Economic Engine of Lang Son Province

10:16:54 AM | 12/5/2021

Over the past years, the industry and trade sector has overcome numerous difficulties and challenges and achieved many important results to affirm its role as a driving force of socioeconomic development of Lang Son province.

Lang Son is the largest trading gateway on the northern border with the Guangxi Zhuang Autonomous Region (China), with 12 border gates, including two international border gates, one primary gate and nine secondary gates. With convenient traffic routes to border gates and synchronous border gate infrastructure, importing and exporting activities continue to grow stably through the province. Every year, more than 3,000 enterprises, organizations and individuals carry out importing and exporting activities through its border gates.

In addition, Lang Son has diverse and abundant mineral resources, with 86 ore sites of 19 minerals found in large reserves. The province has attracted some companies to tap local resources like Dong Banh Cement Factory, Na Duong Thermal Power Company, Na Duong Coal Company, Tan My Grinding Stone Factory and some new projects to develop hydropower, wood processing and resin processing. Domestic trade continues to grow strongly, boosted by the participation of many economic sectors and markets. The domestic market gradually becomes diversified and prices are stable. The freight distribution system develops diversely and widely, thus being able to fully and promptly meet people’s consumption and production needs in the province.

According to the data of the Lang Son Department of Industry and Trade, in 2015 - 2020, the industry and trade sector maintained stable development. The average annual industrial output increased by 11.07% in the 2016-2020 period; the average industrial production index grew by 10.5%; the total annual retail value approximated VND20 trillion, up 11.3% a year in the 2016-2020 stage. The import-export value totaled US$4.13 billion in 2016 and US$5.5 billion in 2020, representing an average annual growth of 6.1% in 2016-2020 where exports expanded by 14.5% and imports shrank by 1.6%. The industry and trade growth created a premise for the province’s economic restructuring toward a desired pattern where the industry accounted for over 10% and the services made up for 51.92%.

To continue what it achieved, the industry and trade sector is determined to focus on effectively carrying out a number of key tasks in the 2021-2025 period. In particular, trade development will be based on the border-gate economy and the industry and trade sector will become a spearhead economic sector, an economic engine of the province. The sector will focus on building border-gate economic zone infrastructure to become a driving force for economic development and making Lang Son one of the import, export, trade and service centers of the Northeast region, as well as an important gateway to trade goods for ASEAN countries with China and vice versa. The sector will facilitate importation and exportation through the province; seriously develop local strong products in order to quickly increase the local export value; and grow services with the border gate economy, with an emphasis placed on trade, services, logistics, freight forwarding, export recycling, transportation, warehousing, financial, banking and consulting services.

The province will develop the competitive industry, green and modern industry to approach value chains in the context of deepening economic integration; prioritize the development of some industrial products such as construction materials, electricity, processed agro-forestry products, manufactured mechanical products, supporting industries; recycling and production of consumer goods and exports. It will concentrate on expanding and completely building infrastructure for Hop Thanh 1 and 2 industrial complexes (Cao Loc) and industrial - urban - service areas and industrial zones to attract industrial investors.

By Nguyen Bach, Vietnam Business Forum