Nghe An after half term: Thinking to create long-term foundation

From the local...

Tuong Duong is a mountainous district of Nghe An. During this term, Tuong Duong is promoting the development of forest economy, livestock, and the restoration of native crops into commodities. The method is to integrate and effectively use funding sources to support production development from the Government's Programs 30a and 135, Decision 87 (now Decision 15) of the Provincial People's Committee and from the district budget, with clearly defined priority goals - passion fruit, acacia and mahogany plantations, red turmeric plantations... which bring much higher economic efficiency, contributing to job creation and improving people's lives. There are many good models in the area such as: Passion fruit (131.3 ha) in Nhon Mai, Huu Khuong, Tam Hop communes, with income after deducting costs from 60-80 million VND/ha/year; red turmeric plantation in Tam Hop commune, large biomass corn in Tam Thai and Tam Quang communes; High-tech fish cage farming in Tam Thai commune; growing clean vegetables in net houses in Thach Giam; safe vegetables in Tam Thai commune...

Regarding industry, the district has put into operation a non-fired brick factory with a capacity of 35 million bricks/year, meeting the demand for construction bricks in the area; 4 hydroelectric plants with a total capacity of 460 MW; electricity production reached 1,114 million kW.

The industrial and construction production value of the whole district in 2017 reached 3,089 million VND, the average growth rate in the period 2016-2017 reached 7%, equal to 55% of the target.

After 2 and a half years of implementing the Congress Resolution, Tuong Duong is expected to achieve 20 targets, 9 targets are difficult to achieve.

Not only in Tuong Duong, positive and steady economic changes are also recorded in all other mountainous and lowland districts of Nghe An. Yen Thanh, Quy Hop, Con Cuong have specialty oranges, Nam Dan has cassava, brown rice, black sesame, processed with Japanese technology into products that can be considered high-class. Que Phong contributes yellow flower tea, a high-value specialty. Cua Lo further enhances the class of coastal tourism urban areas...

All places are moving, more or less, but it seems that all are in the direction of high-tech specialties, connecting businesses with farmers, in the same way that TH.TrueMilk Group has successfully nurtured.

Rural and mountainous districts are all like that. They are all changing and thriving.

But let's return to Vinh city - the economic locomotive of the province, where the past two and a half years of practice allow us to draw valuable lessons and suggestions for development.

The city's industrial production value in 2016-2018 is estimated at VND24,088 billion. The average growth in the industrial and construction production value in 2016-2018 reached 10.59%, an increase of 1.9% compared to the period of 2011-2013 (8.6%), but compared to the Resolution's target of 14-15%, it is still far below. In two and a half years, the city has had 63 more investment projects with a total registered capital of VND8,063.8 billion, implementing the annual public investment capital plan with a total capital of VND1,165 billion, contributing to job creation and increasing budget revenue in a positive way.

To increase social capital, public-private partnership investment projects in the city have also been strongly promoted, with some projects completed and put into use such as: Cua Tien 2 bridge (BT); Le Mao road extension phase 2 (BT); agricultural and general goods business area west of Vinh market (BOT); Preparing to invest in Ly Thuong Kiet road phase 2, upgrading and expanding Nguyen Viet Xuan road, planned roads in Nghi Kim commune...

Comrade Vo Viet Thanh - Secretary of Vinh City Party Committee said: After 2 and a half years of implementing the Resolution of the term, the city has had many improvements, urban planning has developed in a modern and civilized direction. Urban technical infrastructure and social infrastructure have been strengthened. However, the average growth in the period of 2016-2018 is estimated at only 8.98% compared to the Resolution target of 12.5 - 13.5%.

Vinh City Party Secretary Vo Viet Thanh: “The main reason for the difficulty in achieving the target is that the city’s economy has not made the expected breakthrough. That is an issue that both provincial and city leaders are struggling with.

And that is also the basis for the Vinh City Party Secretary to believe that although the current target has not been achieved, with the good foundations created in recent years, the city will make a strong breakthrough in the coming period. The belief in the development approach that the provincial leaders have determined for Vinh City and proposed by a number of scientists in the Scientific Conference held last year discussing the Vision for Vinh City's development is increasing more and more clearly.

Creating a foundation for long-term development

Two and a half years of implementing the term's targets, although GRDP was not achieved, Nghe An achieved many milestones: Industry - construction grew quite well, especially in 2017 with a higher growth rate due to the results of attracting investment and mobilizing resources for investment and development.

The value of industrial production in the first half of the term increased rapidly from 34,087 billion VND in 2015 to 46,368 billion VND in 2017, and is expected to reach 56,500 - 57,000 billion VND in 2018. Compared to the target set by the Resolution for 2020 of 77,991 billion VND, it is still quite far away. But the prospect of achieving that goal is increasingly clear.

The industrial structure continues to shift rapidly and in the right direction. The province has identified and focused on investing in developing advantageous industries. Some key products have achieved good results compared to the beginning of the term (such as cement, corrugated iron, beer, milk, MDF wood, electricity...).

