Positive results on FDI inflow into Da Nang amid coronavirus crisis

Despite some negative effects due to the coronavirus, Da Nang has produced positive and significant results on foreign direct investment (FDI) inflow with its innovation in investment attraction. Between January and July, Da Nang attracted 62 new FDI projects worth a combined total of more than 120 million US$, bringing the city’s total FDI project numbers to  867 till date with a total registered capital of about 3.518 billion US$.

Da Nang’s remarkable success in attracting FDI amid the coronavirus crisis affirmed the city’s position as the top spot for FDI in Central Viet Nam and Central highlands, according to the Foreign Investment Agency of the Vietnamese Ministry of Planning and Investment.

The positive results have been mainly attributed to the city authorities’ arduous efforts in attracting FDI.  One of the city’s  investment promotion strategies during the coronavirus crisis is to organise many webinars aimed at attracting FDI into such priority aspects as hi-tech and information technology.

Ways to turn Da Nang into an attractive destination for domestic and foreign investors in the tech sector were highlighted at a mid June-held webinar themed ‘Da Nang – the Next Southeast Asia’s Silicon Valley for Investment’.

In his remarks at this event, Mr Luke Treloar, the Director of Strategy Consulting and National Head of Healthcare and Life Sciences for KPMG in Viet Nam affirmed, in the light of the shifting trends of global FDI inflows to diversify the supply chain, Da Nang is a bright spot in Viet Nam and it is drawing much attention from investors around the world.

Within the framework of Da Nang’s investment promotion programme in Ho Chi Minh City in late June, the CMC Corporation leaders and Da Nang leaders discussed the development of a digital hub in Da Nang, based on its favourable geopolitical positions and other advantages.

During their stay in Ho Chi Minh City, the Da Nang visitors also met with Chief Representative of the German Industry and Commerce in Viet Nam (AHK) Marko Walde to find ways to encourage potential German investors to pour the money into some Da Nang’s sectors, including hi-tech, IT, healthcare, education and logistics.

It is reported that, in recent times, 4 FDI projects have been put into operation in the Da Nang Hi-Tech Park.  Noticeably, developed by the US-based Universal Alloy Corporation Asia Pte. LTD-UAC, the 170 million US$ Sunshine aerospace components factory, one of the largest FDI projects operating in this park, has seen its 1st stage completed on schedule, with the first batches of its products delivered to international partners last month.

According to Director of the Da Nang Department of Planning and Investment Tran Phuoc Son, in an attempt to welcome a new wave of FDI from countries around the world and reach out to even more foreign investors who are seeking new investment markets, Da Nang is on course to speed up the infrastructure development and earmark land resources for potential FDI projects.

As scheduled, Da Nang will host the Da Nang Investment Forum 2020, and investment promotion webinars with an aim of attracting investors form Taiwan (China) and South Korea, and attracting more domestic and FDI investment inflows into the 1st stage of the Da Nang IT Park.

Currently, Da Nang is stepping up its efforts to attract more domestic and foreign investment into such key projects totalling billions of US$ as the expanded Xuan Thieu tourist area, the Da Nang University Urban Area, the solid waste treatment complex, the upgrade of the existing Maternity and Pediatrics Hospital, the Lien Chieu mega-port and the relocation of the city’s railway station.

Source: Da Nang Today