Vietnam Fosters Key Economic Regions

Vietnam Fosters Key Economic Regions

The Government of Vietnam and relevant authorities of localities have shown strong determination to accelerate the development of key economic zones in the North, Central and South of the country, mainly by better interacting with one another and boosting fields with strong advantages. Under a government decision, Vietnam’s three key economic regions, currently including 20 cities and provinces and making up some 65 per cent of the country’s Gross Domestic Product (GDP), are set to increase the proportion to 70.5 per cent by 2010 and 79.5 per cent by 2020.

In the first meeting of the coordination committee in charge of the northern key economic region headed by Deputy Prime Minister Nguyen Tan Dung, which took place on May 16 in Hanoi, leaders of eight cities and provinces in the region, namely Hanoi, Hai Phong, Quang Ninh, Hai Duong, Hung Yen, Ha Tay, Vinh Phuc and Bac Ninh, touched upon the region’s overall planning in the five fields of construction, transport, environment resource, industry and industrial parks.

The leaders attached great importance to the upgrade of transport network, the construction of new industrial parks, and the promotion of auxiliary industries with sharp competitive edges like the production of electric engines and vehicle components. According to the Transport Ministry, upgrading transport networks in the region alone is estimated to cost VND75,174 billion (USUS$4.758 billion) by 2010.

Under the government decision, the northern key economic region should account for 21 per cent of Vietnam’s GDP in 2005, 23-24 percent in 2010 and 28-29 percent in 2020. To this end, the government is prioritizing development of such fields as information technology, automation, engineering, shipbuilding, new materials and high-quality steel, as well as construction of new expressways, railways and underground routes stretching from Hanoi to other localities in the region.

According to the Ministry of Planning and Investment, priority should be placed in the development of industrial parks and export processing zones to mainly attract enterprises specialising in production of electronics appliances, computer software and hardware, precise engineering and first-class consumer goods; the production of cement and high-grade building materials; the promotion of tourism; the establishment of trade centers and facilities for maritime, aviation, financial and banking services; and the development of crops and animals which have high quality and turn out large volumes of goods to serve export and demand of urban dwellers.

The development of urban areas, especially those in Hanoi, Hai Phong and Ha Long, is also of great importance, the ministry said, noting that some new urban areas are taking shape to lessen population pressure in the inner city. Notably, Nguyen Tan Dung announced the first meeting of the coordination committee that the Politbureau has agreed to geographically expand Hanoi. The government has assigned the Construction Ministry to coordinate with People’s Committees of the capital and neighbouring provinces to work out plans for the expansion.    

Regarding the southern key economic region, the government will speed up establishment of urban areas in Ho Chi Minh City, Tay Ninh and Long An, modern healthcare and vocational training centres in Ba Ria Vung Tau and Binh Duong, as well as construction of an international airport in Dong Nai and expressways linking Ho Chi Minh City with its neighbouring provinces.

Under the government decision, the region, comprising of Ho Chi Minh City, Dong Nai, Ba Ria Vung Tau, Binh Duong, Tay Ninh, Binh Phuoc and Long An, should make up 40-41 per cent of Vietnam’s GDP in 2010 and 43-44 per cent in 2020. The respective targets set for the central key economic region, including Da Nang, Thua Thien Hue, Quang Nam, Quang Ngai and Binh Dinh are 5.5 per cent and 6.5 per cent. 

On May 18, Nguyen Tan Dung, leaders of the central key economic region and representatives from some ministries and sectors met in Da Nang city to discuss plans on developing the five localities in the region on an interconnected basis. They touched upon the plans on urban construction, transport, usage of land and natural resources, industrial products, electricity, industrial parks, open economic zones, and irrigation.

At the meeting, the deputy prime minister stressed the regional interconnection in terms of tourism, agriculture, seafood, education and healthcare, among others. It is necessary to build a unified mechanism for the four economic zones of Chan May, Chu Lai, Dung Quat and Nhon Hoi so that they can cooperate with one another for joint development. Regarding the central key economic region, the government will intensify investment in economic and tourism centres and major transport works, mainly in Da Nang, Hue and Quang Nam. A multi-sector training centre will be established in Hue.

• Dong Phong