In recent years, Hai Phong's industry and trade - service sectors have continued to maintain their growth rates and made positive contributions to socio-economic development. Vietnam Business Forum Magazine had an interview with Mr. Bui Quang Hai - Director of Hai Phong Department of Industry and Trade about this. Ha Thanh reports.
The index of industrial production (IIP) of Hai Phong is forecast to continue to grow well; in which, processing and manufacturing industry continues to be the main driving force for the overall growth of the whole industry. In your opinion, what is the leverage to stimulate this growth?
In the period of 2016 - 2018, the gross regional domestic product (GRDP) of Hai Phong reached 14.57% / year. In 2019, it is forecast to increase 16.42% compared to 2018, 2.35 times the average of the whole country; in particular, there is an important contribution of industry.
Mr. Bui Quang Hai, Director of Department of Industry and Trade, monitors production activities of Son Hai Phong Joint Stock Company
Hai Phong's IIP grew on average by 21.23% per year during 2016-2018, and is expected to increase by 24.02% in 2019. The major contributions to industrial growth are projects of manufacturing and creating hi-tech products of LG Group, with IIP estimated to increase over 70% over the same period, making Hai Phong one of the electronic manufacturing centers of the whole country. Businesses have continued to produce stably and increase capacity to expand, contributing over 40% of the city's industrial production value.
In addition to large FDI projects producing high-tech products that have a major impact on the growth of the industry, the city industry recognizes the contribution of domestic enterprises and projects. In particular, the most outstanding projects belong to Vingroup, when Vinfast automobile manufacturing and assembly group have been put into operation since June 2019 with a capacity of phase 1 of 250,000 vehicles / year; Phase 2 of 500,000 vehicles / year. Particularly, Deputy Prime Minister Vuong Dinh Hue agreed to remove DAP 1-Hai Phong Plant from the list of 12 weak projects, which will be a motivation for businesses to develop and contribute positively to the city's industry.
The city's traditional industries have continued to grow, such as: food manufacturing and processing, clothing production, rubber and plastic products, steel, prefabricated metal products, shipbuilding, cement production, electric wire and cable production.
However, there are still some industries whose IIP have declined over the same period, such as leather and footwear production, manufacturing of paper and paper products, manufacturing of chemicals and chemical products, chemical pharmaceutical and pharmaceutical production. These industries account for a small proportion in the structure of industrial production value of the whole city, so they do not significantly affect the overall growth.
These results are due to the unanimity, determination and efforts of overcoming difficulties of the whole industry together with the close, firm leadership and direction of the City Party Committee, People's Council and People's Committee, the positive involvement of departments, agencies and localities, including positive solutions in attracting resources and attracting investment for development. In the three years of 2016 - 2018, the total social investment capital in the city reached VND 225,573.8 billion; particularly in 2018, it reached VND 96,435.9 billion, up 28.08% over the same period. Attracting foreign direct investment (FDI), domestic investment (DI) in economic zones (EZs) and industrial parks (IPs) also shows that: While in 2017, it only reached US$772.532 million of FDI capital and VND 39,289.1 billion of DI capital, in 2018, these figures increased to US$ 2,284.1 million of FDI capital and VND 42,710.5 billion of DI capital, and in the first 10 months of 2019, it was US$1,110.347 million of FDI capital and VND 12,934.05 billion of DI capital.
Along with industry, the trade and service sector also achieved significant results. Could you tell us more about the trade sector's contributions?
Up to now, Hai Phong city has 24 supermarkets, 10 shopping centers, 154 markets and 150 convenience stores. Along with convenient transport infrastructure, trade promotion activities, and connecting supply and demand of goods are paid attention, receiving favorable conditions for goods circulation to better serve production and consumption needs for businesses and people.
The balance between supply and demand of goods market in general and the market of essential goods in particular have been ensured, contributing to the target of increasing the total retail sales of goods and revenue of consumer services at 14. 08% / year in the period of 2016-2018; In 2019, they are expected to reach VND135,338 billion, up 14.95% over the same period. In which, retail sales of goods are estimated at VND 102,700 billion, up 14.88%; and revenue from consumer services is estimated at VND 32,638 billion, up 15.31% over the same period.
The export turnover in the period of 2016 - 2018 increased by 23.8% per year, and it is expected to reach US$15.8 billion in 2019; focusing on various items such as: textile, leather and footwear, electronics, electric wires and cables, plastics.
The Industry and Trade sector has collaborated with departments and agencies in the city to promote solutions against smuggling, trade fraud, prevention of counterfeit and fake goods in the market, especially during the holidays and at the times markets having abnormal fluctuations; contributing to manage the consumer price index (CPI) in 10 months of 2019 at 2.27% over the same period last year, within the Government's target of controlling CPI in 2019 at 4%.
How is the future direction of industry development concretized?
The Industry and Trade Industry has clearly defined its objectives including building Hai Phong into a modern, smart and sustainable industrial city; a modern international logistics service center by sea, by air, by highway, by high speed rail; becoming the development motivation of the Northern region and the whole country.
In order to perform the above objective, the sector will coordinate with departments, agencies and localities to concentrate investment in developing infrastructure of industrial parks and clusters, attracting and calling for investment in developing key industries, supporting industries for processing and manufacturing industries (with a focus on electronics, automobiles, electrical equipment) in order to raise production value and participate in production networks and global value chains; developing logistics centers and service; promoting import and export activities; developing modern commercial infrastructure associated with e-commerce development.
Thank you very much!