Long An Province Speeding up Economic Growth

In spite of encountering difficulties and challenges in expanding international economic integration in 2007, Long An Province economic growth still reached the highest-ever rate of 13.5 per cent.

Promoting favourable conditions together with reforming administrative procedures, bettering the investment environment and building infrastructure raised the provincial competitiveness index. In 2007, Long An scored 58.82 points, an increase of 8.42 points against 2006, ranking 21^st among 64 provinces and cities, a promotion of 20 places. In the year, domestic investment jumped 33 per cent against 2006 with 750 new enterprises and VND12,000 billion; there were 58 new foreign invested projects, the largest figure ever in a single year and a rise of 22 projects against 2006. Total FDI capital was US$754 million, double the 2006 figure. In 2007, the province carried out several big projects.

In 2007, export revenue rose 34 per cent on year to US$640 million. The number of exporters doubled from 2006, with 208 enterprises.

As a gateway into the Mekong Delta region and a part of the southern key economic zone, Long An holds many advantages in drawing investment capital for commercial and service development. However, the breakthrough in capital attraction has not yet been made. Experts said that with its regional linkage, Long An can use its advantages to create further momentum for the economy. At the seminar “Solutions to improving investment efficiency, developing trade and tourism in Long An Province in connection with regional provinces in the southern key economic zone and the Mekong Delta,” economic experts, scientists and local authorities put forward many ideas for cooperation toward mutual development among provinces in the southern key economic zone and the Mekong Delta region. The regional linkage will promote investment, trading and tourism activities of regional companies. Mr Do Hoang Viet, Deputy Chairman of Long An Province People’s Committee, said: Long An has, for many years, focused on developing four key programmes: preventing floods, exploiting all investment resources for local economic development, creating jobs and reducing poverty, and training and developing human resources. Thus, the economic growth rate has grown to a record high in 2007.

In 2007, Long An’s economic growth rate was 13.5 per cent, above the 13.2 per cent average in the Mekong Delta region. Dr Vo Hung Dung, Director of VCCI-Can Tho, said: Long An needs to join regional efforts to develop economic relations with Cambodia and regional countries. The province needs to train human resources to meet local development demand. Dr Nguyen Tan Khuyen, Deputy Director of Economic Development Research Institute under the Ho Chi Minh City Economics University, said: The economic ties between Long An and HCM City in developing services are seen in the investment for developing industrial zones, residential zones and infrastructure. Besides, HCM City will be a consumption market for Long An’s tourism products. Dr Nguyen Tan Khuyen said HCM City will be the strategic investor and Long An will be a key chain. Therefore, the province should complete socioeconomic, urban, commercial and service infrastructure development planning.

At present, the Soai Rap River directly links Long An with the entire Mekong Delta region. This river has recently been dredged to ease regional transportation. This river connects to Hiep Phuoc Port, the southern gateway of Chi Minh City. In the future, deepwater seaports can be built in the region to support ships of 50,000 DWT. According to Mr Vo Hung Dung, the development of Soai Rap along with the port system will boost the regional waterway transport system.

The goals in 2008 are to pace up economic growth in combination with environment protection and social advances. The province aims to fulfil the five-year socioeconomic development plan one year before schedule. Especially, in 2008, the provincial economic structure will be industry – agriculture - service. GDP growth is expected at 14 – 14.5 per cent, per capita GDP is VND14 million per annum. Agriculture, forestry and fishery will account for 33.5 per cent of GDP, industry and construction 37 per cent (a rise of 1.8 per cent) and commerce and service 29.5 per cent (an increase of 0.2 per cent). By 2010, the respective proportions are expected at 26 per cent, 43 per cent and 31 per cent.

To realise these goals, the province has launched the following solutions: examining and adjusting planning. The province will reorient its master socioeconomic development planning until 2020, adjust sector development planning, transportation planning, and industrial zone, urban zone and entertainment zone planning. In fact, the previous planning exposed weaknesses that needed to be adjusted, especially following the rapid industrial development in Ho Chi Minh City, Dong Nai, Binh Duong and Ba Ria-Vung Tau provinces.

The province will develop industrial infrastructure to offer attractive land rentals to lure investors. In 2008, Long An expects foreign investors will disburse US$230 million in projects in the province. Local authorities will join hands with investors to tackle difficulties. It will focus on developing high value-added services such as banking, insurance, financial services, commerce and logistics. It will also speed up the exploitation of natural resources, and cultural and historical relics to develop tourism. In 2008, Long An targets to increase export revenues to US$835 million and keep the growth rate of 30 per cent per annum.

Long An expects to increase the trained labour force ratio to 34 per cent in 2008 and 50 per cent by 2010.

The province will speed up administrative reform to facilitate investment, business establishment, housing and construction.