Mekong Delta Development: Better Coordination Needed

The Conference on Socio-Economic Development of the Mekong Delta – Phase 2006-2010 took place on July 18-19, 2006 in Ho Chi Minh City. Discussion was focused on solutions to transform the economic structure, develop infrastructure and upgrade the people’s knowledge.

Mr Vo Hong Phuc, Minister of Planning and Investment said that in the past five years (2001-2005), the Mekong Delta economy was restructured to develop the local advantages with an average growth rate of 10.4% a year. Many infrastructure projects have been built and operated (water conservancy, communication and transport) contributing to the ever-increasing socio-economic development. Resettlement plan has been completed in flooded areas. Aqua-culture (in fresh, brackish and sea waters) has become high-yield and large-scale production in 485,000 hectares, changing the economic structure of the region. The export turnover was US$1.45 billion. The processing industry, especially in sea products, makes up 22.5% of the regional economy.

However, there remain many shortfalls that make growth unstable. The incomplete infrastructure failed to meet the demand of development. Trade activities could find the outlet for the production. For this problem, Dong Thap authorities said that the cause may be found in the planing and objectives to tap the potentials of the region. Meanwhile Hau Giang authorities believed that there must be firm determination and close coordination for the implementation. High priorities should be given to the building of Can Tho bridge, river port and airport. Investment must also be based on practical conditions of the region. The weak ground requires higher cost for the construction of road in the Mekong Delta, up to three times that of other regions.

Bac Lieu authorities pointed out the need for better coordination and timely capital disbursement especially for rice and aquatic products, the biggest exports in Vietnam. For their part, Long An authorities considered the most important problem is the allocation of capital causing corruption in certain sectors.

Besides poor infrastructure, the standards of human resources and people’s knowledge are still low. Unemployment remains a big problem. The shortage of skilled workers is serious and failing to meet the demand of the regional development. Trained workers make up only 14% (25% in Vietnam) of the work force. There are only 5 students for every 10,000 people , the lowest percentage in Vietnam.

After considering the weaknesses and actual conditions, the conference recommended the Prime Minister on suitable policy and solutions for the economic restructuring in 2006-2010 to make Mekong Delta a key economic region of Vietnam.
Hai Nguyen