According to a report on the Da Nang socio-economic performance in the first half of 2024 freshly-released by the municipal Department of Statistics, the city’s 6-month gross regional domestic product (GRDP) increased by 5% from the same period in 2023, with GRDP in the second quarter alone up by 8.35%. These numbers show that the city’s economy has many positive changes, confirming that the management and administration policies of the national and municipal government are gradually promoting effectiveness.

The Da Nang commercial and service sector is a bright spot, positively contributing to the city's overall economic growth. Tourists are seen visiting the Sun World Ba Na Hills. Photo: M.Q

Economy scale reaches over VND72,303 billion

According to a report, in the 5% increase in the city’s entire economy in the first half of months, the service sector went up by 5.99% over the same period in 2023, contributing 4.17 points; product tax minus product subsidies up by 5.17%, contributing 0.49 points; the industry - construction sector up by 1.7%, contributing 0.32 points; the agriculture, forestry and fishery sector up by 0.85%, contributing 0.02 percentage points to the overall increase.

The scale of the city's economy in the 6-month period at current prices reached more than VND72,303 billion, expanding more than VND7,050 billion from the same period in 2023. Of this, the service sector will expand the most with more than VND5,837 billion; product tax area minus product subsidies up by VND690 billion; the industrial - construction sector up by more than VND525 billion.

With a regard to the structure of the economy in the first half of this year, the service sector accounted for 70.58%; product tax (except product subsidies) 9.43%; industrial and construction sector 18.06% and the agriculture, forestry and fishery sector 1.93%.

The trade and service sector was still a bright spot, positively contributing to the city's overall economic growth. In the second quarter of 2024 alone, the service sector climbed by an estimated 9.86% from the same period in 2023. Contributors to the growth of the service industry include accommodation and food services with 20.14%; arts, entertainment and recreation 16.87%; administrative and support activities 9.99%; wholesale and retail; repair of cars, motorbikes and other motor vehicles 8.99%; information and communication 6.77%.

Total import and export turnover of goods was at an estimated US$1.59 billion, up 11.6% from the same period. Of this, exports were estimated at US$918 million, up 1.8%; imports were US$672 million, up 27.7% compared to year-ago period.

Also the first half of 2024, the city’s entire industrial production index (IIP) increased by 3.8% compared to the same period in 2023. Of which, the processing and manufacturing industry increased by 3.5%; electricity production and distribution up by 14.6%; water supply, waste and wastewater management and treatment activities up by 0.3%; mining activities alone down by 31.5%.

Some processing and manufacturing industries had a significant increase in the IIP index over the same period, such as the textile industry up by 52.1%; repair, maintenance and installation of machinery and equipment increased by 32%; production of products from rubber and plastic up by 22.2%; beverage production up by 20%; uncategorized machinery and equipment production up by 15.4%; electrical equipment production up by 13.6%. In addition to industry, in the first 6 months of 2024, the construction industry up by 4% from the same period in 2023.

Customers shop at the Vietbuild 2024 Exhibition. Photo: M.Q

Continue to implement solutions

Mr. Tran Van Ty, the Deputy Head of the Authority of the Hi-tech Parks and Industrial Zones, said this agency will continue to promote promotion and investment attraction activities, appraise documents for projects requesting investment registration certificates and investment policy approvals.

In addition, heed will be paid to re-checking projects in the Da Nang Hi-tech Park that have been licensed but the construction has yet to start and taking measures according to investment laws.

In the immediate future, the authorities will complete procedures for selecting investors for the development and operation of infrastructure of Phase 2 of the Hoa Cam Industrial Park project, propose procedures for the approval of technical infrastructure investment policy of the Hoa Ninh Industrial Park project, and complete design documents and project estimates for the smart monitoring system in the Hoa Khanh Industrial Park, meeting the city's digital transformation requirements.

Also, more efforts will be made to deploy enrollment and training of microchip and semiconductor human resources, complete incubation management regulations and support incubation projects in Da Nang Hi-tech Park.

According to Ms. Le Thi Kim Phuong, the Director of the Department of Industry and Trade, in the field of industry and trade, a 50% subsidy will be offered to businesses on many costs such as the value of consulting contracts for successful account registration, product sales on international e-commerce platforms, the costs of maintaining accounts on domestic and international e-commerce platforms; along with support for location rental costs, booth design and setup, the transportation of displayed products, travel, meals, and accommodation costs for business representatives participating in trade promotion exhibitions.

Also, trade promotion activities will continue on track in 2024, along with expanding consumption markets, developing policies to support the development of logistics services, creating a favourable foundation to attract import and export goods circulating in the city.

Mr. Tran Van Vu, the Director of the Department of Statistics, has proposed that the city focus resources to exploit new tourism products, contributing to increasing the competitiveness of the destination to attract more tourist arrivals, as well as promote the opening of more direct international flights connecting Da Nang with other parts of the world, research solutions to effectively support businesses that are in desperate need of capital due to the impact of ceaselessly rising input material prices and difficulties in product consumption.

The city authorities will continue to focus on the disbursement of the public investment capital in 2024, put into use new projects according to plan to maximise the potential and value of works and technical infrastructure, remove obstacles in construction investment, create an open investment and business environment, and diversify partners and investment forms.

Reporting by MAI QUE - Translating by A.THU, V.DUNG