Nghe An: High economic growth in the first 9 months of the year
In the first 9 months of 2024, Nghe An province's GRDP economic growth is estimated at 8.30%, ranking 2nd in the North Central region and 16th in the country; higher than the 6.22% increase in the same period in the first 9 months of 2023. This achievement reflects Nghe An's new efforts this year.
In the first 9 months of 2024, despite facing many difficulties and major challenges, with the attention of the Central Government, the close leadership of the Provincial Party Committee, the direction and management of the Provincial People's Committee, and the joint efforts of the business community to overcome difficulties, the socio-economic situation of Nghe An province has achieved many positive results.
Achievements in transportation, infrastructure, and the North-South Expressway (the Dien Chau - Bai Vot section completed on June 30, 2024) have been and are rapidly connecting with the northern provinces and connecting with development centers, administrative centers, and industrial parks, making Nghe An's natural and social conditions increasingly favorable, attracting investment capital. In addition, the provincial planning has been approved, the coastal road, National Highway 1A, and the seaport system in Nghe An are receiving investment attention for construction...
Among the growth indexes in the first 9 months of Nghe An, the industrial and construction sector had the highest growth rate of 13.47%, contributing 51.71% to the growth rate of total added value; of which, the industrial sector increased by 15.83% over the same period last year, contributing 2.83 percentage points to the growth rate of total added value of the whole province.
Growth of the service sector in the first 9 months reached 6.65%, contributing 2.77 percentage points; of which, wholesale and retail increased by 12.61% over the same period, contributing 0.83 percentage points.
Total export turnover of goods in 9 months reached 2,326 million USD, up 32.01% over the same period last year.
Nghe An Industry and Trade Department has focused on coordinating to attract investment and improve the investment environment.
Specifically, in the first 9 months of the year, the coordination attracted 51/65 projects in the industrial and commercial sector with a number of FDI projects such as: Well King Technology Co., Ltd. (Vietnam) Project, King Conn Nghe An Electronic Project, Leader Tech Vietnam Co., Ltd., Project Providing Services for Industrial Production Activities, Pan Ai Jun Investor..., contributing to the general investment attraction of the province. In addition, promoting the activities of growth steering groups, removing difficulties for businesses.
In the first 9 months of the year, some items had export turnover growth compared to the same period: Electronic equipment and components increased by 84.4%; Textiles and garments increased by 30.1% (increased export orders); Steel and iron of all kinds increased by 29.2%; Footwear of all kinds increased by 88.1%.
Some new factories have come into operation, stabilizing capacity such as: Andromeda Shoes Vietnam Co., Ltd; Cyppes Vietnam; Viet Glory and Apex; Electric wires and cables increased by 74.5% due to factories expanding operations. Rice increased by 75% due to the world's rice supply shrinking due to unfavorable weather conditions, many major supplying countries were forced to ban and limit exports.
In the first 9 months of the year, Nghe An enterprises exported goods to over 142 countries and territories around the world. Export turnover to some markets increased sharply compared to the same period, typically: Hong Kong increased by 87.5%; Taiwan increased by 68.4%; Japan increased by 28.8%, Korea increased by 16.7%, Germany increased by 47.7%, Singapore increased by 111.5%,...
Mr. Pham Van Hoa - Director of Department of Industry and Trade
In the difficult context of the world economy, Nghe An's exports have increased sharply, proving that partners' confidence in the Nghe An market and Nghe An enterprises has improved. Nghe An is becoming a production center for some export products such as electronics and textiles.
Grasping the task of promoting growth, maintaining macroeconomic stability, controlling inflation, and ensuring major balances, Nghe An's tax, finance, and banking sectors have also made efforts to implement many measures to contribute to the excellent completion of the set political tasks.
For the Finance sector, it has advised the Provincial People's Committee to establish a working group to urge budget collection, coordinate with sectors, districts and towns to regularly update the situation of budget collection and tax debt collection, and direct affiliated sectors to complete political tasks.
The budget collection work in the province for the first 9 months exceeded the progress of the estimate assigned by the Provincial People's Council, reaching 104.8%, equal to 143.2% compared to the same period in 2023 and exceeding the set scenario. Tax debt collection decreased sharply. The Finance sector also effectively advised the Party Executive Committee on major economic programs of the province, investment policies, and new projects.
In 2023-2024, the State Bank of Nghe An (SBV) adjusted the operating interest rates down 4 times with a reduction of 0.5-2.0%/year, helping credit institutions continuously lower deposit interest rates to create room to reduce lending interest rates.
