Da Nang attracts eight FDI projects worth $490 million

By Dat Nguyen   March 2, 2019 | 12:30 am PT
Da Nang attracts eight FDI projects worth $490 million
Da Nang City has approved major foreign direct investment projects in 2019. Photo by Shutterstock/Vietnam Stock Images
American and Japanese businesses will invest almost $490 million in eight new projects in Da Nang, city authorities announced Friday. 

US-based Universal Alloy Corporation Asia Pte. Ltd. (UAC) plans to invest $170 million in a new factory to manufacture aircraft components and parts in the central city’s high-tech park.

When operational, the factory will produce 4,000 of five million parts used in all types of aircraft. These will be exported to North America and EU markets.

Japanese company Mikazuki is to invest $100 million in building the Xuan Thieu tourism complex. The project, spanning an area of 11.5 hectares (28.41 acres), includes a five-star hotel, a waterpark, a theme park and restaurants.

At a meeting with enterprises Friday, city authorities also announced they have approved six other projects, including a car manufacturing and assembling factory by Japanese automaker Nissan and an electronics factory by American firm Key Tronic EMS.

Da Nang Chairman Huynh Duc Tho said policy priority is given to hi-tech agriculture, supporting industries and tourism.

The city has also approved in principle another 11 projects with a total investment of almost $3.5 billion.

These projects include a $2-billion financial center invested in by a Singaporean company and a $200-million horse arena by a Hong Kong company.

But businesses also claimed they are facing challenges.

Takizawa Satoru, chairman of the Japanese Business Association in Da Nang, said that firms were struggling to acquire enough land for their projects.

The lack of human resources in the city is also a challenge, and the city’s infrastructure needs to develop faster to match business expansion, he said.

Pham Bac Binh, chairman of the Da Nang Association of Small and Medium Enterprises, proposed that Da Nang speeds up construction of industrial areas in the suburb to allow more supporting industry projects to develop.

Da Nang last year licensed 135 foreign direct investment projects worth almost $286 million.

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