Da Nang well positioned to attract huge investments

Business indicators show a strong trend of more Foreign Direct Investment (FDI) entering Vietnam due to the current and ongoing Covid-19 pandemic. Investors are seeking new premises and facilities for processing, manufacturing, and supply of various materials to be part of the global value chain. 

Unilersal Alloy Corporation Vietnam Ltd. has a high quality human resource recruited from the University of Da Nang. Photo: X.Quynh

In this aspect, Da Nang can offer many favorable conditions and advantages due to its open policies and skilled human resource.

Favorable conditions

Mr. Pham Truong Son, Head of  Da Nang Hi-Tech Park and Industrial Zone Authority, said that in such difficult times with the Covid-19 pandemic raging across the globe, attracting investors to large projects is quite challenging. Hence to overcome the tedious process of administrative procedures and access to land funds, it is important to build supportive mechanisms and policies, so as to attract important and lucrative projects. Da Nang has therefore implemented several measures to ease long and lengthy procedures in many related departments and agencies to quickly and smoothly complete all processes and procedures. These could likely be effective within the next six months.

According to Mr. Nguyen Tien Quang, Director of the Vietnam Chamber of Commerce and Industry in Da Nang,  the City of Da Nang will need to replicate the same good practices it used to speed up implementation of projects such as the Sunshine Aerospace Components Factory, Mikazuki Spa and the Hotel Resort Xuan Thieu. Mr. Quang shared that this was due to streamlining the lengthy process of filing too many applications by going online, which was faster, more transparent, and cut down on costs.

Mr. Lee Sungnyng, General Director of Korea Trade-Investment Promotion Agency (KOTRA) in Da Nang, said that the outbreak of the Covid-19 pandemic in Da Nang has created many opportunities for the government to listen to the voice of business people and investors, and implement their considerations carefully.

In 2020, the city had conducted hundreds of online meetings concerning exports and future investments, which resulted in many successful commitments made between Korean and Vietnamese companies. Mr. Sungnyng said that Da Nang needs to make stronger efforts towards attracting more investments. The Covid-19 pandemic should be seen as an opportunity for Da Nang to make a breakthrough, and by offering to address post investment concerns of investors, such as resolving difficulties in procedures, and creating more confidence and credibility in the minds of investors.

Skilled human resource

Many large domestic and international enterprises have choosen Da Nang City as the ideal location for hi-tech industrial projects. For recruitment of suitable human resources, almost all businesses prefer to turn towards universities, colleges, and training institutions within Da Nang City area.

According to Ms. Nguyen Thuy Linh, a project coordinator at the Fujikin Danang Production and Research Center, the City of Da Nang has great potential for skilled human resource for scientific research and technology for further development in the field of engineering, science and higher technology. The University of Science and Technology and the University of Da Nang, have helped many enterprises select and recruit graduate students of electronics and information technology, and have also retrained them via intensive training programs to meet their selective job requirements.

Mr. Ikeda Naoatsu, General Director of Daiwa Vietnam Co., Ltd, said that Da Nang has the advantage of better qualified human resource. Mr. Naoatsu said that although the workforce at his company was well qualified and skilled, Da Nang still needs to make more effort to improving the quality of human resource in coming time, when tourism will once again be restored back to normal, and industries will also begin to expand and function in a post pandemic scenario.

According to Mr. Le Minh Duong, Director of the Central Investment Promotion Center, the advantage in the central region is that the human resource has a fairly good cultural background and is also well qualified. Currently, the people in the central region mostly work in FDI enterprises and hold important positions in the southern parts of the country. In the near future, when larger enterprises begin to function in the central region, more and more skilled workers of this region will be willing to return from far off locations. Da Nang can certainly be the training center in the field of human resource.

Mr. Duong feels that Da Nang has many unmatched advantages and enterprises can train the human resource here because the local workers have a thorough understanding and knowledge of the culture and how to promote the strength of their region.

In a post Covid-19 period, the image of a strong and stable country will bring in great benefits and opportunities to attract more investments into Vietnam, and in the central region in particular. Da Nang is well located to offer the advantages of a  strategic central location, a dynamic government, a well-trained workforce, competitive investment costs, and very safe living conditions. Da Nang has almost all the requirements for attracting lucrative and creative Foreign Direct Investment projects.

On 23 February, the People’s Committee of Da Nang registered six major FDI projects. These include a semiconductor factory by US investors Ha Vinh Ly and Nhe Thi Le with investment capital of US$ 110 mn; the Fujikin Danang Research, Development, and Production Center by Japan’s Fujikin International Co., Ltd. with investment of USD 35 mn; and the EPE Packaging project by Japan, with investment of US$ 300,000.

Da Nang has also welcomed Arevo Inc. of USA to invest in a 3D printer factory project, software services, design solutions, and 3D carbon fiber composite products at total investment of US$ 135 mn.

Since February 2021, Da Nang Hi-Tech Park has attracted 24 projects, including 12 domestic projects with investment of VND 6,291 bn, and 12 FDI projects with investment of US$ 545.1 mn. In all, Da Nang Hi-Tech Park and Industrial Zone has attracted 496 projects with total registered capital of over VND 26,561 bn.

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