Da Nang Flexible Adaptation for Socioeconomic Recovery and Development

3:49:35 PM | 17/5/2022

"The year of safe and flexible adaptation to and effective control of epidemic and socioeconomic recovery and development" is the theme chosen by Da Nang City in 2022. This year is of great significance, being foundational for implementation of the resolution of the 22nd City Party Congress and the 5-year socioeconomic development plan in the 2021-2025 period.

Restoring growth and accelerating economic development

In the first six months of 2021, the city's economy showed quite good signs of recovery, rising 5.09% year on year to end the negative growth in 2020. However, the fourth wave of COVID-19 epidemic outbreak adversely hurt the city's economy which almost froze in the third quarter and plunged 10.17%. In the fourth quarter, when the epidemic was under control, the city's economy rebounded.

Right at the beginning of 2021, the City Party Committee and the Standing Board of the City Party Committee have focused on leading the consistent and effective implementation of the 2021 theme: "The year of restoring growth and accelerating economic development". With the focus of the leadership, the introduction of many firm solutions, the engagement of the entire political system and the consensus of the whole society, Da Nang City achieved positive results in many fields. The gross regional domestic product (GRDP) was estimated to rise by 0.18% over 2020; the added value of the service sector was forecast to grow by 1.24%; merchandise export increased by 15.4%; retail revenue of consumer goods climbed 4.6% to VND59,385 billion. Budget revenue totaled VND23,035.4 billion. Job creation rose by 0.81%.

However, affected by the COVID-19 epidemic, many economic indicators slumped and slowed down. Accommodation, food and travel services, which were hardest hit by the epidemic, failed to make a recovery and escape negative growth from 2020. The added value of the agriculture, forestry and fishery sector was estimated to slip 2.38% from 2020 - the first year of decline since 2013. The added value of the industrial and construction sector was calculated to dip 2.13% in 2021.

Regarding foreign investment flow, the city had 39 new foreign direct investment (FDI) projects in the year to December 15, down 53% from 2020. However, thanks to some big projects, the registered capital rose by 16.3% from a year earlier to US$149.87 million. The average value of an investment project was US$3.84 million (versus US$1.55 million in 2020). 18 existing projects registered to add US$30.1 million to their investment base in 2021. The city also witnessed 49 equity purchase deals of US$11.45 million, 2.24 times higher than in 2020.

On domestic investment, in 2021, the city licensed 27 projects with VND7,748 billion of investment capital, up 35% in projects but down 56.1% in value. Corporate establishments in the fourth quarter of 2021 tended to rebound from the previous quarter when economic activities and administrative services were restored at the back of social distancing. There was a decline in the number of companies closing their operations for a definite time, showing positive signs of the city's economic recovery and growth.

Adapting safely and accelerating recovery and development

Carrying out the Government's policy on economic recovery in the context of safe adaptation to the epidemic, the Da Nang City People's Committee quickly adopted a socioeconomic recovery and growth plan for upcoming months amid safe, flexible adaptation to and effective control of the COVID-19 epidemic.

Mr. Le Trung Chinh, Chairman of Da Nang City People's Committee, said, the city worked out three growth scenarios in the fourth quarter of 2021 and 2022, with an eye to 2023; and identified specific tasks and solutions for socioeconomic recovery and development in the fourth quarter of 2021 and 2022-2023. With the 2022 theme “The year of safe and flexible adaptation to, effective control of epidemic and socioeconomic recovery and development”, Da Nang continued to invest in building synchronous infrastructure; accelerate public investment disbursement; boost enterprise development; and foster entrepreneurship, startup and technological innovation. Three economic growth scenarios in 2022 featured the growth prospect of 4.9% (low), 6.2% (medium) and 8.11% (high).

Da Nang City advocates shifting from “zero Covid” strategy to “Safe and flexible adaptation to, effective control of the epidemic” in the coming time, he said.

The city will carry out the dual goals, focusing on epidemic prevention and control, and actively developing and adopting specific scenarios for socioeconomic recovery and development, employment, and social security; maintain political security, social order and safety. Sociopolitical stability is regarded as a cross-cutting and important task, people's awareness and vaccination as a prerequisite, healthcare as key, science and technology as breakthrough development drives, and economy as the foundation.

With the principle that “safety is prerequisite to production and production must be safe,” businesses and people support the city's views and policies, and strive to seriously apply epidemic prevention and control measures adopted by the city.

“This year, the city will focus on synchronously carrying out key tasks and solutions for economic recovery and development by effectively implementing Resolution 43-NQ/TW of the Politburo on Da Nang construction and development to 2030, with a vision to 2045; and strive for GRDP growth of 6-7% as compared to 2021,” said Chinh.

By Vietnam Business Forum