Since its establishment on October 9, 2007, the Da Nang Development and Investment Fund (DDIF) has grown increasingly robust, effectively fulfilling its role as an off-budget state financial institution. It has actively provided loans for investment projects that expand production and enhance social welfare, following the city's socio-economic development strategy.

The Da Nang Development and Investment Fund aims to become a strong financial institution. In the photo: Staff, officials, and workers of the Fund.

Joining forces to transform urban landscape

A walk along Da Nang's central streets, such as Bach Dang, Le Duan, Phan Chau Trinh, Ly Thai To, and Hung Vuong, shows that the previously unsightly overhead power lines have been replaced with underground systems, creating a more aesthetically pleasing environment for central areas, administrative zones, and commercial hubs.

To help create this modern urban image, the DDIF has partnered with the Da Nang Power Company Limited to implement the city’s plan to underground power lines by providing medium-and long-term loans at an interest rate of 6.5% per annum for electricity grid development projects. So far, the fund has financed over 60 projects by the company, with total loans exceeding VND 450 billion, of which VND 63.3 billion has been allocated to six projects for undergrounding power lines.

The fund’s stable, low-interest loans have enabled the company to secure the necessary investment capital, ensuring that it meets the city’s deadlines for electricity supply. This, in turn, has contributed to improving electricity infrastructure, increasing efficiency, and reducing production costs.

Moreover, numerous modern urban infrastructure projects in Da Nang, supported by the DDIF, have made significant contributions to the city’s socio-economic development. These include the construction of the Hue Junction multi-level interchange, the expansion of Tien Sa Port (Phase 2), and the enhancement of Cau Do Water Plant's capacity.

These projects have not only improved residents’ quality of life but also fostered a favourable environment for economic activities, attracting investment from both domestic and international businesses. The DDIF has signed loan contracts for 208 projects, with a total contract value exceeding VND 3,300 billion and disbursements reaching over VND 2,600 billion.

Recently, the Da Nang Development and Investment Fund has been providing financial support for several key projects in the city. In the image: The 220kV Ngu Hanh Son Substation and the 220kV Da Nang Transmission Line Investment Project. Photo: M.Q.

Strengthening financial foundations

Through its lending activities, the DDIF has gradually played the role of “seed capital” to attract private sector investment in local projects, reducing reliance on the state budget. In the past decade alone (2014-2024), businesses have co-invested over VND 5,800 billion alongside the fund to develop projects across the city.

The fund’s capital has provided a strong foundation for private investors, enabling them to participate in vital infrastructure projects without heavy reliance on state funding. In addition to city budget allocations, the fund has secured capital from the World Bank (WB) and the French Development Agency (AFD) through the Ministry of Finance, totalling VND 534 billion in the form of ODA and preferential foreign loans at low-interest rates. These funds have been directed towards projects related to the environment, education, healthcare, energy, social housing, water supply, and electricity.

In 2014, the Fund successfully advised on the issuance of municipal bonds, raising VND 1,100 billion for the city's budget.

After 17 years of operation, the DDIF has met the city's requirements and objectives, becoming one of the most effective units within the network of 43 local development investment funds nationwide in terms of capital and scale.

According to the Fund’s 2021-2025 operational plan, approved by the city under Decision No. 4705/QD-UBND on December 4, 2020, the goal is to continue building and developing the fund into a strong and professional financial organisation that plays a positive role in the city’s socio-economic growth.

Mr. Nguyen Thanh Tam, Director of the Da Nang Development Investment Fund, stated that to achieve this goal, the fund will continue to collaborate with relevant departments to integrate and promote loan sources, lending policies, and interest rate support at investment promotion conferences and seminars. Additionally, the fund will actively provide consultation and guidance to investors on loan application procedures to help them quickly and easily complete the necessary paperwork.

The fund will also continue to refine its regulatory system and operational processes while enhancing its management and governance quality. It aims to modernise and gradually transition to digital operations to achieve its development objectives and become a robust financial institution.

Reporting by MAI QUE - Translating by TRUC VY