Update on Industrial Development in South Eastern Provinces

 

In 2001-2005, South Eastern provinces have attracted FDI into 47 per cent of the industrial sector with a total investment capital of US$32.1 billion in 3,800 projects, contributing to the transformation of the sector and the economy of Vietnam. In 2005, the export value of the South Eastern provinces made up 80 per cent that of Vietnam. The industries of the provinces have advantages in size and technology especially in electrical-electronics, chemistry, rubber, plastic, minerals, construction materials, food processing, apparel, and footwear.

 

However, according to experts, the structure is mainly with labour-intensive industries and little of hi-tech and high added value industries. The industrial development still concentrated in HCMC , Dong Nai, Ba Ria - Vung Tau and Binh Duong provinces. In 2006-2010, the region will develop nine industries with comparative edge such as minerals and construction materials (annual growth rate of 8-10 per cent), agricultural and forestry processing industry (annual growth rate of 14-16 per cent and 43.8 per cent of the total output of Vietnam), apparel-footwear (16-18 per cent), paper and related products (12-14 per cent), chemistry, rubber and plastic (20-22 per cent), mechanics (22-24 per cent), electrical-electronics, IT, food processing and wooden furniture.

 

Linkage for development

 

There is a clear division of labour among nine industries. The province is strong in certain industry will call for investment and make the best use of potentials and advantages of that industry. In such a way, HCMC gives high priority to engineering and manufacturing (automobile assembly, ship building, generators, new generation of machines), electronics, IT, software, chemistry. Ba Ria - Vung Tau focuses on oil and gas exploitation and refinery and related services, steel rolling, chemistry, energy, construction materials. Dong Nai develops agricultural processing, minerals, apparel, footwear, high technology, supporting industries and parts. Binh Duong concentrates on mechanics, construction machines, auto parts, agricultural and forestry processing, leather, chemistry. Meanwhile the four neighbouring provinces : Tay Ninh, Lam Dong, Binh Thuan, Binh Phuoc will have their own priorities in developing processing industries, minerals, construction materials and sea-products.

 

In the next five years (2006-2010) the industry of the region will continue the stable development, taking the lead in the industrialisation and modernisation of Vietnam with average growth rate of 17.8 per cent a year. The remaining issue is the co-ordination and planning with the development of the whole country to avoid waste, overlapping and unhealthy competition. It also means that to ensure sustainable development, the region should continue its role as a driving force in economic growth and efficiency and the linkage with the rest of the country.

           

 Hong Hanh