Movement of Nghe An Industry and Trade after 10 years of implementing Resolution 26

Mr. Pham Van Hoa - Director of the Department of Industry and Trade visited the textile production line in Thanh Chi, Thanh Chuong. Photo: Thu Huyen

PV: How do you evaluate the results of the industry and trade sector after 10 years of implementing Resolution 26?

Mr. Pham Van Hoa: PerformResolution 26-NQ/TW of the PolitburoRegarding the direction and tasks of socio-economic development of Nghe An province until 2020, the Department of Industry and Trade has advised the Provincial People's Committee on a number of plans, projects and policies to develop the Industry - Trade sector.

These are: Resolution No. 07-NQ/TU on rapid and sustainable development of industry and handicrafts in the period of 2021 - 2030; industry development plans such as: Planning for exploration, exploitation, processing and use of minerals as common construction materials; Industrial development plan of Nghe An province in the period of 2017 - 2025, vision to 2030; Supporting industry development program in the province; Industrial promotion program. And some projects such as: Synchronous development of industrial cluster infrastructure; attracting investment in projects in the field of industry and trade; developing power supply infrastructure; developing commercial infrastructure; developing exports...

Hoa Sen Steel products are manufactured in Dong Hoi Industrial Park, Hoang Mai. Photo: Thu Huyen

Up to now, the Industry and Trade sector has had many positive changes reflected in many aspects. The industrial sector has a fairly high growth rate, the scale of the industry has been expanded, accounting for an increasingly high proportion in the GRDP structure. The average industrial GRDP growth rate in the 2014-2019 period reached 12.35%/year; in the 2014-2020 period reached 11.31%/year, in 2021 alone it reached 18.8%. In 2021 it reached 25,675 billion VND, 2.8 times higher than in 2013, ranking 2nd in the North Central and Central Coast regions (after Thanh Hoa province).

Scaleindustrial production valueincreased from 26,080 billion VND in 2013 to 2021, reaching 81,750 billion VND, 3.1 times higher than in 2013, ranking 2nd in the North Central region and 26th in the country. The average industrial production index in the period 2014-2019 increased by 12.63%/year; in 2020, it increased by 8.7%; in 2021 alone, despite being affected by the Covid-19 epidemic, it still reached a high level (16.9%), ranking 3rd in the North Central region and the Central Coast (after Thanh Hoa and Ninh Thuan provinces).

The processing industry accounts for a high proportion in the internal industrial structure. In the photo: Production at the Royal Food Thai Canned Food Company (Nam Cam Industrial Park). Photo: Thu Huyen

The internal structure of the industrial sector has shifted positively, towards increasing the proportion of industries with high added value and large export turnover, reducing the proportion of the mining industry, towards sustainable development and gradually reducing dependence on resource exploitation and raw material export.

The processing and manufacturing industry plays a leading role in the growth of the entire industry, with a structure that tends to increase gradually. The GRDP of the processing and manufacturing industry accounts for the largest proportion and tends to increase; the proportion of the mining industry has decreased sharply, from 7.39% in 2013 to 5.51% in 2021.

Graphics: Huu Quan

Export turnoverIndustrial products increased from 194 million USD in 2013 to 1,832.9 million USD in 2021 (accounting for 86.86% of the province's total export turnover). Some items with significant increase in turnover during the period include: Textiles (up 1,027.3%), construction materials (up 1,168%), various types of stones (up 323.7%),...

Attracting investment in the industrial sector has achieved remarkable results, a number of large-scale projects with high registered capital, having a spillover effect on the province's economy are important premises to promote the image and attract other corporations to invest in Nghe An. The investment and business environment has been constantly improved, the awareness of the role of industry in economic development of authorities at all levels has many positive changes, contributing to attracting investors, improving production and business efficiency and competitiveness of enterprises in the province.

PV: One of the important contents in implementing Resolution 26 is implementing the policy of developing regional and economic linkages. Could you please tell us about the results achieved?

Mr. Pham Van Hoa:Implementing the tasks in Resolution No. 26 of the Politburo and the planning of the Nam Thanh - Bac Nghe and Nam Nghe - Bac Ha regions, Nghe An province has focused on directing the development of economic zones in line with the orientation of industrialization and modernization.

