Da Nang, Germany to speed up investment

The proposal was discussed at the Memorandum of Understanding (MoU) signing ceremony in the central city last week between the two partners, offering investment opportunities for business partnerships between Germany and Da Nang in hi-tech industries, human resources training, information technology, logistics and seaport development.

Officials from Da Nang city and the Germany Business Association join a Memorandum of Understanding signing ceremony on investment promotion. (Photo: VNA

IPA Director Huynh Thi Lien Phuong said the investment from Germany to Da Nang was still small with 11 projects worth 10.3 million USD – just 1% of the total FDI projects in the city.

She said the city had been calling for the development of a deep seaport and logistics zone, as well as an airport to boost connections of multi-transport logistics industries.

Phuong said the MoU would open the doors to possible investment projects from Germany in the micro-mechatronic engineering, precision electronics equipment production, sensors and software industries.

German businesses are operating in Da Nang creating sports shoes and sewing machine batteries.

“GBA – one of the founding members of EuroCham Vietnam – has more than 350 members. Over 700 German enterprises call Vietnam their home, creating around 100,000 jobs and investing directly and indirectly to the country to the tune of 10 billion USD,” said Elmar Dutt.

He noted that energy security was a major pain point in parts of Vietnam and the GBA encouraged all provinces to increase resilience and ensure the stability of electricity supply to increase attractiveness for foreign investors.

Environmental protection and sustainability should also be priorities of all local, provincial, and national level government agencies. Pollution and other harms to the environment must be eliminated by regulations and more efficient enforcement, he said.

He urged simplifying and digitalising administrative procedures, in particular in the areas of customs, cross-border finance and operations.

“Our members face daily challenges in these areas resulting in delays, avoidable costs and a slow down of business activities. Some examples are red tape on promotions that involve discounts, VAT refunds, and customs clearance,” he shared.

He explained that it should eliminate local testing requirements for European Certified products in all sectors to foster free trade with the European Union. This would also make it easier to import necessary machinery and parts.

Elmar Dutt called for further easing of licensing, work permits and visas.

According to the IPA, Da Nang saw a boom in the development of household rooftop solar power, but this was halted by a blockage in policy from the government.

Germany plans to open a representative office in Da Nang to boost cooperation and investment in the coastal city and the central region as a whole.

Vice Chairman of the municipal People’s Committee Ho Ky Minh committed that the city had been calling for stronger and deeper investment from Germany and European countries in seaport development, infrastructure, hi-tech industry, education, and IT.

Minh said the city would create optimal conditions for German businesses seeking investment opportunities in the long term in Da Nang.