Nghe An Industry and Trade Sector: Economic Growth Engine

3:32:51 PM | 21/2/2019

After three years of executing the Resolution of the 18th Provincial Party Congress (2015 - 2020 term), the industry and trade sector of Nghe An province has achieved initial encouraging results. This sector’s growth has spurred the provincial economic development towards modernization, created an important foundation for the successful fulfilment of the targets and tasks of the whole term. The following is the interview with Mr. Le Van Tam, Director of the Nghe An Department of Industry and Trade. Ha Thanh - Ngo San report.

Could you please tell us some working results of the industry and trade sector in 2018?
With prompt direction of the Provincial Party Committee, the Provincial People’s Council, the Provincial People’s Committee and the Ministry of Industry and Trade; the active coordination of relevant departments, branches and localities in carrying out political tasks right from the beginning of the year; the efforts of all the staff, and especially the business community, the industry and trade sector promoted positive results in 2017 to achieve good outcomes in 2018.

The industrial production value was estimated at VND57,558 billion (US$2.5 billion), 2.6% higher than the plan (VND56,107 billion) and 19% higher than in 2017. The industrial sector’s contributions to the gross regional domestic product (GRDP) was VND15,359 billion in 2018, up 18.78% year on year.

Total retail sales were estimated at VND55,853 billion, 4.4% higher than the plan of VND53,500 billion and 12.9% higher than in 2017. The sector boosted local commercial activity, diversified goods, carried out trade promotion programs, responded to “Consumer Rights Day”, brought Vietnamese goods to rural and mountainous areas, built “Proud of Vietnamese products” points of sale, launched consumer stimulus programs joined by local firms. Revenue of accommodation, catering, tourism and travel services was projected to rise 13.43% to VND8,655 billion. Other services climbed 12.78% to VND5,719.3 billion.

The export value reached US$1.053 billion in the year, 5.31% higher than the target of US$1 billion and 6.12% higher than that in 2017. Of the sum, commodity exports brought home US$720 million, 2.85% higher than the goal of US$700 million and 3.44% higher than a year earlier. The manufacturing industry accounted for the biggest share of 66.27% to US$448 million. Agricultural, forest and aquatic products contributed US$23.41% to US$150 million. The fuel and mineral segment made US$62 million, accounting for 9.16%.

The import value was estimated at US$539 million, 10.17% lower than the target of US$600 million and down 18.73% from 2017.

How have you actively supported enterprises to deal with their difficulties, and assisted them to improve their competitiveness?
Fulfilling directions of the Prime Minister, the Ministry of Industry and Trade and the Provincial People’s Committee, the industry and trade sector has taken action to assist local enterprises to deal with hardships and sharpen their competitiveness. Specifically, the Department of Industry and Trade advised the provincial government to issue many policies to support and encourage enterprises to invest in production and business development such as policies on industrial promotion and trade promotion. It actively reviewed and reformed administrative procedures to raise the quality of services delivered to businesses and people; proactively coordinated with sectors and localities to uplift its roles in economic development and growth like coordinating with the tourism sector to create handicraft products; working with the construction and transport sector to develop commercial and industrial infrastructure to meet investment needs of the business community. The industry and trade sector linked economic sectors and economic entities, connected the domestic market with regional markets to effectively grasp opportunities generated by new free trade agreements (FTA).

The industry and trade sector also regularly organized specific working meetings with other sectors, conferences and dialogues with enterprises to understand their troubles and help them deal with these. It also consulted its superiors to deal with issues beyond its jurisdiction to attract investment to the province and assure enterprises doing business in Nghe An. At the same time, it helped them train high-quality personnel, developed highly skilled workforce to meet competition requirements in intensive integration trends.

The Resolution of the 18th Provincial Party Congress determined that industrial development is key to economic development. To play its leading role in the economy, how will Nghe An province focus on industrial development?
To play its leading role in the economy, the industrial sector of Nghe An province has focused on carrying out industry and trade sector restructuring projects to step up economic restructuring and enhance growth quality, labor productivity and sectoral competitiveness. Accordingly, it has concentrated on developing production value chains, investing in deep processing of sugarcane, cassava and aquatic products to create high value-added products, highly competitive products to play a greater part in rapid and sustainable economic growth, enhancing performance, output, competitiveness and productivity of important, competitive industrial domains. It has initially accessed Industry 4.0 technologies, improved workers’ qualifications and skills; and actively developed supporting industries and high-tech industries.

Some outsourcing industries will be upgraded to manufacture finished products and directly export products to foreign countries to increase their value and competitiveness and attract more investment capital for industrial zone infrastructure to provide space for investment projects. The sector will pay greater attention to fostering industrial stimulation and trade promotion, building and developing local product brands, organizing policy dialogs with enterprises to tackle their emerging difficulties in production and business.

Thank you very much!