Binh Dinh’s economy has seen positive changes with signs of recovery and development in many fields in the last 6 months. Yet, there are still problems which will badly affect the province’s 2010 economic development plans in following years if they aren’t solved.
 |
|
Chairman of Binh Dinh Province People’s Committee Nguyen Van Thien gives investment licences to investors at Investment Promotion Conference in Binh Dinh in January 2010.
|
Recovery and development
The provincial People’s Committee evaluated that Binh Dinh had experienced a lot of unfavorable conditions to businesses and lives of its people in the first 6 months of 2010, including unusual weather pattern, long-lasting drought, severe lack of electricity and water supply.
In spite of the obstacles, the province’s economy has seen positive changes with recovery and fairly rapid growth in many fields; the total local GDP reached 4,364 billion VND, a 10.48 percent increase compared to the same period of 2009. The development investment has been particularly promoted, facilitating industrial manufacturing to get higher growth in comparison to the last year’s corresponding period. Furthermore, the consumer needs have been also enhanced; export has become better.
Specifically, the province attracted 3 more FDI projects and 16 more domestic ones worth 23.192 million USD and 6,981 trillion VND (366000 USD) respectively in the first 6 months of 2010.
A total of 37 FDI projects with the total capital of US$494 million and 300 domestic projects worth VND40 trillion (roughly US$2 million) so far have been invested in the province.
In addition, 750 enterprises have been licensed since early this year, up by 15 percent against the same period last year. 3,859 existing enterprises have been in operation in Binh Dinh with the total available capital of over 18,500 trillion VND (around 970,000 USD).
The province’s industrial production value achieved 3,181 trillion VND in the first six months of 2010, a 12.7 percent increase over the same period of 2009. State-owned sector saw an 11 percent rise, the non-state owned enterprises experienced a 13 percent increase, and private sector had a 12.6 percent up.
Among 23 key industrial products of the province, 18 gained augmenting outputs in compared with the same period of 2009, including frozen shrimps (63.2 percent), bottled beer (59.1 percent), wood shavings (49.7 percent), cattle foodstuffs (25.6 percent), and wooden chairs (24.9 percent).
The past 6-month export value attained 235 million USD, a surge of 36 percent against the 2009’s corresponding period. Some products having high growth of export value include eucalyptus shavings (increase 162.6 percent), minerals (100.6 percent), rice (65,9 percent), and wood-related products (42,5 percent).
The tourism and service sectors also experienced fairly good growth in comparison with the same period last year. In the first 6 months, the province welcomed 42.900 turns of foreign tourists, a 63% increase and 477,000 turns of domestic ones, up 30 percent. The total tourism revenue hit 146.7 billion VND (7.7000 USD), a 53 percent swell compared to the same period last year.
Keep on boosting the development
The provincial People’s Committee realized that over the past 6 months still saw problems that need to be addressed.
The local economy has already overcome the recession but mainly based on scale-oriented development and quantity expansion of the resources rather than efficiency enhancement and sustainable development.
Some of its localities and sectors didn’t seriously pay much attention to directing the implementation of the target plans and proposed tasks. Their assistance to the enterprises wasn’t truly effective.
Several certain key projects on infrastructure development were delayed. In addition, long-existing issues, such as the lack of skilled labors and out-of-date labor training, hadn’t been thoroughly solved.
At the meeting to preliminarily wrap up the last 6 months’ situation and implement the rest 6 months’ tasks, Chairman of Binh Dinh Province People’s Committee Nguyen Van Thien steered all bodies and agencies to comprehensively implement policies, tasks and solutions which have been already promulgated by the government and the provincial People’s Committee on business and manufacture promotion and social welfare.
He also asked they to continue to call for foreign and domestic investments, creating favorable conditions for the enterprises, and concentrating on addressing problems caused by the power cut.
Accordingly, it is necessary to give attention to develop industry sector together with improving its quality, enhancing the competitiveness. Besides, it should be obliged to maintain traditional markets while expanding new ones, particularly those which don’t require too high-quality products or impose strict technical barriers to Vietnamese goods.
It should be bound to promptly make plans on agricultural and rural development and people’s living standard improvement.
The provincial People’s Committee set target for 2010 as follows: the local GDP will increase 10 percent. The industry and construction value will increase 14.1 percent, agriculture–forestry–fishery increase 6.3 percent, and service sector increases 10.5 percent. The total provincial budget revenue is expected to reach 3,699 trillion VND (194 million USD).
| 
