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Local Economy

Last updated: Wednesday, November 22, 2017

 

Binh Phuoc Economy: More Positive Changes

Posted: Friday, November 03, 2017


Domestic and global economic slowdown in recent years significantly affected the socioeconomic performance of all localities and Binh Phuoc province is no exception. With the close direction of all-tier governments and ongoing efforts of the entire political system, the business community and the people, the economy and society of Binh Phuoc province continued to develop in the right direction.

Private economy becomes a driving force
In 2016, the province fulfilled or exceeded most socioeconomic indicators. The gross regional domestic product (GRDP) was estimated to grow 6.6 per cent in 2016 (planned at 6.5 - 7 per cent). Wherein, the industrial and construction sector climbed 10.5 per cent (planned at 8 per cent); the services sector expanded 10.67 per cent (planned at 6.5 per cent); the agriculture - forestry - fishery sector edged up 0.36 per cent (planned at 5.4 per cent).

GRDP per capita was estimated at VND42.1 million, up 5.5 per cent year on year. The total State budget revenue was projected at VND4,150 billion, 4 per cent higher than the target set by the Provincial People’s Council. State budget expenditure for the whole year was VND7,199 billion, or 98 per cent of the estimation of the Provincial People’s Council.

As for domestic investment attraction, Binh Phuoc province licensed 110 projects with a total registered capital of VND6,700 billion in 2016, up 100 per cent in project and 25 per cent in capital over 2015.

As for foreign direct investment (FDI), the province attracted 23 projects with a total registered capital of US$60 million in 2016. By the end of 2016, it had 159 FDI projects valued at US$1,153.162 million, including 123 projects with US$939,123 million in industrial parks and 36 projects with US$214,039 million outside industrial zones.

As for business development, Binh Phuoc province had 720 new companies with a total registered capital of VND4,350 billion in 2016, up 7.5 per cent in companies and down by 2.4 per cent in value over 2015. The province saw 429 companies suspend or terminate operations in the first 10 months of 2016, equal to 59.6 per cent of new start-ups in the same period.

In the first half of 2017, Binh Phuoc province’s GRDP grew 4.93 per cent over the same period of 2016 (compared to the target of 6.7-7 per cent). Specifically, the industrial and construction sector expanded 10.06 per cent; the services sector enlarged 8.2 per cent; and the agriculture, forestry and fishery sector slipped 4.79 per cent.

Investment attraction seemed to be positive in the first six months of 2017. Many potential investors arrived in the province to study and propose projects such as solar power project and rubber processing project. The province licensed 420 new enterprises with VND3,477 billion of investment capital in the first six months of 2017, up 15.07 percent in enterprise and 72.66 percent in capital value over the same period of 2016.

The robust growth of the private economic sector and the business community is the driving force for Binh Phuoc province to develop more strongly. The province licensed 77 domestic direct investment (DDI) projects with VND5 trillion of investment capital in in the first six months of 2017, representing an on-year growth of 2.2 times in project and 4.5 times in value. It attracted 67 projects with VND4,350 billion in the first five months. Meanwhile, the province attracted eight FDI projects with US$31.8 million of investment capital, unchanged in projects but up 49 per cent in investment value. The province to date has 163 FDI projects with US$1,429 million of investment capital.

Strong solutions
Nevertheless, Binh Phuoc province still faced many constraints and difficulties socioeconomic development. Agricultural production declined 4.79 per cent, dragging the GRDP growth to just 4.93 per cent in the first six months of 2017 and adding more difficulty to achieving the growth target of 6.7 - 7 per cent in the year. Corporate and economic productivity, quality and competitiveness remained low. The number of corporate bankruptcies and dissolutions was still high in spite of considerable decline. The progress of key projects was slower than expected. The budget for the new rural programme did not met requirements.
Smuggling, counterfeiting, trade fraudulence and food insecurity remained rampant. Land-use right licensing and social security were slow. The Public Administration Reform Index (PAR Index) and the Provincial Competitiveness Index (PCI) stayed very low, ranked 57th out of 63 provinces and cities in the country.

To ensure economic development and social security, Binh Phuoc province has executed many solutions.

As for technical infrastructure investment, Binh Phuoc province has continued to make detailed development plans for some industrial clusters and invest in infrastructure construction for industrial zones to attract investors. The province has urged investors to accelerate infrastructure investment in Becamex - Binh Phuoc, Dong Xoai III and Minh Hung - SiKico industrial parks and speed up infrastructure construction in Hoa Lu Border Gate Economic Zone. Binh Phuoc province has focused on expanding production performances in industrial zones; reviewed and supplemented mechanisms and policies on investment attraction and stimulation; invested in infrastructure construction, particularly transport infrastructure, to facilitate travelling and cargo transportation.

With respect to administrative procedure reform, for the time being, business and investment support and stimulation policies are working well. The Binh Phuoc Provincial People’s Committee issued the Official Letter 2443/UBND-NC dated July 25, 2017 requesting heads of provincial agencies and chairpersons of District/Town People's Committees to achieve main targets in a bid to raise PAR Index 2017 and issue tasks and solutions to improve the PAR Index.
Regarding human resources, Binh Phuoc province has upgraded, expanded and invested in existing vocational centres, vocational schools and colleges; stepped up vocational training socialisation and raised training quality; and attracted talents from other localities to work in the province in a long time.

Finally, as for social security, Binh Phuoc has always focused on applying policies for people with meritorious services, vulnerable people, and the poor. The province has actively implemented credit policies for people in rural areas and supported the poor to buy health insurance policies.

Thanh An








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