Khanh Hoa Province Takes on Development Drive

2006 is the first year of the five-year plan (2006-2010) and also the most difficult year for the province: serious epidemics spread to livestock and poultry, price hikes in essential commodities affected businesses and social life, business scandals hampered investment and management. However, there are also some favourable developments: the 15^th provincial Party Congress set forth detailed plans for 2006-2010, Van Phong economic zone was approved by the Prime Minister, Khanh Hoa Medical High School was endorsed, Aqua-product College changed into Nha Trang University with several faculties, and Nha Trang Tourist School was established. National and international conferences, cultural and sports events were held in the province. Foreign and national economic groups conducted surveys to develop such projects as shipyards (Korea), thermal power stations (Japan) and seaports.

In 2006, most of the socio-economic objectives were achieved: GDP growth rate increased 10.4 per cent against 2005, budget revenue reached VND3,572 billion, per capita GDP hit US$868, import-export value was up 16 per cent and tourist turnover was 30.6 per cent higher than 2005. Economic restructuring is on the right track, with industry making up 42.24 per cent, service and tourism 40.52 per cent, agriculture, forestry and fisheries 17.24 per cent. Progress has also been made in cultural and social fields, including poverty reduction, employment, care for target groups and public health. Over 900 houses have been built and donated to poor families or victims of natural disasters.

 

Khanh Hoa has three key economic zones, with Van Phong and Cam Ranh as lever for the all-round development of the province, especially in industry, service and tourism. We cannot just wait and see, but must accelerate development of the two zones in accordance with the plan.

 

The province, together with related ministries and agencies, has developed a detailed plan for Van Phong international transit port to be approved by the Prime Minister and offered for consideration by investors. Some projects have been approved and are ready for construction, such as the petrol depot and port wharf at My Giang island (Ninh Hoa) with investment capital of US$60 million by a joint venture of PetroVietnam and a Singaporean partner. Other projects are under consideration, looking for construction sites or completing investment formalities, like Van Ninh industrial zone and Van Thang urban area with Korean investment capitalized at US$65 million, Ninh Hai (Ninh Hoa) modern shipyard by STX group (Korea), Ninh Phuoc industrial complex by Vinashin group manufacturing supporting shipbuilding equipment, and Ninh Phuoc thermal power station by Sumitomo (Japan). Some of these projects are expected to start construction in 2007.

 

Regarding the tourist site North of Cam Ranh peninsula, detailed plans are under preparation for investment projects such as water supply and drainage, roads, and green space. The mobilization of capital and selection of investors are under way to develop the infrastructure. The province is also calling foreign investments to upgrade the tourist centre.

 

In 2007, we have to do our utmost to develop the economy, keeping pace with international integration. Key targets are a high growth rate, economic efficiency and competitiveness, and better living conditions. The investment environment will be improved with PCI upgraded from Group 3 to Group 2. Socio-economic objectives in 2007 are: GDP up 11 per cent compared to 2006, industrial value increased by 18 per cent, agricultural value 3.5 per cent, service 16.4 per cent, export value US$620 million, tourism turnover VND950 billion, total investment capital VND6,000 billion, local budget revenue VND4,189 billion, trained workforce 28.2 per cent, 26,500 new jobs, poverty reduction under national standards to 9.46 per cent, PCI 11.1 per cent, and secondary education standards reached in 10 communes.