Da Nang Improves Investment Environment

Da Nang Improves Investment Environment

Since the enforcement of the Foreign Investment Law in 1987, foreign direct investment (FDI) has played an important role in the socioeconomic development of Da Nang, accelerating its economic restructuring in the direction of industrialisation and modernisation, creating more industries and products, upgrading managerial and technical skills, expanding markets and increasing the export value.

In 1999 and 2000, Da Nang had only two new FDI projects each year with a total investment capital of US$1.5 million. To redress the situation, the city established the Investment Promotion Centre (IPC) in late 2000 with a “one-stop mechanism,” a breakthrough for local and foreign investments in the city.

IPC Da Nang came into being at a time of favourable developments in Vietnam. FDI was increasing, the Foreign Investment Law had been amended reducing production costs, administrative was reform accelerated and investment opportunities in Da Nang opened up.

The main function of IPC Da Nang is to process related information to advise the local authorities on development orientations and investors on feasible projects. It is also involved in conducting market surveys and assisting investors in getting investment licenses and implementing projects.

After over three years of operation, IPC Da Nang, with the guidance and assistance of local authorities, has increasingly promoted FDI in the city. From 2001 to August 2004, 32 FDI projects were granted licenses with a total investment capital of over US$167.5 million, increasing the number of existing FDI projects to 64 and total investment capital to over US$374 million.

According to Resolution 33-ND/TW on “The development of Da Nang City during a period of industrialisation and modernisation in Vietnam” and the master plan of socioeconomic development to the year 2010, Da Nang encourages foreign investment in the following areas:

• Priorities accorded to the development of high value added industries such as information technology and software, export-oriented industries, import-substituted consumer goods production of medium and large-scale, advanced equipment and technology.
• Development of commercial centres and services such as seaports and airports, finance and banking, post and telecommunications, warehouse and transport, technology transfer, investment consulting, insurance and marketing to promote Da Nang as the centre for commodity exchange in Central Vietnam and an important transit commodity centre of countries along the East-West Economic Corridor.
• Diversification of tourism services, development of coastal tourism and domestic and international tourism.

In addition, foreign investment is also attracted in the food processing industries, offshore fishing fleets with modern equipment and technology for fishing long voyages.