In the first 5 months of the year, Da Nang’s service industry continued to grow rapidly compared to the same period in 2022. Meanwhile, the industrial sector faced many difficulties due to domestic and foreign impacts, which required the city to take many measures to boost the city’s growth in the remaining months of 2023.

The city deploys solutions to support industry growth. IN THE PHOTO: Production activities at the Da Nang Rubber JSC. Photo: M.Q

Services continue to be mainstay of the economy

Over the past 5 months, the city has stepped up the organisation of many events, and commercial, tourism, cultural and artistic activities to attract domestic and international tourists to Da Nang, especially in the summer of 2023.

Accordingly, the commodity market continued to promote its effectiveness, contributing to stabilising the prices of essential commodities in the city.

The total retail sales of consumer goods and services in May was estimated at VND 10,406 billion, up 17.4% over the same period last year, of which revenue from tourism and other consumer services accounted for over 47%. This is the main driving force contributing to the city’s economic growth.

Between January and May, the total retail sales of consumer goods and services increased by 40.3% over the same period last year. Of which revenue from accommodation and catering services rose by 64.1%, and that from tourism went up 318.6%.

With clear strategies and favourable conditions, the number of visitors served by city-based accommodation establishments in May was estimated at 702.3 thousand arrivals, an increase of 3.1% over the previous month and an increase of 95.6% over the same period in 2022.

In general, the total number of guests served by accommodation establishments was estimated at 2.82 million arrivals, 3.1 times higher than the same period last year.

Revenue from accommodation and catering services in 5 months was estimated at nearly VND 9,359 billion, up 64.1% over the same period. Revenue from travel and tourism support activities during that period reached at VND 1,545 billion, 4.2 times higher than the same period in 2022.

Meanwhile, the total revenue of the entire transportation, post and delivery industry generated at nearly VND 13,571 billion, up 30.4% over the same period.

Along with the recovery of trade and tourism, other consumer service industries also achieved good growth. In the first five months, revenue from other consumer services was estimated at VND12,914 billion, up 48.2% over the same period in 2022.

Besides positive signs, the global economy's slow recovery from the pandemic and  tight monetary policies in many countries have reduced consumption demand of major trading partners, leading to a sharp drop in export activities.

Accordingly, the index of industrial production (IIP) in May increased by 1% compared to April, but, the 5-month IIP decreased by 2.9% compared to the same period in 2022.

Some key industries recorded positive growth over the same period, contributing to restraining the general decline such as motor vehicle production up 27.2%; food production and processing 9.1%; and the manufacturing of leather and related products 8.8%.

Meanwhile, a number of industries saw a sharp decrease in IIP. In particular, the manufacturing of prefabricated metal products (except for machinery and equipment) went down 24.9%; chemicals and chemical products 19.4%; and other manufacturing and processing industries 35.4%.

Some manufacturing industries in May showed signs of recovery, helping the total two-way import and export turnover of goods estimated at nearly US$263.5 million, up 7.7% compared to April. However, in 5 months, the two-way import and export turnover of goods hit at US$1.2 billion, a decrease of 15.2% over the same period.

The service industry grew rapidly in the first five months of the year compared to the same period last year. IN THE PHOTO: Customers visit and shop at the ongoing Vietnamese Goods Fair 2023 - Honoring OCOP Products in Da Nang. Photo: M.Q

Growth-promoting solutions deployed

Speeding up the construction of industrial parks is one of the key solutions to support the industry.

Mr. Tran Van Ty, Deputy Head of the Management Board of Da Nang Hi-Tech Parks and Industrial Parks informed that the promulgation of regulations on selection criteria for investors to build technical infrastructure of Hoa Nhon industrial cluster is the basis for the selection of investors to implement technical infrastructure projects of industrial clusters in order to create the most open, transparent, equal and favourable environment for investors.

In addition, the Management Board is preparing for the management and operation of Cam Le industrial cluster; and the investment in Hoa Nhon and Hoa Khanh Nam industrial clusters.

In order to stimulate shopping demand, the municipal Department of Industry and Trade continues to implement the 2023 trade promotion programme, and the domestic market development project associated with the "Vietnamese people give priority to using Vietnamese goods" campaign, as well as set up more selling points of OCOP products in the city.

In May, the municipal People's Committee issued two major plans of the industry and trade industry, including voting for typical rural industrial products of Da Nang in 2023 and implementing the development strategy of Viet Nam’s textile and footwear industry to 2030 with a vision to 2035, thereby promoting the development of key industries and industrial products.

Reporting by M.QUE - Translating by M.DUNG