Expecting a new wave of investment in Da Nang

Da Nang believes there will be a new wave of investment when the Central Government gives the city outstanding and special policies, including the establishment of a Free Trade Zone.

Investment in the formation of Lien Chieu port will create momentum for the development of Da Nang's logistics industry.

New Opportunity

In mid-2024, the National Assembly passed Resolution No. 136/2024/QH15 (Resolution 136) on the organization of urban government and piloting a number of specific mechanisms and policies for the development of Da Nang City. Immediately, this important decision had a positive impact, creating new vitality for the development of the City.

Although it has established a foundation to become a major city in the country, on its journey to the ocean, Da Nang faces many difficulties, as there is not much room left for development.

According to Ms. Le Thanh Tung, Deputy Director of the Department of Planning and Investment of Da Nang, besides advantages in strategic location, marine resources, seaports, tourism development, transportation, and maritime, Da Nang faces challenges in terms of investment resources, infrastructure, economic scale, competitiveness, etc. The Covid-19 pandemic has had a strong impact on the city's economy.

According to the Project on Logistics Services Development for the period 2021-2030, with a vision to 2050, Da Nang aims to have the logistics services industry contribute more than 11% to GRDP by 2030, the outsourcing rate will reach more than 40%, and logistics costs will decrease to an equivalent of 13% of GRDP.

  Logistics centers in Da Nang meet about 55% of the logistics service demand for goods via seaports, 20% of goods via rail and air. By 2050, the contribution of the logistics service industry to GRDP will reach more than 15%. Logistics centers in the city meet about 55% of the logistics service demand for goods via seaports, 40% of goods via rail and air.

In that context, the National Assembly's issuance of Resolution 136 with many outstanding mechanisms and policies has created new growth for the City.

Specifically, the National Assembly's resolution grants Da Nang 30 mechanisms and policies. Regarding the organization of urban government, there are 9 policies, including 7 similar policies that other localities have applied and 2 new policies. Regarding specific mechanisms and policies, 21 policies will be piloted, including 6 similar policies that other localities have been allowed to implement by the National Assembly; 10 similar policies with adjustments and supplements suitable to the reality of Da Nang and 5 new policies.

“Resolution 136 includes many contents inherited from other localities, proposed to be applied in accordance with the actual conditions of Da Nang and supplemented with a number of new specific mechanisms and policies in areas such as investment, finance, budget, planning, environmental resources, science and technology, information and communication, etc. In particular, there are specific contents on Free Trade Zones, semiconductor development, artificial intelligence, information and communication, science and technology management, innovation; attracting strategic investors; piloting financial mechanisms to implement measures to reduce greenhouse gas emissions according to carbon credit exchange and offset mechanisms…”, Ms. Tung informed.

With a series of important contents, the new policy that the Central Government has for Da Nang promises to create a big change in the city's development path in the coming time.

Notably, with attractive incentives, Da Nang aims to attract strategic investors, with projects with huge capital. For example, priority is given to attracting investment in the fields of innovation, data centers, research and development (R&D) centers associated with training. Attracting investment in infrastructure projects of functional areas in the Da Nang Free Trade Zone, including the Trade - Service Zone with an investment capital of 3,000 billion VND or more; the logistics center associated with Lien Chieu seaport; the Production Zone with an investment capital of thousands of billions of VND. Investing in the construction of the overall Lien Chieu seaport project, with an investment capital of 45,000 billion VND or more...

Da Nang has issued a list of priority projects to attract strategic investors; developed promotional content to attract strategic investors; preliminarily assessed the capacity and experience of investors and decided on the investor selection plan; organized bidding to select investors from among investors determined to meet the conditions for strategic investors.

“Resolution 136 of the National Assembly opens up new opportunities for Da Nang, bringing the city to rapid and sustainable development in the coming period. Successful implementation will be a premise for replication and legalization nationwide, other localities will also have the opportunity to deploy mechanisms and policies like Da Nang is currently piloting,” Ms. Tung shared.

