Da Nang set to move up to higher value added activities

By DA NANG Today / DA NANG Today
November 20, 2020, 16:13 [GMT+7]

Da Nang, for the time being, is in full swing to promote industrial restructuring with a focus on creating more highly competitive, hi-tech and higher value-added products. Of special note, such key industries as hi-tech, IT, and electronics - telecommunications are put on the priority for the sake of their progress, hereby helping lead Da Nang industries develop towards green and sustainable growth.

Da Nang is on course to increase the proportion of hi-tech and high value-added industries. In the photo is the inside of the city-based Sunshine aerospace components factory
Da Nang is on course to increase the proportion of hi-tech and high value-added industries. In the photo is the inside of Sunshine aerospace components factory

Data published by Da Nang Department of Industry and Trade showed, over the 2015-2020 period, the proportion of hi-tech and high value-added industries namely electronics, electrical equipment, mechanical engineering, manufacturing and motor vehicle  assembly climbed from 25.5% in 2015 to about 30% in 2020.

Meanwhile, the proportion of industries which mainly rely on the exploitation of natural resources and pose an environmental pollution threat such as metallurgy and cement production decreased from 7.8% to 5.3%.

Likewise, a light decrease was also reported in the proportion of such labour-intensive industries as garments and footwear.

In particular, between January and October 2020, although Da Nang’s industrial production index (IIP) showed its decline in light of the Covid-19 outbreaks pummeling its economy, some processing and manufacturing industries still recorded an encouraging hike.

For instance, the production of means of transport climbed by 84.1%, the manufacturing of gymnastics and sports equipment by 25.8%, pharmaceutical production 63.8%, milk processing 9.5%, the production of pumps, compressors, taps and valves 4.2% and the creation of metal structures 2.7%.

Producing fishing rods at the Daiwa Vietnam Co., Ltd
Producing fishing rods at the Daiwa Vietnam Co., Ltd

A bright spot dotted on Da Nang’s high value- added industry picture over the past 5-year duration is the appearance of some highly-noticeable large-scale projects.

Most prominent amongst them are the 1st stage of the 170 million US$ Sunshine aerospace components factory, developed by the US-based Universal Alloy Corporation Asia Pte. LTD-UAC, the US Key Tronic EMS Group- developed 70 million US$ factory which manufactures automobile signal lights for export, the Mabuchi Motor Co Ltd-developed electronic components factory expansion project, the 80 million US$ South Korea-invested Dentium ICT Vina medical equipment factory, the 28 million US$ Japan-invested Yamato Sewing Machine Manufacturing company, the 798 billion VND ATOMA Technology factory, and a project to expand Vinamilk dairy factory in Da Nang.

Deputy Director of the municipal Department of Industry and Trade Nguyen Thi Thuy Mai affirmed the local authorities’ stance on continuing to attract domestic and foreign investment into large-scale hi-tech projects and speeding up the development of manufacturing and assembling aspects in the time to come.

Also, more timely and active support will go to manufacturing and processing enterprises citywide, so that they can find it more favourable to develop themselves into large corporations and groups of central regional stature.

Last, but not least, heed will be paid to periodically hosting more supply-demand connection events for local businesses, and assisting small and medium enterprises in deeper penetrating into the production and value chains.

By KHANH HOA – Translated by A.T