Driving Force for Economic Growth

10:06:42 AM | 20/1/2021

In the 2016-2020 period, despite facing many difficulties and challenges, thanks to the firm direction and management of the Provincial Party Committee, People's Council, and People's Committee, especially the efforts, initiative and creativity of the community, Vinh Phuc Industry and Trade continued to maintain stable growth at a high level, positively contributing to socio-economic growth and economic restructuring in the province.

According to Vinh Phuc Department of Industry and Trade, in the period 2016-2020, the average growth of the industry is estimated at 10.61%/year, exceeding the planned target (7-7.5%/year) and continuing to play the role of a driving force for the province's economic development. Industrial products are increasing in number and types. There are many new products such as electronic components and consumer industrial goods (air conditioners, refrigerators, medicines). Many major industrial products of the province have good growth. Specifically, in the period 2016-2020, electronic components increased by 48.4%/year; auto parts 3.38%/year; ceramic tiles 18.86%/year; and iron and steel of all kinds 34.86%/year.

Contributing to this result, the Department of Industry and Trade of Vinh Phuc has actively implemented programs and projects to promote the development of industries and handicrafts in the province, especially investing in the development of infrastructure of industrial clusters. Out of a total of 32 planned industrial clusters with an area of 687,751 ha, in the period of 2026-2020, 13 industrial clusters have been established and assigned to investors with a total area of about 159.12/413.479 ha, attracting 556 projects, creating jobs for about 7,650 local workers, and reaching an occupancy rate of about 38.48%.

Total retail sales of consumer goods and services in the 2016 - 2020 period will grow at an average rate of 12.9%/year. Commercial infrastructure continues to be developed with an abundant quantity of goods and stable prices. Production and business units always prepare plans providing goods to meet the needs of businesses and people, even during social distancing due to COVID-19.

Effective trade activities help expand markets for products with high competitiveness, high added value or product groups with a large proportion of export turnover. Industry and trade sector has strengthened support for businesses on market information, branding, guiding exporters and expanding export markets under the new generation free trade agreements that Vietnam has signed to enjoy tariff preferences.

Administrative reform has been drastically implemented by the Department in the direction of reducing procedures and processing time. The investment and business environment continued to be significantly improved.

In the period of 2021 - 2025, Vinh Phuc industry and trade strives to achieve the following targets: Industrial production value increases by 10-14%/year on average; total retail sales of goods and sales of social consumer services increases by 15%/year on average; export turnover increases by 23.99%/year on average, and import turnover increases by 26.99%/year on average.

With the above objectives, the Department of Industry and Trade focuses on implementing key tasks. Accordingly, the Department will review, adjust, supplement and complete industrial development planning, industrial park planning and electricity planning, in association with the province's socio-economic development planning and sector planning consistent with the industry's development strategy. The Department will complete the system of infrastructure of existing industrial parks and industrial clusters; create a favorable business environment to attract more secondary investors, and increase the occupancy rate of industrial parks and industrial clusters in the area.

The Department will also develop high-quality service industries, clear bottlenecks to attract investment, develop start-up ecosystems and innovation, focus on producing main industrial products such as mechanical engineering, electronics, ceramic tiles, animal feed and supporting industrial products such as auto accessories, motorbikes, electronics and high-tech industrial products which are environmental-friendly. At the same time, the Department will propose mechanisms to create driving force for the development of supporting and manufacturing industries, improving quality, efficiency and competitiveness, especially for advantageous products of the province.

By Duy Anh, Vietnam Business Forum