Resilience for logistics

The Central Government's open mechanism stimulates development for many important economic sectors of Da Nang, especially the logistics industry.

The establishment of the Free Trade Zone associated with Lien Chieu Port and Da Nang International Airport will promote the development of production, processing, recycling, assembly, classification, and packaging of export and import goods. In particular, it will provide logistics services and services related to export and import activities, aiming to establish an international cargo transit center, creating an increasingly complete structure of technical infrastructure, maximizing the value chain of seaports and airports.

The free trade zone will also effectively connect production infrastructure and provide continuous support for new industrial zones and clusters that will develop in the future; connect dry ports, railway stations, major traffic routes, creating a bustling flow of goods through Da Nang port. The formation of the free trade zone will help Da Nang unlock resources, strongly attracting foreign direct investment (FDI) into the city as well as the dynamic region of the Central region.

An important premise for Da Nang to realize its goal of becoming a regional logistics center is to invest in the construction of Lien Chieu port. With that meaning, since the groundbreaking ceremony, the joint venture of contractors for Lien Chieu port construction, namely Phu Xuan Consulting and Construction Joint Stock Company - Lung Lo Construction Corporation - Truong Son Construction Corporation - DACINCO Construction Investment Company Limited - Xuan Quang Construction Joint Stock Company, has focused all its efforts on the construction of this key project. Currently, Lien Chieu port - the shared infrastructure, has reached more than 70% of the progress, and will be completed in 2025.

Another important component to complete Lien Chieu port is the investment call, with a capital of about 48,304 billion VND, to build 8 container terminals, 6 general ports, ports for river-sea ships, port rear areas, etc. Currently, this investment call has attracted the attention of the "eagles" in seaport development in the world. After the proposal of ADANI Group (India), Sumitomo (Japan), recently, the consortium of APM Terminal Group and Hateco Group is the next investor to submit an investment interest profile to build Lien Chieu port. These investors all committed to creating a source of goods and turning Da Nang into an important cargo transit center.

In addition, Da Nang is implementing a series of solutions to develop logistics services, from seaports, airports, to railways. In the coming time, the City will call for investment in 10 logistics center projects, including 1 regional logistics center, 1 specialized aviation logistics center, and 8 provincial logistics centers. Of which, Lien Chieu Port Logistics Center is a regional, class I center with a scale of 30-35 hectares by 2023, reaching 65-70 hectares by 2050. Da Nang International Airport Logistics Center is a specialized aviation logistics center, providing aviation logistics services, with a scale of 4-5 hectares by 2030, and 8-10 hectares by 2050. Hoa Phuoc Logistics Center is a provincial center, with a scale of 5-7 hectares by 2030, and 10-15 hectares by 2050...

To develop logistics by railway, the City will relocate the current Da Nang station out of the inner city in the direction of transferring the freight station, auxiliary works and railway agencies to Kim Lien station (Lien Chieu district). Phase I of the current Kim Lien station project will be upgraded to accommodate 350,000 tons of cargo and 1.5 million passengers/year, with a total estimated investment of VND 2,115 billion...

The People's Committee of Da Nang City said that the City will implement a plan to call for investment in logistics service infrastructure projects, attracting logistics projects to logistics service areas in high-tech parks and industrial parks. At the same time, it will invite large enterprises in the field of international integrated package transportation and delivery to set up a delivery warehouse in the City, promoting the advantage of Da Nang's transit role.

With the important policy of the Central Government and positive movements to form a Free Trade Zone associated with Lien Chieu seaport, it will create a great momentum for the logistics industry. Da Nang is moving rapidly towards the goal of becoming a major logistics center of the country and an important logistics hub in the Southeast Asian region.

Source: https://baodautu.vn/ky-vong-lan-song-dau-tu-moi-vao-da-nang-d229883.html