Gia Lai Aims for Sustainable Development

5:20:08 PM | 19/11/2009

Being a mountainous province, Gia Lai has made great strides and has become an economic centre in the Central Highlands region. Vietnam Business Forum reporters had an interview with Phung Ngoc My, Vice Chairman of Gia Lai People’s Committee on the achievements over the past few years. 
What are the province’s socio-economic achievements?
The province has made remarkable achievements in many areas. It gained an average economic growth rate of 13.15 % annually between 2006 and 2008, surpassing the set target of 12.5 %. The agro-fishery sector reached an average growth of 6.97 %. The province has developed some special growth areas of rubber, sugar cane, pepper and coffee. The industry gains a relatively high growth rate, focusing in the fields of hydropower, agro-forestry processing and refined wood production. The growth rate of industrial production and construction is estimated at 23.31 % and the services industry at 14.7 %. The province has shifted to the development of construction, services and agro-forestry.
The province’s total development investment grew considerably in the 2005 – 2008 period. The capital was estimated to climb to VND6.15 trillion, up 1.5 folds compared to VND3.97 trillion in 2005. Investment by enterprises and people accounts for a big ratio in the local investment structure. Trade and services have become more diversified to meet the increasing consumption demand. The province’s key export staples are coffee, refined wood, rubber and pepper, contributing to boost the export growth.
So far this year, despite being impacted by the global economic crisis, the province has maintained its stable economic growth. This year, it expects to reach the economic growth of 15.79 % with the agro-forestry sector of 5.9 %, industry and construction with 31.2 % and services with 14.95 %. The total development investment this year is estimated to reach VND7.182 trillion, up 15.5 % on-year. Total value of goods is expected at VND10.03 trillion, up 21.9 %. In 2009, the province aims export turnover at US$120 million and pay tax of VND1.9 trillion.
Which momentum helps Gia Lai achieve impressive results and maintain stable economic growth?
The sound results are thanks to efforts by leaders, agencies as well as people.
Secondly, it is positive impacts from the state and party’s policies, particularly Resolution 10 of the Politburo, Decision 168/2001/QD-TTg, Decision 25/2008/QD-TTg dated 5 Feb, 2008 by the prime minister on policies to support the Central Highlands region’s socio-economic development by 2010.
Thirdly, it is thanks to the province’s efforts in administrative reform and investment attraction.
Gia Lai is known for mining and agro-forestry processing. What are the province’s measures to develop the potentials?
The province boasts potentials for mining industry, including bauxite. The province has a large bauxite reserve in Kon Ha Nung and Duc Co. It is also home to bauxite mines in Than Giao, Le Thanh, Le Can, Bau Can and Plei Me. Gold is found at 73 sites and promising places namely Kong Chro, Ia Mo, Krong Pa and Ayun Pa. Besides, the province also houses metals, including iron mine in An Phu and Pleiku and zinc in An Trung – Kong Chro, granite in Bac Bien Ho and Chu Se stone mine.
Currently, the province is producing some kinds of stone, including granite and bazan and iron ore.

The province has continued exploring and managing minerals to protect its natural resources and create jobs.
In terms of the agro-forestry sector, the province tries to develop material areas in Ayun Pa and An Khe and tapioca processing plant in Krong Pa, Mang Yang and Chu Prong; cashew processing plant in Krong Pa, Pleiku; Chu Se pepper processing plant and latex processing factories in Dak Doa and Chu Se.
The province has concentrated on building material areas near processing factories to further develop the available potentials. The province is calling on investors to build modern factories to process agricultural products to raise effectiveness of key products such as instant coffee and latex-made products, including tires and medical equipment.
In spite of achieving encouraging results in attracting investment, the foreign investment in the province remains modest. Could you explain the reason for this? What’s the message the province wants to send to investors?
The limited investment flow in Gia Lai is attributed to many different reasons. The province is located far from cities, resulting in high transport fees. Its labor force remains small. Meanwhile, investors in Pleiku are not offered many incentives.
We are calling on investors and ready to offer favourable conditions for them. The province has focused on administrative reform and implemented the one-door mechanism to help investors enhance their projects’ effectiveness. The province has also promoted its potentials and checked its projects to seek investment by 2015.