PM Nguyen Xuan Phuc meets with investors at the Invest Da Nang 2017 Forum in the central city on October 15. (Credit: VGP)
PM Phuc was
addressing a business forum "Invest in Da Nang” held in the central city on
October 14 and 15 as a prelude to the APEC Economic Leaders’ Week scheduled to
take place from November 6-11. The week is expected to be the largest event of
its kind in the city’s history.
PM Phuc said the week should be an unforgettable memory
for APEC member economies, emphasising that it was a great opportunity for the
city to promote itself and the country as a whole.
The 2017 APEC Economic Leaders Week will be a positive
introduction of Da Nang as a young and dynamic city in central Vietnam, and an
attractive location top world investors, he said.
He also had a word of caution: "Da Nang should strive to
boost growth as a key city and driving force for the coastal central region in
the years to come. If it does not do so, it will be replaced by Khanh Hoa or
Quang Nam in the driving seat of the regional economy.”
The PM said the city needs more drastic and powerful
actions to fulfill its potential as a regional metropolis, a smart city, one of
three key cities in the country alongside Hanoi in the north, Ho Chi Minh City
in the south.
He suggested Da Nang should reform its institutions and
promote transparency to create more favourable conditions for both domestic and
foreign investors. This would help it win the trust of both investors and
residents, he said.
The PM also said the city administration has to commit to
protect investors’ assets at any risk, while improving land procedures, public
service and competitiveness.
Achieving the satisfaction of residents and businesses
with supportive policies will facilitate positive evaluation of the local
government, he said.
He asked the city to speed up construction of
infrastructure projects and step up co-operation with the neighbouring
provinces of Quang Nam, Quang Ngai and Thua Thien-Hue to accelerate the
economic growth in the region.
Da Nang should open direct flights to Europe and the US
in the near future, he said.
Also on October 15, the city administration, in co-operation
with bankers, presented investment certificates, loan agreements and
pre-feasibility studies for 27 projects worth US$1.56 billion in sea port,
education, solar power, high-tech industries, logistics, tourism property,
hi-tech farming, hibiscus wine and rice milk, international hospital,
pharmaceuticals and industrial production.
Chairwoman and CEO of Sovico Holdings Company Nguyen Thi
Phuong Thao said Da Nang had caught the imagination of her company in an
initial investment study done in 2002.
"The positive support and smooth administrative
procedures as well as incentive policies in land clearance and land rent
attracted us. We decided to buy the five-star Furama Da Nang resort as our
long-term commitment to the city,” Thao said at the forum.
Thao, who is also owner of the budget airline Vietjet
Air, the HCM City-based HD Bank, said with support from the city, her company
was able to complete the Ariyana Da Nang Exhibition & Convention Centre on
schedule.
She also said HD Bank has provided loans worth VND2.6
trillion (US$115 million) to 560,000 businesses and individuals in Da Nang and
the central region.
Director of property developer Sun Group, Dang Minh
Truong, said the newly-launched Ba Na Hills Golf course in Da Nang has
attracted 2.6 million tourists and golfers, while the Intercontinental Da Nang
Sun Peninsula resort has been selected as a site to host the APEC Economic
Leaders’ Meeting.
At the two-day business forum, which drew 800 businesses
and organisations, Da Nang also called for investments in some key
Public-Private-Partnership (PPP) projects including the Lien Chieu sea port,
dismantling of a railway station, urban resettlement, two new industrial parks,
solid waste treatment, wastewater treatment and clean water supply, fishing
ports and fisheries logistics, smart traffic systems, a harbour for cruise
ships, information technology and communications, with total proposed
investment of US$1.4 billion.
The city also urged investors to pour funds into the 33km
tram route connecting Da Nang and Hoi An city in Quang Nam province with an
estimated investment of US$300-660 million.
Vice Chairman of the city’s People’s Committee Ho Ky Minh
said the city currently has 408 domestic projects worth US$4.5 billion, and 525
foreign direct investment (FDI) projects worth US$3 billion.
Minh said Da Nang plans to be a regional hub for
urbanisation, tourism and hi-tech growth.
He said the city offers rent-free land for environmental
projects or 13-19 years land tax exemption for high-tech industries, while software
exporters are supported with trade promotions, preferential taxation and human
resources training subsidies.
Chairman of the Vietnam Chamber of Commerce and Industry
(VCCI) Vu Tien Loc said 51% of foreign investors in a recent survey selected Da
Nang as their preferred investment destination, citing good and flexible
governance.
Loc, however, warned that 33% of FDI businesses still
complained of complicated land procedures, while 40% said they found
difficulties in accessing bank loans.
Da Nang also plans to build the Lien Chieu Port as a
logistics hub for the ASEAN region and the East-West Economic Corridor (EWEC)
that links Laos, Myanmar, Thailand and Vietnam.
In 2013, the World Bank approved a US$272.1 million
sustainable development project for the city, of which US$202.4 million is to
be provided by the bank. The project is expected to make Da Nang a ‘green city’
by 2025.
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