return icon Vietnamnet.vn

Regional linkages needed to boost growth in north, central-coastal region

After 18 years of implementing Resolution 39 on socio-economic development and national defence-security in the northern and central coastal areas, the regional economy grew by 7.3 percent in 2005-2020.
Member of the Politburo, and Head of the Central Economic Commission Tran Tuan Anh 

The statistics were released by Member of the Politburo, and Head of the Central Economic Commission Tran Tuan Anh at the workshop on the development of the region by 2030 with a vision towards 2045.

He said the scale of the regional economy has expanded, reaching VND1.157 trillion by 2020, accounting for 14.53 percent of GDP of the whole country, while the average GRDP (gross regional domestic product) reached VND56.91 million per head per annum.

The local budget collections have increased significantly. Some localities can balance receipts and expenses and even pay into the state budget. Significant results have been gained in planning management. Resolution 39 has come to life with most tasks having been fulfilled.

However, Tuan pointed out that many problems still exist. The northern and central coastal areas are still  under the developed rate of the entire country. Some geo-economic and marine economy advantages have not been exploited and brought into full play.

Though accounting for more than 28 percent of natural area and 20.8 percent of total population, the economy of the region only accounts for 14.53 percent of the country’s GDP, while GRDP per capita of the region is low, just equal to 0.69 percent of the average level.

Current management has no relation to region

According to Tran Du Lich, a panel speaker, the Party’s resolutions and 2013 Constitution mentioned regional linkages and the regional economy, but in fact, this is just a provincial economy.

“Our management is implemented in accordance with provincial plans and budgets, with no relation to the region. Therefore, in fact, it is ‘every man for himself’,” Lich said.

Citing the example of the allocation of capital for investment in infrastructure, Lich questioned whether the whole region discusses the issue or provincial leaders just discuss with each other and then divide the capital with one another.

Lich emphasized four regional linkages that must guide all policies.

First, re-distributing forces and rearranging planning currently being done. It is necessary to adjust regional planning to avoid the fact that many EZs and IZs scramble for investors. If resources are separated, nothing is done effectively.

“Every province wants to have its share. This is what we call the regional distribution of production forces. This is currently being planned, this will fail,” Lich said. 

Second, cooperating to develop transport infrastructure. Lich praised the government for urgently building the North-South Highway and coastal roads. However, there is still one matter of concern, which is the road connecting the central region with Central Highlands.

“This is an extremely important ‘fishbone’ route, because if the central region wants to develop, it needs to link with the Central Highlands. It is necessary to develop the overall transport system,” he said.

Third, localities need to cooperate to prepare human resources for the whole region.

Fourth, cooperating to protect the environment. There should be a common environmental protection system for the whole region.

Lich also pointed out that local authorities once offered preferential land taxes (zero percent), which prompted businesses to register projects to occupy land (and leave the land unused). Therefore, it is now necessary to set up a common system of policies on land prices in localities.

He said that in order to make the regional coordination committee work effectively, there should be divisions to conduct research, give advice, synthesize information, and an investment and research fund for regional development agencies including from private sources. 

“If so, there will be money, brains, advice and proposals to build a dynamic model which promotes the strength of all forces,” Lich said.

Mentioning the strong and consistent reform of the business environment, Nguyen Dinh Cung, former Director of the Central Institute of Economic Management (CIEM), stressed that province chairs need to  pay attention to the local business environment, considering this their top priority, and review environmental reform. 

In the five-year and annual plan, there should be targets about the numbers of newly established businesses and programs to encourage and support the establishment of businesses.

The northern and central coastal area is one of six socio-economic regions of the country, with 14 cities/provinces from Thanh Hoa to Binh Thuan provinces.

Thu Hang

MORE NEWS

Female People's Army officer works at EU Training Mission in Africa

Of the seven officers of the Vietnam People’s Army sent by the President to international missions, Lieutenant Colonel Vu Thi Lien is the first officer performing duties at the European Union Training Mission in Central African Republic (EUTM RCA).

VIETNAM NEWS HEADLINES FEBRUARY 4/2023

Minister requests fruitful cooperation in defence industry with other countries

Vietnamese cyber users advised to be cautious about ChatGPT registration

ChatGPT has recently been so popular in various fields. Since there are limits in ChatGPT registration from Vietnam, Internet users here are warned to be careful to proceed with the process to avoid being scammed.

2-3 more submarine fiber cable routes needed for Vietnam

The Vietnam Internet Association’s (VIA) Secretary General Vu The Binh said Vietnam needs at least two or three more submarine fiber cable routes in the next five years to serve mounting demand.

Vietnam still approves use of Covid antibody treatment

Vietnam still approves use of Covid antibody treatment Evusheld as it is still effective against subvariants circulating in the Southeast Asian country.

Former Coast Guard generals accused of embezzling $2.1 million

The crime allegedly started in 2019 when the Vietnam Coast Guard’s Department of Technology was allocated VNĐ150 billion (US$6.3 million) to purchase equipment.

Transport Ministry told to disburse VND94 trillion in 2023

The Government has tasked the Ministry of Transport with disbursing nearly VND94.2 trillion of public investment in 2023, up 1.7-fold against the 2022 figure and 2.2-fold versus 2021.

Banks pumped VND800 trillion into real estate in 2022

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Finance Ministry suggests taxing land and buildings separately

The Ministry of Finance has proposed developing a new property tax law to separate the tax on land from that on buildings.

Vietnamese movies earn over VND350 billion during Tet

Vietnamese-made films tallied more than VND350 billion in ticket sales in the first nine days of the Lunar New Year, between January 22 and January 30, according to the independent analytical website Box Office Vietnam.

Nguyen Trong Hieu's music video in finals of German Eurovision Song Contest

In a landmark moment for Vietnamese music, Nguyen Trong Hieu, winner of Vietnam Idol 2015, has announced that his latest music video has made it to the final eight in the German Eurovision Song Contest (ESC).

Vietnam's tourism revenue reaches VND46 trillion in January

Vietnam’s tourism industry generated around VND46 trillion in revenue this January, with a surge in domestic and international tourist numbers, according to the Vietnam National Administration of Tourism.

Vietnamese consume nearly 60 tons of gold in 2022

Vietnamese consumers bought 59.1 tons of gold, representing a year-on-year increase of 37 percent, the fastest increase in Southeast Asia, according to the World Gold Council.

Vietnam remains in world’s Top 5 plywood exporters

Vietnam earned US$ 1.1 billion from exporting plywood in the first 11 months of 2022, securing the fifth place in the world’s top five largest plywood exporters, according to the International Trade Center (ITC).
back_to_top