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Central city Đà Nẵng designed as investment destination

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Trucks unload cargo at a logistics in Hoà Cầm Industrial zone in Đà Nẵng. The city has been boosting it as a potential destination for investment in Asia. Photo Công Thành 

ĐÀ NẴNG — The central city of Đà Nẵng has been planning for an international and regional finance centre, a national start-up centre, a duty-free zone, an expansion of the international airport and a new deep-sea port for the Master Plan for 2030, creating a magnet for future large investors.

Vice-chairman of the city’s people’s committee, Trần Phước Sơn made the statement at an investment forum – Đà Nẵng: a potential investment destination in Asia – a prelude event of the Invest Đà Nẵng Forum for resuming economic and investment activities post-COVID-19.

Sơn said the city’s gross regional domestic product (GRDP), which had earned a stable growth of 7.17 per cent in 2016-19, witnessed a recovery in the first half of this year of 7.23 per cent.

He said 4 out of 10 confirmed air routes from six airlines had opened again since early this year, while more new air routes linking India, Australia, Japan and Europe are on the way.

The city and the Import-Export Pan Pacific Group (IPPG) signed a Memorandum of Understanding (MoU) on developing an international finance centre – a trading centre, casino, high-end entertainment and luxury apartments design – to attract investors in the future.

Jonathan Hạnh Nguyễn, chairman of IPPG Group, said the centre would attract US$5 billion of investment from foreign businesses.

Vice director of Đà Nẵng’s transport department, Bùi Đăng Sơn, said a 229ha area had been approved for developing five key logistics zones in connections of road-railway-airport and seaport logistics and industrial zones and parks as well as the national Express system and regional multi-vehicle transport on the East-West Economic Corridor, linking Laos, Thailand, Myanmar and Việt Nam.

Trung Nam Group develops an electronic production line at Đà Nẵng Hi-tech Park. The site has been designed as a ‘silicon valley’ in central Việt Nam. Photo Công Thành 

Head of the Đà Nẵng Hi-tech Park and Industrial Zones Authority (Đà Nẵng HPIZA), Phạm Trường Sơn, said the city has been calling for investors in the two projects – the training school of aviation and aeronautical engineering and airlines maintenance and repair centre in the Đà Nẵng Hi-tech Park – with an estimated investment of $150 million in boosting supportive industries for the central Việt Nam’s ‘Silicon Valley’ design and creating an attractive ‘birds nest’ of critical investors in the future.

Sơn said an area of more than 25ha had been assigned for the two projects in 2023-25 with an expectation of setting up a supportive industries foundation for post-COVID-19 investment in the park.

He said 90 per cent of the total 2.225ha area of six industries zones and a high-tech park had already been assigned for investors, while three more Industrial parks were planned for future expansion of the projects.

Sơn said a total of 510 projects worth $3 billion in six IZs and a High-tech park helped contribute 30 per cent to the city’s budget while creating 75,000 jobs.

The tourism industry was a key income of the city’s coffers with 300 hotels and resorts – of which 100 were four and five-star accommodation – and seven golf courses that had hosted 8.7 million tourists in 2019.

Vice director of the city’s tourism department, Nguyễn Xuân Bình, said the ‘green’ industry was expected to recover from 2025 with a growth of 17.6 per cent in 2030-45.

In a meeting with the General Director of Samsung Việt Nam Choi Joo Ho during a visit to Đà Nẵng earlier this year, the city’s leadership Đà Nẵng has been calling for investment and cooperation from Samsung in expanding investment in the city and central Việt Nam after north and south of Việt Nam.

Local property developer BRG Group and Japan’s Sumitomo Group have submitted investment proposals as part of their ongoing development of key infrastructure and logistics network upgrades in the central city.

The Universal Alloy Corporation (UAC) from the US launched the first stage of the $170 million Đà Nẵng-based Sunshine Aerospace components manufacturing plant last year, while LG Electronics began constructing its R&D centre in the city.