In 2024, the State Bank will continue to maintain the operating interest rates to facilitate credit institutions and businesses to access capital sources at low costs to contribute to supporting the economy... As a result, the average lending interest rate for new transactions of commercial banks has decreased sharply in 2023 and continued to decrease in the first months of 2024.
In addition, the State Bank has requested credit institutions to publicly announce average lending interest rates, the difference between average deposit and lending interest rates, lending interest rates for credit programs, credit packages and other types of lending interest rates to ensure that businesses and people have access to credit sources at appropriate costs. The State Bank of Vietnam, Nghe An Province Branch, has directed the local banking sector to focus credit on production and business sectors, priority sectors and major, key projects of the province such as the North-South Expressway, coastal road, Vinh-Cua Lo road, Binh Minh road, etc.
Units promptly and responsibly implement preferential credit programs and policies: the 120 trillion VND credit program for loans to develop social housing, workers' housing, and renovate and rebuild old apartment buildings; preferential credit packages for forestry and fishery; preferential credit programs for poor households and policy beneficiaries; National Target Programs...
Along with promoting credit to support the economy, the banking sector in the province also promotes digital transformation, cashless payments, and ensures security and safety in payment activities.
Ms. Nguyen Thi Thu Thu - Director of the State Bank of Vietnam, Nghe An Branch said: By September 30, 2024, Nghe An Banking sector continued to lead in terms of operating results in the North Central region with mobilized capital reaching VND 254,772.9 billion, an increase of VND 22,428.5 billion compared to the beginning of the year, equal to 9.7%; total outstanding debt in the whole area reached VND 305,185 billion, an increase of VND 18,963 billion compared to the beginning of the year, equal to 6.6%.
Bad debt in the whole area accounts for 1.6% of total outstanding debt; banking operations are stable and safe, contributing effectively to supporting businesses and economic growth in the province.
Another bright spot is investment attraction: Nghe An has been in the Top 10 for investment attraction nationwide for two consecutive years. Some outstanding projects with capital of hundreds of millions of USD have come into operation, such as Luxshare ICT Co., Ltd. (Nghe An), with a total investment of 290 million USD, creating jobs for nearly 12,000 people, EVERWIN Precision Technology Co., Ltd. (Vietnam) with a total investment of 309.68 million USD (2 projects) have created momentum for the next satellite projects.
In addition, there are projects preparing to come into operation in 2025: LUXCASE Technology Co., Ltd. (Vietnam), investing 473 million USD in the electronics and precision mechanics industry, creating jobs for about 1,000 people; Project of Luxshare Technology Co., Ltd. (Vietnam), total investment capital of 35 million USD, electronics sector, expected to create jobs for about 1,500 people; Project of Luxvisions Science and Technology Co., Ltd. (Nghe An), total investment capital of 60 million USD in the electronics assembly industry, creating jobs for about 1,500 people...
In Hoang Mai 1 Industrial Park, many large projects are also focusing on investing in factories and coming into operation such as the Silicon Bar and Semiconductor Disc Manufacturing Factory of Runergy New Energy Science and Technology Group, Goertek and Juteng projects...
In the fields of agriculture, cooperative development, new business development, digital transformation... Nghe An has achieved important achievements.
Chairman of the Provincial People's Committee Nguyen Duc Trung, in the regular meeting for the first 9 months of 2024, requested sectors and levels to continue to be receptive, listen, and focus on removing obstacles and difficulties for enterprises' production and business activities; support investors to create more job funds, and ensure social security. Another task is to closely monitor the weather situation, proactively review scenarios and plans to respond to natural disasters and prevent epidemics. Although important results have been achieved, natural disasters, storms, floods, and conflicts in some areas of the world will continue to affect Vietnam, including Nghe An, as Nghe An is an active destination for FDI projects from Korea, Japan, China, etc. The risk of disruption of production chains still exists if there is a lack of proactive prevention.
Vietnam's GDP growth forecast for the last 3 months of the year is about 5.5% - 6%; pressure from inflation, overcoming the consequences of storms and floods in the North, and the world situation still have an impact. In Nghe An, the market situation is still difficult for many projects and works about to come into operation, requiring regular and continuous support from all levels of government for investors and businesses. In addition, people's lives and jobs are still facing many difficulties due to the pressure of escalating prices and domestic businesses having difficulty finding jobs and income for workers.
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