Da Nang’s industry and trade sector grows

16:54 | 13/08/2015 Industry

(VEN) - With its tourism, services and industry balanced economic development strategy, Da Nang expects to achieve an annual average industrial production growth rate of 9.8 percent and an annual average export value growth rate of 15.4 percent for the 2011-2015 period. Vietnam Economic News’ Thuy Lan spoke with Director of the Da Nang Department of Industry and Trade Phan Van Kha about the strategy.

Da Nang’s industry and trade sector grows

Da Nang boosts industrial production

How has the local industry and trade sector contributed to the development of Da Nang which is known as one of the country’s most dynamic cities?

Along with its balanced economic development strategy based on local advantages, Da Nang has gradually turned industries and commercial services into a key part of local and central regional economic development.

The local industry and trade sector has gained great achievements over 40 years of development since reunification in 1975. Thanks to advanced equipment and technologies, many products including tires, cement, clothes and seafood have been recognized as high quality and won several national and international awards. The local industrial production grew by 8.1 percent in value on an annual basis during the 2005-2014 period. Last year, the industrial production value reached VND37.27 trillion, a 2.2-fold increase compared to 2005 and a 1.5-fold increase compared to 2010. Car tires, frozen seafood, garments, cement, beer and pharmaceuticals have been identified as key industrial products.

Da Nang currently has six industrial parks and one industrial cluster, with total area of 1,084.5ha. In addition, the city is involving in the deployment of a 1,220ha high-tech park and a 341ha information technology zone.

The local commercial infrastructure has gradually been improved along with the construction of modern supermarkets and shopping centers. Up to now, the city has 46 supermarkets and shopping centers and 69 markets, with annually increasing values of retailed goods from VND963 billion in 1976 to VND6.35 trillion in 1997 and VND49.56 trillion in 2014.

Local export value has increase from US$2.2 million in 1976 to US$155 million in 1997 and nearly US$1.13 trillion in 2014. The annual average export value growth rate reached 21.3 percent over the 1976-1997 period and 12.5 percent over the 1998-2014 period. The range of products has become increasingly perse with enhanced quality and increased proportion of processed and high-tech products including seafood, textiles and garments, electrical appliances, electronics, micro-motors and crafts products.

Local companies have exported products to more than 120 countries and territories around the world, with some major markets including Japan accounting for 34.3 percent of its exports, the US 19.2 percent and the EU 15 percent. In addition, they are positive to expand businesses in new markets such as Haiti, the Republic of the Congo and Uganda.

What solutions have the local industry and trade sector adopted in recent years in order to remove difficulties for enterprises?

Last year, the people’s committee asked the Da Nang Department of Industry and Trade to coordinate with related agencies and localities to actively plan and implement the Da Nang Business Year 2014 program.

The Da Nang Department of Industry and Trade consulted the Da Nang City’s People’s Committee to organize two local corporate supply and demand links programs and field trips to more than 40 local businesses. Specifically, 57 corporate recommendations were addressed, 11 companies involved in tourist souvenir production were supported with a total amount of nearly VND230 million, six trade fairs were organized attracting more than 1,000 corporate participants with approximately 2,000 booths, more than 50 enterprises were supported to participate in trade fairs,  three enterprises were supported in terms of innovating their technology, six business information workshops and three training courses on  sales skills were organized, and 10 enterprises were supported to develop electronic commerce.

What are Da Nang’s key achievements in import, export and industrial production in recent years?

Da Nang expects to achieve an annual average industrial production growth of 9.8 percent for the 2011-2015 period, with processing and manufacturing accounting for more than 90 percent in industrial structural proportion while the mining on the decline. It continues to focus on flagship products including frozen seafood, ready-made garments, processed food, shipbuilding and some support industrial products.

The city expects an annual average export value growth of 15.4 percent for the 2011-2015 period, with increased export of processed and high-tech products and decreased export of raw materials and semi-processed products. Major markets include the US, the EU and Japan.

What is the local industry and trade sector’s orientation for the 2016-2020 period?

Da Nang has implemented action programs under Conclusion 75-KL/TW of the Politburo on the deployment of Resolution 33-NQ/TW, strengthening its key role in the central region and Central Highlands while improving the local investment and business environment towards enhancing its provincial competitiveness index (PCI) in the context of increasing international economic integration.

The local industry and trade sector has determined its overall development objective until 2020 including developing clean and high value-added industries; prioritizing high-tech industries and products, supporting industries, high-end consumer goods and export items; promoting export activities so that Da Nang may become a key trade hub in the central region and Central Highlands; improving Da Nang’s PCI via improved distribution channels and related technical assistance; upgrading the infrastructure at local industrial, hi-tech and information technology parks and clusters; calling for private investment in local shopping centers, supermarkets and traditional markets; and encouraging e-commerce development.

In the 2016-2020 period, Da Nang is striving to achieve an annual average industrial production growth rate of 10 percent (at constant prices of 2010), an annual average industrial value added growth rate of 10 percent, an annual average goods and service sales growth rate of 18.4 percent, and an annual average export value growth rate of 16.3 percent.

 

Thuy Lan

 

 

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