Vietnam Plans for Northern Economic Zone

Vietnam Plans for Northern Economic Zone

Prime Minister Phan Van Khai recently approved an ambitious plan to develop the North into a major economic zone over the next 15 years. This northern economic zone would incorporate the north-central provinces of Quang Ninh, Hai Duong, Hung Yen, Ha Tay, Vinh Phuc and Bac Ninh and the cities of Hanoi and Hai Phong.

Under plans until 2020, high-tech industries will be the northern zone’s top investment priority, including IT software and hardware, automation, robotics, high-grade steel and shipbuilding.

Ancillary industries such as vehicle parts and electrical components will also be a key focus, along with marine-based ecotourism, aquaculture and seafood processing placed high on the investment list.

The development of human resources will play a major role in the region’s economic future, with a series of vocational projects, including a vocational training centre in Vinh Phuc Province and a high-quality vocational training centre for the entire region also being planned.

The Ministry of Industry is considering establishing a polytechnic university in Hung Yen Province.

Transport systems in the region will incorporate expressways such as the Hanoi-Hai Phong link, direct rail links from Hanoi to coal mines and the World Heritage site in Quang Ninh, inner-city metros and railway systems for Hanoi, as well as a deep-water port in Hai Phong.

The Prime Minister stipulated that Vietnam intends to develop three major economic zones involving 20 central provinces and cities in the next 15 years.

Under the 15-year plan, Vietnam’s northern region has been set a variety of ambitious socioeconomic targets.

The region aims to contribute 23-24 per cent of gross domestic product (GDP) by 2010 up from the 2005 target of 21 per cent. The target is 29 per cent by 2020. The region will also be chasing increased tax revenues of 26 per cent of the State budget revenue by 2010, from 23 per cent in 2005, and this should rise to 29 per cent by 2020.

Its export targets have been set at US$1,200 per capita per year by 2010 and $9,200 by 2020, up from $447 next year. Unemployment should reduce to 6.5 per cent by 2010, and fall below 4 per cent in subsequent years. The north’s poverty rate is expected to drop to 1.5 per cent by 2010, and to less than 0.5 per cent by 2020. Its population growth is expected to drop 1 per cent in 2010 and be 0.8 per cent by 2020.

• B.H