Thai Nguyen Industry and Trade: Firm Basis for Promoting Economic Development

In 2011, 2012 and the first months of 2013, just like the country’s economic situation, the province's socio-economy has confronted many difficulties and challenges. Specifically, domestic and international economic growth has been slow, raw material input prices for manufacturers have increased; the interest rate of the first two years has also increased. Although the rate has decreased from the end of 2012 but it still remains high. Besides, there are no viable solutions to resolve bad debt, so production and access to credit is limited. In addition, tightened monetary policy, weak public investment management and the freezing real estate market has led to the decrease of demand, large inventory at all the production of raw materials and other consumer products. However, under the direction of authorities of all levels and great effort to overcome difficulties of enterprises, local business remains stable and has increased compared to the previous year. The results of key indicators of the industry are still relatively good, higher than the national average rate. Industrial production value increased, on average, 7.9 percent every two years, exports increased 19.9 percent a year.

 

In the coming years, the industry and trade sector of Thai Nguyen will continue to make Thai Nguyen the leading province in the mountainous areas of the northern and central areas of industrial development and services, especially education and training, modern economic structure of industry - services – agriculture, high, stable and sustainable economic growth. Along with that, Thai Nguyen province is expected to have key products with high competitiveness, synchronous and modern transport infrastructure system associating with other provinces, making a favourable platform for the province to become an industrial province before 2020. In addition, the province also promotes industry restructuring from mining, metallurgy and building materials to processing industry development and forms of supporting industry with high-tech applications. Also, Thai Nguyen province actively cooperates with other provinces to promote even development and production. At the same time it promotes cooperation between central and local industry, takes investment in the production of projects with high technology which protects the environment and uses less labour. The province also pays attention to develop industrial products to support increased the localization rate of domestically produced products, concentrates on production of products such as auto accessories, car machinery, mechanical engineering, power manufacturing equipment, consumer electronics, industrial and textile accessories and footwear. Additionally, the province tends to develop trade and services towards diversification and modern as well as improves the quality of work, with several economic sectors involved to meet the requirements of production, business and people's lives. Moreover, the province also focuses on infrastructure development according to trade planning. To 2015, the province expects to have the total retail sales of goods and services consumption in the province increase 25 percent annually.

 

With the aim of maintaining the competitiveness level of Thai Nguyen in the top 20 in 2013 and the coming years, Mr Dinh Khac Hien, Director of the Department of Trade and Industry, said: "Thai Nguyen has soon to complete renovation projects improving the old Highway 3 and take Hanoi - Thai Nguyen Highway into operation. It is important to strengthen the social construction of infrastructure of electricity; industrial zones, industrial clusters, synchronous commercial (with power taking one step ahead) to meet the province’s requirements of industrialization and modernization associated with the development of the province and the region. Also it is significant to continue the implementation of the administrative reform, recruit highly skilled staff in public administration in to improve the quality of performance of official duties and public services, promote the application of information technology in investment procedures, further study the issue of mechanisms to encourage investment solutions, especially distinguished production and business investment in mountainous areas, maintain regular dialogues with enterprises, enhance the performance of enterprise organizations to capture and remove difficulties and obstacles for investors and enterprises to create confidence among local businesses as well as coming investors.