Promoting the supporting role for investment in urban development

The Development Investment Fund plays the role of “seed capital” for the city’s important socio -economic investment projects. IN PHOTO: Tien Sa Port infrastructure after investment and upgrading. Photo: PV

Identified as an important infrastructure of Da Nang in the field of logistics, recently, Tien Sa port infrastructure has been upgraded by Da Nang Port Joint Stock Company with a total investment of about 1,373 billion VND. Specifically, the first project is the expansion of Tien Sa port phase 2 with a total investment of nearly 1,000 billion VND on an area of ​​over 85,000m2, of which the loan capital from the Development Investment Fund is 180 billion VND. The project was completed and put into operation in August 2018, contributing to improving the port's loading and unloading capacity, capable of serving container ships and large ships up to 70,000 DWT, passenger ships with a capacity of 100,000 GRT.

The second project is to invest in the area behind wharfs 4 and 5 of Tien Sa port with a total investment of nearly 373 billion VND, including items: embankment behind the bridge, embankment, leveling, container yard, internal roads, synchronous water supply and drainage... In which, the loan capital from the Development Investment Fund is 143 billion VND. The project will be completed and put into operation from June 2024, meeting the needs of serving container ships up to 50,000 DWT and general cargo ships up to 70,000 DWT, passenger ships with a capacity of 168,000 GT.

Production activities at Huynh Duc Trading - Service and Production Company Limited (Lien Chieu District). Photo: MAI QUE

Mr. Le Quang Duc, Deputy General Director of Da Nang Port Joint Stock Company, said that the above projects create momentum to promote production and business activities of related industries and fields, solve and create more jobs for workers in the area. The loan capital from the Development Investment Fund is a great support to help the company complete the projects, contributing to helping Tien Sa Port affirm itself as the most modern container port in the region.

Another project following the city's orientation for developing supporting industries is investing in vehicles and machinery for the production of supporting industrial products with a maximum capacity of 400 tons of products/year of Huynh Duc Trading - Service and Production Company Limited (Lien Chieu District). The project has a total investment of 60 billion VND, of which 37 billion VND is borrowed from the Development Investment Fund (accounting for 61.7% of the total investment), implemented in the period of 2021-2022. Mr. Lam Phung Ut, CEO of the company, said that the preferential loan capital from the Development Investment Fund and the quick and timely disbursement procedures have helped the company expand its production scale, innovate technology, proactively seize market opportunities, contributing to increasing the company's output and operating revenue over the years.

With newly invested technological machinery lines, fully automatic machines and programs created by programming engineers, it helps to increase production productivity and reduce product costs. The company is creating high-quality products, environmentally friendly production, best meeting the increasingly strict requirements of domestic and foreign customers; at the same time, improving working conditions for workers, contributing to improving the health and life of workers.

It is known that the above projects are all in group 1 - a special priority lending sector at the Development Investment Fund with an interest rate of 5.6%/year. Specifically, the areas in group 1 (special priority): include high-tech industry, tourism, environment, energy, housing, agriculture , fisheries, transportation, information technology - telecommunications, semiconductors and artificial intelligence. In addition, groups 2 (priority sectors) and group 3 (other sectors) at the Development Investment Fund are applying interest rates of 6.1 and 6.6%/year, respectively. It can be said that this is a reasonable interest rate, providing the best support for the projects. From 2013 to present, the lending interest rate for projects in the investment sector list, lending at the Development Investment Fund issued by the City People's Committee has been continuously adjusted down, specifically from 9-10.2%/year to now only 5.6-6.6%/year.

​​​​​​​Mr. Nguyen Thanh Tam, Director of the Da Nang City Development Investment Fund, said that in 2025, the fund strives to have an outstanding investment loan balance of VND 957 billion (an increase of 10% compared to 2024), with a bad debt target of less than 3%. The fund continues to effectively implement business support policies under the direction of the City People's Council and People's Committee, especially lending to the semiconductor and artificial intelligence sectors, social housing loans, etc. At the same time, it will study and advise the City People's Committee to submit to the City People's Council for approval of the list of investment and lending sectors for the 2026-2030 period in line with the city's socio-economic development planning orientation in the coming time.

CINNAMON

Source: https://baodanang.vn/kinhte/202505/phat-huy-vai-tro-tro-luc-cho-dau-tu-phat-trien-thanh-pho-4006886/