The Hoang Mai - Quynh Luu region, associated with the South Thanh Hoa - North Nghe An region, is developing quite rapidly, especially in the industrial and construction materials sectors. In the photo: Tan Thang Cement Factory, Quynh Luu. Photo: Thu Huyen

The area of ​​Vinh city - Cua Lo town - the Southeast districts of the province associated with the Southern Nghe An - Northern Ha Tinh region has quite positive development steps. The average growth rate in the period of 2014 - 2020 of Vinh city is estimated at 8.62%, the average budget revenue increased by 12.78%/year, contributing about 33.75% of the province's budget revenue and is the locomotive of economic growth of the province. The industrial infrastructure that receives the most investment attention is the industrial parks in the Southeast Economic Zone, notably the VSIP Nghe An Industrial Park, Urban and Service Area, which has basically completed the industrial park infrastructure and attracted large-scale projects such as: Luxshare - ICT, Everwin Pricesion specializing in the production of electromagnetic components,... Nam Cam Industrial Park has basically been filled, the specialized port complex associated with Nghi Thiet Cement Grinding Station,...

Hoang Mai - Quynh Luu area associated with South Thanh Hoa - North Nghe An area develops quite rapidly. Coordinated with Thanh Hoa province to organize planning of functional areas underSouth Thanh Hoa - North Nghe An regional planning, connecting the Hoang Mai and Dong Hoi Industrial Parks (Nghe An) with the Nghi Son Economic Zone (Thanh Hoa). The Hoang Mai and Dong Hoi Industrial Parks have initially developed a number of large-scale dynamic industrial projects such as: Hoa Sen Dong Hoi Factory, cement... Marine tourism and resort tourism facilities continue to be invested in and built. Aquaculture, fishing, seafood processing and vegetable growing areas have developed quite well.

TH Group's milk processing line. Photo: Thu Huyen

Western Nghe An region, the focus of the region is Tan Ky - Con Cuong - Nghia Dan - Thai Hoa - Quy Hop: With the potential of large land and abundant mineral resources, it has attracted many large projects, contributing to changing the face of mountainous districts such as: TH milk farming and processing project, sugar factories (NASU, Song Lam, Song Con), wood processing factories (MDF Nghia Dan, MDF Nghe An), cassava starch processing, super fine white stone powder,... At the same time, restoring and developing many traditional local craft villages and industries such as: Processing agricultural and forestry products, weaving, carpentry, brocade weaving,...

PV: It can be said that after 10 years of implementing the Resolution, the industry and trade sector has achieved many positive results, contributing positively to the socio-economic development of the province. However, there are still many limitations in many areas. So, could you please tell us the causes and solutions to overcome them?

Mr. Pham Van Hoa: Although the industrial and commercial sector has many positive changes, there are still many difficulties and problems. The growth of industrial production value, although higher than the national average, is unstable and not yet solid, the industrial - construction structure is slow. Large-scale assembly projects have not been attracted to attract supporting industrial enterprises as satellites. New investment capacity in many fields according to the Resolution's orientation is not significant. The scale of exported goods is still small, not commensurate with the potential, not effectively exploiting the province's advantages. The growth rate is still low, not sustainable; the average export turnover per capita is still low compared to the national average.

Logistics in Nghe An is highly appreciated but no international shipping company has exploited it due to the difficulty of the waterway. In the photo: loading and unloading goods at Cua Lo Port. Photo: Thu Huyen

The reason is that Nghe An is not located in the key economic region of the country, so it faces many difficulties in attracting investment. Meanwhile, the work of forecasting and grasping development trends of the management staff is still limited, so the process of consulting and proposing some inappropriate directions. The quality of human resources has not met the increasing demand for industrial development... logistics infrastructure, especially deep-water ports to receive large tonnage ships, is still inadequate.

In the coming time, based on the assessment of opportunities, advantages and difficulties and challenges, we will propose development orientations, in which priority is given to attracting large projects, FDI projects to selectively develop a number of industries to become driving forces for the socio-economy. Focus on developing industrial parks according to the "3 in 1" model: Industrial Park - Urban Area - Service with modern technical infrastructure and social infrastructure, different utility services. Synchronous planning and completion of infrastructure of industrial parks, industrial clusters, energy. Completion of logistics infrastructure: seaports, airports, roads.

The industry also sets goals for each period of 2021-2025, 2026-2030, vision to 2045 and proposes implementation solutions for planning and development plans for industry and trade, export development, human resource development, environmental protection, etc.