Nghe An: High economic growth in the first 9 months of the year.
In the first nine months of 2024, Nghe An province's GRDP growth is estimated at 8.30%, ranking second in the North Central region and sixteenth nationwide; higher than the 6.22% growth rate in the same nine-month period of 2023. This achievement reflects Nghe An's renewed efforts this year.
In the first nine months of 2024, despite facing many difficulties and major challenges, thanks to 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, the socio-economic development of Nghe An province achieved many positive results.
The achievements in transportation and infrastructure, such as the North-South Expressway (the Dien Chau - Bai Vot section completed on June 30, 2024), have been and are connecting Nghe An with northern provinces quickly and with development centers, administrative centers, and industrial zones, making the natural and social conditions of Nghe An increasingly favorable and attracting investment. In addition, the approved provincial planning, the coastal road, National Highway 1A, and the seaport system in Nghe An are receiving investment for construction...
In Nghe An's growth indicators for the first nine months of the year, the industrial and construction sector showed the highest growth rate at 13.47%, contributing 51.71% to the overall growth rate of added value; within that, the industrial sector grew by 15.83% compared to the same period last year, contributing 2.83 percentage points to the province's overall growth rate of added value.
The service sector grew by 6.65% in the first nine months, contributing 2.77 percentage points; of which, wholesale and retail trade increased by 12.61% year-on-year, contributing 0.83 percentage points.
Total merchandise exports in the first nine months reached US$2,326 million, an increase of 32.01% compared to the same period last year.
The Nghe An Department of Industry and Trade has focused on coordinating efforts to attract investment and improve the investment environment.
Specifically, in the first nine months of the year, coordinated efforts attracted 51 out of 65 projects in the industry and trade sector, including several FDI projects such as: Well King Technology (Vietnam) Co., Ltd., King Conn Electronics Nghe An, Leader Tech Vietnam Co., Ltd., the Industrial Production Service Supply Project, and Pan Ai Jun Investor…, contributing to the province's overall investment attraction. In addition, the province intensified the activities of growth steering committees and addressed difficulties faced by businesses.
In the first nine months of the year, several product categories saw significant export growth compared to the same period last year: Electronic equipment and components increased by 84.4%; textiles and garments increased by 30.1% (due to increased export orders); various types of steel sheets increased by 29.2%; and various types of footwear increased by 88.1%.
Several new factories have come into operation, stabilizing production capacity, such as: Andromeda Vietnam Footwear Co., Ltd.; Cyppes Vietnam; Viet Glory and Apex; Wire and cable sales increased by 74.5% due to factory expansion. Rice sales increased by 75% due to shrinking global rice supply caused by unfavorable weather conditions, forcing many major supplying countries to ban and restrict exports.
In the first nine months of the year, businesses in Nghe An exported goods to over 142 countries and territories worldwide. Export turnover to some markets increased sharply compared to the same period last year, notably: Hong Kong increased by 87.5%; Taiwan by 68.4%; Japan by 28.8%, South Korea by 16.7%, Germany by 47.7%, Singapore by 111.5%,...
Mr. Pham Van Hoa - Director of the Department of Industry and Trade
Amidst the challenging global economic climate, Nghe An's exports have surged, demonstrating improved confidence among partners in the Nghe An market and its businesses. Nghe An is becoming a production center for several export items such as electronics and textiles.
Firmly committed to promoting growth, maintaining macroeconomic stability, controlling inflation, and ensuring major balances, the tax, finance, and banking sectors in Nghe An have also strived to implement numerous measures contributing to the excellent fulfillment of the political tasks set forth.
Regarding the Finance sector, it has advised the Provincial People's Committee to establish a task force to expedite budget collection, coordinate with relevant departments, districts, and towns to regularly update the budget collection and tax debt collection situation, and direct subordinate departments to fulfill their political tasks.
Revenue collection in the province during the first nine months exceeded the target set by the Provincial People's Council, reaching 104.8%, equivalent to 143.2% compared to the same period in 2023 and surpassing the set scenario. Tax arrears collection decreased significantly. The Finance sector also provided effective advice to the Party Committee on major economic programs of the province, investment policies, and new projects.
In 2023-2024, the State Bank of Vietnam (SBV) in Nghe An province adjusted its policy interest rates downward four times, with reductions ranging from 0.5% to 2.0% per year. This helped credit institutions continuously lower deposit interest rates, creating room for further reductions in lending interest rates.
