Foreign investors eyeing Da Nang

Central Da Nang city and VnEconomy / Vietnam Economic Times held a seminar on the city’s investment environment on March 17, within the framework of the Vietnam Connect 2023 forum.

Mr. Le Trung Chinh, Chairman of the Da Nang City People’s Committee, said the city is one of five cities directly under the control of the central government and a locomotive of socio-economic development in the central key economic zone. Its gross regional domestic product (GRDP) in 2022 reached more than VND125 trillion ($5.3 billion), with growth estimated at 14.05 per cent.

It has attracted 977 FDI projects to date with total investment of more than $4.06 billion from 45 countries and territories, mostly in manufacturing and processing (48.2 per cent), real estate and tourism (33.8 per cent), and services (16.4 per cent). According to Ms. Huynh Lien Phuong,  Director of the Investment Promotion Agency (IPA), the city has also boosted investment in support industries, health, logistics, and information communications technology, among others. “There remain many investment opportunities in Da Nang for foreign investors,” she said. The IPA also hopes to connect with enterprises in the future.

Realizing the potential Da Nang holds, a range of foreign investors are seeking investment opportunities. Ms. Michael Wee, CEO of Standard Chartered Bank Vietnam, said the bank is also planning to expand its branch in the city.

Ms. Wiraka Moodhitaporn, Consul-General of the Thai Consulate-General in Ho Chi Minh City, said Thai businesses are looking to expand activities in Vietnam, especially in the logistics field. “I therefore think this are great opportunities for Da Nang and Vietnam,” she said. “I will work closely with the IPA to provide investment information to Thai businesses and am also planning to work with universities in Da Nang in the near future and hope to have the opportunity to expand cooperation.”

Similarly, Ms. Pham Hoai Anh, Deputy Director of 1C Vietnam, a subsidiary of the 1C Company, said it is currently supporting businesses in digital transformation and Da Nang is a market of potential, together with Hanoi and Ho Chi Minh City. “With 100 per cent foreign investment, 1C is hoping that leaders in Da Nang support the company in connecting with local businesses to support them in the digital transformation process,” she added.

Ms. Phuong emphasized that banking is a major focus of Da Nang, as there are a lot of banks but they are only branches “If banks want to expand their business activities, Da Nang will create favorable conditions in setting up offices,” she said.

Many industrial parks in the city are promoting digital transformation, and both foreign and domestic investors can offer support with services to boost the process.

With potential and strengths, Da Nang will establish development orientations for rapid and sustainable economic development and attract investment in building Da Nang into a smart eco-city, a hub for entrepreneurship and innovation, and a livable coastal city of Asian standard to 2030 with a vision to 2045. “The city focuses on developing three main pillars: tourism, high-tech industry, and the marine economy,” Mr. Chinh said. “It prioritizes attracting projects with advanced technology, new technology, high technology, modern management methods, innovation capacity, and supply chain links, etc.”