Businesses consider Da Nang an attractive and reliable investment destination.

Businesses consider Da Nang an attractive and reliable investment destination.

In 2024, Da Nang City attracted 71 new foreign investment projects with a total registered capital of over US$233 million; and 19 domestic investment projects with a total registered capital of over VND 73,000 billion.

Mr. Tran Van Vu, Director of the Da Nang City Statistics Department, shared this information at the press conference.

At a press conference announcing the socio -economic statistics for 2024, Mr. Tran Van Vu, Director of the Da Nang City Statistics Department, stated that in 2024, the city successfully organized many large-scale events; the tourism sector continued to leverage its strengths; and the industrial and construction sectors showed promising recovery.

"The city is considered by both domestic and foreign business communities as an attractive and reliable investment destination," Mr. Vu said.

Specifically, as of December 25, 2024, Da Nang City attracted $243.4 million in newly registered and increased foreign direct investment (FDI), a 33.2% increase compared to 2023. This included 71 newly approved projects (a decrease of 107 projects compared to 2023) with registered capital of $233.6 million (higher than the same period in 2023 by $182.7 million); and 26 projects with adjusted capital increases/decreases totaling $7.9 million…

KP Aerospace Vietnam Co., Ltd. (South Korea) held the inauguration ceremony for the KP Vina Aerospace Components Manufacturing Plant Project located in the Da Nang High-Tech Park on December 13, 2024. Photo: DINCO.

Several major projects by companies such as Murata Manufacturing Vietnam Co., Ltd., ODK Mikazuki Vietnam Co., Ltd., Daiwa Vietnam Co., Ltd., ICT Vina Co., Ltd., etc., have been completed and put into operation.

Regarding attracting domestic investment, Da Nang City has granted investment certificates to 19 domestic projects with a total newly registered capital of VND 73,348 billion; although there was a decrease of 6 projects, the total newly registered and adjusted capital increased by 56.5% compared to 2023.

Some of Da Nang City's economic targets for 2024 include an estimated 7.51% increase in the city's GDP; an estimated economic size of over VND 151,307 billion, expanding by nearly VND 17,086 billion compared to 2023 (the service sector saw the largest expansion in total added value at VND 12,993 billion); and import-export turnover reaching USD 1,911 million (a 2.9% increase compared to 2023)...

The total number of visitors served by accommodation and travel establishments is estimated at 12.4 million, including 4.6 million international visitors. Total retail sales of goods and consumer service revenue are estimated at VND 136,954 billion, an increase of 15% compared to 2023; of which revenue from travel services and tourism activities increased the most at 29.8%.

Some public investment projects have progressed rapidly recently, such as the Lien Chieu Port Construction Project – shared infrastructure; the coastal road connecting Lien Chieu Port; the Da Nang Obstetrics and Pediatrics Hospital Upgrade Project; the Quang Da Bridge and approach road; and the social housing project for people with meritorious services to the revolution on Vu Mong Nguyen Street…

In addition, investment projects with non-budgetary funding in the city also achieved high implementation values ​​in 2024, typical examples include the TTC Plaza Da Nang Project; The Filmore Apartments; Han Riverfront Tourism Service Area; The Ori Garden Social Housing Project; Ba Na Hill Festival Area; the Apartment Complex Project East of Tran Hung Dao Street; the Peninsula Da Nang Han Riverfront Complex Project; The Estuary Tuyen Son Complex Project…

Despite achieving many successes, the Da Nang City Statistics Department also pointed out several limitations in the city's socio-economic development.

Accordingly, the number of businesses applying to temporarily suspend operations or withdraw from the market continues to increase (up 3.9% and 2.2% respectively compared to the same period), while the number of new businesses entering the market tends to decrease compared to 2023, with 4,051 newly established businesses, branches, and offices (down 8%) with a total registered charter capital of VND 16,029 billion (down 27.3%).

According to the Da Nang City Statistics Department, a survey assessing factors affecting the development potential of manufacturing businesses revealed that many enterprises face difficulties due to limited product markets; some businesses are unable to recruit the required workforce; and there is a shortage of raw materials, fuel, and input materials. In particular, many businesses are experiencing financial difficulties while land rental costs for production remain quite high compared to other localities in the region and nationwide.

The real estate market only began to show positive signs in the fourth quarter, so it has not yet been able to improve the sharp decline of the early months of the year. Many real estate projects are facing difficulties with capital sources and sales; the legal procedures of some projects are slow to be implemented, and the supply in some real estate segments is scarce… These are the reasons hindering the growth of the service sector in 2024.

Speaking at the press conference, Mr. Tran Van Vu said that, drawing on the experience of low growth in the industrial and construction sectors in the first quarter of 2024 affecting the overall growth for the year, the Statistics Department has advised and recommended that the City accelerate this process right from the beginning of 2025.

“Da Nang City has worked with FPT Group to commence construction on 4 projects in the first quarter of this year, and 1 project in the fourth quarter; the FPT Group's project alone is worth 5,050 billion VND, of which 1,000 billion VND is scheduled for the fourth quarter, and the remaining 4,040 billion VND must be implemented in the first quarter of 2025. Normally, meetings with businesses are held after the Lunar New Year, but the city's current policy is to implement these projects right from the beginning of the year. In the first quarter of 2025, the Statistics Department will gather information on how many businesses are operational from the start of the year and how many projects are underway to expedite the process,” Mr. Vu said.

Source: https://baodautu.vn/doanh-nghiep-danh-gia-da-nang-la-diem-den-dau-tu-hap-dan-dang-tin-cay-d238228.html