A province in the central key economic zone, Binh Dinh has been efficiently making use of its advantages and resources to spur economic zone development. Vietnam Economic News' Quoc Tuan spoke with Binh Dinh Province People's Committee Chairman Nguyen Van Thien about socioeconomic development in the province.
What has Binh Dinh achieved since 2006?
An estimated VND19.472 trillion was invested in the province from 2006-2008, an average increase of 25 percent per year. This represents 43.3 percent of the provincial GDP (gross domestic product) in these three years and 43.1 percent of the 2006-2010 plan target. Industrial production in value increased 18.9 percent in 2006 and 30.2 percent in 2007. More than 100 businesses in Binh Dinh exported goods or services. Many large and important projects, including infrastructure and other construction projects, have been completed and have been put to use. Rural areas have improved due to rising living standards.
The province built, repaired and upgraded many reservoirs, dikes and embankments. The 200-million cu.m. Dinh Binh reservoir has been completed increasing reservoir capacity in the province to 558 million cubic meters. Binh Dinh reinforced, in length, 25 percent of its canals and channels. As a result, 63 percent of agricultural land was irrigated last year raising agricultural efficiency and yields.
Road construction projects in the province were completed, notably those from Quy Nhon to Song Cau, Quy Nhon to Nhon Hoi and Quy Nhon to Tam Quan, the last being a coastal route. Another road is being built in the western part of the province, the Quy Nhon port is being upgraded and many roads are being built, expanded or upgraded. This year, 78.3 percent of all rural roads have been paved with asphalt and power transmission systems and urban infrastructure have been improved.
The province attaches a great deal of importance to the attraction of ODA (official development assistance) and FDI (foreign direct investment). Last year, 12 ODA projects were implemented with an investment of about VND70 billion. After the unified investment law and enterprise law became effective, private sector investment increased significantly in terms of both capital amount and project number. From 2006-2008, 115 projects totaling almost VND9 trillion were licensed in the province, including big projects in hydroelectric power, industrial zone infrastructure, mining and wood product production.
Many social welfare, healthcare and education facilities were constructed with capital from different economic sectors.
Why did the above-mentioned achievements occur?
Located far from the country's two economic centers, Hanoi and Ho Chi Minh City, and with an agriculture and seafood-based economy, Binh Dinh made full use of its internal forces and support from the central government to improve its weak socioeconomic infrastructure. The province is very active in making development plans. It chooses practical investments that can spur both social and economic development. Binh Dinh also makes good use of technical and financial assistance from sectors, ministries and the central government to reach its targets.
With central government assistance and our own efforts, Binh Dinh received ODA to develop infrastructure that included roads, electrical power and water. Plans were made to use US$12 million to upgrade provincial roads, US$17.45 million was earmarked to improve the Quy Nhon waterworks, and US$50 million is to be used for environmental improvement within the city of Quy Nhon.
Binh Dinh follows the guideline 'the State and the community work together' in building infrastructure projects. The province has thus far completed more than 1,100 kilometers of cement roads. Asphalt rural roads have also helped improve the face of rural Binh Dinh.
Binh Dinh attempts to make use of its internal forces to attract outside investment. Provincial authorities understand that adequate infrastructure and a favorable investment environment are very important for domestic and foreign investment attraction.
Apart from the above-mentioned infrastructure, there are the industrial and economic zones, such as the Nhon Hoi economic zone, in Binh Dinh. The Phu Tai and Long My industrial zones attracted more than 100 businesses that have total registered capital of more than VND1.8 trillion and industrial zones in Quy Nhon city and An Nhon district are an attractive destination for small to medium-sized businesses.
Investors in Binh Dinh feel at ease while doing business in the province because Binh Dinh makes an effort to build infrastructure and their interests are assured in accordance with state and provincial investment promotion policies. Provincial authorities are always willing to cooperate with investors. This and the province's open, favorable policies are increasing investor comfort.
What plans does Binh Dinh have for socioeconomic development in the years to come?
Binh Dinh will bring into play what it has achieved to shorten the gap between it and the two biggest economic centers in the country. We particularly want to improve people's material and spiritual lives and transform the provincial economic structure toward industry and services. By 2010, the province wants to see a 13 percent GDP growth rate (5.6 percent in forestry, agriculture and fisheries, 21.8 percent for construction and industry and 13.5 percent in services) and per capita GDP of more than US$900, 2.25 times the 2005 figure. The province is transforming its economic structure towards industry, construction and services targeting 27-28 percent in agriculture, forestry and fishery, 37-38 percent in construction and industry and 34-35 percent in services.
The Seventh Provincial Party Congress's resolution includes a socioeconomic development strategy for Binh Dinh to 2010 and a related vision to 2020. Under this strategy, investment will be encouraged in the Nhon Hoi economic zone, the city of Quy Nhon is to be turned into an industrial, trade, tourism, training and international trade center in the central region and Tay Nguyen (Central Highlands) and more roads are to be built that will connect Binh Dinh and neighboring provinces/cities, contributing to the East West corridor program of the Greater Mekong Sub-region which is expanded into the southern pole of the central key economic zone to better develop the economic triangle of Vietnam, Laos and Cambodia.
The province wishes to develop spearhead economic sectors in which the province has potential. These include farm produce, forest products and seafood processing, fine art and handicraft article production, construction materials, leather and footwear, mechanical engineering, deep water seaports, the petrochemical industry, electronics and electric power production in the province, especially in the Nhon Hoi economic zone.
Binh Dinh will seek domestic and foreign investment and targets investors with potential and capability. Regarding FDI, the province will give priority to leading groups and corporations, the presence of which would encourage other investors to come leading to substantial socioeconomic development in the province. All experienced investors that have advanced, environmentally friendly technology are encouraged to come.
The province will develop tourism, transportation (especially maritime services), trade, banking, postal service, telecommunications and financial services. It has acknowledged that economic development must go together with environmental protection, proper investment in the mountainous areas, employment generation and poverty reduction. Binh Dinh will focus on culture, healthcare, education and workforce training.
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