Tay Ninh Province: A New Star in the Southern Key Economic Region

Tay Ninh Province: A New Star in the Southern Key Economic Region

In June 2003, Tay Ninh was recognised by the Government as part of the Southern key economic zone along with six other provinces. This progress created momentum for the socio-economic development of the province and the development of the region as a whole.

A fast-growing economy

Tay Ninh’s economy developed considerably in all fields in 2001-2003 and moved to a structure with higher industry and service ratios. The province’s gross domestic product (GDP) expanded by 13.3 per cent per annum on average and attained economic growth of 18.4 per cent in 2003.

Economic structure:

The province's industrial production grew 22.6 per cent annually in the same period. The province built a large-scale processing industry (including major products such as sugar, flour and rubber) in conjunction with the development of resource areas. Currently, the province has three sugar refineries with a total daily capacity of processing 12,500 tonnes of sugarcanes and nine wheat flour factories capable of producing 600 tonnes per day.

Agriculture remained the most important sector. Productivity of the agriculture, forestry and fisheries sectors rose by 8.9 per cent per annum on average. Areas specialising in cultivation of short and long-term industrial crops such as rubber, sugarcane, wheat and peanuts took shape. Farmers in the province are gradually turning to the cultivation of industrial crops, breeding Holstein Friesian (HF) dairy cows and aquaculture. The province has encouraged and created favourable conditions for the development of the farming economy, invested in the development of previously uncultivated lands and boosted the cultivation of industrial crops having a high economic value.

Trading activities expanded at the border gates of Moc Bai and Xa Mat with the total export revenues of the province rising by 31.7 per cent annually. Meanwhile, the tourism sector saw high growth thanks to the province’s heavy investment in infrastructure and related services. The total value of all service sectors increased 13.5 per cent annually.

The total value of development investment over the past three years accounted for 33 per cent of GDP. Tay Ninh constructed Trang Bang Industrial Park and eight other industrial zones to attract foreign investment. As at the end of June 2004, the province had 65 valid foreign direct-invested projects with total registered capital of US$304.7 million. Of these, 40 projects were licensed in Trang Bang Industrial Park. Foreign investments helped to boost the development of Tay Ninh's economy, create more jobs, raise provincial state budget revenues, enhance exports and return benefits for foreign investors themselves. Many investors then increased their investment by expanding operations. This in turn is having a positive impact on the province’s ability to attract future foreign investment.

The border gate economic zone of Moc Bai is completing further infrastructure and preparing to call for more investment in the area. Currently, Moc Bai has 34 investment projects with 25 investors.

Heavy investment in infrastructure

Infrastructure has been planned and created in accordance with the economic development requirements of the province and the region. The 28 km of Trans-Asia highway passing through the province meets the standard of second grade road in plain while national road No. 22B is being upgraded to four lanes, meeting a standard of third grade road in plain. Currently, 30 per cent of the total roads of the province are asphalt and concrete roads. From now to 2010, Tay Ninh will upgrade and rebuild its system of roads with a total investment of around VND5 trillion (US$320.5 million). It now has two major waterways in the rivers of Vam Co and Sai Gon. The province's Ben Keo River port, which is seven kilometres from Tay Ninh Town, has the capacity to receive 2,000-tonne vessels.

Major sources providing electricity for the province are the 2x75MW Thac Mo hydropower plant and the 210/110KV Hoc Mon station. Fresh water supply systems are located principally in Tay Ninh, Hoa Thanh, Go Dau and Trang Bang towns with a total designed capacity of 9,300 cu. m per day. In the future, the province will boost the capacity of these systems to 22,500 cu. m per day. It will construct water supply systems in the towns of Chau Thanh, Duong Minh Chau, Ben Cau, Tan Bien and Tan Chau in 2005 with a total capacity of 4,500 cu. m/day. The province will also offer incentives for investors building two water supply plants in the Moc Bai border gate economic zone and the Trang Bang Industrial Park.

Social conditions

Tay Ninh was selected by the Ministry of Training & Education to take part in a universal programme for primary education in 1997 and for junior secondary education in 1998. As at the end of June 2004, Tay Ninh had 542 schools including 424 secondary schools, one college and two high schools. To provide for community heath care, all communes of the province have doctors. The ratio of households with electricity is 82.7 per cent while telephone-density is eight phones for every 100 people, totalling 80,500 units as June 2004. The ratio of poor households was reduced to 5.14 per cent in 2003. To make best use of its key economic zone, Tay Ninh signed an agreement with Ho Chi Minh City's National University to train 100 doctors and 200 masters for enhancing the quality of the province’s labour forces.

Works must be completed immediately

This year, Tay Ninh is urging investors in the Trang Bang Industrial Park and Moc Bai border gate economic zone to speed up their investment processes in order to put their projects into operation in 2005 to add momentum to the development of the private economic sector. It will also intensify cooperation with other provinces and cities in the southern key economic region, especially Ho Chi Minh City.

The province will continue work on completing its system of policies and measures for attracting investment. It will create favourable conditions for the construction of Tay Ninh cement factory. It will also boost the progress of infrastructure construction, especially the construction of resettlement areas and compensation for site clearance. It will also reconsider land for resettled agriculture.

From now to 2010, Tay Ninh will focus on agricultural processing industries including sugar, wheat and rubber (using local raw materials) in order to ensure enough supply to meet local and export demand. It will gather resources for the development of Trang Bang Industrial Park, and construction of Tram Vang Industrial Park and industrial parks in the Moc Bai border gate economic zone and other industrial zones for accommodating investors. Priority will be given to light industries, foodstuffs, consumer and high-tech industries. It will promote the strengths of traditional handicraft villages in combination with the development of small and medium-sized industries in rural areas. To meet the requirements of the processing industry, Tay Ninh will further develop its agricultural sector to produce high-quality products.

Regarding trade activities, Tay Ninh will create positive conditions for the development of border trade via the two border gates of Moc Bai and Xa Mat. Tay Ninh is expected to become a transit zone for exports and imports of the Southern key economic region hence the province is encouraging the development of services such as transport, warehousing and packing and packaging services.

With rich tourism potential, Tay Ninh will develop its eco-tourism industry in combination with its religious activities. In addition, it will form associations with other localities in the region to form a range of attractive tour offerings for this market.

• Thuy Tien