Dong Nai: Sustainable Economic Development

Amid economic slowdown and growing prices of key commodities in the first six months of 2012, Dong Nai employed measures to deal with difficulties and supported enterprises to do business; hence, its economy continued to expand positively. The province’s outstanding economic development results on in the first six months of 2012 were as follows.

 

Gross domestic product (GDP) was estimated to expand 11.8 percent year on year. Particularly, the industrial and construction sectors enlarged 12.1 percent; the service sector jumped 14.5 percent; and the agriculture, forestry and fishery sectors augmented 3.2 percent.

 

 

The index of industrial production (IIP) rose 6.3 percent year on year. However, industrial production was still affected by global and domestic economic meltdown.

Production value of agriculture, forestry and aquaculture rose 3.7 percent year on year. Dong Nai continued implementing the national target programme for new countryside construction in the 2011 - 2015 period.

 

Total retail revenues were forecast at VND40,073 billion, accounting for 46 percent of the full-year plan and rising 23 percent year on year. Market prices were closely controlled and subjected to State management. Consumer price index (CPI) in June climbed 3.29 percent from December 2011 (3.67 percent in urban areas and 3.06 percent in rural areas) and 9.32 percent from June 2011.

 

Export turnover was US$5,046 million in the first six months of 2012, equal to 44.3 percent of the full-year plan and up 10.5 percent from a year ago. Import spending was US$4,907 million in the half year period, equal to 40 percent of the plan and down 2.8 percent against the same period of 2011.

 

The province drew US$880 million in the first half of 2012, equal to 98 percent of the yearly target and up 90 percent from a year earlier. Foreign investors disbursed US$327 million in the period.

 

Domestic investors registered to invest VND6,455 billion from January to June, equal to 72 percent of the annual plan and up 7.6 percent year on year. The province had 950 newly established enterprises with a registered capital of VND3,200 billion, down 11.5 percent. As many as 295 businesses supplemented VND1,350 billion in the period, down 19.2 percent.

 

Apart from economic development results, the province paid attention to cultural, social, and environmental aspects, national security and sustainable development.

 

With its focus on large-scale industrial manufacturing sectors which have huge impact on local economic development, based on economic development results in the first six months of 2012, the province is confident enough to complete its full-year targets in the last six months in spite of existing economic difficulties. Its major objectives for 2012 are as follows:

 

GDP growth is forecast at 12 - 13 percent in 2012. The value of agricultural, forest and aquatic production will expand 3.5 - 4 percent over 2011. The service sector will enlarge 13.9 percent - 15 percent over 2011. Capital mobilised for social development will reach VND34 - 35 trillion. Total exports will leap 16 - 17 percent against 2011.

 

The province hopes to attract at least US$900 million of fresh foreign direct investment and VND9,000 billion from domestic investors in 2012. Domestic enterprises register to spend VND18,000 billion on their businesses in the year.

 

To achieve the above targets, in addition to deploying specific measures stated in the Provincial Council’s Resolution 17/2011/NQ-HDND dated December 8, 2011, the province will focus on the following solutions.

 

The province will focus on supporting businesses to complete tax break procedures as stated in the Government’s Resolution 13/NQ-CP dated May 10, 2012 and the Ministry of Finance’s instructions.

 

Dong Nai also pays heed to promoting investment and trade activities to attract investment capital and expand markets. It will create favourable conditions for all economic sectors and enterprises to access credit, especially four prioritised fields: agriculture, exporters, small and medium-sized enterprises, and supporting industries. The province will continue monitoring business performances of local enterprises to provide timely support to deal with difficulties and stabilise production. It will provide the most favourable conditions for individuals and organisations to start a new business or increase investment.

 

It will continue improving the quality of human resources to catch up with the trend of industrialisation, modernisation and international integration. Besides, it will strengthen supervision over investment projects and coordinate with relevant agencies to check the progress of State-funded projects and projects invested by domestic and foreign investors, to have timely support.

 

It will effectively resolve burning public concerns. Particularly, it will strictly and promptly deal with criminals, social evils, fires, explosions and traffic accidents. It will enhance the accountability of public servants at the service of citizens, receive and settle complaints and denunciations from citizens, support families with sacrifice and contribution to the cause of national liberation and construction.

 

It will reinforce and maintain local political security, social order and safety like promoting public knowledge on issues of concern, organising and mobilising people to raise awareness, responsibility and involvement in security affairs, and organising events to boost the sense of national protection and security.

 

In the past years, in pursuit of sustainable development, the province has policies to improve the quality of investment projects; ensure social security and environmental protection; prioritise service, hi-tech, supporting industry, and environment-friendly projects; and limit labour-intensive offshore production. Besides, industrial parks without wastewater treatment plants or with substandard wastewater treatment facilities will be banned from attracting investors.

 

Therefore, Dong Nai province will prefer attracting investment capital into the following industries: high-tech industry, supporting industry, clean technology industry, biotech agriculture, agricultural product processing, animal livestock and plant development, infrastructure development like road, bridge and port construction, waste treatment, health, culture, education, sports and environment. Apart from good locations, the province also encourages investors to locate their projects in less favoured areas or northern remote areas.

 

Dong Nai now has 24 out of 26 industrial parks with wastewater treatment facilities. Those without wastewater treatment plants or with substandard wastewater treatment facilities will be banned from attracting investors.