Nghe An: Promoting innovative thinking towards sustainable development

There is no basis for optimism in 2021

The year 2020 is coming to an end with many special events. The global economy has been particularly severely affected by theCovid-19 pandemicoutbreak. Vietnam is not out of the pandemic, the country's economy is facing many difficulties, the fight against Corona virus has caused thousands of businesses to go bankrupt and dissolve.

Moreover, in the Central region, unusual weather developments with dozens of storms and floods have negatively impacted people's lives. In that context, overcoming objective challenges and difficulties, Party congresses at all levels have taken place smoothly, according to plan and brought great expectations to the people.

A corner of Vinh city. Photo: Dao Tuan

The 19th Provincial Party Congress, term 2020 - 2025, has proposed important solutions to realize the goals of socio-economic development and maintaining security and national defense from now to 2025 and the next period.

In Nghe An, 2020 was also a year when the province faced many difficulties due to natural disasters, storms, floods, and epidemics. However, with the active participation of the entire political system and the people, Nghe An has achieved many outstanding achievements: Nghe An's socio-economic growth rate is estimated at more than 4.1%, with budget revenue reaching 15,911 billion VND.

Thanks to proactive measures to prevent and control the Covid-19 pandemic, the whole province has no cases of Corona virus infection. Nghe An province has successfully organized19th Provincial Party Congress, term 2020 - 2025. Notably, the congress proposed important solutions to achieve socio-economic development goals, maintain security and national defense from now until 2025 and the next period.

The Resolution of the 19th Nghe An Provincial Party Congress determined the main socio-economic targets such as: The growth rate of gross regional domestic product (GRDP) in the period of 2021 - 2025 reaches 9.5-10.5%; GRDP per capita by 2025 reaches about 83 million VND; budget revenue by 2025 reaches from 26,000 - 30,000 billion VND; GRDP structure of agriculture, forestry and fishery reaches 19-20%; Industry and construction reaches 38-39%; Services 42-43%; Total social investment capital by 2025 reaches about 500,000 billion VND...

At the 17th session of the Provincial People's Council, term XVII, 2016 - 2021, the Provincial People's Council passed the 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; GRDP per capita of VND 48 - 49 million.

Based on the socio-economic results that Nghe An achieved in 2020 and the issued targets for 2021, many people ask: Why is the economic growth rate set by the province for 2021 lower than the previous year? Is this a manifestation of a lack of determination and courage in planning a development strategy?

Moreover, it should also be added that in 2020, along with other localities in the country, Nghe An had to face many difficulties and challenges. The Covid-19 pandemic has seriously affected all areas of life and society. Enterprises have stagnated in production and business; all commercial activities, investment attraction, import and export, services, tourism, etc. have almost frozen due to the social distancing policy. Not only that, Nghe An and many provinces in the Central region have had to struggle with prolonged droughts, followed by severe storms and floods. In that context, Nghe An province still achieved a total product growth rate of more than 4.1%; estimated budget revenue of nearly 16,000 billion VND. So why is the target set for 2021 so modest?

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

In particular, while the Covid-19 pandemic is still unpredictable and has not been contained, it is very difficult to qualitatively and quantitatively assess the potential for socio-economic development. In addition, there are currently no positive signs of economic change on the international and domestic levels, so there is still no basis for optimism about a successful 2021.

Vissai seaport. Photo: Manh Hung

Creating room for sustainable development

To develop sustainably, Nghe An must change its thinking and innovate its management and economic operations.

However, Nghe An's economic picture in 2021 and beyond still has elements to look forward to. The invested projects are still effective; projects using ODA, FDI and public investment capital are still expected to create changes. However, to develop sustainably, Nghe An must change its mindset, innovate its management and operation of the economy. According to Chairman of the Provincial People's Committee Nguyen Duc Trung, Nghe An must redefine its direction to meet the demands of the trend.

Frankly in assessing this issue,Comrade Nguyen Duc Trungbelieves that there was a time when we promoted the goal of developing heavy industry. Currently, this goal is no longer appropriate. For example, regarding the investment in thermal power projects in Hoang Mai town, the head of the Provincial People's Committee said that the Provincial Party Committee Standing Committee has agreed to propose that the Prime Minister and the Ministry of Industry and Trade stop implementing the Quynh Lap Thermal Power Center project, including Quynh Lap 1 Thermal Power Plant and Quynh Lap 2 Thermal Power Plant, located in Dong Hoi Industrial Park. The province also proposed that the Government remove this project from the draft Power Plan VIII.

Nghe An province proposed to stop the thermal power project for many reasons, firstly, the project has not been implemented. The second, more important thing is that the efficiency of the investment in the thermal power center is unknown, but the risk of environmental pollution is foreseeable. The Chairman of the Provincial People's Committee said that Nghe An is located between two heavy industrial development centers of the region, Nghi Son (Thanh Hoa) and Ky Anh (Ha Tinh), the province does not need to develop in the direction of heavy industrial investment with many potential risks threatening the environment. Instead, Nghe An needs to develop supporting industries, trade, service systems, and tourism to stimulate growth. The Chairman of the Provincial People's Committee said: Why not think about attracting visitors from Nghi Son to Hoang Mai to relax and enjoy tourism services in Nghe An?

Hoang Mai town seen from above. Photo: Ho Long

According to comrade Nguyen Duc Trung, the development orientation of Nghe An in the coming time is also to invest and complete the infrastructure system, traffic, and infrastructure, including key projects such as:Vinh - Cua Lo route; Nghi Son - Cua Lo route; deep-water port system, Vinh airport... For investment attraction, instead of promoting and approaching by area, the province will attract by point, assigning sectors and units to follow up and accompany investors from the beginning until they come into operation. In addition, the province will focus on calling for and attracting investors with motivation. This is also an innovation in this work.

Shaping the development of Nghe An with the requirement of ensuring sustainability has always been an issue that economic managers, policy makers, and development strategists have been working on for many years. The results have also been proven in practice. The most important thing at this stage is that the shaping must be suitable to objective conditions, well solving the internal problems of the economy, of people's lives and in line with the development trends of the country and the world.