Specific decree for Da Nang introduced

                                                                   Photo: Viet Tuan

Central city to work towards socioeconomic development under decree released by the government.

The government has introduced a decree regulating special mechanisms on investment, finance, budget, and decentralized administration in Da Nang, to boost the central city’s sustainable economic development.

The Decree will help Da Nang promote its strengths to become a major urban area and a socioeconomic hub with a role as an industrial, commercial and service center of central Vietnam and the central highlands.

Da Nang is permitted to borrow domestic investment funds via the issuance of local government bonds and other forms of capital mobilization under law and can re-borrow funds the government has borrowed for local lending. Such loans must not exceed 40 per cent of local budget revenue or the ratio for the State budget deficit set annually set by the National Assembly (NA).

The government also prioritizes using a part of its budget to support the city in carrying out public-private partnership (PPP) projects and also prioritizes mobilizing capital from ODA to conduct key infrastructure projects.

The Da Nang City People’s Committee can approve project lists and decide to receive grants, including funds from ODA and foreign non-government organizations (NGOs), for projects outside of the aids’ target, except technical aid related to institutions, religion, policies, administrative reform, and national defense and security set by the Prime Minister.

Da Nang will receive an extra 70 per cent of initial government funds for cities and provinces but this amount will not exceed the additional funds for the city last year.

The additional funds given to Da Nang will be used to pay outstanding debts in capital construction, infrastructure investment projects, investment in high-tech parks, reciprocal capital for ODA projects, and important socioeconomic development tasks, and for ensuring national defense and security and social safety.

Decentralization must be attached to strengthening the responsibilities of its People’s Council and People’s Committee and promote activeness and creativity to effectively exploit the city’s potential and competitive advantages in socioeconomic development.

In 2015 Da Nang’s population stood at about 1 million. The average annual income per capita was VND56.1 million ($2,508), up 1.5-fold against 2011. Total development investment capital increased 9.4 per cent year-on-year and its economic structure shifted towards “Services - Industry - Agriculture”.

As at December 31, 2015, Da Nang had 386 valid FDI projects and total investment capital of $3.66 billion. Of these, 294 projects invested in industry, with capital of $2.58 billion, representing 70.6 per cent of the total, while 86 projects invested in industrial areas, with total capital of around $975 million, accounting for 26.6 per cent

In the first ten months of this year the city’s export turnover reached $1.015 billion, an increase of 2.57 per cent year-on-year. Import turnover was $902 million, or 97.61 per cent of the figure recorded in the same period last year.

by Hai Van / vneconomictimes