Ha Nam Creating Breakthrough for Economic Development

Starting low, as a “solely agricultural province” in 1997, the Provincial Party Committee and People’s Committee have focused on creating a breakthrough in industry and trade development, and considered industry and trade as an important premise in provincial economic restructuring; therefore, the province has concentrated on building up favourable conditions for investment in industry, trade, infrastructure construction of industrial zones, industrial clusters, and handicraft industry, as well as on improving administrative investment procedures; built up mechanisms supporting vocational training to satisfy labour demand in industrial zones and clusters.

 

So far, Ha Nam has been very proud of its 8 industrial zones approved by the Government with a planned area of 1,831 ha. Four industrial zones are operational, and have attracted 138 investment projects, including 50 FDI projects with registered capital of US$497 million, and 88 domestic projects with registered capital of VND8,741 billion. The province has planned 22 industrial clusters with total area of 359.3 ha; 14 of which have gone into operation, attracting 127 projects, creating over 25,000 jobs. Especially in 2011, in the context of global economic recession, the province still managed to attract high investment. The province licensed 31 projects with total registered capital of VND3,672 billion and US$254 million, equal to the total registered capital of period of 2006 – 2010. The province has made 10 commitments with investors. It also actively constructed Dong Van III supporting industry to attract Japanese enterprises. In 2011, industrial value reached VND10,065 billion, 31.57 times higher than in 1997, while average growth rate in period of 1997 – 2011 was 27.9 percent. The industry and construction proportion of the provincial economy rose from 19.1 percent in 1997 to 50.2 percent in 2011.

 

The trade sector has also made remarkable development, from a central trading economy, there are now over 25,000 business establishments participating in many economic sectors and attracting over 43,803 people to work. Infrastructure of trade sector has been improved, created modern trading areas. In 2011, total goods retail and social consumption revenue reached VND8,763 billion, 14.1 times higher than that in 1997, and average growth rate in 1997 – 2011 reached 17.5 percent per year.

 

Import – export activities of the province have vigorously developed; export enterprises have actively searched for markets, exploited advantages of the province, improved competitiveness, upgraded export goods value with major goods like: textiles, embroidery, rattan weaving, handicrafts, and processed forest products, with some enterprise in industrial zones exporting high value goods, such as Showa Denko Ltd., Ha Nam Minerals JSC, and Sumi Wires Ltd. Vietnam, which has increased export value of the province considerably. In 2011, its total export value reached US$235 million, 31.7 times higher than that in 1997, for an average growth of 28.02 percent per year in 1997 – 2011.

 

Targets of industrial development of the province are laid out in the plan of developing industry and trade in Ha Nam in the period of 2011-2010, and prospect to 2030 approved by provincial People’s Committee in Decision 395/QD – UBND dated 17^th February 2012. Currently, the industry of exploiting and producing construction materials, and of processing agricultural products – foods – beverages play an important role and take a major proportion of total provincial industrial value (construction materials are over 40 percent and processing agricultural products – foods – beverages are over 32 percent of total provincial industrial value) because the former has many advantages. However, in the next period (after 2015), the provincial Party Committee and People’s Committee will concentrate on the development of processing agricultural products – foods – beverages, the electronics industry and information technology, so that these industries will gradually take major roles, replacing the production of construction materials. The province also sets priority for industries of high technology, energy saving and supporting industries. Moreover, the province also invested in mobilising resources to develop the agricultural industry, focusing on industry in industrial clusters, traditional villages, and “post – cement” industries.

 

As we know, developing supporting industries has a crucial meaning for industrialisation and modernisation of any country, and especially of a developing province like Ha Nam.

 

For the last years, Ha Nam has given priority to supporting enterprises to create a premise for other industries in the province and nationwide. Despite several achievements, such as a higher proportion of domestic content in some products, supporting industries in Ha Nam are still limited.

 

In order to have strong supporting industries in the province, Ha Nam has proposed the following major solutions:

One, pushing up the completion of Dong Van III supporting industrial zone with a planned area of over 800 ha. This industrial zone is especially for supporting industries to create the first breakthrough to develop this sector. It is important to identify every step of the modernisation of sectors like electronics and plastics, as they are major fields to develop supporting products.

 

Two, renewing policies of attracting development of supporting industries, such as: policies on land, credit, taxes, and investments.

 

Three, increasing the quality of human resources for supporting industries: upgrading vocational schools, attracting universities to open education facilities, spending part of the provincial budget for training abroad at locations which have strong supporting industries, to train high quality human resources for developing the supporting industries of Ha Nam in the future.

 

Four, modernising infrastructure, creating conditions for supporting industries to develop: concentrate on projects that can be effective right after being put into operation, construct several roads connecting economic – administrative centres of the province with important economic areas, modernise important ports, telecommunication systems and upgrade electricity networks.