“Da Nang does not attract investment at all costs”

2:44:46 PM | 18/9/2018

This is confirmed by Mr Tran Van Son, Director of the Da Nang Department of Planning and Investment. He added that Da Nang City licenses investment projects for its socioeconomic development purposes in specific periods and ensures sustainable development and the alignment of socioeconomic interests and environmental interests. Quoc Hung reports.

Could you please tell us about investment attraction results of Da Nang City over the past time?
In the first six months of 2018, Da Nang City issued investment decisions on four domestic projects with a combined value of VND5,096 billion (US$213 million), down 20 per cent in project and 27.7 per cent in value from the year-ago period; investment permits to 61 FDI projects with a total registered capital of US$76.1 million, up 150 per cent in project and 237.8 per cent in value from the same period of 2017. The city also allowed six existing projects to add US$8.1 million and permitted 12 foreign investors to pool capital and purchase shares worth of US$775.7 million in the period. The city accepted one US$50,000 project to terminate as a result of dissolution decision of its investors. In total, licensed FDI amounted to US$837.2 million in the period. To date, the city has 320 domestic projects with VND94,650 billion (US$4 billion) of investment capital and 609 FDI projects with US$3.136 billion.

In the first six months, the city drew 12 investment projects worth US$933.6 billion into its industrial zones and four projects capitalised at US$102.5 million into the Da Nang Hi-Tech Park. At present, the high tech park has housed 12 projects with a total investment capital of US$290 million.

As a centrally run city, Da Nang has risen to become a young, dynamic city model. In addition to transport infrastructure and geographic location advantages, what else makes it attractive in the eyes of investors?
In addition to the advantages that you just mentioned, I think Da Nang City also has many other pluses, ranging from human resources and synchronous development planning to preferential mechanisms and policies. In particular, government construction and administrative reform have helped the city have a favourable environment enabling it to achieve high economic growth rate. The city’s development is vividly illustrated in planning, infrastructure and policies, as well as in specific fields like tourism, trade, finance, banking and real estate. Da Nang is on the way to becoming a dynamic centre that acts as a driving force for economic growth in Central Vietnam and the Central Highlands, and an ideal destination for both domestic and foreign investors.

The advent of investors to the city in recent years is just the harmonious manifestation of the municipal government, the business community and most importantly the culture of Da Nang people. To bring its achievements into full play, Da Nang will make better use of its advantages and potential and catch the attention of big projects. Challenges and hardships are always present, but lessons of unity and consensus in the whole Party, the whole government and the whole people of the city will be a solid foundation to achieve sustainable economic and social prosperity.

More investors are coming to Da Nang City. What has the city chosen to ensure sustainable development?
Da Nang City’s views on investment are always consistent and the city will not attract investment capital at all costs. The city licenses investment projects for its socioeconomic development purposes in specific periods and ensures sustainable development and the alignment of socioeconomic interests and environmental interests, especially in focused security and defence in recent years. Indeed, the city rejected many giant projects with pledged individual capital from US$200 million to US$2 billion engaged in steel, paper, textile and dyeing industries. Rejected investors included China Steel Corporation (Taiwan), Sumitomo Metal Industries Corp. (Japan) and Vedan Enterprise Corp., Ltd (Vietnam) on fears of environmental pollution albeit its low FDI value.

What are specific investment approaches of Da Nang City?
Industrially, the city will selectively focus on FDI projects using modern technologies, advanced techniques, and high intellectual content. It will call investment capital for supporting and export-driven industries and particularly FDI funds for hi-tech, information technology, electronics and pharmaceuticals.

In the service sector, based on its resources and guidance of the central government, Da Nang will concentrate on attracting FDI capital into such fields as tourism, education and training, health, cultural, entertainment, sports, trade and information technology services.

Thank you very much!