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Once a purely agricultural province, Vinh Phuc is oriented to become an industrialised province, the chairman of the provincial people’s committee Phung Quang Hung tells VIR’s
|The province of Vinh Phuc has a great track record when it comes to attracting investors and consistently tops national rankings for foreign direct investment|
Over the past few years, Vinh Phuc has witnessed a surprising change in economic development, most significantly, robust industrial development as a result of strong investment inflows. What are the province’s major achievements during this time?
|Phung Quang Hung|
Between 2006 and 2010, despite a wide range of difficulties and challenges, Vinh Phuc province chalked up many important socio-economic achievements.
First of all, despite the global economic crisis, the province maintained high economic growth and a positive shift in economic structure. The local economy grew an average of 17.97 per cent annually over the five-year span, putting the province into the leading group nationwide.
The industry-construction sector surged 20.61 per cent per year, the service increased by 20.36 per cent, and agro-forestry-fishery saw an annual growth of 5.68 per cent. The province’s total industrial production value is currently ranked seventh in the country and third in the north.
Secondly, Vinh Phuc achieved good results in attracting foreign direct investment (FDI) and budget revenues between 2006 and 2010. The province succeeded in improving its investment environment, pulling in numerous investment projects, especially FDI.
Over many consecutive years, Vinh Phuc has been ranked among leading provinces and cities across the country in attracting FDI. Although the global economic crisis had not yet ended in 2010, Vinh Phuc province drew in 10 FDI projects, worth some $253.57 million.
This brought the total number of valid FDI projects in the province to 116, worth more than $2.3 billion by the end of last year, including 82 projects with total investment capital of roughly $2 billion running into local industrial parks (IPs). The results were thanks to the province’s strong efforts to improve the investment climate though activities such as developing the traffic infrastructure and electricity, water and telecom networks, vocational training, administrative reform and executing many policies on investment incentives.
Vinh Phuc’s Provincial Competitiveness Index (PCI) was ranked top 10 nationwide over the five years, making it attractive to a large number of domestic and foreign investors. The provincial budget was further balanced by increasing local tax revenues. In 2010, the province’s total budget revenue was VND14.55 trillion ($765.78 million), of which VND10.4 trillion came from tax. With these figures, Vinh Phuc’s total budget revenue came in at eighth in the country while its tax revenues ranked sixth in the country and second in the north.
Next, huge investment capital has been made with the planning and development of many major traffic routes, tens of urban areas and tourism and entertainment sites, industrial parks, culture-sports works and an irrigation system. Both the central and provincial government have been involved in these developments.
Fourth, social security in the province has been ensured and the standard of living for local residents is much improved. Last year, the province’s GDP per capita was estimated at VND33.56 million ($1,766), higher than the average for the whole country and third in the northern key economic zone, behind Hanoi and Haiphong.
Over the five-year span, Vinh Phuc focused on developing education and training, healthcare, culture and sports, solving urgent problems, and environmental protection, ensuring sustainable development. During this same time frame, the local poverty rate reduced to 6 per cent. The province provided vocational training for approximately 30,000 people annually and created jobs for more than 20,000 labourers.
Despite the afore-mentioned achievements, Vinh Phuc is still facing a number of problems such as difficulties in site clearance for socio-economic development, inadequate urban and rural infrastructure, a low quality workforce, pressing environmental problems and challenges with mountainous communities, among others. We are committed to dealing with these problems immediately.
What are Vinh Phuc province’s industrial development orientations over the 2011-2015 period?
Under the province’s socio-economic development plan for the 2011-2015 period, Vinh Phuc will develop the basic attributes of an industrialised province by 2015 with a view to becoming a fully industrialised province by 2020. It will take its place on Vietnam’s tourist map, with international-standard resorts and will strive to become Vinh Phuc City by 2020. In order to reach these goals, the province has set its industrial development focal points for the five-year period as follows:
Firstly, industrial development: the province will focus on developing key industries, including high tech and labour intensive industries, generating high added value products and creating increased numbers of products for export, in particular, high tech electronic products. This will also include engineering, agro-forestry and food processing; and developing the apparel and shoe industries into the province’s key export industries.
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.
The second priority is local integrated and modern IP development. The province aims to establish a logical IPs system, ensuring sustainable development and becoming a driving force for the province’s overall development, which will help boost the province’s industrial sector on the whole. In our plan, Vinh Phuc plans to build additional 11 IPs, raising the total number of IPs in the province to 20 by 2015, with total available area of 6,038 hectares.
With the above priorities and outlined solutions, we believe that we will be able to obtain the goal of developing the basic attributes of an industrialised province by 2015 and becoming an absolutely industrialised province earlier than the rest of the country.