Maintaining High Growth Rate to Join "VND2,000 Billion Club"

 

In 2008, Dak Lak continued socio-economic growth with GDP per capita of nearly VND11 million a year surpassing the plan of VND10 million by 8 percent, and GDP growth was 27 percent more than 2007. The total export value was US$700 million, exceeding the plan by 24 percent and 17 percent more than the previous year. The State revenue of the province is VND1,860 billion, 11 percent more than the target set by the province, creating over 43,000 jobs , 101 percent of the plan and 2 percent more than 2007. The poor households reduce 3.66 percent to the present 15 percent.

 

In the first quarter of 2009, Dak Lak GDP increased by 10 percent. With the forecast of the recovery of the world economy by the end of this year, I believe that Dak Lak enterprises will increase with a growth rate of 10-12 percent. The export value in 2009 will be some US$700 million with US$635 million by coffee and the remaining of US$65 million by rubber, cassava, cashew nut, pepper, honey, timber and cocoa.

 

Phase 1 of the government stimulus package of VND17,000 billion with interest rate of 4 percent per year was to promote production, consumption of local products and rural purchasing power.

 

Dak Lak province itself has focused on boosting production while maintaining social welfare, especially for the poor in remote areas and ethnic minorities. The province encourages trade and consumption while ensuring product quality, service and stable prices. Priority of State budget was for social welfare and development of infrastructure, stimulating investment and consumption.

 

After three months of implementation of Decision 131, Dak Lak State Bank Branch has disbursed over VND4,109 billion for 14,942 clients, accounting for 95 percent of the demand. The credits have helped the economy, enterprises and farmers, reducing the production cost and increasing the income of the workers. The branch has also implemented Decision 443 to support interest rates for medium and long-term credits.

 

PCI is based on survey. Most of the 3,000 enterprises in the province are small and medium size. Therefore, the enterprises are not well represented. In reality, the province has created favourable and transparent environment for local and foreign investments. The administrative reform has created a “one-stop shop” and inter-related office in favour of investors. Some indexes of the province were under-rated as the enterprises lack information for adequate evaluation.

 

With the slogan “Projects of investors are also of the province,” Dak Lak has always created most favourable conditions for investors. Administrative reform has been accelerated to save time for the investors and ensure compliance to the law. In particular, the province reserves Thursday to meet and remove constraints for investors.

 

Dak Lak is one of the five Highland provinces with an important location in the development triangle of Vietnam, Laos and Cambodia; Dak Lak is building Highway 27 linking the Highlands, Laos and Thailand. The tourist tour will connect Da Lat to Buon Ma Thuot by Highway 27, Pleiku and Kontum by Highway 14 and then by Bo Y border gate to Southern Laos and North Eastern Thailand.

 

The economic cooperation between Dak Lak and Ho Chi Minh City was also successful with Saigon-Coop mart, Intimex. In health services, technology transfer has been promoted in the past two years with several training courses and assistance in equipment.

 

In the plan of the Ministry of Agriculture and Rural Development on “Increasing competitiveness of Vietnamese coffee to 2015 and vision of 2020,” coffee products will be important for domestic market accounting for 10-15 percent of the output. To this end, the province has launched several promotion activities for Buon Ma Thuot coffee, especially Coffee Cultural Weeks and Coffee Festivals with the participation of all coffee brands of Vietnam. The plan also encourages the consumption of coffee at home by diversifying the products to meet different tastes. Dak Lak has introduced coffee products as the main commodities for 2009 trade promotion programme. The province has also assisted foreign companies to do their business in the province.

 

Besides, the province has focused on sustainable development, reducing coffee area to 140,000-150,000 hectares by 2015 with favourable bio-sphere, infrastructure and harmonious development of agriculture, rural areas and farmers. The province together with related organizations will organize such events as Coffee Festivals, Coffee Months in Buon Ma Thuot and other provinces and increase the efficiency of the coffee transaction floor.

 

Reported by Kim Bao