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Friday, October 22, 2021

Danang focuses on production and export to restore economy

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DANANG – Even as the tourism and services sectors continue to be impacted by the Covid-19 outbreak, manufacturing and export are expected to help the central city of Danang restore its economy, with several projects gearing up for acceleration.

Stealing the limelight is the Danang City Software Park No. 2 project (first phase), which will have an investment capital of more than VND1,300 billion after the investor pumps more than VND500 billion into the project.

This information was revealed in a report made by the Danang industrial and civil construction projects management board, the project’s investor, which was unveiled at a function held on February 19 at the project’s construction site in Danang City.

As planned, work on the project commenced on October 10, 2020, and it will be completed by August 31, 2022, inclusive of three main buildings ICT, ICT1 and ICT2.

However, Nguyen Huu Ninh, the board’s director, said part of the project will be accelerated and targeted to be completed at least eight months ahead of schedule, to meet demands from businesses.

Specifically, the Danang City Investment Promotion Agency had asked the project’s investor to consider requests by LG, one of the customers at the park, about putting the ICT1 block into operation soon. After a discussion, the investor agreed to hand over the site to the tenant on December 31, 2021, instead of August 2022.

In addition, a representative of the Danang Hi-tech Park said the supporting industry zone located at the park will be put into operation in June 30 this year, paving the way for potential investors to step in.

In addition to boosting projects in the information technology sector, Danang also expects the operational production projects of domestic and foreign investors to be the driving force to restore the city’s economy as well as to contribute to exports.

Tokyo Keiki Precision Technology Co., Ltd. specializes in manufacturing hydraulic equipment components and products (solenoid valves and pumps) at the Danang Hi-tech Park. It targets to earn 678 million yen (almost US$6.5 million) in the fiscal year of 2021, up 10% against 2020.

According to Tokyo Keiki, after gaining sustainability from some overseas markets, including China, the company plans to make products for the Japanese market in the near future.

In the fiscal year of 2020, the company earned 618 million yen. Due to the Covid-19 outbreak, the company had a large number of inventories. However, everything began improving since December 2020.

Meanwhile, Thuan Phuoc Fisheries and Trading Joint Stock Company obtained total revenue in 2020 of VND2,315 billion, up 10% against 2020. Nguyen Thi Phi Anh, general director of Thuan Phuoc, said the company is constructing a new frozen seafood processing plant in the Mekong Delta province of Tien Giang with a capacity of 4,950 tons a year. The plant will be put into operation in the second quarter of 2021.

As production is being restored, the central city expects exports to accelerate.

A corner of Tien Sa Port in Danang City. Danang hopes to restore the economy thanks to the growth in production and export.

Reportedly, in 2021, Danang Port JSC will see the throughput (mainly via its Tien Sa seaport) increase by 5% against 2020, while the profit growth will increase at least by 8% compared to 2020.

In 2020, the total volume of goods through ports in Danang reached 11.4 million tons. It earned a profit of VND260 billion.

Danang port regularly welcomes ships from 18 firms around the world.

By Nhan Tam

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