Mekong Delta Developing Open Economy

The Mekong delta remains the most important agricultural production region in Vietnam, supplying 50 per cent of rice output, accounting for 90 per cent of the country’s total rice export volume, 70 per cent of fruit output, 52 per cent of seafood output, contributing 60 per cent of export turnover and ensuring national food security. However, the region faces many difficulties due to poor infrastructure facilities, poverty, and poor education among local people.

Under a plan to develop airports throughout 2010, approved by the Prime Minister, the Mekong delta will have four domestic airports, Can Tho, Rach Gia, Phu Quoc and Ca Mau. Recently, the Government guided implementation of some projects in the region upgrading Can Tho and Phu Quoc into international airports. The project upgrading the Can Tho airport, capitalised at VND 900 billion, will be implemented in two phases. An Giang province recently asked the Government to build a new airport on the foundation of the former Chau Doc airport for small airplanes, exploiting short flight routes for tourism development.

Development in the West Sea is fundamental shift for the Mekong Delta economy, freeing it from the shadow of rice farming, developed there for thousands of years. Phu Quoc island will be developed into a modern tourism and trade centre, an open dynamic economic zone and a focal point for international exchange.

 

Furthermore, seaports and passages will create a breakthrough for the region’s maritime economy. Under a plan through 2010, the delta will have 20 seaports with handling capacity of 12 million to 14 million tonnes of cargo annually. Can Tho and Cai Cui will be main seaports of the region. The Prime Minister recently approved a feasibility report on a project building a passage for big ships to enter the Hau River. With total investment capital of VND 3,200 billion (around US$200 million), the construction will take place from 2007 to 2010. The maritime corridor and the development orientation toward the West Sea have opened new opportunities for the Mekong Delta.

 

Also, within its strategies for the maritime economy, the Mekong delta stresses the energy, and oil and gas industries, which play an important role in the delta’s development. With existing capability, the Vietnam Oil and Gas Group and the Vietnam Energy and Coal Group can help each other invest in the region. The Government has commenced construction of the Ca Mau gas, nitrogenous fertiliser and electricity complex with total investment capital of US$1.2 billion. As planned, the Ca Mau 1 electric power plant will operate its open circle in late March 2007, and the mixed circle in December 2007 and start to operate in 2008. Vinashin has invested more than VND 500 billion in building 10,000 tonne ships.

 

The annual Vietnam-Cambodia border co-operation conference boosted effective co-operation between the two countries. The Mekong Delta now has border gate economic zones at three of seven international border gates with Cambodia. Trade exchange via these gates has developed strongly. Two-way trade turnover reached around US$ 800 million in 2006, and is expected to stand at US$2 billion in 2010.

 

In particular, Vietnam has sold electricity to Cambodia in nine places along the border line. The two countries have agreed on feasibility reports for building the Se San I hydro-electric power plant with a capacity of 90 megawatts, and the Se San II plant with a capacity of 420 megawatts. Kien Giang province recently submitted to the Government a plan on building a coal-run power plant in Kien Luong, developed by Australian and Japanese investors. The plant will supply electricity to the Mekong delta and Cambodia.

 

At the same time, roads will be built along the border line. The two countries have started exploration activities for building the Long Binh-Chrey Thum bridge, and negotiated the trans-Asia Singapore-Kunming railway route, via Vietnam and Cambodia. This will offer more co-operation opportunities for the two countries, boosting the Vietnam-Laos-Cambodia development triangle and development of the tourism programme ‘Three countries, one destination.’

 

During the international integration process, development space on the Mekong delta will be expanded to ASEAN with a population of 600 million, and furthermore, the east-west maritime passage.

 

Perhaps, in the near future, the Mekong delta must continue its task of food security for Vietnam. However, the region will enjoy more development and opportunities to become prosperous. With new gates, rice, fish and shrimps of the delta will go further into the world.