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|The province already hosts some of the most high-profile investors in the country|
Northern Vinh Phuc province is making efforts to become fully industrialised and one of Vietnam’s industrial, service and tourism centres by 2020.
“The province’s significant socio-economic development achievements over the past five years have shown that the above target is becoming true,” said Phung Quang Hung, chairman of the Provincial People’s Committee.
To reach these goals, Vinh Phuc will boost industrialisation while gradually developing the service sector to reach the goal of a sustainable economy by 2020. Developing the economy is also closely linked with environmental protection.
Hung said: “The province is moving toward fast and sustainable economic development. The provincial economic growth is set to be equal to developed provinces in the country and higher than other localities in the northern key economic zone. Vinh Phuc will also boost job creation, reduce poverty, and ensure social security while strengthening national defense and security.”
During 2011-2020, Vinh Phuc sets some specific targets. Gross domestic product (GDP) growth will be 14-15 per cent per year, of which 14-15 per cent is set for 2011-2015 period and 14-14.5 per cent during 2016-2020. The proportion of industry and construction in local GDP will reduce to 58-60 per cent in 2020 from 61-62 per cent in 2015, while the service climb to 38 per cent in 2020 from 31-32 per cent in 2015 and agro-forestry-fishery sectors will fall to 3-4 per cent in 2020 from 6.5-7 per cent in 2015.
The province’s per capita GDP is targeted to fetch $3,500-4,000 by 2015 and $6,500-7,000 by 2020.
To fulfill the goals, Vinh Phuc will focus on developing key industries, including high-tech and labour intensive industries, generating high value-added products and increases of products for export, such as high-tech electronic products. This will also include engineering, agro-forestry and food processing and developing the apparel and footwear sectors.
“The main solutions to the implementation of the province’s industrial development orientation are enhancing technical infrastructure planning and construction work, further improving the province’s investment climate, raising domestic investment capital, boosting trade promotion and demand-stimulus measures, and taking advantage of international export markets,” Hung said.
Vinh Phuc will also give priority to developing local integrated industrial parks with a plan to establishing a logical industrial parks system, ensuring sustainable development and becoming a driving force for the province’s overall development.
Under the plan, Vinh Phuc will build additional 11 industrial parks, raising the total number of industrial parks in the province to 20 by 2015, with total available area of 6,038 hectares. The province targets to complete synchronous technical infrastructure system in all local industrial parks and clusters by 2020.
During 2011-2020, Vinh Phuc’s industrial sector GDP growth is set at 15-16 per cent on average while the proportion of industry in the provincial GDP will increase to 52-55 per cent in 2020 from 50-52 per cent in 2010.
Also, Vinh Phuc will spur external economic activities, enhancing exports with the aim to obtaining an annual export growth of some 30 per cent for 2011-2020 to reach $13.5 billion by 2020. The province’s exports will be textiles and garments, laptops, mobile phones, motorbikes and spare parts, tea and peanuts. Meanwhile, the province’s key imports remain materials, equipment, motorbike and automobile spare parts, clothing, apparel materials and accessories, will still be bought from ASEAN countries, China, Japan and South Korea. The province’s import turnover is forecast to hit $9.5 billion in 2015 and $16.8 billion in 2020. The trade deficit is planned to narrow in the period.
Meanwhile, the total investment for development will be VND140-VND145 trillion ($7-7.25 billion) between 2011 and 2015 and VND280-300 trillion ($14-15 billion) for 2016-2020.
In addition, the province has set social targets by 2020 with a focus on vocational training in conformity with the requirements for the provincial socio-economic development, so as to raise the skilled worker rate to around 66 per cent by 2015 and 75 per cent by 2020. There will be no poor households in the province under the current national poverty criteria by the year.
“With the above development orientations and solutions, Vinh Phuc believes it can reach the goal of gathering sufficient basic factors of an industrialised province by 2015 and become a fully industrialised province sooner than the whole country,” Hung said.
Vinh Phuc, more than 50 kilometres from Hanoi, has a wide range of advantages for socio-economic development. It belongs to the northern key economic zone with traffic convenience of roads, rail routes, airways and waterways, which brings Vinh Phuc closer to other provinces and cities nationwide and makes it a component of northern Vietnam’s industrial development belt.
The province neighbours Hanoi, is close to Noi Bai International Airport, with many important traffic routes running through such as the National Highway No 18, Cai Lan deepwater seaport, Kunming-Hanoi-Haiphong economic corridor, the National Highway No 2- Viet Tri-Ha Giang-China, the road corridor No 18, Hanoi’s fourth ring road and the railway of Hanoi-Lao Cai.
Since its re-establishment in 1997, the province’s economy has expanded fast, achieving an average GDP growth of 18.12 per cent in 1998-2000, 15.02 per cent in 2001-2005 and 18 per cent in 2006-2010. In general, Vinh Phuc’s economic growth always ranks high among the Red River Delta provinces and the northern key economic zone, and is twice times against the country’s average economic growth.
With the motto “All investors in Vinh Phuc are provincial citizens – Success of businesses is the province’s success and pride,” the province has pulled in many big international and domestic brand-names such as Toyota, Honda, Compal and Prime. Vinh Phuc’s Provincial Competitiveness Index (PCI) is always ranked in the top 10 nationwide.
According to the 2009 report of Taiwan Electrical & Electronic Manufacturers’ Association, Vinh Phuc is the only locality in Vietnam which is selected as one among eight provinces and cities of ASEAN countries recommended the most for foreign investors.