A view of Lien Chieu District in Danang City. — VNA/VNS
DANANG (Vietnam News/Asia News Network): The central city of Danang is implementing many solutions to stop a decline in foreign direct investment (FDI), striving to attract US$7 billion worth of FDI by 2030.
In the past two months of 2023, Danang licensed 16 new foreign-invested projects with a total registered capital of $2.55 million, down 54 per cent in capital over the same period last year, baodautu.vn reported.
The city has to date attracted 965 foreign-invested projects capitalised at over US$4 billion. Industry, real estate and services were fields that attracted the lion's share of FDI.
Japan is currently the city's largest source of FDI, with over $900 million, followed by Singapore, the US, and South Korea.
According to local authorities, FDI inflow into the city has been on a downward trend.
One of the reasons was that due to the Covid-19 pandemic, foreign investors found difficulty in coming to Danang to explore investment opportunities, while the tendency to protect domestic production in many countries was increasing.
Another reason was insufficient clean land fund inside and outside the city's industrial zones (IZs) to serve the needs of foreign investors. Most foreign-invested projects are located in IZs, but these zones have reported over 85 per cent land occupancy. Meanwhile, new zones are under construction.
Tran Thi Thanh Tam, Director of the municipal Department of Planning and Investment, spoke to baodautu.vn that the city would complete and then approve the planning of functional subdivisions under the Adjustments to the Danang Master Plan by 2030, with a vision towards 2045.
At the same time, it would complete procedures to organise auctions of land use rights for clean land areas and create conditions for investors to complete investment procedures for the projects they had committed.
In addition, the city would focus on completing infrastructure projects to serve the high-tech industry, information technology and logistics.
It was also accelerating completing and upgrading the technical infrastructure of Hoa Nhon, Hoa Ninh, the second phase of Hoa Cam IZs, and Danang Supporting Industrial Park. Tam added that pushing up investment promotion would also be included.
Vice Chairman of the municipal People's Committee Ho Ky Minh said his city was preparing a land fund for industrial development, supporting industries, high technology, and information technology to welcome capital flows into Vietnam.
Furthermore, it also focused on building high-quality human resources, removing difficulties and obstacles to create the best conditions for businesses to invest in the locality, Minh said.
