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Da Nang, Vietnam to focus on developing hi-tech, supporting industries

Image credit: Nhan Dan

Authorities in Da Nang have adopted a host of key measures to speed up economic restructuring for the 2020-2025 period, focusing on strengthening hi-tech and supporting industries and IT development in connection with building start-ups, innovative urban areas, and smart cities.

Data from the municipal Department of Industry and Trade show that the central coastal city’s supporting industry has attracted a number of large-scale investment projects over recent years and gradually joined global supply chains.

The supporting industry’s added value has made rising contributions to the added value of the city’s manufacturing and processing industry. Since 2016, Da Nang has attracted 24 new investment projects in the supporting industry with total registered capital of over VND9 trillion (US$390 million), including two foreign-invested projects totalling US$240 million in the manufacture of automotive and aircraft components.

According to a news report, the central city is home to about 110 businesses operating in supporting industries, accounting for 6.3% of all industrial enterprises in the city. The head of the Management Board of the Da Nang Hi-Tech Parks and Industrial Parks, Pham Truong Son, announced the municipal People’s Committee has completed a draft plan for supporting industrial park development, which is awaiting approval by the Prime Minister.

This is expected to be the first IP in Da Nang operating in supporting industries. Investors will cooperate with businesses in the hi-tech park to form a reciprocal ecosystem. Under the draft plan submitted to the government for approval, the supporting industry park will be adjacent to the hi-tech park and the concentrated information technology zone in Hoa Vang district.

The city aims to increase the number and capacity of supporting industry enterprises that can create products with high competitiveness, such as spare parts, accessories, materials, supporting equipment for special purposes, software, and essential services that meet the demand of priority industrial sectors. These measures were implemented under Resolution No. 01-NQ/TU dated 30 October 2020 from the Standing Board of the municipal Party Committee on developing supporting industries by 2030 with a vision to 2045.

The city also looks to attract investment from multinational companies, thus promoting technology transfer in supporting industries. The municipal Party Committee has set a target of having over 150 supporting industry businesses by 2025 and over 300 by 2030, with at least 10% and 15% of domestic enterprises being capable of supplying products directly to enterprises operating in manufacturing and assembling finished products by those times.

The production value of supporting industries is hoped to account for about 30% and 40% of the added value of manufacturing and processing industries by 2025 and 2030, respectively. Da Nang aims to attract at least one multinational company to invest in manufacturing finished products in each supporting industry by 2030.

Last month, Deputy Prime Minister Trinh Dinh Dung noted that Da Nang is set to be a key socio-economic development centre of Vietnam and ASEAN. It is a site of global supply chains, innovation and start-up power, and has a unique ocean and port urban area. He expects it to be a centre of trade, finance, logistics, high-tech industries, supportive industries, information technology (IT), and a city of global supply chains and regional sea and port-based economic power.


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