|Danang High-tech Park welcomes many investors to set up business |
According to the latest figures from the Provincial Competitiveness Index (PCI) 2020 offered by the Vietnam Chamber of Commerce and Industry, Danang sits among the top five cities and provinces with a “very good” quality of economic management at 70.12 points.
This is the third consecutive year that Danang has been in the top five of the PCI. Among ten sub-indices of the index, Danang placed itself in four top-ten indices – third place for sound labour training policies (7.87 points); fourth for low entry costs for start-ups (8.75 points); seventh for easy access to land and security of business premises (7.35 points); and eighth for limited time requirements for bureaucratic procedures and inspections (8.62 points).
Over 16 years after joining the PCI survey, Danang has topped the list on seven occasions, as well as three years at second rank and four years in fifth place. The statistics show that Danang is maintaining its attractive investment environment, with efforts helping the coastal city achieve fruitful results and attract a large number of prestiguous investors and entrepreneurs from both inside and outside the country.
According to Danang Department of Planning and Investment, over the last four years the central city attracted 163 local projects with the total registered capital of $3.3 billion, and 530 newly-licensed foreign direct investment (FDI) projects with the total registered capital of more than $1 billion. The investment and production operation of domestic and foreign-invested enterprises contribute an average of over 9 per cent to the added value of the city’s economy and creates jobs for more than 93,100 labourers.
Additionally, these investment projects help effectively brand Danang as an ideal investment destination and promote the city in international integration and cooperation in many other fields.
In the first quarter of 2021, Danang decided to approve an investment research policy and registered licences for two domestic projects outside industrial zones with the total investment capital of $13.9 million and three other projects in industrial and high-tech parks. Moreover, Danang has issued investment certificates for nine newly-registered FDI projects with the total registered capital of $146.4 million, of which five increased their investment capital by $9.4 million.
Nguyen Trung Chinh, chairman of CMC Group, said that Danang owns various potentialities and has a vibrant and attractive investment environment to meet the demand of the business community. The group is developing its CMC Creative Space complex in the city with the total investment of VND12 trillion ($521.7 million) and targets to build up the city into an international digital hub following the national strategy. “Danang has an important position with favourable conditions to become a hub of the region, so we have invested in developing our Creative Space complex following this approach,” said Chinh.
|Danang is an ideal rendezvous for both local and foreign investors of various industries |
Facing the reality
The fruitful results from investment attraction of the central coast city come from the efforts of the city’s administrative system to improve the investment environment towards creating the best services for entrepreneurs. The city’s authorities have issued 14 legal documents related to investment support policies and mechanisms, as well as revised and upgraded outdated ones.
The city also completed the adjusted master plan for the city to 2030 with vision to 2045; thus enabling the setup of eco-friendly industrial parks (IPs) and investments in the IT Park in Hoa Vang district and other structures.
The city meanwhile announced 31 sets of administrative procedures for the local authorities related to business and investment activities and reviewed more than 100 administrative procedures to help organisations, entrepreneurs, and individuals cut costs and time.
Danang also diversifed its investment promotion channels in strategic and targeted markets while its leaderships enhanced promotion activities and campaigns inside and outside the country, where they worked directly with investors and businesses to resolve their requests and obstacles.
However, the city’s investment attraction mission still faces shortcomings. Most domestic projects invest in real estate like hotels and resorts while investments in industrial and high-tech sectors count for merely 10 per cent. Meanwhile, FDI attraction from large-scale transnational corporations is still limited, and most projects have small- and super-small registered capitals.
Realising its shortages and current results, Danang has proposed a series of solutions to maintain investors’ confidence. The city will focus on six main solutions to improve its investment environment, such as issuing adjustments of its master plan for land use, approving the subdivision plans, and define types of projects needed to attract investment and create dynamism for the city’s development.
Meanwhile, the city continuously pushes the speed of schemes like the Masterplan to Develop High-tech Parks, the Experimental Enhancement of Innovation and High-tech Startups, and High-quality Human Resources Development.
To solve its infrastructure problems, Danang is investing in developing its transportation and logistics systems. The city is also enhancing the selection of investors to complete infrastructure and put certain projects into operation, such as Hoa Cam, Hoa Nhon, and Hoa Ninh IPs. The city’s authorities will also concentrate on solving all these obstacles of high-tech parks to construct the second phase of Danang IT Park.
In its administrative renovation, the city is continuing to shorten processes related to investment procedures while completing its digitalisation scheme.
According to Nguyen Van Quang, Secretary of Danang Party Committee, the city recognises its shortcomings to improve its investment environment. “Danang’s leadership will try its best to listen to the response of businesses on what issues they are facing, from obstacles of administrative procedures to negative behaviours of officials during their operation in the city,” Quang said.
“Danang has a lot of potential and advantages for businesses so we commit to creating competitive conditions to attract investors,” Quang explained. “The city is determined to complete its logistics system, upgrade the international airport, build a cargo terminal at the airport, and increase the capacity of Tien Sa Port, among others.”
“We always try to stay transparent, consistent, and committed in calling for investment, especially in land mechanisms and policies, while shortening the administrative documents and procedures for businesses,” stressed Quang.