Creating Driving Force for Economic Growth

11:07:19 AM | 31/1/2020

Vinh Phuc has strived to become one of the most economically developed localities in Vietnam. Its positive socioeconomic development results have been importantly contributed by the industry and trade sector which has effectively managed trade, industry and service to facilitate local economic restructuring, industrialization, modernization and international economic integration.

Mr. Le Tien Anh, Deputy Director of Vinh Phuc Department of Industry and Trade, said, the province’s industrial production value (based on constant prices in 2010) was expected to rise 13.6% a year on average in the 2016-2020 period. Particularly in 2019, the sector hoped to expand by 13.43% over 2018, driven by continued industrial production momentum. Automobile manufacturing was estimated to turn out 320,000 units from 2016-2020, including 58,740 units in 2019, and motorcycle manufacturing was forecast to churn out 9,493,000 units in the 2016-2020 period, including 1,847,000 units in 2019.

Besides industry, trade has also staged a strong growth of estimated 11.6% a year in the 2016-2020 period. Specifically, in 2019, the total retail revenue of consumer goods and services was projected at VND50,984 billion, up 10.4% over 2018. The commodity market is quite diverse. Stable prices are more afforded by local consumers. Price stabilization program has been implemented effectively.

Import and export activities have gradually increased in scale, market, and diversity. Currently, 200 importers and exporters are doing trade with more than 40 countries and territories in the world, mainly with the United States, the European Union (EU), Japan, South Korea and China. In 2016-2020, the province’s export value was estimated to rise 13% and the import value picked up 6% annually.

Specifically, administrative reform, with the focus placed on simplifying administrative procedures, controlling administrative procedures, reviewing and proposing abolition of unnecessary and troublesome procedures for people and businesses. The Department of Industry and Trade proposed the Provincial People’s Committee announce 11 new administrative regulations, abolish nine administrative procedures concerning electricity and food safety, review and reduce the time for dealing with administrative procedures to improve State management efficiency and effectiveness.

Mr. Le Tien Anh said, 2020 is a year of special significance to the province. It is the last year to carry out the 5-year Socioeconomic Development Plan in 2016-2020. Therefore, the Department of Industry and Trade will continue to take drastic and strong actions to realize given objectives, tasks and solutions to create a foundation for local sustainable economic development.

Accordingly, the department introduced some solutions to accelerate industrial development like improving infrastructure systems in industrial zones; step up administrative procedure reforms and create a favorable business environment to attract domestic and foreign investment; prioritize technologically advanced investment projects, tourism and service development projects; and give priority to supporting industrial products that can join global value chains.

The department will develop professional, modern and diverse trade; encourage and attract resources of all economic sectors, especially private sectors and foreign investors, for modern trade and distribution infrastructure development; focus on boosting strong exports like garment and textile leather footwear, motorcycles, motorcycle components, auto parts, electronic components and mechanical parts. At the same time, the department will continue to support businesses to address their difficulties, improve product competitiveness and quality, strengthen trade promotion programs to expand domestic consumption market and export markets.

 Nguyen Bach (Vietnam Business Forum)