FDI to Da Nang: how much?

IPC Da Nang, which previously belonged to the Da Nang Department of Planning and Investment, has become directly put under the management of the Da Nang City People’s Committee. IPC Da Nang is responsible for calling and promoting investment, and appraising registered investment projects for the city’s People’s Committee license granting. Meanwhile, the Da Nang Department of Planning and Investment serves as the state agency in charge of FDI management.

In the report to the Da Nang People’s Committee about the investment promotion activities in the first 11 months of the year, IPC Da Nang said that the city has licensed to 26 projects capitalized at almost US $633 million and approved the capital increases to five projects worth US $33.5 million.

Meanwhile, in the report to the Da Nang People’s Committee about the socio-economic development of the city by the end of November 2008, the Da Nang Department of Planning and Investment said that the city has licensed 22 projects only, or four projects lower than the IPC reported figure. However, the total investment capital of the 22 projects is just over US $783 million, higher by US $150 million over the IPC reported figure. The department has reported that only one foreign invested project was approved to increase capital, while the IPC has reported five.

The wide gap between the figures about the foreign investment projects in Da Nang in 2008 has led to the gap between the figures about the foreign investment projects so far in the city.

According to IPC Da Nang, the city has had 146 FDI licensed and valid projects with the total capital of just under US $2.5 billion. Meanwhile, the planning and investment department believes that the city has had 141 projects with the total investment capital of almost $2.6 billion.

The two state agencies have also shown different pictures of FDI attraction to the city in the last time. The report by the Da Nang planning and investment department shows big projects licensed in 2008, including the ones by the South Korean Kreves Company (US $200 million), British Virgin Islands’ GVD 1&2 (US $500 million, the same project, according to the IPC, has the registered capital of US $330 million only), Imperial Vina Da Nang (US $24.7 million), Daiwa Vietnam, which has increased investment capital by US $21 million.

Meanwhile, IPC Da Nang’s report showed the FDI projects which have the investment capital lower than the value of a car. For example, the project by South Korean Global Investment and Development Co. Ltd. has the investment capital of only US $6,250. The US-based Data Foutain Vietnam has also reportedly registered a project capitalized at US $6,250. Some other projects only have the investment capital of between US $9,000-10,000.

Regarding the prospect of FDI attraction to the city in the time to come, IPC Da Nang said that it is now promoting 12 other investment projects with the estimated capital of nearly US $1 billion in the fields of tourism and real estate. It plans to attract US $600 million worth of investment projects in 2009.

Meanwhile, the Da Nang planning and investment department said the city strives to get the FDI up by 20% in terms of number of projects and registered capital over 2008. As such, the department plans to have 26 projects to be licensed in 2009, totaling US $942 million.

Who should the Da Nang People’s Committee believe?