Though an increase of 39.2% in garment export, a 14.4% drop in seafood exports has made the total export turnover of Danang failed to reach the objective for the first 6 months.

According to Danang People Committee, in first 6 months of 2007, total goods and service export turnover of the city is estimated at US$370 million USD, an increase of 24,9% over the same period last year yet achieved only 49% of projected figure. Export turnover of consumer goods has seen an increase of 35.5% while service export revenue earnings also grew by.10%. In addition to traditional partners, the city has sought out new export markets such as Jamaica, Bolivia, India and Brazil…

Export products that gained high growth in export turnover included children toys, agriculture produce with an increase of 60,1%, and 84% respectively. Particularly, earnings from café exports of DaNang Ex-Import joint stock company have doubled over last year.

In addition, garment and apparel exports of Danang city also saw an increase of 39,2% in terms of turnover, an outstanding rate in this. Garment enterprises that gained high growth rate included Hoà Th? garment company (an increase of 46%), Vinatex (56%), Valley View (20%), 29/3 Garment company (8-10%)...

According to Danang People Committee, this success is the result of better export environment after Vietnam official became member of World Trade Organization early this year and US Congress granted Permanent Normal Trade Regulation to Vietnam. For example, 29/3 Garment Company has just won a US$ 14 -million worth contract with Paceman Corporation (US) for apparel exports until 2010.

In addition, more and more private enterprises have resisted and participated in export activities. The city has provided advantaged conditions for newly established enterprises to build export capacity.

However, seafood and leather footwear export, among other several key products of Danang, has dropped turnover by 14.4% and 40.3% respectively in the first 6 months. Seafood exporters who suffered included Central Seaprodex Company (a drop of 50%) and Than Phuoc Seafood and Trading Jsc  (5-10%...), meanwhile poor leather footwear enterprises were Qu?c B?o company (%) H?u Ngh? company (38%...). In fact, seafood exports had to face with input materials shortage, new trade barriers  and strict hygiene requirements from export market while footwear industry had to deal with anti dumping lawsuits.

Therefore, though witnessing a considerable growth in export turnover, Danang city has only achieved 48.9% of targeted earnings in this first 6 months. In terms of industrial production value, Danang also met only 42,9% of the projected figure, even with an increase of 11,7% over the same period last year.

Economic and State Budget board has submitted to Danang People Committee a proposal on economic development strategy to improve performance in manufacturing and service sectors. An urgent need is to review specific development policy for each key product of the city. Although progress has been made in investment and business establishment towards “on-door” procedure, it is suggested that requests and claims from business enterprises should be more promptly processed.

On the other hand, the city should periodically review the effectiveness of enterprise support policy; foster the progress of privatization. More efforts should be made to accelerate on-going projects and to encourage enterprises to invest in modern technology. Particularly, the city should prioritize projects that contribute to the development of sea resouce-based economy.

As recommended by Economic and State Budget board of the city, there should be breakthrough actions to create an attractive investment environment to attract   Foreign Direct Investment enterprise and business firms from other provinces.