Phu Tho Province Maps out Industrial Development Strategies
With a natural area of 3,456 square kilometres and convenient communication conditions, featuring waterways, railway and roads, let alone the State’s investment in industry since 1959, Phu Tho province has maintained a high growth rate in industrial production in recent years.
The local industrial sector has gained good results with an average GDP growth rate reaching 9.6 per cent in 2004 and is expected to reach 9.8 per cent in 2005. Its production value saw an increase of 14.6 per cent in 2004 and is expected to reach 16 per cent this year. The development of the sector has boosted the province’s economic restructure. Last year’s contribution of the industrial and construction sector was put at 38.1 per cent. This figure may reach 40 per cent in 2005.
Such a growth rate can be seen via other economic sectors. The province’s industries possessing great development potential include farm-produce processing, construction material production, mineral mining and processing, fertiliser production, textiles, garments and footwear. Locally-made products have gradually found a foothold in both domestic and international markets. Many major projects have been carried out in the province. These include a project on expanding the Bai Bang Paper Mill, phase II; a project on setting up a beer and beverage company by the Dong Xuan Liquor Company, a project on expanding the Huu Nghi Cement Plant and a project on building the Hung Vuong Cement Plant with a capacity of 900,000 tonnes per year, the Song Hong Steel Plant with a capacity of 180,000 tonnes per year, as well as a project on expanding a tile production line with a capacity of five million square metres per year.
The industrial sector has made a significant contribution to the province’s budget revenues, accounting for between 55 and 60 per cent. Also, it has created jobs for over 70,000 people, equal to 12.6 per cent of the province’s labour force. In particular, in recent years, with its rural craft development assistance policies, Phu Tho province has provided over VND 2 billion in support for 37 projects in farm-produce process, textile, and embroidery. These projects have been developed in most districts and towns in the province.
However, Phu Tho’s industrial sector has shown some shortcomings. Production is not yet sustainable, despite its high growth rate. The province’s material base remains poor. Local enterprises lack financial resources while their productivity remains low. An increase in production costs have produced a negative impact on prices of products, leading to poorer competitiveness. Industrial and village craft complexes have poor ability to attract investment, so localities have yet to tap their advantages. Also, local enterprises have not paid enough attention to trade promotion and trademark development activities. Furthermore, local enterprises lack qualified human resources, in particular skilled workers for their development.
To continue their development tasks in the coming years, Phu Tho’s industrial sector will concentrate on developing industries of great potential. It will strive to gain an average growth rate of between 15 and 16 per cent per year. This figure is expected to reach between 18 and 20 per cent in 2005. The province will strive to gain a contribution of 46 per cent of the industrial and construction sectors in the 2006 and 2010 period. Its export turnover will reach US$300 million. At the same time, 300,000 people will be provided with jobs.
To that end, Phu Tho’s industrial sector will concentrate on promoting investment, mobilising resources for industrial development, focusing on major projects on producing paper and fertiliser, and rolling steels, and projects in industrial parks and complexes.
At the same time, the sector will prioritise the attraction of investment to making major products. Technology and equipment renewal will be boosted alongside scientific and technological application. The Phu Tho Department of Industry will pay attention to the development of rural industries, small and medium-sized enterprises, craft villages, trade promotion, focusing on traditional and new potential markets by developing trade promotion programmes for major exports.
The department will also boost reforms and increase State management in the industrial sector, concentrating on adjusting master plans. Accordingly, it will continue to develop and perfect policies on investment encouragement in industrial and handicraft sectors, which will help promote economic and labour restructure and improve the local people’s living standard.
Another important solution is to promote the development of human resources to meet the demand of the new development period, training qualified engineers and skilled workers.
Dieu Kim Son
Director of Phu Tho Department of Industry
Vietnamese
