There is a huge volume of work Da Nang has to take to fulfill the development plan. The city just has seven years ahead to reach that ends, while its resources are limited.

Therefore, according to Nguyen Dinh Cung, a respected economist, the city needs to gather strength on priority tasks and apply specific mechanisms to implement tasks so as to create a breakthrough.

The total investment capital needed to implement the plan is estimated at VND800 trillion, or $32 billion and 40 percent of Da Nang’s GRDP. Of this, state capital would account for 25 percent, non-state source 60-65 percent, and FDI 10-15 percent.

This is a huge capital amount compared with the current capability (the annual society’s investment capital is just equal to 23 percent of GRDP), about VND32 trillion, or 40 percent of capital needed.

The capital mobilization mechanism, and the allocation and effective use of capital will be the factors that determine the success of Da Nang.

The Politburo’s Resolution No 43 on the development of Da Nang City by 2030 agrees that there must be more policies to develop Da Nang, thus creating new driving forces for the central region’s economy.

Cung has suggested several policies:

Upgrading the Da Nang International Airport to service 25 million passengers a year. If so, Da Nang will become a destination and a transit point that distributes tourists for the whole central region and Central Highlands; and become a logistics center of the entire region by 2028.

Developing Lien Chieu seaport and upgrading Tien Sa port.

Upgrading and expanding the entire Highway No14B and 14G to connect Da Nang with the northern part of the Central Highlands, Laos and Myanmar by 2028.

Establishing a council for cooperation and development of the central region and Central Highlands. The major function of the council is coordinating priority development projects of the region. The council needs to have a well-organized apparatus that can give advice on development issues.

Capital mobilization

Increasing the state’s investment capital, especially centrally-managed capital, in Da Nang by temporarily exempting collections to the state and local budgets by 2030. This method would allow the state’s investment capital to account for 25 percent of total society’s investment capital of Da Nang as determined in the approved development plan.

Arranging enough capital to implement projects on Highways 14B and 14G to connect Da Nang and the northern part of the Central Highlands.

Allowing Da Nang to attract investment under the PPP (private public partnership) mode with no limitations in business fields, professions and scales of projects. Particularly, encouraging investment in developing tourism ecosystem and urbanization.

Applying specific policies with outstanding privileges to encourage and call for investments from domestic and foreign investors; to attract experts, researchers and workers in hi-tech industries.

Da Nang’s economy will continue to develop based on three major pillars, including urbanization towards green, modern and smart development; tourism with sufficient ecosystem, diverse high-quality services; and innovative startup ecosystem with hi-tech manufacturing industry, especially semiconductors.

To follow the development orientation, a series of outstanding mechanisms need to be offered to Da Nang by 2030, including:

First, applying simplified administrative procedures for investment to large-scale projects registered by large investors in hi-tech industry, logistics, trade and office complex, shopping center, solid waste and waste water treatment and environment protection.

Second, allowing Da Nang to give financial support in land allocation to implement PPP projects in terms of developing urban areas that are modern, green and smart, on the two sides of Han River; projects on developing shopping malls and waste treatment.

Third, allowing Da Nang to open more casinos to travelers. The number of casinos and their sizes will be determined by the city’s people’s council.

Four, applying specific policies with outstanding privileges in land-use rights and corporate income tax to non-public education establishments.

Fifth, upgrading the R&D capability, technology transfer and high-quality workforce preparation for semiconductor and other high-tech industries for the University of Da Nang.

Sixth, establishing funds on R&D, technology transfer and human resources development.

Seventh, offering a preferential personal income tax rate of 10 percent to specialists, researchers and highly qualified workers.

Eighth, the National Assembly needs to release a new resolution specifying the special mechanisms for Da Nang.

Lan Anh