Vinh Phuc toward Industrially Developed Province by 2025

In the draft political report submitted to the 17th Provincial Party Congress, Vinh Phuc still sets the goal of becoming an industrialized province by 2025, one of industrial, service and tourism centers of the region and the whole country.

Vinh Phuc province’s economic growth is showing signs of slowdown and lower growth than other provinces in the Red River Delta. People’s real income is lower than the national average. The investment and business environment has been improved too slowly to capture many investment opportunities. The Provincial Competitiveness Index (PCI) ranking declined in recent years. In particular, the technological level and capacity of the economy remains low. The province’s main industrial activity is still outsourcing and assembling. The main manufacturing sector (automobile and motorbike) failed to maintain the same growth rate as earlier. Most firms use medium technology, use a lot of labor and consume much energy. The capacity of competition and engagement in the global value chain of local industrial products remains weak. Technical infrastructure of some industrial zones has not met investors’ requirements.

To overcome difficulties and create breakthroughs industrial development, Vinh Phuc has introduced a number of specific solutions: Developing plans for amending, supplementing and removing policies hindering the development of provincial resources, with the focus placed on land, investment procedures and public investment; applying science and technology; introducing socialization mechanisms and policies; training human resources, attracting and employing talents and experts; attracting large-scale projects that make high added value, high-tech content; and increasing PPP-style investment projects. Other solutions include proposing mechanisms for land compensation and acquisition; mobilizing and using investment capital; constructing technical infrastructure to meet economic development requirements; reorganizing promotion agencies and renovating methods, objects and participants in investment, trade and tourism promotion; and calling for investment on the effect-based principle through foreign and domestic enterprises and diplomatic agencies.

At the same time, the province will perfect single-window administrative procedures relating to business development, monitoring mechanisms, organizational and individual responsibility to facilitate business development; further reviewing, eliminating or proposing competent authorities to remove administrative procedures and regulations hindering investors; use budget-funded capital for technical infrastructure investment, proactively building land fund for industrial development, selecting advantageous industrial zones, applying central and provincial mechanisms and policies on land compensation and clearance to create a clean land fund for investors; flexibly using reserve fund and State salary funds for infrastructure investment, land compensation and site clearance.

Vinh Phuc will also encourage the development of supporting industries; maintain and develop automobile, automotive and electronics manufacturing and assembling into spearhead industries; attract investors into existing industrial zones; and formulate priority policies to attract large-scale investment projects with high added value and technological content.

By Thanh Loan, Vietnam Business Forum