Since re-establishment, Binh Duong industry and trade has overcome challenges and seen outstanding growth, affirming its core role in economic development. On the 15th anniversary of provincial re-establishment (January 1st 1997- January 1st 2012), Vietnam Business Forum interviewed Mr Vo Van Cu, Director of Binh Duong Department of Industry and Trade, about its contributions to provincial development and efforts to build Binh Duong into a centrally governed industrial and service urban zone. Hoang Lam reports.
Can you talk about local industry-trade-service development in 2011?
Despite many economic fluctuations, by the end of 2011, Binh Duong Industry and Trade still managed to obtain significant achievements. Industrial production value in 2011 grew 17.8 percent year on year and reaching 96.3 percent of the year plan of VND 127,876.1 billion.
Export turnover in 2011 is estimated US$10.342.2 million, up 21.1 percent year on year and 103 percent of the plan of US$ 10,036.6 million. In the service sector alone, total retail sales and service turnover in 2011 is estimated VND59,367.2 billion, up 30.5 percent year on year, reaching 103.5 percent of the plan of VND57.369 billion.
Industry and trade has created a firm foundation for provincial development in 2012. The industry continues its efforts to better consult with the provincial People’s Committee to timely tackle difficulties for enterprises; implement better consultation in building supporting policies for small and medium industrial enterprises; mobilize resources to increase technology content in industrial products, especially export products of high added value and large turnover.
What are the key industries in the province? How does the province prioritise these key industries?
In the current period, key industries accounting for high percentage of provincial industrial structure include: food processing (accounting for 17.5 percent of the whole provincial industrial production value), wood manufacturing (16.9 percent); mechanics (12.8 percent); electricity-electronics, communication, informatics (9.9 percent); chemical and rubber, plastic (14 percent); textile and garment (7.6 percent); and leather footwear (4.7 percent).
To invest effectively into these key industries, the province has approved and implemented the proposal “Development orientation for prioritized industries, industrial spearheads in Binh Duong province during 2008-2020 and some development policies”, in which focus will be put on development of prioritized industries such as: wood manufacturing, food processing, chemicals, rubber, plastic and supporting industries for textile and garment, leather footwear and economic spearheads like mechanical and electronic industries, telecommunication, and informatics. Besides, the province also passed and put into practice the proposal “ Development orientation for supporting industries in Binh Duong to 2020”, in which concentration will be given to developing supporting industries for textile and garment, leather footwear, mechanical, electricity-electronic and wood manufacturing sectors. Development of supporting industries in Binh Duong focuses on serving domestic industries producing finished products, which helps boost development of provincial key industries in the future, increases localization of industrial products as well as helps increase industrial added value.
Which solutions has the province adopted to increase exports?
To increase exports and competitiveness of local exporters, we emphasise providing export-import information via the portal of the Department of Industry and Trade. Local radio stations regularly provide updates of business information necessary for exporters.
Besides, we have also coordinated with the Ministry of Industry and Trade to hold conferences introducing commitments in Free Trade Agreements. The province also provides assistance to enterprises participating in exhibitions in the province and neighbouring ones, and foreign fairs; and takes part in business exchange with foreign enterprises. At the same time, reviews are regularly conducted to tackle difficulties for enterprises as well as provide timely information about business activities upon businesses’ request.
What policies will Binh Duong adopt to promote supporting industries?
To strongly promote supporting industries, the province has built up and implemented the proposal “Development orientation for supporting industries in the province to 2020.” The proposal identified 5 key supporting industries: textile-garment, leather-footwear, mechanical engineering, electronics-informatics, and wood manufacturing. Mechanical engineering and electronics-informatics are considered breakthrough supporting industries. Moreover, the proposal also identified 9 measure groups to promote supporting industries such as: measure for investment and technology attraction; measure for consuming market of supporting industries’ products; measures for human resource development; measure for allocation of supporting industries, etc.
Beside the proposal, the province also established an Assessment Committee for projects of developing supporting industries under Decision 12/2011/QD –TTg about the policy to promote some supporting industries in Binh Duong province. Accordingly, there are policies boosting development of supporting industries in fields of infrastructure, information provision, marketing, and human resource training. Based on the list of projects developing supporting industries built up by the Ministry of Industry and Trade, a list of projects manufacturing supporting industries’ products of development priority in the province will be reviewed and built, and at the same time, a strategy worked out to attract investment into supporting industries in 2011-2015. Concurrently, the province will annually develop trade promotional and investment attraction programmes for supporting industries.
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