Can Tho Province's Economy Tapping Potentials

 

Industry is regarded as the strength and playing the leading role in the economy of Can Tho. The industrial value of the city ranks first in the Mekong Delta and 12^th in Vietnam with average growth rate of 19 per cent a year and making up nearly 32 per cent of GDP. In 2006, the industrial value was VND9,983 billion. In the first eight months of 2007, it was VND,487 billion, 20.45 per cent more than the same period of 2006 and 61.37 per cent of the year plan. The industrial sector has over 5,600 units and over 52,000 workers.

 

According to Resolution 45/NQ-TW, Can Tho will become an industrial city by 2020, a driving force for the development of the whole region. Accordingly, Can Tho has increased the industrial value to over 21.74 per cent with main industries as aquatic production, rice processing, mechanics, garment. The city is also calling for investments in processing industry, electric-electronics, chemistry, garment, footwear, building materials.

 

From now to 2010, the industry will play the main role in economic development and restructuring of the city and the Mekong Delta. The industrial value of the city will be VND18,344 billion in 2010 with annual growth of 18.2 per cent. In 2010, the industry-construction will make up 45.1 per cent of the economy with 36.53 per cent by industry. In 2020, they will be respectively 53.8 per cent and 39.7 per cent. Main industries will be developed such as, oil refinery, chemistry-fertilizer, agriculture-forestry-fisheries processing, foods and drinks, mechanics, electronics, metal processing, electrical equipment, garment, footwear, building materials, hi-tech and supporting industry.

 

In particular, technology and equipment in food processing industry will be upgraded to ensure high quality meeting the demand of home consumption and export.

 

Can Tho has also a large agricultural area with some 114,000 hectares of rice, cereals and fruit. Each year, the city exports 500,000-600,000 tonnes of rice, produce 90,000 tonnes of fruit, 20,000 tonnes of meat.

 

To boost the agricultural value, Can Tho is calling investments in fruit processing, vegetable oil, canned food, fish meal and veterinary medicines. Accordingly, by 2020, Can Tho will upgrade technology and develop aquaculture and animal husbandry, applying bio-technology and establishing modern production models.

 

With geological location and communication networks, Can Tho is the centre of commercial activities and services for the Mekong Delta with 80 countries including ASEAN, Asia Pacific, Africa, North America, etc. The city ranks 3^rd in retail sale and 2^nd in export among Mekong Delta cities and provinces.

 

In recent years, the export value was US$450 million, increased by 29 per cent. Main export items are rice, aquatic products, processed foods, garment, footwear, fine art articles. Main markets are Asia (53 per cent), Europe (22 per cent), America (12 per cent), Africa (8 per cent) and Oceania (5 per cent). Commercial centres and supermarkets have been established in the city such as Co-op mart, Vinatex, Metro. The city is building three key markets for rice (Thot Not), aquatic products and agricultural produce.

 

With modern facilities and upgraded professionalism, trade and service of the city have been improved. Banking and insurance have been developed facilitating capital mobilization and payments at home and abroad and promoting production and import-export activities.

 

However, as most of the enterprises are small in scale, their linkages and competitiveness remain weak, failing to ensure a stable market for export especially in agricultural produce. While progress has been made in market information and trade promotion, little regard was shown by several enterprises. Export items remain simple and turnover depends mainly on rice and aquatic products. But these two items, in turn, depend on climate and natural conditions, with limited output, unstable growth and few trademarks.

 

Under the pressure of competition of WTO membership, the city has established Steering Committee for International Integration with the Standing Vice-Chairman of the People’s Committee as Head and Director of Trade Department as Deputy-Head. Subsequently, the city will implement the following measures: Accelerating the economic restructuring, boosting export processing industry, trade and service, focusing on spearheaded and highly competitive products, developing some strong brands; planning and developing special regions for high-quality agricultural and fishery products, supplying safe materials for export processing industry; applying advanced technology in quality management to meet international standard; implementing intellectual property in industry and trade, increasing the capacity of quality control by ISO/IEC standards; providing in time information on technical barriers of international trade issued by WTO; increasing trade promotion, encouraging businesses to make their own integration plans, deepening and expanding investments; understanding fully regulations and practices of major markets such as US, EU, Japan, China, Korea; training human resources suitable to the international economic integration.

 

Can Tho has also great potentials for tourism development with 14 centres of eco-tourism, cultural and historical tourism. MICE (tourism combined with conference) can be developed meeting the demand of tourists and investors. In order to boost trade and tourism, Can Tho is calling investments to develop new urban areas, restaurants, hotels, eco-tourism centre and modern recreation centre.

 

The 2010 objectives of the city are to develop tourism with high growth rates and playing a bigger part in GDP, building national tourist centre ( Con Cai Khe, Con Au, Con Khuong, Con Son and Tan Loc), Bang Lang bird sanctuary, tourist tour and scientific research of ancient village in Binh Thuy-Lo Vong Cung-Cai Rang float market.

 

Some 170 km from Ho Chi Minh City (HCMC), Can Tho is the focal point connecting with Mekong Delta provinces and the rest of Vietnam by rivers, roads and sea. It has such highways as 1A, 80, 91 and 91B. The network of rivers and canals facilitates water transport and socio-economic development. 

 

The technical infrastructure is also well developed. Can Tho and Cai Cui seaports can receive 10,000-20,000 DWT ships. More important networks are under construction to serve as a launching pad for economic development of Can Tho and the whole region. As a matter of fact, Tra Noc airport is being upgraded and will start operating in 2008. Can Tho bridge will connect the city with all parts of Vietnam by land. Can Tho – Trung Luong highway will play a important role together with other projects such as Nam Song Hau highway, upgraded bridges on Highway 1, Can Tho and Cai Cui seaports with cargo capacity of 4.5 million tonnes a year.

 

Presently, Can Tho has Tra Noc power plant of 200MW. Meanwhile O Mon power centre of 2,800 MW is under construction. It is also the second biggest power centre in Vietnam ensuring power supply to Can Tho and the Mekong Delta. The city has two water supply stations with capacity of 90,000 cubic metres a day. Post and telecommunication system is quite modern, securing normal communication at home and abroad.

Can Tho airport, bridge and seaport will boost economic development in the whole region, especially investments. Concerning tourism, I believe Mekong Delta and Can Tho tourism will enter into a new stage of development.

Can Tho bridge and Cai Cui port once completed will facilitate cargo transport, saving time and money for businesses. While Can Tho airport will promote economic and cultural exchanges with other parts of Vietnam and the world. With better infrastructure and more attractive investment policy a new investments will flow to Can Tho.

New projects are most essential for socio-economic development of Can Tho and the whole Mekong Delta. Can Tho and Mekong Delta have great advantages in human and natural resources to attract investments in agriculture and aquaculture. Though investors are still concerned about transport infrastructure. Therefore, the new projects will boost the investments and investors will consider more positively their investments in Can Tho and the Mekong Delta.