Da Nang Targets to Become an Export-Oriented Economy

Da Nang Targets to Become an Export-Oriented Economy

Over the past years, Da Nang’s export turnover has kept accelerating, making a great contribution to municipal economic growth. In 2002, total goods export turnover stood at US$249 million and reached US$261.6 million in 2003. The major exports include fisheries products, garments, canvas and sports shoes. Additionally, some important commodities including processed timber, rattan, bamboo and sedge items, handicrafts, candles, rubber latex, and processed foods achieved high export turnovers.

According to the city’s socioeconomic development master plan for the period of 2001-2010 approved by the government, and the economic growth targets for 2005 set by the Municipal Party Committee, export turnover is expected to climb to US$1.72 billion by 2010, of which the growth rate for the 2001-2005 period is targeted at 20 percent and export value at US$580 million in 2005.

Developing groups of key products

In the agriculture sector, fisheries products will be Da Nang’s principal exports during the period 2001-2010. By 2005 and 2010, the value of frozen aquatic products is targeted to reach US$120 and US$200 million, respectively. Processed fish products are predicted to contribute over 18 per cent (in 2005) of this value and up to 45 per cent by 2010.

Da Nang will encourage investments in the garment and textile industries which apply new techniques and raise design quality, and build factories producing materials for the garment industry, especially for making sports and fashion shoes in an effort to meet local production demand. It plans to export some 30 million ready-made products by 2005 and 55 million by 2010, the respective figures for pairs of footwear alone are 12 and 18 million.

Car tyres and tubes, mechanical, electrical, electronic and high-tech products remain underdeveloped. Even though export turnover of those products now rests at only US$400,000/year, it is anticipated to jump up to US$15 million (in 2005) and US$200 (in 2010).

To promote handicrafts and household wood products, the city is placing emphasis on boosting forest plantations to provide source materials, and mechanising some parts of production lines for making wood, rattan and bamboo products. Although a number of its construction materials have recently flourished, they can rapidly penetrate into the local market and compete against those of same kinds in the region and the world. Numerous plants possess advanced technology, attaining ISO standards and source up to 70-80 per cent of raw materials domestically. Moreover, Da Nang is strengthening tourism, banking, finance, insurance, post and telecommunications, and labour export services, as leverage for the socioeconomic development of the city and the central region in general.

Mobilising all sources for business development

To draw on the participation of both local and foreign economic sectors in the production of goods for export, Da Nang continues to develop more appealing policies, diversify investment and trade promotion activities, aiming to abolish the difference between local and foreign investment.

It is necessary for the city to expand the export market on a macro scale. Together with a workable legal framework, Da Nang will set up a data bank and website to provide enterprises with essential and timely information on the market situation. It will also offer financial assistance to enterprises so that they can establish branches and representative offices, join in fairs and exhibitions, and make investments abroad.

Aiming at major markets: Da Nang is gearing a high proportion of its export structure towards leading world markets, and also exploring potential new markets. By 2010, the city’s export turnover to the Asia-Pacific region is expected to account for 49.5 per cent, Europe 23.5 per cent and the same percentage to the United States. It will also enhance its penetration into Japan in coordination with the Japan External Trade Organisation (JETRO). Goods exported to Japan include garment and textile, porcelain and pottery products, seafood, footwear and leather items, fruit and vegetables, and furniture. Da Nang will take full advantage of AFTA integration to step up export turnover in the ASEAN market (representing 7.16 per cent in 2002) where similar products are found with a strong competitive capability. Europe is a traditionally hard-to-please market with strict quality standards and rules, therefore, providing high quality and precise industry information to local enterprises is of great importance. As the American market runs with channels of sales and promotion, products can reach the network of supermarkets, trade centres and restaurants in the country via large importers.

In the future Da Nang will strengthen its workforce with leading officials in the fields of foreign economics, finance and information technology. It plans to hold training courses to nurture and develop young directors and highly specialised cadres. Furthermore, the city will facilitate businesses to raise their competitiveness. Businesses need to adopt the international standards of ISO, HACCP, SA 8000, ISO 14,000 to enhance the quality of goods and services, and diversify and improve designs to meet market requirements. More importantly, it is necessary for them to build trademarks for exported goods and register trademarks, logos, codes and marks in Vietnam, import countries and international property rights protection organisations.