Lien Chieu IP Ready to join Da Nang to Catch post-COVID-19 New Investment Wave

10:01:26 AM | 1/19/2022

Despite adverse impacts of the COVID-19 pandemic, Da Nang City continued to attract more investment funds into industrial parks to generate new impetus for economic growth, making the city the biggest recipient of FDI funds in the central region. Lien Chieu Industrial Park is one of attractive destinations for investors.

Nests for “eagles”

According to the report of the Da Nang City People’s Committee released at the 4th meeting of the 2021-2026 term, the city licensed 345 domestic investment projects with VND123,686 billion (nearly US$5.5 billion) outside industrial zones, and 376 domestic investment projects with VND27,607.9 billion (US$1.2 billion) in industrial zones, hi-tech parks and information technology parks in the year, to November 15. The city was also home to 911 valid FDI projects with over US$3.866 billion of investment capital. Currently, six Da Nang City-based industrial parks (namely Hoa Khanh IP, Da Nang IP, Da Nang Seafood Service IP, Hoa Cam IP - Phase 1, Hoa Khanh IP and Lien Chieu IP) are at almost full occupancy, reaching over 86%, much higher than the national median of 60%.

Among six industrial parks in Da Nang City, despite having a lower occupancy rate, Lien Chieu IP is considered to bring a lot of added value to investors, stemming from its advantages of prime location (lying on important roads that connects major economic centers of Vietnam such as Hanoi, Central Coast - Central Highlands and Ho Chi Minh City, very convenient for importing and exporting goods); modern and synchronous infrastructure system; abundant human resources; open investment environment; diverse services and utilities; competitive pricing policy and flexible payment methods.

Having all favorable factors coupled with diverse standard services and effectively providing investment procedure support, Lien Chieu Industrial Park quickly caught the attention and interest of domestic and foreign investors. Up to now, the park has attracted US$326 million of investment capital. Notable tenants include Crown Da Nang Beverage Packaging Company Limited, Da Nang Rubber Joint Stock Company, Da Nang Plastics Joint Stock Company and SSLV Company Limited.

Mr. Tran Ngoc Diep, General Director of Saigon - Da Nang Investment Corporation (SDN), the investor of Lien Chieu Industrial Park, said that to attract about US$3 billion of investment capital in 2021-2025 and US$4 billion in 2026-2030, Da Nang City is carrying out the “eagle” attraction strategy and SDN always expects its IPs to become safe and stable destinations, and bring the highest added value to investors. Thus, in order to draw the best investors to the city, SDN always prepares a complete and synchronous ground for them as soon as they are licensed and contracted.

In addition, supporting the city’s selective investment policy aimed for long-term sustainable development making Da Nang City a place worthy for living, SDN focuses on selecting capable investors with environmentally friendly projects powered by modern technology; and prioritizes projects with little environmental impact such as tourism, services, information technology, electronics, components, precision engineering, logistics, hi-tech agriculture and supporting industries. Up to now, the selective investment approach not only helps Lien Chieu Industrial Park in particular and Da Nang City as a whole to attract many high-quality investors as expected by the city, but also facilitates the formation of a sustainable industrial environment that brings practical benefits to investors in the industrial park. These are also the stepping stones for it to build a diversified, harmonious and sustainable ecosystem of Lien Chieu Industrial Park where tenants can work well and contribute to the city’s development.

Motivation from logistics development strategy

With a favorable geographical position as the gateway to the East-West Economic Corridor, the center of the Central Key Economic Region with all transport types, and a good infrastructure system, Da Nang city is considered to possess great potential for logistics development.

In addition, the Party Central Committee issued Resolution 43-NQ/TW on Da Nang City construction and development to 2030, with a vision to 2045, and the Da Nang City Party Committee issued Program 41-CTr/TU on implementing the Project on “developing logistics and seaport services, making Da Nang a major marine economic center of the country” to create an open mechanism for the city to develop key economic sectors, including logistics, to lay the groundwork for strong economic acceleration in the coming time.

In order to anticipate and utilize this opportunity, and become one of important growth poles and logistics centers of the central key economic region, on August 13, 2021, the Da Nang City People's Committee issued Decision 2780/QD-UBND approving tasks of the Project on Da Nang City Logistics Services Development to effectively connect with the Central Key Economic Region and the East-West Economic Corridor in 2021-2030, with vision to 2045. The City People's Committee also spared 2,326 ha to plan industrial and logistics development and gave priority to high-tech manufacturing industries. Simultaneously, the city planned industrial, logistics and warehousing development in Da Nang City to serve logistics and marine economic pillars. They are located near each industrial park. Particularly, Lien Chieu Port Logistics Center will be expanded into a giant logistics cluster by 2045 and Lien Chieu Port will become the main cargo port of Da Nang City.

Along with great opportunities, Da Nang City is also focusing on accelerating the progress of key transport infrastructure projects to connect the region, create breakthroughs in socioeconomic development and investment attraction, and utilize local advantages for building a synchronous, interconnected logistics infrastructure system to meet investors’ demand for growing commodity flows in the city and in neighboring localities and freight flows on the East-West Economic Corridor.

General Director Tran Ngoc Diep said becoming a logistics center of the central key economic region of Da Nang City will open up great opportunities for SDN to attract investment capital into its industrial parks in general and Lien Chieu Industrial Park in particular.

“As an indispensable piece in the city's investment attraction picture, Lien Chieu Industrial Park is preparing necessary conditions to welcome an anticipated new investment wave after COVID-19, especially logistics investment; actively supporting the city’s logistics service development commensurate with existing strengths and potential; and assist local manufacturing, service and trade development to attract big investors in the world to soon realize the goal of making Da Nang a logistics center of the central key economic region and the whole country,” he emphasized.

By Vietnam Business Forum