HA GIANG

Ha Giang Facilitates Investors

4:01:12 PM | 3/11/2015

In the 2010-2015 period, Ha Giang province has carried out many measures to accelerate economic growth but its results did not come up with expectations. Being aware of existing weaknesses, the 16th Party Congress of Ha Giang Province issued a resolution on "two breakthroughs" and "five key programmes" in the 2015 - 2020 period. Inherent difficulties of a mountainous, border-sharing province plus its later starting than other provinces have nourished the willpower and determination of Ha Giang province to mobilise investment resources for development and create favourable conditions for investors and businesses.
Significant achievements
In the 2011-2015 period, in couple with general difficulties of the nation’s economy, Ha Giang province was faced with its own development problems. During this phase, the province sped up investment restructuring and a majority of investment funds was used to settle outstanding debts. Moreover, political instability in the region and the world also negatively impacted investment attraction and border-trade economic development. But, with its innovative thinking and proactive working attitude, Ha Giang gradually expanded external cooperation and carried out many programmes and projects to realise "four reforms,", "eight breakthroughs and "15 key programmes".
 
Firstly, the five-year economic growth fell short of expectations (14.6 per cent a year) when the province saw an average annual growth of 8.8 per cent. For a province with a low starting point, this growth rate was quite low and Ha Giang province seemed to lag behind the nation. Determined to pursue sustainable development, the province has exerted its resources to settle old construction debts. Economic growth was moderate and economic restructuring was slightly progressed. The share of agriculture, forestry and fisheries in GDP accounted for 37 per cent (down by 2.43 per cent over 2010); the share of trade and services was 36.5 per cent (down 0.23 per cent), and the share of industry and construction was 26.5 per cent (up 3.66 per cent). Other indicators were also positive in 2014. Industrial production value reached VND3,900 billion; total retail revenue of goods and services grossed VND6,500 billion; food per capita was 488 kilos, and tax revenue was VND1,550 billion.
 
Agricultural production has shifted sharply from width to depth by expanding intensive farming, forming centralised production areas, and linking production, processing and consumption. While maintaining the quality and output of staples, Ha Giang also introduced new crops, including valuable medicinal herbs, to open up new development ways for the province on the path to become a major producer of pharmaceutical plants. In the past five years, the province replanted 31,057 ha of forest to bring the forest coverage rate to 56 per cent. Specifically, the National Target Programme for new countryside construction was methodically and creatively performed. In four years, the much-appreciated programme raised VND2,919 billion (VND409 billion from businesses and populace), nine out of 176 communes met all new countryside criteria, 30 communes satisfied nine criteria, and 50 communes completed seven criteria.
 
 
In five years, the industry made a lot of development impressions from "quality" to "quantity". Mining industry has focused more on downstream processing, powered by 10 processing plants in operation. The province put into operation 13 hydroelectric plants with a total capacity of 328.9 MW (out of 46 licensed projects with a combined capacity of 774.8 MW) in the period, bringing the total number of operational hydropower plants to 24 with a total capacity of 407.7 MW. Electricity output was 1.410 million KWh a year. Some agricultural and forest product processing facilities have been invested with modern technologies and equipment.
 
Trade and services prospered. In 2015, the retail value of goods and services sold increased by 2 times over 2010. Market systems and trade centres were built and expanded by investors. The tourism sector saw an annual tourist growth of 20 per cent and early revenue growth of 25 per cent. Tourism promotion was accelerated. The reconfirmation as an official member to the Global Geoparks Network of Dong Van Karst Plateau laid a groundwork for Ha Giang province to become a national tourist centre.
 
Total social investment capital in 2010-2015 was VND25,120 billion, 2.7 folds more than that in the 2006-2010 period, of which State budget accounted for 41.8 per cent. The investment capital was channelled into important projects on priority principle.
 
Development indicators
At present, Ha Giang is still an extremely poor province. Hence, in the 2015 - 2020 period, the crosscutting task is to bring Ha Giang province out of poverty soon.
On that basis, the province announced 25 development indicators to 2020, including annual GDP growth of 8 per cent, rational economic structure (trade and services accounts for 39 per cent in GDP, industry and construction makes up for 28 per cent, and agriculture and forestry contributes 33 per cent), tax revenue of VND2,500 billion, social investment of over VND50 trillion, and industrial production value of VND8 trillion. From its existing development potential, advantages and orientations approved by the central government, Ha Giang will implement many policies like highway traffic connections to become a tourism centre of the region and the province.
 
Ha Giang province will focus reviewing and adjusting socioeconomic development planning and lay a basis for executing schemes and projects with appropriate steps and roadmaps.
 
Agricultural development will be driven by newly selected medicinal herb planting. The province will adopt and apply VietGAP standards for its production value chains.
Industrial production will be propelled by technological innovation investment, particularly in hydropower and mineral processing fields in order to save resources, improve product value and look to export. The development of processing industries is driven by the availability of local raw materials.
 
 
To boost investment and attract investment capital for upgrading and development of cross-border trade infrastructure system, including border-gate markets, supermarkets, wholesale markets, and regional markets, Ha Giang province will further strengthen cross-border trade with China via mutual border gates.
 
Ha Giang will give priority to tourism infrastructure development in Dong Van Karst Plateau, in western districts and in Ha Giang City so as to enhance the value ​​of Dong Van Karst Plateau Geopark and Hoang Su Phi national terraced field relic and preserve and uphold national cultural characteristics.
 
In the coming years, the province will continue to invest in upgrading important transportation routes, such as a road linking Ha Giang to Hanoi - Lao Cai Highway, National Road 4C, National Road 279, border gate routes and provincial roads. Ha Giang will also give priority to upgrading major roads in communes, building irrigation and water supply networks, and speeding up rural electricity projects in rural areas, industrial parks and residential areas.
 
2 breakthroughs and 5 key development programmes to 2020
2 breakthroughs
- Breakthrough in information technology application, public service quality improvement
- Breakthrough in policymaking and enforcement
5 key programmes:
- Agricultural restructuring programme in association with new countryside construction
- Pharmaceutical material development programme.
- Tourism development programme.
- Cross-border economic development programme.
- Human resources quality improvement programme 
 
Improving the business environment
Ha Giang has great but untapped potential. In the past four years, the provincial competitiveness index (PCI) of Ha Giang always ranked quite low (placed 41st out of 63 provinces in 2011, 55th in 2012, 48th in 2014, 60th in 2013).
 
Therefore, in the upcoming time, Ha Giang will plan, adjust and supplement socioeconomic development master plan as well as detailed sector and regional plans while improving mechanisms and policies to attract more investment. Besides, the province will step up administrative reform, raise the quality of officials, civil servants and employees, and modernise the public administration while giving priority to applying information technology.
 
The Party Committee, the People's Council and the People's Committee of Ha Giang province will take actions and solutions to improve its PCI ranking. The province will continue to urge its bodies to raise the awareness of the nature of PCI to work out suitable solutions and tasks, enhance the accountability of civil servants.
 
All-tier authorities will organise many dialogues and meetings between authorities and businesses, particularly concerning tax issues. Ha Giang will also boost investment promotion to introduce local potential and investment opportunities in the province.
 
In addition to carrying out site clearance, Ha Giang province will advise and support investors, and train and develop human resources to meet corporate demands. Ha Giang province expects to receive more assistance from the central government, other provinces/cities and domestic and international business communities. The provincial government is endeavouring for a better investment and business environment for investors and enterprises in the province.