In three years of implementing the Resolution of the 12th Provincial Party Committee’s Meeting, Binh Thuan province has enjoyed steady growth of 8.8 percent with the economic structure moving in the right direction. Accordingly, Binh Thuan is taking solid and positive steps to create a new position and is combining strengths to develop into a modernised industry - service province. To learn more about this success, Vietnam Business Forum interviewed Mr Le Tien Phuong, Chairman of the Provincial People’s Committee. Hoang Lam reports.
Could you tell us more about the success of Binh Thuan in the past three years?
In the context of facing various difficulties and challenges, the provincial party and people have united and together made the best efforts in implementing the Resolution of the 12th Provincial Party Committee. We have achieved many important and comprehensive results; all aspects of the province have changed sustainably in a positive direction. The province's economy continued its growth trend, economic structural shifted in the right direction; potential and advantages of the province were better exploited. Specifically, the economy enjoyed a good growth rate, 8.8 percent, of which agriculture - forestry - fishery increased by 5.4 percent; industry - construction increased by 7.9 percent; services increased by 11.2 percent. So far, in the provincial gross domestic product, the proportion of service sector accounted for 48.3 percent (43.9 percent in 2010); industry - construction accounted for 32.7 percent (34 percent in 2010); agriculture - forestry - fishery taking up 19 percent (22.1 percent in 2010). Per capita income in 2013 reached VND33.5 million (US$1,580), an increase of 69.2 percent over 2010.
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Industrial production grew on average 8.7 percent/year; adding some new products such as thermal power, wind power, titanium processing and handicraft products for tourism; which has attracted a number of businesses to register and participate in infrastructure business of industrial parks and complexes; investment and exploitation, processing of products mentioned above.
The agricultural economy has been gradually restructured at a steady pace and continued to develop in the direction of commodity production, gradually raising quality and efficiency; in line with the developing of the rural areas. By exploiting irrigation system effectively, the area, yield and production of crops had been growing, crop structure continues to move toward a positive direction; the provincial crops have real advantage of development, especially dragonfruit trees and rubber trees. Planned area for dragonfruit tree was to reach 15,000 ha by 2015, but by 2013 we had expanded to 20,511 ha; meanwhile, area of rubber trees in 2013 was 40,787 ha, up 25 percent compared to 2010. Food production in 2013 reached 758,000 tonnes, already exceeding the target for 2015 (730,000 tonnes).
Fishery economy continued to develop sustainably; catches had steadily increased over the years (2013 was 185,715 tonnes, up 7.6 percent compared with 2010). Aquaculture, particularly shrimp production, continued to grow steadily and produced high quality products.
Trade - service continued to make progress; total retail sales of goods and services in 2013 reached VND20,200 billion, an average increase of 18.7 percent/year. Export in 2013 reached US$368 million, an average increase of 17.4 percent/year; of which commodity exports was US$255 million, up of 15.1 percent/year on average.
Tourism activities also sped up, the quality of tourism services kept getting higher and higher. The number of tourists as well as tourism revenue have been increasing year by year; tourist arrivals in 2013 reached 3.500.000 passengers, an average increase of 11.9 percent/year; tourism revenue in 2013 stood at VND5.5 trillion, up 29.2 percent/year; raising the GRDP percentage of tourist from 5.98 percent (2010) to 6.71 percent (2013) in the provincial GRDP.
Binh Thuan has high potential for minerals especially titanium. To develop Binh Thuan into the national centre of titanium ores processing, what suggestions have you proposed?
Besides being considered the energy and tourism centre of the country, Binh Thuan also holds a huge potential for titanium; expected to become the national centre of titanium ore processing in the future. According to a study of the General Department of Geology and Minerals of Vietnam and the Planning of mineral zoning for exploration, exploitation, processing and using of titanium to 2020 period, considering towards 2030, approved by the Prime Minister's in Decision 1546/QD-TTg dated 3rd September 2013, Binh Thuan province was identified as a province of great titanium potential, both in gray and red sand floor. The reserve was predicted to be at a very large amount, about 599 million tonnes scattered across a large area of about 1,137 km2, accounting for 92 percent of titanium ore reserve of Vietnam. The area of red sand containing titanium is up to 800 km2, holding 550 million tonnes of useful heavy minerals, of which zircon accounts for nearly 80 million tonnes. According to the planning to 2030, the amount of resources can be mobilised to explore was over 300 million tonnes, 110 million tonnes could be mobilised immediately; the remains would be brought into national reserves.
