Experts and investors are discussing on the development of the key economic region in Central Vietnam with such issues as how to ensure regional economic linkage, to coordinate the managements of the five provinces, and to develop a suitable key economic region in Central Vietnam. The main problem is how to establish a management board to make the best use of the comparative advantages of the region.
Advantage for fast development
After nearly two years of implementing Decision 1085/QD-TTg of August 12, 2008 of the Prime Minister to develop key economic regions into centres of transit-trade-processing of the Mekong Delta and Asia-Pacific region with sea-based economic sectors combining with industry, tourism, service, linking with economic and industrial zones and storages at home and abroad, the province in Central Vietnam have recorded high growth rates: State-owned investment capital increased from 65.68 to 71 % with capital construction accounting for 80 %. From 1988 to the first quarter of 2010, the region has attracted 377 projects with registered FDI of nearly US$14.4 billion (74 % in projects and 61 % in registered investment capital of Central Vietnam and the Western Highlands). In particular, since 2007, FDI inflow to the key economic region has fast increased with FDI capital in 2007-2008 increasing four times that of the previous 19 years (1988-2006). It shows clearly the advantage for fast development of key economic region.
First, the key economic region is the centre of Vietnam with strategic position for socio-economic development, the main axis of North-South road and rail networks and the gate way to Tien Sa seaport of the Central Highlands and East-West Economic Corridor of the Mekong Sub Region. The development of infrastructure, seaports, airports, power grid and telecommunication and the acceleration investments in recent years have made the key economic region the linkage between series of big cities Hue, Da Nang, Hoi An-Tam Ky, Quang Ngai and Quy Nhon.
Second, it was not accidental that as early as late XVI and early XVII century, Europeans, Chinese and Japanese arrived and traded with Xu Quang, nucleus of the present key economic region. In addition to the strategic location, the key economic region has also rich and diversified natural resources and potentials for spear-headed economic sectors such as sea-based economy, eco-tourism, resort and other services. Meanwhile with advantage of the heritage route of international heritages of Hue ancient royal capital, Hoi An ancient town, My Son Holy site and series of world famous beaches such as Da Nang (one of the six most beautiful beaches selected by Forbes magazine), the key economic region is regarded as the most attractive destination in Vietnam. The region has also deep-water and storm-free gulfs such as Chan May (Thua Thien Hue), Lien Chieu-Tien Sa (Da Nang), Dung Quat (Quang Ngai), Quy Nhon and Nhon Hoi (Binh Dinh) which can be developed into network of seaports for socio-economic development.
Third, with three out of 13 key economic regions of Vietnam enjoying preferential treatment for FDI attraction and business environment of international practice, the region is regarded as attractive destination for local and foreign investors. In addition, 22 industrial zones with the nucleus of dynamic Da Nang will ensure sustainable socio-economic development in XXI century.
The region needs a management board
How to make the best use of the advantages? That is the question for the local authorities and experts. It is believed that there must be in the first place a “conductor”, a management board for the whole region which can make the best use of the advantages. Mr. Dinh Van Thu – Vice Chairman of Quang Nam People’s Committee has pointed out that there must be a State management body with specific function to regulate correctly and timely the development of the region.
As proven by several key economic regions, direct management can solve in time constraints and problems arising in the process of developing the region. Presently, the central government continues the function of regulating and managing four key economic regions in Vietnam. From September 28, 2004, all key economic regions in Northern, Central, Southern Vietnam and the Mekong Delta are under the management of a National Management Board. Though such management board can ensure sustainable development and prevent local abuse of power, it cannot meet the local demand and solve specific issues. On the other hand, Mr. Dinh Van Thu added that due to loose and unrealistic mechanism at local level, socio-economic development plans, annual and five-year, have been designed without guidance of some management body, resulting in disarray of modernization and key projects. The regional management board can help regulate the development of projects more effectively. It is also true to other regions of Vietnam.
La Xuan Thanh
Vietnamese
