Quang Ngai Determined to Become an Industrial Province by 2020

4:53:07 PM | 13/8/2013

Quang Ngai has shifted its economy strongly towards the industry and service sectors, and has obtained great achievements, becoming a dynamic economy of the region with an increasing position in the progress of integration and development. "With the province's current growth rate, Quang Ngai can absolutely realize the goal of becoming an industrial province," said Chairman Cao Khoa of Quang Ngai’s People’s Committee in an interview with Vietnam Business Forum. Cong Luan reports.

After 5 years of implementing the Resolution of the 17th Quang Ngai Provincial Party Congress and 2 years after implementing the Resolution of the 18th Quang Ngai Provincial Party Congress, what achievements has Quang Ngai so far reaped in the progress of economic development?
Quang Ngai's GDP growth rate reached 18.66 percent in 2006-2010 and 6.8 percent in 2011-2012. The economic structure continues to move positively towards increasing the proportions of industry, construction and services and declining proportion of agriculture. The GDP proportions of the industry and construction have increased from 30 percent in 2005 to 59.05 percent in 2011 and 60.8 percent in 2012, the proportion of agriculture- forestry - fisheries has decreased from 34.8 percent in 2005 to 18.8 percent in 2011 and 17.6 percent in 2012.
Total revenue of the province in 2005 was VND529 billion but in 2011, it was 19,537 billion; in 2012, it reached VND19,424 billion, and at the first 6 months of 2013, it was VND11,128 billion. Quang Ngai was listed as one of ten provinces of Vietnam contributing most to the national budget. Quang Ngai gains its big advantages with the Dung Quat Economic Zone, especially the Dung Quat Oil Refinery, the first of its kind in Vietnam. This has helped Quang Ngai achieve a fast economic growth, become a dynamic economy with the aims of improving people's lives.

How does the province solve the problems, particularly regarding social security and the improvement of the living standards of the people?
In 2011 and 2012, Quang Ngai along with the central government mobilised many social resources to provide better social caring services to improve the physical and spiritual lives of the people. In the province, all Vietnamese heroic mothers receive the caring services of the province until death, 90 percent of families who have made numerous contributions and sacrifices for the cause of national liberation are having physical and spiritual lives higher than the average living standards of the residents, and nearly 85.3 percent of the communes, wards and towns that have been recognised to implement well the policies on war invalids, martyrs and the heroes.
The province has managed to create employment and shift the structure of labour towards increasing labour of industry and service sectors. In 2 years, the province created 71,400 jobs. There are good achievements on poverty alleviation and national target programs on poverty reduction, which are implemented uniformly in the mountainous, remote and disadvantaged areas and evaluated positively. In the 2 years of 2011-2012, the poverty rate fell by 3.14 percent on average per year.
The social welfare policies regarding medical and educational assistance, difficulty allowances, and social protection are implemented effectively. In 2 years, the province provided 141,100 supporting packages for the poor households, 75,034 difficulty allowances and tuition assistance packages for 173,984 students.
Industrial development and urban development are considered 2 out of 3 groundbreaking missions of the province in the new period of 2011-2015. So far, what positive results have these two groundbreaking missions obtained?
As specified in the Resolution of the 18th Quang Ngai Provincial Party Congress of the term of 2010-2015, the provincial Party strives to develop Quang Ngai into an industrial province with high position in the key economic region of the Central by 2020. To accomplish its objectives, just after the Party's Provincial Congress, the Committee of Quang Ngai Province issued Resolution 1 NQ-TW on industrial development and Resolution 02 / NQ-TU on urban development.
After more than 2 years of the implementation of Resolution 01, the industry in the province continues to have remarkable development: the value of the industrial production compared with the price of 1994 reached VND18,705.205 billion in 2012 and approximately VND11,320.09 billion in the first 6 months of 2013; the growth of industrial production value of 2011-2012 on average was 2.6 percent per year; and the proportion of GDP of the province accounted for 56.5 percent; and the export value rose 21.68 percent per year. The infrastructure of Dung Quat Economic Zone continues to attract new investment; within 2 years, the province has licensed 46 new projects with a total registered capital of VND16499.49 billion, of which a number of large projects have set a layout for the socio- economic development such as the VSIP Industry - Service - Urban Complex and the Dung Quat Power Plant project of the Sembcorp.
After more than 2 years of implementation of Resolution 02, the urban development of the province is in the positive progress, with specific results. The socio-economy at the urban area has impressive development with average growing value of the production of the urban areas, which was estimated at 5.65 percent on average per year. The investment in the construction of the urban infrastructure is concerned; for 2 years, the province has had 95 investment projects to build and deploy the infrastructure works in the urban areas, with a total investment of VND1,300 billion; the urbanization rate of the province as of 2012 was 14.74 percent; Cultural environment and civilization have been gradually improved; the average poverty rate in urban areas by the end of the year 2012 was 7.34 percent.
Based on the evaluation on the industrial development and urban construction, Quang Ngai has adjusted some of the indicators by 2015 to match the reality, in which the proportion of the industry and construction has reached 60-61 percent of GDP. Quang Ngai remains the goals of building a standard metropolitan city type 2 by 2015, the urbanization rate from 40 percent - 43 percent to 17.5 percent by 2015.

