2:28:43 PM | 23/11/2006
Vietnam Business Forum interviewed Mr. Pham Ngoc Chi, Chairman of Phu Yen Province People’s Committee, about the economic development of the province.
Could you give a brief introduction of some outstanding socioeconomic achievements in the past years?
The economy of Phu Yen Province has developed in all aspects in the past years. The average annual GDP growth in the 2001-2005 period was 10.7 per cent. The economic structure, which used to be based on agriculture, consisted of 30 per cent of industry and construction, 34.3 per cent of services and 35.7 per cent of agro-forestry and fisheries as of late 2005. Fisheries have become a major economic sector.
From an agriculture-reliant province without almost any industrial infrastructure, the province now has more than 7,500 production units. The average annual production in the past five years was 18.6 per cent. Phu Yen has developed three industrial zones of Hoa Hiep, An Phu and Dong Bac Song Cau, which attracted 65 investment projects, and four industrial complexes. The service sector has been expanded in size and improved in quality. The aggregate export revenues in the 2001-2005 period was VND170 million, a yearly increase of 28.8 per cent. Phu Yen has attracted 27 foreign invested projects with a combined registered capital of more than US$200 million, including 10 operational ones. The 2001-2005 period collective state budget earnings reached VND2,100 billion (US$131.25 million), an average on-year growth of 13.2 per cent.
The infrastructure system has been improved significantly to serve the socioeconomic development of the province. Vung Ro Port has been systematically invested in to receive ships of 3,000 tonnes. Besides, the Central Government has also operated the 72-MW Song Hinh Hydropower Plant and is building the 220-MW Ba Ha Hydropower Plant and the 66-MW Krong-nang Hydropower Plant.
What has Phu Yen done to make breakthroughs in order to accelerate the economic growth rate of the province in the 2006-2010 period?
To keep the high economic growth in the 2001-2005 period, the province is set to obtain a higher and more stable growth in the 2006-2010 phase. It is endeavouring to make a quick improvement in development quality and raise economic integration initiative. Phu Yen will focus on several programmes and fields to make breakthroughs in development.
The focal task is to accelerate the completion on the planning of the Nam Phu Khanh - Bac Khanh Hoa economic zone surrounding by Van Phong - Vung Ro port complexes and linking to Central Highlands region and the Vietnam-Laos-Cambodia border gate. The province will boost up investment and trade promotion activities and carry out investment incentive policies for all fields to fully tap all capital sources for development investment.
Currently, Phu Yen has invested in and finished the life-line road linking with Gia Lai, Dac Lac and Binh Dinh provinces. The locality also has asked Vietnam Airlines to upgrade Tuy Hoa Airport and intensively carried out Prime Minsiter-ratified major projects such as the infrastructure project from Tuy Hoa City to Vung Ro Port, a deluxe tourism complex and a transport axis project, which will play important roles in turning Phu Yen into a centre of commerce, service and industry of sub-central region.
Boosting development cooperation with other provinces and national economic zones is another orientation for development. In the near future, the province will sign socioeconomic cooperation contracts to set up economic sub-region like Phu Yen - Khanh Hoa - Ninh Thuan, Phu Yen - Ho Chi Minh City, Phu Yen - Binh Dinh, Phu Yen - central highland provinces to more effectively tap local potentials and advantages.
Phu Yen will develop cash-earning agriculture, develop material areas near processing factories, exploit maritime economic potentialities, focus on developing key industrial products with high export value, invest in completing infrastructure construction and effectively operate three industrial parks and eight industrial complexes.
The central coastal province will accomplish the planning of market and commercial centre system, enhance export of local products but limit the export of raw materials, maximise the exploitation of its tourism diversity, open central-cross travel tours and carry out tourism projects.
Is the investment sufficient for the potential and advantage of the province? What has Phu Yen done to attract investment?
In the past few years, Phu Yen has been trying to mobilise all available resources for development investment; hence, the infrastructure system has been improved significantly and the urban and rural appearance has been beautified, laying a precondition foundation for the socioeconomic development.
To accelerate economic growth rate at high level in the coming time, apart from its internal forces, the province will draw investment from outside sources - an important economic development momentum. To create an inviting business environment for investors, apart from incentives provided by the State, Phu Yen has its own incentives for investment projects related to tourism, industry, handicraft and industrial parks. The province is also considering new incentives for the new period.
The province offers the lowest land rental and exempt taxes in the longest period as stipulated by the law. Phu Yen will provide investors with maximal supports in infrastructure construction projects such as transport, electricity, water supply and communication. Besides, the local government will hand cleared land for investors in a quick manner.
Currently, Phu Yen encourages investment in scientific and high-tech application projects and environment protection. Particularly, the province is calling investments in fisheries, services, tourism, processing industry (especially local farm, forestry and aquatic products), oil refinery, education, training, healthcare, science, technology and others.
Phuong Thuy & Minh Tan
Vietnamese
