Priority to High-quality Industry Development

9:12:51 AM | 1/25/2023

Taking industrial development as the foundation for local socio-economic development, Vinh Phuc has launched many effective resolutions, programs, mechanisms and policies in order to create a strong, gradual economic restructuring and reform the growth model.

The resolution of the 17th Vinh Phuc Provincial Party Congress (2020 - 2025 term) with five key tasks and three breakthrough stages, Vinh Phuc province introduced a number of socioeconomic growth targets, including a GRDP growth of 8.5-9%, total fiscal revenue of VND31.2 trillion, an FDI inflow of US$450 million and a DDI fund of VND10.5 trillion; and 16,000 - 17,000 new jobs. The Provincial Party Congress also set an overall goal of “becoming a developed industrial province, one of industrial, service and tourism centers of the region and the country by 2025”.

To achieve this goal, one of five key tasks adopted by Vinh Phuc province is “Continuing to change the growth model, with a focus on developing high-quality industry and services; strongly transforming the economic growth model from breadth to depth, creating a transformational change in growth quality and economic competitiveness by enhancing labor productivity driven by scientific and technological applications and innovations and one of three breakthroughs is defined as “Priority is given to attracting investment capital for developing high-tech electronics clusters and making Vinh Phuc an electronics center of the country.”

In 2021 - 2025, Vinh Phuc province will carry out comprehensive solutions to raise productivity, focusing on the following issues: Changing the growth model, creating transformational progress in growth quality, economic competitiveness and labor productivity driven by advanced scientific and technological applications; enhancing management capacity; fostering entrepreneurship and innovation; accelerating the Fourth Industrial Revolution to production, business and social management; accelerating economic restructuring by raising the share of industry and services; focusing on industrial development as a premise and a motivation for other economic sectors to scale up development; encourage the development of supporting industries; maintain and develop manufacturing and assembling of automobile and motorcycle parts, electronic components and electronic devices to become a spearhead industry.

Besides, the province will focus on investing and upgrading infrastructure, and developing industry, agriculture and services in a sustainable manner by attracting investment funds for infrastructure development of existing industrial parks; and strengthening planning management and operation. The province will speed up industrial production along global value chains, develop small and medium-sized enterprises, support industrial enterprises, create a network of supporting manufacturers and exporters for large firms; attract investment capital and develop information and communication technology, education, logistics, finance - business, tourism, transportation, science and technology and healthcare services. At the same time, Vinh Phuc will continue to speed up agricultural restructuring by adopting safe and sustainable production processes; developing commercial production; applying modern technology and advanced production techniques; and creating high-quality organic products.

Furthermore, the province will develop and improve the quality of all economic sectors with a focus on the private sector and small and medium-sized enterprises; adhere to the working principle of “accompanying businesses”, protect property rights, create the most favorable business and investment environment for enterprises, ensure equality in business rights, interests and opportunities. Vinh Phuc will restructure State-owned enterprises and complete the divestment of State capital in enterprises; reform administrative agencies and transform non-business service agencies into joint-stock companies.

At the same time, Vinh Phuc will continue to improve the business environment and open up resources for socioeconomic development. It will concentrate on reviewing to eliminate procedures and regulations that are distressing and hindering investors; avoid issuing improper and inapplicable regulations and policies; and work out specific mechanisms for site clearance, land acquisition, mobilization and use of investment capital, and construction of technical infrastructure to meet economic development requirements. Vinh Phuc will strive to upgrade the Provincial Competitiveness Index (PCI) and the Vietnam Provincial Governance and Public Administration Performance Index (PAPI) to Top 10 in nationwide rankings as well the Public Administration Reform Index (PAR Index) and the ICT Index to Top 15. The province will speed up technological innovation, development and application: Focusing on developing the innovation capacity of enterprises, taking enterprises as the center and the main driving force of economic growth, creating breakthroughs in productivity, quality, efficiency and competitiveness; enhancing absorptive capacity, mastering new technologies, and participating in production chains, high value-added chains, especially for small and medium enterprises. Furthermore, the locality will create mechanisms and policies to encourage businesses, especially private enterprises, to innovate technology.

In particular, in the face of new investment waves, the province's industrial development policies also change flexibly from time to time to keep up with the country's industrial development strategy to deeply join global value chains, making the province more attractive to domestic and foreign investors and fostering rapid and sustainable socioeconomic development.

By Hoang Tham, Vietnam Business Forum