The southern key economic zone needs investment of VND25.17 trillion (US$1.57 billion) for infrastructure development from now to 2020, a conference held in Ho Chi Minh City on December 18 was told.
The conference, held by the Ministry of Trade, focused on discussing a master plan for developing trade in the southern key economic region.
The ministry said the zone needs to develop wholesale markets, supermarkets, commercial centers, warehouses, fuel depots, exhibition centers and hold more trade fairs to promote trade.
Of the sum, around US$584.4 million will be spent by 2010 and the rest will be for the next ten years.
State funds would support calling investment from foreign companies and domestic private investors, to begin after the government gives final approval for the master plan in Q1 next year.
It is essential for the zone to develop infrastructure, as it plays a very important role in industrialization and modernization of the country, said Deputy Minister of Trade Le Danh Vinh at the gathering.
The plan, however, is still criticized by some local trade agencies, complaining it lacks transparency.
Pham Hoang Ha, director of Ho Chi Minh City’s Trade Department noted the plan fails to properly assess supermarkets, trade centers and warehousing in the region, critical for their role in infrastructure and distribution
The plan targets retail and distribution business revenue at 12 per cent of the total turnover of trade activities by 2010, and up to 20 per cent in 2020.
But participants said the figures are likely to be much higher.
Officials from some provinces said many provinces are rushing to build wholesale markets without considering how they fit into bigger picture
The southern economic zone now includes Ho Chi Minh City and seven adjacent provinces: Binh Duong, Binh Phuoc, Tay Ninh, Dong Nai, Ba Ria-Vung Tau, Long An and Tien Giang.
The zone has a population of 15 million people and makes up about 40 per cent of GDP, 84 per cent of exports and 60 per cent of the Government’s revenues.
VNS, Young People
Vietnamese
