Why is Da Nang's FDI attraction still not "on the map"?

Da Nang's FDI attraction is still "modest" compared to its potential.

Attracting FDI in Da Nang has not yet met expectations. Due to many reasons, promoting and attracting investment is still facing many difficulties.

Da Nang is promoting attracting FDI capital into Da Nang High-Tech Park.

According to the Da Nang Statistics Office, from January 1, 2024 to November 25, 2024, Da Nang attracted 213.369 million USD of FDI capital. Of which, 64 new projects were granted with registered capital of 204.132 million USD (up 36% over the same period), 23 projects were adjusted to increase/decrease capital with a total capital of 7.838 million USD (down 61% over the same period) and 18 purchases of capital contributions in economic organizations with a total value of 1.399 million USD.

According to the plan, Da Nang is currently promoting investment promotion activities to attract investment into the city, especially in industrial clusters, industrial parks, high-tech parks, and information technology parks.

In these areas, the locality prioritizes attracting high-tech industries, focusing on semiconductor design technology, artificial intelligence (AI), big data technology, digital technology, etc. to anticipate the flow of foreign direct investment shifting to Vietnam.

However, the current situation of attracting FDI in Da Nang has not yet met expectations. The promotion and attraction of investment still faces many difficulties due to political conflicts in the world, land funds, etc.

At the question and answer session of the 21st session of the 10th term People's Council of Da Nang City on December 13, delegate Nguyen Thanh Phuc, the delegation of the People's Council of Da Nang City, Lien Chieu District, acknowledged that attracting foreign investment is a priority task for the locality throughout the term. Compared to expectations, delegate Phuc said that the city's FDI attraction is still modest compared to other localities.

Giving more specific evidence, delegate Nguyen Thanh Phuc said that Da Nang has not yet emerged on the map of FDI attraction in Vietnam. According to data from the Foreign Investment Agency, in the 11 months of 2024, Da Nang was not in the top 10 or top 20 in FDI attraction.

“Can the city be among the top FDI attractors in 2025 and the following years? In the coming year, what should the city start, stop and continue to do to better attract FDI?” asked delegate Phuc.

Responding to this issue, Ms. Tran Thi Thanh Tam, Director of the Department of Planning and Investment of Da Nang City, said that in 2024, Da Nang attracted 217 million USD in foreign investment capital, an increase over the same period. However, Ms. Tam also acknowledged that this result was not worthy compared to Da Nang and especially compared to other localities in the country.

“Through the opinions of the delegates, we can clearly see this limitation. In recent times, the Department of Planning and Investment, together with the City Investment Promotion and Support Board, have been very active in promoting foreign investment to find major partners. However, the process of attracting FDI into the city still faces many difficulties, especially for projects outside industrial parks,” said Ms. Tam.

Specifically, currently the land fund is almost gone, many investors coming to Da Nang cannot find a location to implement the project. For industrial parks, this situation has been overcome in recent times.

In the coming year, Da Nang is oriented towards developing industry and high technology, especially in the fields of semiconductors and information technology.

In particular, Da Nang is actively implementing solutions according to Resolution 136 of the National Assembly and building many policies to attract investment. When investing in the Free Trade Zone, investors only need to register the project like domestic investors.

From here, it is possible to attract large investors to the city. Besides, Da Nang is also focusing on building a financial center and this financial center has a very large part of the task for the free trade zone.

“With such a big orientation, Da Nang's goal in the coming time will be to attract big investors to the city,” Ms. Tam believes.

Source: https://baodautu.vn/thu-hut-dau-tu-fdi-cua-da-nang-con-khiem-ton-so-voi-tiem-nang-d232489.html