To realise the planning of mineral zoning for exploration, exploitation, processing and using of titanium to 2020 period, considering towards 2030, recently, the province has called for departments and localities to advise it in planning the northern processing area, Song Binh Industrial Park (area of 300 ha) and the southern processing area which is the Thang Hai 2 Industrial Complex (area of 40 ha). So far, those two locations have been approved by the Prime Minister to add into the list of industrial parks and complexes of Binh Thuan province planned for development to 2020. Currently, all investment procedures are completed; infrastructure construction and investment promotion are underway. For the coming time, to ensure those industrial parks and complexes could provide efficient infrastructure for secondary investors to lease and invest in the project of extensive titanium processing plant in accordance with regulations; the province has initially instructed departments and localities to actively monitor and urge infrastructure investors to keep to schedules and rapidly bring projects to completion; proactively seeking secondary investors possessing capability and enthusiasm; at the same time closely monitoring the implementation of investment projects in titanium planning. If project owners show incapability, or slow deployment without good reason, it’s the PPC’s responsibility to inform the Prime Minister to take those out of the Planning of mineral zoning for exploration, exploitation, processing and using of titanium to 2020 period, considering towards 2030. On the other hand, the PPC will consider adding projects and enthusiastic qualified investors who desire to invest in the extensive titanium processing project to soon fill those industrial parks and complexes. Recently, there have been three projects of processing titanium slag newly registered for investment. All three were recommended by Binh Thuan province to the Prime Minister for approval of adding into the planning.
In addition, the province will also coordinate with relevant central ministries and agencies to monitor investors who invest in the intensive titanium processing project, to ensure that it’s investment in advanced technology, environmentally friendly and of socio – economic efficiency.
In a working session at the end of 2013, Party General Secretary Nguyen Phu Trong requested Binh Thuan province to become more attractive and influential. What is the short-term plan of the province to be able to affirm its role and position in the dynamic Southeastern region economy?
The target of building Binh Thuan into a “charismatic with a strong capability of regional effect” province primarily revolves around the idea of developing an efficient economic structure: industry - services - agriculture with three national level centres (energy centres, centre of processing titanium ores, and centre of tourism - sea sports). At the same time, Binh Thuan’s socio-economic infrastructure needs to be developed to be able to meet necessary requirements; social security and social welfare are guaranteed; People's lives are constantly being improved, per capita income is not lower than national average; defence - security is constantly strengthened, and social order is maintained.
To accomplish its objectives, for the upcoming time, through positive synchronised measures, the province will strive to create a favourable environment, encouraging all economic sectors to invest in effective exploitation of the potential and advantages associated with the restructuring of the economy; gradually formed three major centres: energy centre, titanium processing centre and tourism - sea sports centre. The province will also focus on developing agriculture production-oriented to create goods of high quality, continuously improving the added value added on the basis of maximising the exploitation of local advantages; Stepping up the campaign “Vietnamese people using Vietnamese goods”; strengthening measures to manage and maintain quality and brand name of some key staples: dragon fruit, fish sauce, and Vinh Hao mineral water.
Along with focusing on building a synchronised infrastructure system, Binh Thuan Province will also have positive measures to mobilise investment, paying attention to exploiting capital outside the budget; creating a favourable environment to encourage economic sectors to invest in developing production and business. Additionally, the province will also adjust and supplement the master plan of socio-economic development and the plan of sector development in accordance with the national and regional planning as well as associating with enhancing the restructuring of the economy in general and each particular industry; adapting to climate change in accordance with green economic growth, as a basis for sustainable development.