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Danang announces top investment priority for software industry​
Phuong Thao 16:17, 2018/03/11
Leaders of the central city of Danang recently decided to select the software industry among its top priorities for investment this year, expecting the industry to help it develop sustainably in the next years.
Pham Kim Son, chairman of the city’s Association of Software Enterprises, said that despite the modest investment in software infrastructure in the past years, the city’s software industry still grew significantly.
Turnover of the city’s information and technology industry by the end of last year reached VND15 trillion (US$660.8 million), of which VND3 trillion was from software, up 50 percent against 2016. The industry generated jobs for nearly 10,000 locals compared with some 300 employees in 2003, he said.
 
Danang Hi-Tech Park covers 1,100ha in the city’s Hoa Vang District
Danang Hi-Tech Park covers 1,100ha in the city’s Hoa Vang District
However, the industry is facing major challenges to further develop due to restricted infrastructure, which needs significant investment, Son said during the Spring Dialogue held in the city recently.
Echoing Son, Huynh Duc Tho, chairman of the municipal People’s Committee, said that the city oriented to develop the information and technology industry, however, the implementation did not meet the expectation.
Tho said that the city now decides to include the industry in its key economic industries as the efficiency of this industry is significant, creating a large source of income and high skilled labor force with high income, helping the city develop quickly in many aspects. 
Truong Quang Nghia, Party Secretary of Da Nang agreed, saying that the city chooses the industry to give priority for further development this year. 
At the event, which was an open discussion for local administration and businesses to share ideas ahead of the 2030-2050 period, Danang also decided to give priority to boost tourism, sea port and logistics in 2018 to build a foundation for the next period of development in a sustainable way.
According to Nghia, the year 2018 will serve as a benchmark for the next development stage after 20 years of rapid growth between 1997-2017.
 “The city will take more positive measures supporting investors and businesses, creating more rooms for rapid and sustainable development with ‘green growth’ target,” he said.
Nghia added the city plans to develop the Lien Chieu Port as the first urban port and a key cargo port in Vietnam, easing the overloaded Tien Sa Port.
Chairman of the city’s tourism association Huynh Tan Vinh said hospitality has emerged a key industry for the city’s budget in the last decade, earning VND19.5 trillion ($862 million) – 23.72 percent of Gross Regional Domestic Product (GRDP) – in 2017. The ‘green’ industry also created 140,000 jobs, accounting for 25 percent of the city’s labor force, and 28,000 rooms of hotel and resorts are available for hosting 10 million tourists in 2020.
Vinh, however, warned that the coastal city has faced the consequences of ‘too hot’ growth including a lack of fresh water in Son Tra peninsula and beach pollution due to untreated household waste water, while too many concrete sky-buildings and hotel projects have invaded natural forests and coastlines.
Peter Ryder, CEO of the Indochina Capital property group, said Danang should continue its tourism development in a sustainable way and reduce the impact of construction on coastal buildings and projects.
He said improving the transparency should be considered in the development plan to attract foreign investment.
Satoru Takizawa, general director of Daiwa Vietnam Company, said people and service are two strong points of Danang City in attracting investment.
He said too-rapid industrialization in the city recently set challenges for foreign investors when they struggled to recruit a skilled labor force.
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