Investment into Mekong Delta Asked to Focus on Industry, Service

Vietnam Ministry of Planning and Investment (MPI) has recommended investment flows into the Mekong Delta be direct toward industry and service sectors to fully exploit the rich potentials of the region in processing-for-export and international trade exchanges.

 

The recommendation was made by a deputy minister of MPI in charge of licensing projects nationwide, during a meeting on the development of the region on April 3 in Can Tho City. The region now has 111 industrial parks and areas, the meeting was told. According to the ministry, total investment into the region in 2001-2005 reached VND180 trillion (nearly US$11.4 billion), creating 147,000 jobs.

 

The money, partially, has helped build some large projects in Gas-Fertilizer-Electricity like those in Can Tho and Ca Mau, which are considered key constructions for regional industrialization and modernization. It is hoped that local people will access power from the sources next year.

 

During the period, VND516 billion (US$32.66 million) was poured into building houses for ethnic minority people. The proportion of poor households in the region is reportedly down to 17 per cent from 25 per cent.

 

However, statistics from the Ministry of Labor, War Invalids and Social Affairs showed that the number of poor households in the region were at the bottom of the nation’s ranking with monthly per capita income in rural areas reported at only VND200,000 (US$13) while that in urban areas VND260,000 (US$16).

 

Last year, Politburo Member, Deputy Prime Minister Nguyen Tan Dung released four key areas that need to be fundamentally enhanced to help the Mekong Delta to take flight including transport, irrigation, education and technical application in agriculture.

 

The Mekong Delta, which covers 12 per cent of the country’s total natural area and is home to 21 per cent of the total population (or 17 million, including 1.3 million of ethnic minorities), currently contributes 18 per cent to the total’s GDP and produces 50 per cent of the national seafood output, 90 per cent of rice exports and 60 per cent of seafood export.

 

The Mekong Delta comprises of 13 provinces and cities including Long An, Tien Giang, Ben Tre, Tra Vinh, Vinh Long, Dong Thap, An Giang, Kien Giang, Hau Giang, Soc Trang, Bac Lieu, Ca Mau and Can Tho.