Export turnover in 2015 reached 705.17 million USD, by 2017 it reached 992.35 million USD, an increase of 140.72% (of which goods export in 2017 reached 696.05 million USD, an increase of 150.27%).

More importantly, the foundations for a comprehensive breakthrough and rise are being created in a systematic and methodical manner.

Regarding transportation, Nghe An has completed the investment in the construction of many key transportation projects such as: Investment in the construction of Vinh Airport including passenger terminal, car park, expansion of aircraft parking lot, dredging of the channel to Cua Lo port, Yen Xuan bridge across Lam river invested with BOT capital, traffic route connecting N5 road of Southeast economic zone to Hoa Son (Do Luong) to Tan Long (Tan Ky),... Construction of 8 railway overpasses in the province.

Regarding new rural areas, by the end of May 2018, the whole province had 181 communes meeting 19/19 criteria, equal to 41.99%/2020 target of 50%, higher than the national average; the average number of criteria reached 14.54 criteria/commune.

Nghe An has been speeding up the completion of important projects: Cua Lo Port Expansion Project (Wharf No. 5 and No. 6); Cua Lo Deepwater Port, Vissai Nghi Thiet International General Port, Highway 48D from Highway 1 to Thai Hoa Town (Hoang Mai-Thai Hoa), Vinh-Cua Lo connecting road, Highway 48E (3 sections), etc. Completing the procedures, soon starting the construction of the projects: Expressway section through Nghe An province, building a new specialized port in Dong Hoi, Cua Hoi bridge across Lam River, Nghi Son coastal road to Cua Lo, Vientiane-Hanoi expressway (section through Nghe An province from Thanh Thuy-Vinh Border Gate, 65 km long).

Looking back at all that Nghe An is doing and has achieved in the past half term, it can be seen that the way of acting according to the "achievementism" and "term thinking" is being overcome step by step, but firmly, with perseverance and real consensus in leadership, between the provincial leaders and the people and businesses. Accordingly, the trust of Nghe An people, or more broadly, of Nghe people, in the future of their province is being restored, consolidated and given a new "quality".

Talking to Nghe An Newspaper about the past journey and Nghe An's steps in the following years, Associate Professor, Dr. Tran Dinh Thien, Director of the Vietnam Economic Institute, said that in the past 2 and a half years, although the economic growth rate has not reached the plan, Nghe An is taking steady steps. Industry and attracting investment is quite good. Many large industrial production facilities have been built and upgraded almost simultaneously, such as: Hoa Sen Nghe An Factory in Dong Hoi Industrial Park; Song Lam 1 and Song Lam 2 Cement Factory projects, 2 MDF wood factories in Nghia Dan and Anh Son.

Associate Professor, Dr. Tran Dinh Thien - Director of the Vietnam Economic Institute: "The leadership team at all levels in Nghe An has been concerned and determined for the long-term steps, not short-term thinking like before. Industry and investment attraction are quite good." (with photo of Mr. Thien)

Along with that, the focus on investment in building industrial parks and clusters with a new approach - towards high technology and clean environment - VSIP Nghe An, WHA Hemaraj Nghe An Industrial Park (Thailand), Hoang Mai Industrial Park, has begun to bring the first fruits. Foreign investors are coming to Nghe An, not sporadically like before. And among them there may be "eagles".

But these are just initial results. Not really sure for the expected goal. And there are still many difficulties and challenges to overcome.

Associate Professor, Dr. Tran Dinh Thien: “To develop the economy, Nghe An must change its thinking to create new breakthroughs in other areas, not just industry. Nghe An must realize that if we continue with the old way, it will basically remain the same. We cannot continue to sing the song of “geomancy and talented people” without a new development mindset and a truly effective action strategy.

Nghe An’s approach is to attack on all fronts, from cities to mountainous areas. Nghe An possesses a lot of potential with many local specialties that need to be processed to create large-scale products. “Bamboo, yellow flower tea, medicinal plants, black chicken, local pigs… are very valuable, but we have not yet exploited their value. Not to mention, in some localities, Japanese water hyacinth can also be used for export” – Associate Professor, Dr. Tran Dinh Thien said.

Vinh must be the capital of the entire Central region, must have a breakthrough, a much more radical transformation to truly be the growth engine. The mountainous region must promote clean agriculture, high-tech agriculture and commodity agriculture. Tourism needs more new markets, new products, especially must promote the strength of Vinh airport, know how to connect Vinh with addresses of the right level. "Vinh connects with addresses of the level of development, Vinh will develop to that level. That is the development logic of the era of globalization and high technology". Although a bamboo toothpick is small, it will be big if we know how to do it big. The way of doing is the most important" - Associate Professor, Doctor Tran Dinh Thien affirmed.

Nghe An is realizing that affirmation, to achieve the goal of the entire term in the remaining time. There is enough basis to believe so.