Ha Tinh Aiming to Become Modern Industrial Centre

12:01:06 AM | 3/7/2012

Provincial Competitiveness Index (PCI) in 2011 recorded an outstanding leap forward by Ha Tinh. The province jumped from 37th position in 2010 to 7th in 2011. The local business community has highly appreciated Ha Tinh authorities’ efforts in reforming administrative procedures and establishing a friendly and effective investment and business environment.
Convergence of favourable condition
In 20 years since its re-establishment, Ha Tinh has managed to escape from the status of an underdeveloped province. The province has seen changes for last few years as it has gathered many favourable conditions for development.
Ha Tinh has Vung Ang deep-water port, considered one of the most beautiful deep water ports in Vietnam, even in the whole region. It’s not surprising that Formosa (a leading Taiwan firm) chose Vung Ang as the premise for its steel plant with initial capital of US$7.9 billion (now increasing to about US$10 billion).
Ha Tinh people are industrious, rather conservative about traditional values, and have great passion for industrialisation.“The biggest advantage of Ha Tinh comes from its people and political system. For example, tens of thousands of households have moved to provide land for investors; Christians even relocated their church to make way for the Economic Zone supporting provincial industrialisation and modernization,” saidMr Ho Anh Tuan, Head of Vung Ang Economic Zone Management Board.
Another advantage is that the province has always stood side by side with enterprises, and drastically carried out administrative procedural reform. “Time means money and opportunities of businesses. Thus, if administrative procedures cause them to miss these opportunities, it is provincial economy and Ha Tinh’s image that are first influenced,” saidMr Vo Kim Cu, Chairman of Provincial People Committee. One of the key successes of Ha Tinh in administrative reforms is that single-window administration and simplified procedures at Cau Treo Border Gate Economic Zone, in association with Laos, removed dozens of weigh stations to create an open trading corridor.
Toward a modern industrial centre
The annual economic growth rate in 2006-2010 was 9.5 percent and that of 2011 was over 11 percent. The economic structure shifted in the direction of gradually increasing the proportion of industry and service, while decreasing that of agriculture. At present, industry and construction occupies about 33 percent while service-trading accounts for 32.6 percent. In 2011, total contribution to provincial budget (from taxes and fees) was VND2,209 billion, while that in the first 5 months of 2012 was VND1,141 billion. Ha Tinh is on a direct route to become a modern industrial centre in the North Central Region by 2015.
The province is confident to set such a target. So far, Ha Tinh has been the destination for key national projects such as Formosa steel plant, Thach Khe iron mine, Vung Ang 1 thermoelectricity plant, large petroleum depot and especially Vung Ang port in combination with Son Duong deep water port (62 wharves) with customs clearance capacity of 100 million tonnes per year.
Established 7 years ago, Vung Ang has now had over 140 enterprises granted investment license and business registration with total registered capital of more than US$12 billion. In just the first 9 months of 2011, Vung Ang Economic Zone Management Board newly licensed 16 projects with total registered fund of nearly VND5,200 billion. Notably, the projects on the 228 km2 premise which is called “rain plateau” are all quickly implemented, including the big Formosa project about which concerns had been raised.
Following big projects, certainly there comes to the development of urban areas, services and supporting industries. Seeing a totally new and different face of Ha Tinh economic picture against its starting point, Dr Tran Dinh Thien noted, “It’s hard to imagine that, especially in comparison with provincial starting point of poverty and poor development level.
Given Vung Ang with deep water port (the door to a modern economy), an investment and business environment getting more friendly and efficient, Ha Tinh has formed an agenda to a modernize the industrial economy. Ha Tinh will make breakthroughs at the right place and right time to fulfil its passion for modernization.