In the increase of 3.74% of Da Nang’s GRDP in the first half of 2023, the service sector went up by 6.15%, and it is considered the main pillar to promote economic development in the remainder of 2023. The size of the city’s economy in the past 6 months at current prices was more than VND64,784 billion, expanding more than VND5,318 billion compared to the same period in 2022. The scale of the service sector expanded the most with nearly VND4,810 billion. On that basis, in the second half of 2023, agencies are on track to implement solutions to promote the service industry for better economic performance results.

Da Nang’s agencies continue to implement solutions to promote the growth of the service industry. Tourists have fun at the Asia Park. Photo: M.Q

Big contribution made by tourism

According to the Da Nang Statistics Department, the resumption of the Da Nang International Fireworks Festival 2023 after a 3-year pause due to the COVID-19 pandemic has attracted a large number of tourists, especially 4 fireworks performance nights in June attracted a total of 3 million visitors, plus about 240,000 guests staying at local accommodation establishments.

Besides, a series of major festivals and events such as the Avalokitesvara Festival, Hai Chau communal house festival, the opening programme of the sea tourism season, the Hoa Bac Tourism Week, the Da Nang Asian Film Festival (DANAFF) for the first time has attracted a large number of domestic and foreign tourists.

The Da Nang People's Committee has signed a cooperation agreement with the Viet Nam Airlines Corporation in the 2023 - 2027 period on coordination in promoting tourism, aviation and restoring the aviation and tourism services industry.

In addition, the city has promoted the restoration and opening of new routes. To date, 15 regular international and 8 domestic routes have been restored. Also the  exploitation of sea tourism route to Da Nang has promoted.

The number of arrivals served by accommodation establishments reached VND3.5 million in the first 6 months of the year, reaching 89% of the 2023 plan, 2.1 times higher than the same period in 2022 and up 4.4% compared to the same period of 2019.

In particular, the number of international visitors hit 930,000, reaching 188% of the plan, 11.3 times higher than the same period in 2022. The number of domestic tourists was 2.58 million, reaching 75% of the plan, up 67.7% over the same period in 2022 and up 38.2% compared to the first half of 2019.

Revenue from accommodation and travel services in the first half of the year was generated at VND6,231 billion, a rise of 99% over the same period in 2022 and an increase of 12.2% compared to the first half of 2019. Of this, revenue from accommodation services was estimated at VND4,277 billion, up 76.9% over the same period in 2022, up 21.8% compared to the first half of 2019; food and beverage VND5,386 billion, up 30.8%; travel and tourism support activities VND1,954 billion, 2.7 times higher than the same period in 2022.

Mr. Nguyen Xuan Binh, the Deputy Director of the Da Nang Department of Tourism, said that in the second half of the year, in order to contribute to the city’s overall growth, the task of the tourism industry is to focus on developing tourism products, exploiting pilot tourism models of My An night beach, An Thuong tourist area, implementing the plan to develop cuisine into tourism products in the area, completing the study of the pilot plan to organise night tourism services on Nguyen Van Troi pedestrian bridge and the park on the eastern end of Nguyen Van Troi bridge and the opening of the extended Bach Dang pedestrian street and the creation of check-in points along Vo Nguyen Giap tourist route.

IT, traffic transportation grows quite well

Along with the development of tourism products, the Da Nang transport industry is implementing tasks to promote the completion of important transport infrastructure, thereby contributing to expanding the revenue of the transport and warehousing services industry.

In the first half of the year, the added value of transportation and warehousing, accounting for 11% of the GRDP structure, grew up by 12.3%.

The revenue from transportation, warehousing, postal and delivery over the past 6 months was estimated at VND16,613 billion, up 31% over the same period in 2022 and 72.2% higher than in the first half of 2019.
Another bright spot in the service industry is information and communication activities.

Specifically, the city's information and communication industry's revenue in the first half of 2023 was VND7,737 billion, up 6.1% over the same period in 2022 and 19.7% compared to the same period of 2019.

The added value of the information and communication industry, accounting for 6.7% of the GRDP structure climbed up by 2.2%, this is also the industry that maintains growth during the pandemic. It is estimated that by May 2023, software export turnover reached USD 60.8 million, achieving 42% of the plan, up 32.7% over the same period in 2022.

Mr. Tran Ngoc Thach, the Deputy Director of the Da Nang Department of Information Information and Communication said that the growth of the information and communication industry not only contributes to the national economy but also proves the stability and resilience of enterprises in the software industry.

From now until the end of the year, the Department will continue to implement digital transformation plans in 2023, strengthen communication security, perfect the e-government information system, and improve the quantity and quality of online public services.

Mr. Tran Van Vu, the Director of the Da Nang Statistical Office, said that despite many difficulties and challenges, the municipal government’s leaders always maintain the point of view on beefing up the implementation of the socio-economic development plan, the State budget estimate and the improvement of the business environment and national competitiveness in 2023.

In the general economic picture, the service sector continues to be the backbone and the city's economic structure continues to shift towards the expansion of the service sector.

For the service industry to grow better, agencies need to closely monitor and promptly update the world situation, fiscal and monetary policies of countries that are important trading and investment partners of businesses across the city.

In addition, the Da Nang Department of Industry and Trade is in charge of carrying out trade promotion activities in 2023, diversify programmes to support businesses in promoting and selling products, and expanding consumption markets.

The municipal Department of Tourism takes the responsibility of building tourism products that affirm the brand, creating a highlight of the city's tourism industry.

Reporting by MAI QUE - Translating by A.THU