DA NANG (VNS) — The central city of Da Nang has yet to reclaim nearly VND4 trillion (US$190 million) land-tax debts from businesses and individuals.

The debt becomes more important when considering that the city's State budget revenue to date is VND 2.2 trillion ($105 million) – just 18.6 per cent of what was hoped for – in the first three months of the year.

"The low budget revenue has caused a delay in Da Nang's VND3.5 trillion ($167 million) bond issue for socio-economic development this year," said director of the city's finance department Le Thi Huong.

She said Da Nang had received VND300 billion ($14.3 million) from land taxes, only a sixth of the VND1,8 trillion ($86 million) planned for the first quarter.

At a meeting on Wednesday, city People Committee's chairman Van Huu Chien said the city had seen slow growth in economic development.

"Most industries, trades and businesses have seen a poor growth during the first three months of this year. Businesses have been struggling with sales and a lack of funds," he said.

He also said the real estate sector – a major revenue earner for the city, was stagnating.

Chien also said the city had also seen little increase in foreign invested projects.

Only seven new foreign-invested projects worth a total investment of $828,000 were approved in the first three months of the year.

The city also has seen three projects increasing investment capital worth $2.1 million in the first quarter. — VNS