Central city Da Nang designed as investment destination

Saturday, Jun 11, 2022 09:15

Trucks unload cargo at a logistics in Hoa Cam Industrial zone in Da Nang. The city has been boosting it as a potential destination for investment in Asia. — VNS Photo Cong Thanh

The central city of Da Nang has been planning for an international and regional finance centre, a national start-up centre, a duty-free zone, an expansion of the international airport and a new deep-sea port for the Master Plan for 2030, creating a magnet for future large investors.

Vice-chairman of the city's people's committee, Tran Phuoc Son made the statement at an investment forum – Da Nang: a potential investment destination in Asia – a prelude event of the Invest Da Nang Forum for resuming economic and investment activities post-COVID-19.

Son said the city's gross regional domestic product (GRDP), which had earned a stable growth of 7.17 per cent in 2016-19, witnessed a recovery in the first half of this year of 7.23 per cent.

He said 4 out of 10 confirmed air routes from six airlines had opened again since early this year, while more new air routes linking India, Australia, Japan and Europe are on the way.

The city and the Import-Export Pan Pacific Group (IPPG) signed a Memorandum of Understanding (MoU) on developing an international finance centre – a trading centre, casino, high-end entertainment and luxury apartments design – to attract investors in the future.

Jonathan Hanh Nguyen, chairman of IPPG Group, said the centre would attract US$5 billion of investment from foreign businesses.

Vice director of Da Nang's transport department, Bui Dang Son, said a 229ha area had been approved for developing five key logistics zones in connections of road-railway-airport and seaport logistics and industrial zones and parks as well as the national Express system and regional multi-vehicle transport on the East-West Economic Corridor, linking Laos, Thailand, Myanmar and Viet Nam.

Trung Nam Group develops an electronic production line at Da Nang Hi-tech Park. The site has been designed as a 'silicon valley' in central Viet Nam. VNS Photo Cong Thanh

Head of the Da Nang Hi-tech Park and Industrial Zones Authority (Da Nang HPIZA), Pham Truong Son, said the city has been calling for investors in the two projects – the training school of aviation and aeronautical engineering and airlines maintenance and repair centre in the Da Nang Hi-tech Park - with an estimated investment of $150 million in boosting supportive industries for the central Viet Nam's 'Silicon Valley' design and creating an attractive 'birds nest' of critical investors in the future.

Son said an area of more than 25ha had been assigned for the two projects in 2023-25 with an expectation of setting up a supportive industries foundation for post-COVID-19 investment in the park.

He said 90 per cent of the total 2.225ha area of six industries zones and a high-tech park had already been assigned for investors, while three more Industrial parks were planned for future expansion of the projects.

Son said a total of 510 projects worth $3 billion in six IZs and a High-tech park helped contribute 30 per cent to the city's budget while creating 75,000 jobs.

The tourism industry was a key income of the city's coffers with 300 hotels and resorts – of which 100 were four and five-star accommodation – and seven golf courses that had hosted 8.7 million tourists in 2019.

Vice director of the city's tourism department, Nguyen Xuan Binh, said the 'green' industry was expected to recover from 2025 with a growth of 17.6 per cent in 2030-45.

In a meeting with the General Director of Samsung Viet Nam Choi Joo Ho during a visit to Da Nang earlier this year, the city's leadership Da Nang has been calling for investment and cooperation from Samsung in expanding investment in the city and central Viet Nam after north and south of Viet Nam.

Local property developer BRG Group and Japan's Sumitomo Group have submitted investment proposals as part of their ongoing development of key infrastructure and logistics network upgrades in the central city.

The Universal Alloy Corporation (UAC) from the US launched the first stage of the $170 million Da Nang-based Sunshine Aerospace components manufacturing plant last year, while LG Electronics began constructing its R&D centre in the city.

Despite the challenges of COVID-19, Fujikin International Incorporated from Japan started construction of an R&D centre at Da Nang High-Tech Park worth $35 million, while Japanese Daiwa Viet Nam also began building its third factory in the city with an investment of $40 million.

Six industrial zones and a high-tech park in Da Nang drew 503 projects, including 130 FDI worth $1.8 billion and $1.2 billion, respectively, from domestic investors.

Da Nang has been calling for investment from Silicon Valley and the US in health care, high-tech industries, Artificial Intelligence, education, real estate and automation at Da Nang high-tech park and industrial zones. — VNS

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