Da Nang's Gross Regional Domestic Product (GRDP) in the first quarter of 2023 was estimated to increase by 7.12% against 2022, leading in growth rate in the Central Key Economic Region, and ranking second in the five centrally-governed cities and nineteenth in the country. This good signal shows that the city's economy is recovering and thriving thanks to its flexible and drastic solutions.

International cruise ship passengers are seen visiting the Rong (Dragon) Bridge and the Bridge of Love on March 31, 2023. Photo: THU HA

Service is main pillar

In the growth rate of 7.12%, the service sector climbed by 11.53%, contributing 7.86 percentage points to the general increase, and product taxes less subsidies rose by 1.50% compared to the same period last year.

Meanwhile, the agriculture, forestry and fishery sector decreased by 0.01%; the industry and construction sector 4.74%.

The scale of the city’s economy in the first quarter of the year continued to expand to reach an estimate of more than VND30,746 billion, a rise of VND3,343 billion in comparison with the same period in 2022.

Of the figure, the added value of the service sector went up by VND3,109 billion; the agriculture, forestry and fishery sector more than VND35 billion; while the industry and construction sector alone narrowed the scale as reaching a value of VND25,626 billion.

It can be seen that the city maintains a good growth rate thanks to the positive recovery of tourism and other associated service sectors. Some service sectors maintained a high growth rate, making positive contributions to the city’s overall growth. In particular, administrative activities and support services increased by 96.29%; other personal service activities 78.1%; accommodation and food services 70.31%; arts and entertainment 20.98%...

Also in Q1, revenues from accommodation and catering services was estimated at VND5,206 billion, up 73.5% over the same period in 2022. In which, revenue from accommodation services stood at VND2,032.5 billion, up 177.1%, and revenue from food and beverage services was VND3,173.6 billion, up 39.9%.

Travel and tourism support services generated VND264.2 billion in revenue, up 10.5% over the previous month and 6 times higher than that of the same period in 2022.

The positive signs in tourism recovery have created momentum for other consumer service sectors to develop again, especially the arts and entertainment one. Specifically, revenue from other consumer services was valued at VND8,039 billion, up 81.6% over the same period in 2022.

Due to the global fluctuations, the city’s index of industrial production (IIP) in the first quarter of 2023 decreased by 3.3% against 2022. However, a number of industries regained their growth momentum such as beverage production rose by 36.2%; production of wood and wood products 33.0%; motor vehicle production 25.6%; and food processing production 17.8%.

Thanks to the positive recovery momentum of tourism and other accompanying service sectors, the city's economy kept a good growth rate. IN THE PHOTO: Tourists at the Han Market. Photo: M.Q

Continue implementing flexible solutions

Currently, the city's tourism sector is rushing to prepare for the upcoming peak tourist season corresponding to the holidays of April 30, May 1 and summer school vacation.

Mr. Nguyen Xuan Binh, Deputy Director of the municipal Department of Tourism, said that the city's tourism sector is focusing on developing night tourism products, as well as regularly organising events and festivals such as the ‘Da Nang Beach Tourism Season 2023’ programme, the Da Nang International Fireworks Festival and other cultural and sports events.

Special attention is being paid to resuming and opening air routes connecting Da Nang and other destinations around the world, and conducting marketing campaigns to introduce Da Nang to such key tourist markets as South Korea, Japan, China, Taiwan (China), Singapore, Malaysia, and Thailand.

In addition, the Department of Industry and Trade continues to promote ‘Made-in-Da Nang’ products, upgrading traditional markets, and setting up booths selling and introducing OCOP, souvenir and typical agricultural products.

A tourism souvenirs design is expected to be launched in a bid to encourage businesses to mass-produce Da Nang branded products.

Dr. Vo Duy Nghi from the FPT School of Business and Technology (FSB) under the FPT University affirmed that the city’s aforementioned positive growth results were due to the city's flexibility in adjusting its support policies, and grabbing opportunities.

Specifically, the city has issued many policies to attract tourists, welcome international tourist flows, as well as increase production and export. Also, many trade promotion and connection programmes have been carried out.

To continue to maintain the growth momentum, Dr. Vo Duy Nghi underlined a must-do for Da Nang to continue enhancing its business and investment environment, promoting start-ups, and attracting investment.

Heed should be on encouraging businesses to expand links, absorb new technologies, improve the quality of exports, consider export as a growth engine, and appeal for investment inflows into the High-Tech Park, the dedicated Information Technology Park, and other industrial parks, he added.

Mr. Nghi stressed the need for the city to proactively remove difficulties and unlock bottlenecks, as well as promote investment in countries and territories that have good economic cooperation relations.

Mr. Tran Van Vu, Director of the city’s Statistics Bureau, suggested the city continue expanding the public passenger transport network, as well as developing policies to support the development of logistics services.

He also asked departments, agencies and localities to proactively capture and promptly solve difficulties and obstacles in order to facilitate city-based businesses to boost their production and business activities in the coming time.

Reporting by M.QUE, T.LAN - Translating by M.DUNG