Da Nang City's Dream of Reaching the Sea Realised

The city economy's average annual growth rate ha been around 12 per cent in the 1996-2006 period. In 2006 alone, the city’s GDP reached more than VND 14,000 billion, or five times higher than the figure in 1996. Its per capita GDP reached US$1,100 per annum. Its economic structure has improved with industry and services accounting for 95 per cent of production value in 2006. This was the highest figure among centrally-run cities and provinces.

 

Over the past decade, the city has applied flexible and synchronous policies, exploiting its advantages and potential, creating momentum for the city’s development. Total social investment capital was estimated at more than VND 43,000 billion with an average annual increase of around 23.5 per cent. In 2006 alone, the city’s social investment capital was more than VND 10,000 billion with per capita investment capital reaching more than VND 12.6 million, or 2.5 times the country’s average figure. As a result, the city’s socio-economic capacity has improved, creating momentum for its further rapid and sustainable development.

 

The city’s most successful achievement over the past ten years is the creation of capital from land for infrastructure development on the basis of proper adjustment of added value of land. Total money earned from land use rights transfer was VND 7,600 billion, accounting for 33 per cent of the city’s budget revenues equal to 53.9 per cent of development investment from its budget. The city has used this source to build and to upgrade more than 60 roads, including the main roads of Nguyen Tat Thanh, February 3, Pham Van Dong, Tran Hung Dao, August Revolution, September 2, Son Tra - Dien Ngoc and Nguyen Tri Phuong; and to build and develop infrastructure facilities for residential areas, schools, medical centres, stadiums, parks, entertainment areas, markets and trade centres, all of which have changed the appearance of the city, improved the living standards of local people, and created more favourable conditions for investment attraction.

 

Over the past ten years, Da Nang industrial parks have attracted 285 projects, including 51 foreign direct investment projects with a total registered investment capital VND 8,900 billion plus US$339.1 million. The private sector has developed strongly, with a new tendency and playing a more important role in the city’s economy, with around 6,500 enterprises and a total investment capital of VND 12,000 billion, an increase of 11 folds in the number of enterprises and 79.4 folds in capital volume against 10 years ago. Tourism investment has been strong with 34 projects licensed by the city’s authorities with a total registered capital of more than VND 7,200 billion plus more than US$685 million, creating a new development capability for the city’s spearhead economic sector.

 

The city’s external economic activities made a good impression. In 2006, the city earned per capita export value of more than US$750,000, or 4.1 folds higher than the 1996 figure and more than 1.5 folds higher than the average figure of the country. With 93 foreign-invested projects, capitalised at US$1 billion, Da Nang ranks in the top ten localities for FDI attraction. Over the past ten years, the city has developed many important socio-economic infrastructure facilities, using official development assistance capital of US$450 million and donations from non-governmental organisations of around US$50 million.

 

The city’s financial sources have been strengthened, becoming a key to socio-economic development factor for Da Nang. Its budget revenues increased by 6.2 folds after ten years, effectively meeting the socio-economic development needs of the city. In particular, over the past ten years, the city used more than VND 14,500 billion of development investment capital, accounting for 66 per cent of its total budget expenditures and equal to around 36 per cent of social investment capital. Total loans of the local commercial banks by late 2006 had reached VND 15,000 billion, up by more than six folds against 1997, making an important contribution to meeting the capital need for business and production activities, thus boosting the city’s economic development.

 

Looking back over the results of mobilising resources for development while implementing socialisation and the motto ‘the State and people join efforts gives a great attention.’ Local people contributed around 38.8 per cent of total investment capital for the building of the Han river bridge and upgrading urban 20 roads and hundreds of kilometres of rural roads, canals, lighting and water drainage systems. With contributions by local people and support from local authorities, over the past year Da Nang has built two universities, three colleges, five vocational training schools, around 100 schools, four hospitals and many other welfare facilities, thus meeting the demands of local people and developing services in line with State and Party policies.

 

Developing achievements of the past ten years, authorities and people of Da Nang city continue their renovation process, implementing Vietnam’s WTO commitments , fighting corruption and waste and promoting administrative reform. These efforts have changed the city for the better creating a good beginning for the new period, and a foundation for completing all socio-economic development targets in five years (2006-2010), leaving the city worthy of becoming the focal point of Central Vietnam.