Danang posts strong numbers amid bad economy
Danang posts strong numbers amid bad economy
Foreign investors are continuing to pour money into their projects in Danang despite global economic woes.
This year to date the city on Vietnam’s central coast has licensed 30 projects totalling $44.04 million, up 30.4 per cent against last year. It saw capital increases in current projects hit $245.57 million.
Deputy chairman of Danang People’s Committee Phung Tat Viet said that despite a slow global economy, “The adjusted capital investment for nine months this year went up 1.83 times against last year, mostly into the industrial sector.”
One sizable project is Vietnam Brewery Limited (VBL) that increased its investment from $95.6 million to $127 million.
VBL is a joint venture between the Netherlands’ Heineken NV, Singapore’s Asia Pacific Breweries Limited and Saigon Trading Group. It received its investment license in 2008.
Commenting on its expansion, VBL released “To meet surging beer demand we are doubling our output. Vietnam is one of the largest beer markets in Asia Pacific and this is our first upgrade since we acquired this brewery from Australia’s Fosters three years ago.”
VBL manages and operates four breweries in Danang, Ho Chi Minh City, Quang Nam, and Tien Giang. It serves the beer market in the central and southern regions of the country producing Tiger, Heineken, Bivina, Larue, BGI, and Fosters brands.
Other investment additions included Coca-Cola’s Non Nuoc project which more than tripled investment capital from $25 million to $76 million and a $20 million increase to TCIE’s automobile factory.
TCIE Vietnam, a subsidiary of Malaysia’s Tan Chong Motor Group, officially opened its $60 million automobile factory four months ago.
Huynh Duc Tho, director of the city’s Department of Planning and Investment, said “Danang city has great potential as the third biggest market after Hanoi and Ho Chi Minh City. These investments speak to that.”
Viet from the People’s Committee said Danang has specific plans to attract more investment, specifically from Japan, Korea and the EU, by promoting administrative reforms.
“We are going to establish an office in the United States to boost investment and trade,” said Viet.
The city has established external economic relations with nearly 80 countries and territories.
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