In 2024, the State Bank of Vietnam continued to maintain the policy interest rates to facilitate access to capital at low costs for credit institutions and businesses, thereby contributing to supporting the economy... As a result, the average lending interest rate for new transactions of commercial banks decreased sharply in 2023 and continued to decrease in the first months of 2024.
In addition, the State Bank of Vietnam has required credit institutions to publicly disclose average lending interest rates, the difference between average deposit and lending interest rates, interest rates for credit programs and packages, and other types of lending interest rates to ensure that businesses and individuals can access credit at reasonable costs. The State Bank of Vietnam's Nghe An Provincial Branch has directed the banking sector in the province to focus credit on production and business sectors, priority sectors, and major key projects of the province such as the North-South expressway, the coastal road, the Vinh-Cua Lo road, and the Binh Minh road…
The implementing units promptly and responsibly carried out preferential credit programs and policies: the 120 trillion VND credit program for lending to develop social housing, worker housing, and renovate and rebuild old apartment buildings; the preferential loan package for the forestry and fisheries sectors; preferential credit programs for poor households and policy beneficiaries; and national target programs...
Alongside boosting credit to support the economy, the banking sector in the province is also promoting digital transformation and cashless payments, ensuring security and safety in payment operations.
According to Ms. Nguyen Thi Thu Thu, Director of the State Bank of Vietnam's Nghe An Branch: As of September 30, 2024, the banking sector in Nghe An continues to lead in operational results in the North Central region with mobilized capital reaching VND 254,772.9 billion, an increase of VND 22,428.5 billion (9.7%) compared to the beginning of the year; total outstanding loans in the entire province reached VND 305,185 billion, an increase of VND 18,963 billion (6.6%) compared to the beginning of the year.
Non-performing loans across the entire province accounted for 1.6% of total outstanding loans; banking operations were stable and safe, effectively contributing to supporting businesses and the province's economic growth.
Another highlight is attracting investment: Nghe An has consistently ranked in the Top 10 for investment attraction nationwide for two consecutive years. Several prominent projects with capital of hundreds of millions of USD have become operational, such as Luxshare ICT Co., Ltd. (Nghe An), with a total investment of US$290 million, creating jobs for nearly 12,000 people, and EVERWIN Precision Technology Co., Ltd. (Vietnam) with a total investment of US$309.68 million (2 projects), which has paved the way for subsequent satellite projects.
In addition, there are projects scheduled to become operational in 2025: LUXCASE Technology Co., Ltd. (Vietnam), investing $473 million in electronics and precision mechanics, creating jobs for approximately 1,000 people; Luxshare Technology Co., Ltd. (Vietnam) project, with a total investment of $35 million in the electronics sector, expected to create jobs for approximately 1,500 people; Luxvisions Science and Technology Co., Ltd. (Nghe An) project, with a total investment of $60 million in electronics assembly, creating jobs for approximately 1,500 people...
In Hoang Mai 1 Industrial Park, many large projects are also investing in and commencing factory construction, such as the silicon rod and semiconductor wafer manufacturing plant of Runergy New Energy Science and Technology Group, Goertek project, Juteng, etc.
Nghe An has achieved significant accomplishments in various fields, including agriculture, cooperative development, new business development, and digital transformation.
At the regular meeting reviewing the first nine months of 2024, Chairman of the Provincial People's Committee Nguyen Duc Trung requested that all sectors and levels continue to be receptive, listen attentively, and focus on resolving obstacles and difficulties for the production and business activities of enterprises; and support investors to create more jobs and ensure social security. Another task is to closely monitor weather conditions and proactively review scenarios and response plans for natural disasters and disease prevention. Although significant results have been achieved, natural disasters, storms, floods, and conflicts in some regions of the world will continue to affect Vietnam, including Nghe An, which is currently an active location for FDI projects from South Korea, Japan, and China. The risk of disruption to production chains remains if proactive prevention measures are not taken.
Vietnam's GDP growth forecast for the last three months of the year is around 5.5% - 6%; inflationary pressures, the aftermath of storms and floods in the North, and the global situation continue to have an impact. In Nghe An, the market situation remains challenging for many projects and constructions about to become operational, requiring continuous and consistent support from all levels of government for investors and businesses. In addition, people's lives and jobs remain difficult due to rising prices, and domestic businesses are struggling to find work and income for their employees.
