Aside from performing the dual tasks of effective COVID-19 prevention and control, and driving socio-economic development, over the past two years, the Da Nang authorities have issued and approved many economic development policies to provide timely support for local businesses, thereby contributing to driving the city’s post-pandemic economic recovery.

Workers at the Pi Vina Co., Ltd located at the Hoa Khanh Industrial Park in Lien Chieu District. Photo: M.Q

Issuance of important and timely guidelines and policies

Due to the severe impact of COVID-19, the city's Gross Regional Domestic Product (GRDP) in 2021 rose by 0.18% against the previous year. In the first nine months of 2022, the city's GRDP is estimated to increase by 16.76 %. Da Nang is ranked 4^th out of the 63 provinces and cities nationwide in term of economic recovery.

To get the above positive results, the municipal authorities have issued and approved many important and timely guidelines, policies and solutions.

Most prominently, 2022 is designated the ‘Year of safe and flexible adaptation, effective control of COVID-19, and socio-economic recovery and development’.

Previously, in mid-2021, the Standing Board of the municipal Party Committee issued Resolution No. 08-NQ/TU dated July 30, 2021 on strengthening some urgent measures to prevent and control COVID-19 in the city. Accordingly, apart from COVID-19 prevention and control work, production and business activities were still maintained basically with flexible solutions.

In addition, the focus was on expediting disbursement of public investment capital, accelerating administrative reform, promoting investment attraction activities, and creating conditions for small and micro-sized enterprises to access loans from the city’s Development Investment Fund.

The Austdoor Group JSC introducing rolling door products and interior equipment at a fair. Photo: T. TUNG

Support policies are put into practice

In late 2021, the Da Nang administration adopted Resolution No. 63/2021/NQ-HDND on offering reductions on infrastructure use fees for enterprises financially affected by COVID-19 to lease or sub-lease land in the Da Nang Hi-Tech Park and industrial parks (IPs).

Till date, a total of VND22.4 billion in the infrastructure usage fees in 2021 has been reduced for 311 eligible firms and investors.

Another humanitarian policy is to support interest rates for small and medium-sized enterprises borrowing capital from the city’s Development Investment Fund to expand production and business in the context of COVID-19 according to municipal People’s Council-approved Decree No. 60/2021/NQ-HDND dated December 17, 2021.

Mr. Nguyen Thanh Tam, Director of the Da Nang Development Investment Fund, said that the fund has received and appraised loans, totalling VND 132.2 billion, for 6 projects in the city. These projects are mainly involved in logistics and supporting industries. With such an interest rate support, businesses reduce a part of costs to invest in machinery, improve productivity, and create jobs for workers.

Moreover, the municipal People’s Council has approved a policy to reduce office rental fees by 50% for businesses operating in the Da Nang Software Park. It is expected that 62 businesses will be supported with an amount of more than VND920 million.

Also according to Resolution No. 03/NQ-HDND, the city has added a list of small traders at the Hoa Cuong and Supermarket markets that are supported with the exemption and reduction of service usage fees. Thus, a total of 40,000 trading households are supported in 2020 and 2021 with an estimated budget of VND36 billion.

Furthermore, more than VND7 billion has been gone to support 52 innovative start-ups to develop products and services with growth great potential in technology field such as smart glasses, travel experience sharing platforms, green map building, and smart technology medical platform.

Under the policy of supporting the innovation startup ecosystem, in 2020 and 2021, 35 businesses are supported with a total amount of VND4 billion.

According to the municipal Department of Planning and Investment, during the 2020-2022 period, about 15 policies to support businesses have been issued by the municipal People's Committee and the People's Council, thereby helping businesses drive their economic recovery due to the impact of COVID-19. This is the basis for the city to gradually restore the economy and achieve positive results in 2022.

Reporting by M.QUE - Translating by M.DUNG