How is Quang Ngai attracting the investment for infrastructure development, particularly transportation for economic development?
We pay high attention to the investment in the infrastructure for industrial development. Regarding to this issue, the province needs active supports from the central government.
Now, there are many different avenues to Quang Ngai, one of which the Highway 1A between Quang Nam and Quang Ngai is being expanded. Another good sign is that in 2013, the Minister of Transport decided to start constructing the Expressway between Quang Ngai and Da Nang. The Expressway between Da Nang and Quang Ngai completed will shorten the travel time among the provinces: Da Nang, Quang Nam and Quang Ngai. At the same time, the expressway also reduces the overload of the Highway 1A and connects the international transportation among three countries: Laos, Cambodia and Vietnam through the economic corridor of the east and the west to the central port of Vietnam.
In addition, the project of upgrading facilities for the Chu Lai Airport (near Quang Ngai) to facilitate the landing of Airbus aircraft would also bring many advantages to the province in attracting investment. Quang Ngai has received the commitment and supports of the Government to implement a number of urgent infrastructure projects of urgent to make a breakthrough in the economic development of the province, such as the Dung Quat- Sa Huynh coastal road and Tinh Phong- Dung Quat road.
By 2015, the province strives to complete large projects, particularly focusing on key projects such as Dung Quat- Sa Huynh coastal road at the first phase, the Southern road on the Tra Khuc River bank, implement the Tinh Phong road and Dung Quat Port project, complete infrastructure of the Tinh Phong Industrial Zone, Quang Phu, initially invest and develop the infrastructure of the Dung Quat Economic Zone Authority and urban infrastructure, and create favorable conditions for investment in infrastructure of the VSIP project of Quang Ngai.
Up to 2020, Quang Ngai is striving to become an industrial province towards modernization. To achieve this objective, the flow of investment from outside plays very important roles for the economic development. Could you please share more about strategies to attract investment in near future?
With the positive changes in the investment recently, particularly in 2012, I believe that Quang Ngai has built up a good image to the investors.
Based on this foundation, Quang Ngai is striving to improve the investment environment. The province takes high priorities over the administrative reform, competitiveness enhancement, capacity building for project management and supervision of the project implementation, removing the obstacles, particularly in compensation, housing clearance and accelerating the implementation of investment projects. The province will promote and support the rapid deployment of the business investment projects to strengthen infrastructure of the industrial parks to increate investments in clean industry and light industry.
With its advantages, particularly advantages in Dung Quat Economic Zone, in the coming years, Quang Ngai will continue to promote investment in the industries of approved master plan that Dung Quat Economic Zone has competitive advantages, such as petrochemicals, engineering, heavy industry, and light industry. The province also focuses on developing petrochemical industry and following petrochemical, mechanics, metallurgy, and industries of sea economy. The province also focuses on designing and developing some of core industrial products with high competitiveness and stable development in the regional market. In addition, the province will focus on expanding the Dung Quat Economic Zone to create incentives for industrial development of heavy industry, large-scale industry, and the formation of the industrial economy to for the aims of forming linkages between the raw material suppliers and the processing units.
With the advantages of existing conditions, along with attractive investment policies, Quang Ngai was and is the ideal destination for domestic and foreign investors. I believe Quang Ngai could be an industrial province by 2020.