Nghe An: Creating growth bands, strong links to promote industrial development

Expectations from major projects

Nghe An is a province with great potential for industrial development. The largest area in the country is 16,490 km2, ranked 4th in population size with more than 3.3 million people (working age accounts for more than 2 million people, about 60%), is the central hub of the North Central region, located on the main traffic axis connecting the North - South, has a developed traffic system, roads, and cross-country railways.

Infrastructure of the Southeast Economic Zone and industrial parks receiving investment attention such as: VSIP, WHA Industrial Zone 1, Hoang Thinh Dat, creating an important premise to attract secondary projects.

The province has completed the technical infrastructure of Nam Cam, Hoang Mai, Thai Hoa, Nghia Dan Industrial Parks... and deployed investment in building infrastructure for 32 industrial clusters with an area of ​​467 hectares, attracting hundreds of enterprises to invest in construction.

VSIP Nghe An Industrial Park. Photo courtesy of BNA

In particular, in 2022, the newly granted and adjusted FDI capital invested in Nghe An reached more than 961.3 million USD, with many large industrial production projects. Some projects put into operation have annual export value accounting for 30-35% of the province's export value, contributing to raising the proportion of Nghe An's import and export turnover to 28th in the country.

According to the leader of the Management Board of Southeast Nghe An Economic Zone: Recently, along with submitting to the Prime Minister for approval the Project to Expand the Southeast Economic Zone and rename it Nghe An Economic Zone with an area of ​​105,585 hectares, the province also allocated resources and called for and attracted investment to build a technical infrastructure system for 12 industrial parks outside the economic zone and 71 synchronous and modern industrial clusters.

With its available potential and efforts, Nghe An has achieved very positive results in attracting investment, contributing greatly to the province's economic recovery and growth after the pandemic.

Effective investment attraction is a solid foundation for industrial production and immediate and long-term economic and social development.

Hoa Sen Steel - one of the industrial products with good growth in recent years. Photo: Thu Huyen

According to the assessment, compared to the North Central region and the Central Coast, Nghe An's economic structure is similar, with a high contribution from the service sector, a shift from the agricultural, forestry and fishery sector to the industrial - construction sector and an increasing service sector.

Find breakthrough solutions

However, industrial development in Nghe An is still not commensurate with its potential and advantages. The proportion of industry in GDP is still low compared to the national average, the competitiveness of products is not high due to the scale and backward technology level, there are few key products dominating the market inside and outside the province. The added value and proportion of exported industrial products are still low. The province still lacks large-scale industrial establishments that play a core role, have a spillover effect, attract and stimulate the development of satellite enterprises, supporting industries, etc.

Implementing Resolution No. 29-NQ/TW dated November 17, 2022 (term XIII), on continuing to promote industrialization and modernization of the country to 2030 and vision to 2045, the Party Committee of the Provincial People's Committee has just issued Document No. 112-TTr/BCSĐ dated March 14, 2023, on promulgating an action program to specify the above tasks.

Production activities of enterprises in the Southeast Economic Zone. Photo courtesy of PV

Accordingly, Nghe An aims to achieve an average GDP growth rate of 11-11.5% per year by 2030. GRDP structure: Agriculture, forestry and fishery account for 13.5-14%; industry - construction accounts for 42-42.5%; services account for about 38.8%; GRDP per capita in 2030 strives to be higher than the national average at about 8,000 USD (current price); the proportion of agricultural workers in the total social workforce strives to be below 30%, workers in the industrial and service sectors account for over 70%; digital economy accounts for 30% of GRDP. By 2030, 100% of industrial parks and industrial clusters in operation will have centralized wastewater treatment systems that meet environmental standards, the average occupancy rate will reach 65-70% of the area...

To achieve the set goals, it requires synchronous solutions, developing synchronous and modern infrastructure, promoting rapid and sustainable urbanization; developing science and technology, innovation and creativity; enhancing training of high-quality human resources to meet the requirements of industrialization and modernization...

Mr. Pham Van Hoa - Director of the Department of Industry and Trade said: Currently, Nghe An is gradually forming key industrial sectors with competitive advantages of the province such as: Cement and construction materials production; processing of agricultural, forestry, aquatic and food products associated with high-tech agriculture according to the value chain model; mechanical industry; pharmaceutical production; energy and industry serving rural agriculture will be focused on development resources.

Container ship docks at Cua Lo port. Photo: Thu Huyen

The distribution of industrial space needs to be studied to ensure rationality, creating growth bands to strengthen the linkage between industries, regions and localities to participate deeply in the production value chain. For Vinh City and coastal areas (Cua Lo Town, Hoang Mai Town and the coastal strip along National Highway 1A), with advantages in transport infrastructure, seaports, infrastructure of the Southeast Economic Zone, concentrated industrial parks and qualified labor resources, it will focus on developing industries such as mechanical industry, production of electrical and electronic equipment, seafood processing industry, shipbuilding and ship repair. The Nam Cam - Tho Loc and Hoang Mai - Dong Hoi areas can develop into concentrated industrial strips of regional scale, on the basis of prioritizing investment attraction in a number of high-tech industries, new materials, heavy industries that cause little pollution and do not affect the potential of marine tourism.

Regarding the development orientation of priority industries and spearhead industries, the Commander of the Industry and Trade sector said that it is necessary to focus on human resource development; promptly develop general policies on land, trade promotion, create and develop technology markets through organizing technology and equipment fairs in the province so that businesses have access and choice. Particularly for the priority industry in the field of agricultural, forestry and fishery processing, which is the traditional strength of the province, it is necessary to focus on developing and stabilizing raw material areas as well as investing in developing infrastructure to serve the exploitation and development of concentrated raw material production areas, because this is the decisive factor for sustainable development.

Determining the right development direction combined with drastic and highly feasible solutions, hopefully Nghe An will accelerate the economic development in general and the industrial sector in particular, soon becoming an industrial province by 2030.