Unlocking resources for the development of the Industry and Trade sector

Many important achievements

On May 14, 1951, President Ho Chi Minh signed a decree to change the name of the Ministry of Economy to the Ministry of Industry and Trade. This was an important milestone in the development history of the industry.

In Nghe An, implementing the Party's innovation policy, the Industry and Trade sector has achieved many important achievements in the fields of industry, trade, tourism and international economic integration. Many large-scale industrial projects with modern technology have been invested and put into operation.

Specifically, the growth rate of the industrial sector is quite good, with an average of 12.31% per year in the period 2014 - 2022; the scale of the industrial sector has been expanded, reaching 29,468 billion VND, 3.2 times higher than in 2013; the proportion of industry in the GRDP structure is increasingly high, accounting for 14.78% in 2013, and 18.36% in 2022. The scale of industrial production value (current price) increased from 32,669 billion VND in 2013 to 116,049 billion VND in 2022, reaching an average growth rate of 16.59% per year. The internal structure of the industrial sector has shifted positively, towards increasing the proportion of industries with high added value and large export turnover, and reducing the proportion of mining industry. Processing and manufacturing industry accounts for the largest proportion of industrial added value (80.63%); mining industry accounts for 5.33%.

Production line at Hoa Sen Factory, Dong Hoi Industrial Park, Hoang Mai Town. Photo: Thu Huyen

3 distinct industrial growth poles have been formed according to the orientation of Resolution 26. These are: Vinh city area - Cua Lo town - Southeast districts of the province associated with the South Nghe An - North Ha Tinh region associated with the Southeast Economic Zone, notably VSIP Nghe An and WHA Industrial Parks. Hoang Mai - Quynh Luu region associated with the South Thanh Hoa - North Nghe An region associated with the Hoang Mai and Dong Hoi Industrial Parks (Nghe An) with Nghi Son Economic Zone (Thanh Hoa) attracting large-scale dynamic industrial projects. Western Nghe An region, the key areas are Tan Ky - Con Cuong - Nghia Dan - Thai Hoa - Quy Hop with the potential of large land and mineral resources.

Infrastructure of industrial parks and industrial clusters associated with each region has been planned and developed. Of which, 7 industrial parks have been attracted and built, including: Bac Vinh, VSIP, WHA, Dong Hoi, Nam Cam, Hoang Mai 1, Tho Loc; attracting over 250 investment projects with a total registered capital of over 3.5 billion USD. In the coming time, 5 new industrial parks with a total area of ​​1,600 hectares are planned to be built. Industrial clusters have received attention for investment and development, up to now, 23 industrial clusters have been put into operation with a total area of ​​nearly 490 hectares, an occupancy rate of 84% and have attracted 251 projects into operation. In the coming period, 34 new industrial clusters with a total area of ​​1,577 hectares will be added and planned.

For many years, textiles have always been at the top of the province's export turnover. Photo: Thu Huyen

According to the assessment, the key industry and dynamic industry are invested in and developed in association with the potential and strengths of the province. In the first quarter of 2023, in the context of general difficulties in the world and the country, the growth rate of total product in Nghe An GRDP reached 7.75% over the same period, ranking 14/63, among the top 15 provinces and cities with the highest growth in the country.

Regarding export activities, in recent years, exports have been increasingly expanded in both scale and turnover.

The structure of export goods continues to have positive changes towards increasing the proportion of processed industrial goods and reducing the proportion of raw and semi-processed goods. The export market is increasingly rich and diverse; there are over 360 enterprises participating in exporting goods of Nghe An province. Domestic trade promptly and fully meets the essential goods for production and social consumption, keeping the market stable.

Producing handicrafts at Duc Phong Company Limited. Photo: Thu Huyen

What breakthrough solutions create resources for industry and trade?

Implementing Resolution 26, the Department of Industry and Trade simultaneously performs its tasks and associates them with the economic restructuring towards gradually increasing the proportion of industry and services. Promote economic restructuring associated with growth model innovation, improving productivity, quality, efficiency and competitiveness and developing the digital economy.

The report summarizing 10 years of implementing Resolution 26 shows that: 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 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 exports. The processing and manufacturing industry plays a leading role in the growth of the entire industrial sector, with a gradually increasing structure.

Graphics: Huu Quan

However, the goal of Nghe An becoming an industrial province by 2020 has not been achieved according to the Resolution. The quality of economic growth is not sustainable, the speed and shift of industrial structure in GRDP are still slow. Some industrial sectors have not developed as expected. The goal of developing Thanh Thuy Border Gate Economic Zone has not been achieved. The province's logistics services have improved but still have many limitations, are not synchronized, and there are many "bottlenecks" that reduce the competitiveness of import and export enterprises. Meanwhile, the world economic context continues to be difficult, although there are signs of recovery, but it is slow and uneven in countries, so consumer demand is also recovering slowly.

In order to promote production development and support businesses, develop the socio-economic situation of Nghe An province, in the coming time, along with removing difficulties for projects of the Industry and Trade sector, it is necessary to build a new Resolution to replace Resolution 26-NQ/TW with specific development orientations.

Nghe An focuses on investing in developing modern commercial infrastructure. Photo: Thu Huyen

Regarding industry, prioritize the development of a number of key industries, new technologies, high technologies; industries that are capable of participating deeply in the production network and global value chain, creating high added value, having a spillover effect on other economic sectors; attract investment capital, especially foreign direct investment (FDI) from large corporations in the world. Focus on developing a number of fundamental industries to meet the demand for basic means of production of the economy. Distribute industrial space reasonably in association with economic corridors, form industrial production areas, focusing on the Southeast Economic Zone, industrial parks outside the economic zone and industrial clusters in districts, cities and towns.

Regarding trade, export, investment attraction, construction in Vinh city of some international trade centers and shopping centers. Promote the development of border trade and border gate economy in an effective and sustainable manner. Strongly shift the export structure towards developing some key export items, increasing the proportion of processed products and products with high added value. At the same time, develop diverse and modern transportation, warehousing and logistics services.

Container ship docks at Cua Lo port. Photo: Thu Huyen

Discussing solutions for industry development, Mr. Pham Van Hoa - Director of the Department of Industry and Trade said: To turn Nghe An into an industrial province, in the coming period, it is necessary to have basic groups of solutions: Investing in completing the connecting infrastructure system, especially traffic infrastructure, logistics, industrial park infrastructure, industrial clusters; Administrative reform, actively attracting investment in dynamic industries, priority industries for development. This is a breakthrough solution to connect Nghe An with development centers of the whole country and reach international level. Along with that, strengthening economic accumulation to have resources for industrial development, in which, there are 3 key factors: accumulation of investment capital, land and technology capital. And finally, building and developing human resources. This is the most basic, most important and most difficult solution. To have developed industry can be done in 10-15 years, but to have industrial people (with industrial thinking, industrial technical level, industrial skills and industrial culture) takes a long time, much more difficult.

Human resources have three basic forces: businessmen, technical workers and high-quality human resources. Besides focusing on training and vocational training, the most important thing is to create an industrial environment to develop industrial human resources. Finally, it is necessary to continue to improve the investment and business environment, strongly innovate the management and administration of the state administrative apparatus...

Mr. Pham Van Hoa - Director of Nghe An Department of Industry and Trade