Danang City Successfully Developing Industrial Zones

In 1997, the then Prime Minister ratified the Overall Socio-economic Development Plan of Danang City until 2010 with a defined orientation of “Industry – Tourism – Trade – Service – Finance and Banking. The role of industrial zones is specified as the centres for the industrial development and breakthrough makers for the all-faceted socio-economic development, generating the high growth of Danang City.

 

Danang City currently has six large-scaled industrial zones and two industrial complexes covering on an area of 1,488ha, including Danang Industrial Zone, Hoa Khanh Industrial Park, expanded Hoa Khanh Industrial Park, (set up in 2004), Lien Chieu Industrial Zone, Hoa Cam Industrial Zone, Danang Fishery Industrial and Service Zone, Thanh Vinh Industrial Complex and expanded Thanh Vinh Industrial Complex.

 

Danang-based industrial zones have housed 230 investment projects with a total registered capital of VND8,210.379 (US$513 million) and 48 effective foreign-invested projects with a combined registered capital of US$333.6 million and a legal capital of US$125.45 million.

 

The infrastructure construction and investment attraction success is being attributed to the timely obstacle-resolving policies of the Danang Municipal People’s Committee and Danang Industrial Zone and Export Processing Zone Authority.

 

To break out of the stagnation in industrial zone infrastructure construction, the city advocated the Infrastructure Development Company to use State budgets to develop industrial zones. The city allotted the State budgets to the Infrastructure Development Company for site compensations, resettlement site construction and site clearance (about 24 areas). The city’s government acts as a guarantee for the Infrastructure Development Company to borrow money from banks to develop industrial zone infrastructure development.  

 

Thanks to this policy, the site clearance compensation and infrastructure construction are carried out very quickly, which enables the city to have enough space for new and future projects. To execute site clearance quickly and punctually, the city government directly engineers the site clearance, compensation and resettlement works for industrial zones and sets up site clearance and compensation committees under the Industrial Zone and Export Processing Zone Authority to draw up plans and carry out the site clearance in line with the industrial zone infrastructure investment process.

 

On the other hand, the Danang People’s Committee instructs the Authority to work with electricity, water supply and drainage sectors to build power and water works even to the investment sites in industrial zones. The committee also empowers the Authority to supervise, cooperate and congregate related sectors to punctually resolve queries of investors, instructs all sectors to take part in the investment mobilisation and promotion activities, and issues one-door administrative policies and incentive policies, especially those related to land rental and infrastructure fee, to create an attractive investment environment.

 

After seeing great successes in industrial zone infrastructure investment, the city advocates the policy to allow private and foreign sectors to develop industrial zones to increase investment attractiveness and reduce State budgets on infrastructure projects.

 

The developing industrial parks in Danang City have created many jobs (about 40,000 to date), helping the city rearrange the urban area after receiving enterprises removing from the downtown and helping the city develop the industry.