Da Nang’s gross regional domestic product (GRDP) in the first half of 2023 was estimated to increase by 3.74% over the same period last year, and 13.48% over the same period in 2019 when there was no COVID-19. However, the target of 7% GRDP growth this year as planned is a challenge in the context of the general difficulty of the economy. Therefore, the city has taken the initiative to take effective solutions to well fulfill its key economic development tasks.

Visitors to the Marble Mountains Tourist Area

3^rd place in GRDP growth rate

According to the recent socio-economic report recently released by the Da Nang Statistics Department, among the GRDP growth rate of 3.74%, the agriculture, forestry and fishery sector rose by 1.22% over the same period in 2022, contributing 0.02 percentage points to the overall growth; the service sector 6.15%, contributing 4.18 points, and the product tax minus product subsidies 0.4%, contributing 0.04 points. However, the industry and construction sector decreased by 2.6%, down 0.51 points.

The size of the city's economy in 6 months at current prices is estimated at more than VND64,784 billion, expanding by more than VND5,318 billion compared to the same period in 2022. In which, the service sector expanded the most with nearly VND4,810 billion, the agricultural, forestry and fishery sector over VND122 billion, and the industry - construction sector VND17 billion.

With regard to the structure of the economy in the first half, the agriculture, forestry and fishery sector accounted for 2.15%; industry and construction 18.73%; service sector 69.19% and taxes levied on products 9.93%.

In term of the GRDP growth, the central coastal city of Da Nang took the lead among the five centrally-governed cities, and was ranked sixth among the eight provinces and cities in the central coastal region. The city was ranked 46^th out of the 63 provinces and cities in terms of GRDP growth rate, and 17^th in terms of GRDP scale.

The total realised investment capital of the whole society was estimated at VND13,783 billion, a decrease of 23.8% over the same period in 2022. Of which, capital from the State sector generated VND4,003 billion, a rise of 7.3% over the same period; the non-State capital reached VND8,300 billion, a decline of 28%; and the capital in the foreign direct investment (FDI) sector reached VND1,691 billion, down 40.2%.

The city’s total import and export turnover of goods was estimated at US$1.427 billion, down 17.6% over the same period. In which, the export turnover of goods was an estimate of US$892.5 million, down 13.8%; whilst the import turnover of goods was US$534.4 million, down 23.3% over the same period in 2022.

The city’s total state budget revenue, as of June 20, reached VND9,679 billion, a decline of 25.3% over the same period in 2022, of which central budget revenue was VND2,705 billion and local budget revenue VND9,299 billion.

Shoppers at the Co.op mart Da Nang

​Solutions taken for higher GRDP growth rate

The city's economy in the first quarter of 2023 kept its growth pace with GRDP growth rate of 7.81% over the same period last year, ranking 15^th out of the 63 provinces and cities in terms of speed, said Director of the Da Nang Statistics Department Tran Van Vu.

He, however, said that GRDP only increased by 0.21% in the second quarter of the year. Generally in 6 months, GRDP achieved a growth rate of 3.74%.

This is not a high growth rate, but it is a positive result when such localities as Ho Chi Minh City, Binh Duong, Dong Nai and Bac Ninh recorded a low GRDP growth rate.

However, with the current economic situation of the world and the whole country, the city’s economy in the third and fourth quarters continues to face many difficulties.

To achieve its target of 7% GRDP growth rate in 2023, Mr. Vu suggested that local government departments, agencies and sectors need to implement a number of solutions.

Including are developing production and creating a sustainable supply for exports; the effective implementation of vocational training programmes in association with the needs of using human resources of local enterprises; providing training courses on improving enterprises' skills to penetrate target markets and exploit preferential commitments in free trade agreements; and supporting exporters to access trade remedies in foreign markets, improve added value and competitiveness for export products, and maintain the stability of the domestic consumption market.

Special attention should be paid to actively approaching foreign investors, organising seminars to attract potential foreign investors and disbursing public investment capital as planned in 2023.

Meanwhile, the municipal Department of Industry and Trade plans to organise national and local industrial promotion programmes, develop sales points, and host the International East-West Economic Corridor (EWEC) Trade and Tourism Fair 2023 in the third quarter of the year.

Mr. Nguyen Xuan Binh, Deputy Director of the municipal Department of Tourism, revealed that relevant departments and agencies will continue to organise tourism stimulus programmes in 2023, advertise local tourism at both home and abroad, welcome MICE delegations, and promote wedding tourism and the opening of new aire routes with cities of China, India and the Philippines.

At the same time, importance will be attached to hosting such popular tourism events as the Danang Golf Festival, the BRG Open Golf Championship Da Nang 2023, and the Enjoy the Summer Festival 2023.

Reporting by M.QUE - Translating by M.DUNG