Nghe An: Emphasizing innovative thinking towards sustainable development.

There is no basis for optimism in 2021.

The year 2020 is drawing to a close with many significant events. The global economy suffered a particularly severe downturn due toCovid-19 pandemicThe outbreak occurred. Vietnam was not immune to the pandemic; the country's economy faced numerous difficulties, and the fight against the coronavirus led to the bankruptcy and dissolution of thousands of businesses.

Furthermore, in the central region, unusual weather patterns with dozens of storms and floods have negatively impacted people's lives. In this context, overcoming objective challenges and difficulties, the Party congresses at all levels have proceeded smoothly, on schedule, and have brought great expectations to the people.

A view of Vinh city. Photo: Dao Tuan

The 19th Provincial Party Congress, for the 2020-2025 term, has set forth important solutions to achieve the goals of socio-economic development and maintain national security and defense from now until 2025 and beyond.

In Nghe An province, 2020 was also a year facing many difficulties due to natural disasters, storms, floods, and epidemics. Despite this, thanks to the active involvement of the entire political system and the people, Nghe An achieved many outstanding accomplishments: The socio-economic growth rate of Nghe An is estimated at over 4.1%, and budget revenue reached 15,911 billion VND.

Thanks to proactive measures in preventing and controlling the Covid-19 pandemic, the entire province has not had a single case of coronavirus infection. Nghe An province has successfully implemented measures to combat the pandemic.19th Provincial Party Congress, term 2020 - 2025. Notably, the congress outlined important solutions to achieve socio-economic development goals and maintain national security and defense from now until 2025 and beyond.

The Resolution of the 19th Congress of the Nghe An Provincial Party Committee sets out key socio-economic targets such as: Gross Regional Domestic Product (GRDP) growth rate of 9.5-10.5% for the period 2021-2025; GRDP per capita reaching approximately 83 million VND by 2025; budget revenue reaching 26,000-30,000 billion VND by 2025; GRDP structure of agriculture, forestry, and fisheries at 19-20%; industry and construction at 38-39%; services at 42-43%; total social investment reaching approximately 500,000 billion VND by 2025…

At the 17th session of the 17th Provincial People's Council, term 2016-2021, the Provincial People's Council recently adopted a Resolution on the socio-economic development plan for 2021 with key socio-economic targets such as: Gross Regional Domestic Product (GRDP) growth rate of 7.5-8.5%; budget revenue of VND 14,032.3 billion; total export turnover of USD 1,200 million; total social investment of VND 88,000 billion; and GRDP per capita of VND 48-49 million.

Based on the socio-economic results achieved by Nghe An in 2020 and the targets set for 2021, many people are asking: Why is the province's economic growth rate for 2021 lower than the previous year? Could this be a sign of a lack of determination and courage in strategic development planning?

Furthermore, it should be added that in 2020, along with other localities nationwide, Nghe An faced numerous difficulties and challenges. The Covid-19 pandemic severely impacted all aspects of life and society. Businesses halted production and operations; all commercial activities, investment attraction, import and export, services, tourism, etc., were almost completely frozen due to social distancing policies. Moreover, Nghe An and many central provinces had to struggle against prolonged droughts, followed by devastating storms and floods. Despite this, Nghe An province still achieved a GDP growth rate of over 4.1%; and projected budget revenue of nearly 16,000 billion VND. So why is the target for 2021 so modest?

To answer this question, atConference to disseminate the ResolutionAt the 19th Congress of the Nghe An Provincial Party Committee, term 2020-2025, Comrade Nguyen Duc Trung - Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee - stated that before the Provincial People's Council approved the socio-economic development plan for 2021, the Standing Committee, the Executive Committee of the Provincial Party Committee, and the Provincial Party Committee had carefully considered the matter. To determine the basic targets for 2021, the province based its decisions on both objective and subjective factors of the economy. These included issues related to the economic recovery after the fluctuations of 2020; the production and business capacity of enterprises; and developments in investment attraction.

In particular, while the Covid-19 pandemic remains unpredictable and uncontained, qualitatively and quantitatively assessing the potential for socio-economic development is very difficult. Furthermore, currently, both internationally and domestically, there are no positive signs of economic recovery, so there is still no basis for optimism about a successful 2021.

Vissai seaport. Photo: Manh Hung

Creating room for sustainable development

To achieve sustainable development, Nghe An must change its mindset and innovate its economic management and operation.

Nevertheless, the economic outlook for Nghe An in 2021 and beyond still offers promising prospects. Existing investment projects continue to yield positive results; projects utilizing ODA, FDI, and public investment capital are expected to continue creating positive changes. However, for sustainable development, Nghe An must change its mindset and innovate its economic management and operation. According to the Chairman of the Provincial People's Committee, Nguyen Duc Trung, Nghe An must redefine its direction to meet the demands of the times.

Be frank in your assessment of this issue.Comrade Nguyen Duc TrungHe argued that there was a time when we prioritized the development of heavy industry. Currently, this goal is no longer appropriate. For example, regarding investment in thermal power projects in Hoang Mai town, the head of the Provincial People's Committee stated that the Provincial Party Standing Committee has agreed to propose to the Prime Minister and the Ministry of Industry and Trade to halt the implementation of the Quynh Lap Thermal Power Center project, including Quynh Lap 1 and Quynh Lap 2 Thermal Power Plants, located in the Dong Hoi Industrial Zone. The province also requested the Government to remove this project from the draft Power Development Plan VIII.

Nghe An province has requested a halt to the thermal power plant project for several reasons. Firstly, the project has not yet been implemented. Secondly, and more importantly, the effectiveness of investing in a thermal power plant is uncertain, but the risk of environmental pollution is already foreseeable. The Chairman of the Provincial People's Committee argued that Nghe An is situated between two major heavy industrial development centers in the region, Nghi Son (Thanh Hoa) and Ky Anh (Ha Tinh), and therefore the province does not need to develop in the direction of heavy industry investment with many potential environmental threats. Instead, Nghe An needs to develop supporting industries, trade, service systems, and tourism to stimulate growth. The Chairman of the Provincial People's Committee asked: Why not consider attracting tourists from Nghi Son to Hoang Mai for relaxation and to enjoy tourism services in Nghe An?

Hoang Mai town viewed from above. Photo: Ho Long

According to Comrade Nguyen Duc Trung, the future development orientation of Nghe An also includes investing in and improving the infrastructure system, transportation, and structural infrastructure, including key projects such as:Vinh - Cua Lo routeThe Nghi Son - Cua Lo road; the deep-water port system, Vinh airport… Regarding investment attraction, instead of a broad and scattered approach, the province will focus on specific areas, assigning relevant departments and units to closely monitor and support investors from the beginning until they become operational. In addition, the province will concentrate on attracting investors who are considered driving forces. This is also a new approach in this area.

Shaping the sustainable development of Nghe An has been a long-standing issue for economic managers, policymakers, and development strategists. The results have been proven in practice. What is most needed at this stage is that this shaping process must be consistent with objective conditions, effectively address the internal problems of the economy and people's lives, and align with national and international development trends.