation phase ahead of schedule and is on course to carry out production activities in accordance with the requirements of partners. Currently, the company is considering expanding the scale of projects to invest in Da Nang.

Mr. Truong Hoang Nguyen, CEO of the company, said that in order to achieve the above results, the enterprise has received great support and special care from the city government and the Authority of the Da Nang Hi-Tech Park and Industrial Parks. Specifically, the company is entitled to land rental fee exemption, infrastructure use fee exemption and reduction, and corporate income tax and export tax incentives.

Not only UAC, over the past time, many businesses operating in the Da Nang Hi-Tech Park have received the similar support from the city’s government. Till date, the Da Nang Hi-Tech Park has attracted 26 projects, and raised the total investment capital to VND 5,985 billion and US$ 607.6 million.

On the other hand, the city has provided financial support worth more than VND2.8 billion for 17 businesses to innovate technologies.  

As an enterprise that has 3 times received the city's financial support totalling more than VND1.6 billion for technological innovation activities, the Ha Giang - Phuoc Tuong Mechanical JSC has continuously improved production, creating new products to replace imported goods, and improving product quality and competitiveness in the market.

Mr. Ha Giang, Chairman of the Board of Directors of the company, assessed that, thanks to the support of the city, the company has expanded its production scale, gained new customers, and achieved a 20% year-on-year increase in revenue.

Many supportive policies have been issued by the city to help businesses restore production and business. IN THE PHOTO: Production workers at the ICT Vina Co., Ltd based in the Da Nang Hi-Tech Park, Hoa Vang District. Photo: M.Q

Mr. Lam Phung Ut, CEO of the Huynh Duc Trading - Service and Production Co., Ltd based in Lien Chieu District, shared that as an enterprise in the field of supporting industry, the company is looking forward to the municipal People’s Council-issued Resolution No. 53 regarding the development of supporting industries in Da Nang to be deployed soon.

The company itself has been facilitated to access a large loan of about tens of billions of VND to invest machinery at a preferential interest rate of 6%/year from the Da Nang Development Investment Fund for many years.

It can be said that the policy for businesses to access loans with preferential interest rates is something that many businesses appreciate in the city's supportive policies.

Most recently, the city has allocated VND5 billion from its budget in 2022 to support agricultural and rural development in the city.

Mr. Pham Bac Binh, Chairman of the Da Nang Association of Small and Medium-sized Enterprises, highlighted the significance of some timely support policies in helping city-based businesses reduce a part of costs and have more capital for production.

However, according to Mr. Binh, there are still a number of policies issued for a long time but are still slow to be implemented or businesses have not yet approached, so the business community wants the city to continue to review to soon put them into practice.

Reporting by M.QUE - Translating by M.DUNG