A pharmaceutical manufacturing project begins construction at the Đà Nẵng High-tech park. The park will be built as a ‘green’ and smart park in the future. Photo courtesy of Danapha

Despite the challenges of COVID-19, Fujikin International Incorporated from Japan started construction of an R&D centre at Đà Nẵng High-Tech Park worth $35 million, while Japanese Daiwa Việt Nam also began building its third factory in the city with an investment of $40 million.

Six industrial zones and a high-tech park in Đà Nẵng drew 503 projects, including 130 FDI worth $1.8 billion and $1.2 billion, respectively, from domestic investors.

Đà Nẵng has been calling for investment from Silicon Valley and the US in health care, high-tech industries, Artificial Intelligence, education, real estate and automation at Đà Nẵng high-tech park and industrial zones. —

Source: https://vietnamnews.vn/economy/1249831/central-city-da-nang-designed-as-investment-destination.html

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Vietnam’s 2022 economic growth projected at 7%

Vietnam’s GDP is likely to expand by around 7 percent in 2022, much higher than 2.58 percent growth of 2021.

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Minister of Planning and Investment Nguyen Chi Dung made the above statement at the Cabinet meeting in Hanoi on July 4.

With this scenario, the economy needs to expand 9 percent in the third quarter and 6.3 percent in the last quarter this year, the minister said.

In the first half, the Southeast Asian country’s GDP accelerated to 6.42 percent growth compared to the optimistic scenario of 5,1-5,7 percent as figured out in the Government’s Resolution No. 01/NQ-CP, dated January 01, 2021 on major tasks and solutions for implementation of socio – economic development plan and state budget estimate for 2022. 

Especially, the GDP grew 7.72 percent in the second quarter, which is the fastest growth pace for April-June period since 2011.

Earlier, the World Bank predicted Vietnam’s 2022 GDP growth at 5.5 percent if the COVID-19 pandemic is controlled.

The projection is lower than the Vietnamese Government’s predictions at 6.5-7 percent, HSBC at 6.5 percent and Standard Chartered at 6.7 percent.

Source: https://e.nhipcaudautu.vn/economy/vietnams-2022-economic-growth-projected-at-7-3346528/

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Dragon Capital buys 2.1 million shares of Sacombank

Asset management company Dragon Capital has bought 2.1 million shares of HCMC-based Sacombank, increasing its stake in the bank to 6.09 percent.

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On June 29, two affiliated funds, CTBC Vietnam Equity Fund and Norges Bank, bought 2.3 million shares of the lender while a third, Samsung Vietnam Securities Master Investment Trust, sold 200,000 shares.

The value of the deal is estimated at VND47.5 billion (US$2.03 million) based on the share’s closing price last Wednesday.

Funds under Dragon Capital own 114.8 million shares or a 6.09 percent stake in the bank.

In March, Dragon Capital had raised its stake from 4.98 percent to 5.05 percent, after its largest fund, Vietnam Enterprise Investment Limited, bought 1.25 million shares.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/dragon-capital-buys-21-million-shares-of-sacombank-3346515/

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Vietnam targets 7% GDP growth this year: minister

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HANOI — Vietnam is aiming for economic growth of 7% this year, the country’s planning and investment minister said on Monday, higher than an official target of 6.0%-6.5% set previously.

To achieve this, year-on-year economic growth in the third quarter needs to be 9.0% and in the fourth quarter 6.3%, minister Nguyen Chi Dung also said during a government meeting.

Dung said Vietnam’s budget was in surplus, giving scope for fiscal policy to be used to support businesses and residents.

“Credit institutions will need to further cut their lending interest rates to reduce input cost pressure for businesses and for the economy,” he said.

Vietnam, a regional manufacturing hub, started lifting its coronavirus curbs late last year, allowing factories to resume full operations.

The economy is recovering after growing only 2.58% last year, the slowest pace in decades.

The Southeast Asian country reported GDP growth of 7.72% in the second quarter, backed by strong export growth, but warned of upward inflation pressure for the rest of the year. 

Source: https://tuoitrenews.vn/news/business/20220704/vietnam-targets-7-gdp-growth-this-year-minister/67932.html

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