12:26:53 PM | 15/4/2017
After more than 30 years of carrying out the national renovation development policy of the Party and State, Quang Ngai province has achieved magnificent achievements in economic development, especially industrial development - the “bright spot” in the picture of Quang Ngai economy.
In 1986, Quang Ngai industry had a small scale, backward production level and few product categories, with a total industrial output of just VND132 billion (based on 1989 price). In the nearly 30 years since 1989, the province’s industry has developed rapidly, powered by colossal factories, modern equipment and technologies, diversified products, rich designs, high quality, ease of use, and popularity in domestic and foreign markets. In 2015, its industrial production value reached VND23,693 billion (1994 price), 81 times higher than that in 1989, and achieved an average annual growth rate of over 18 per cent in the 1990 - 2015 period, much higher than the province’s GDP growth. In the 2011 - 2016 period, its industrial production value expanded by 4.9 per cent per year. In 2016 alone, the industrial production value reached VND110,000 billion, up 2.6 per cent over 2015.
Quang Ngai province’s industrial development breakthrough came from the Dung Quat oil refinery with a yearly capacity of 6.5 million tonnes. The operation of this facility created a driving force to develop other economic sectors, enhance socioeconomic development and generate huge revenue for the State coffers, making Quang Ngai the eighth largest tax collector in the country. From backward industrial infrastructure, Quang Ngai is now home to Dung Quat Economic Zone; Quang Phu, Tinh Phong and VSIP Quang Ngai industrial parks; and many synchronous industrial complexes ready to serve gigantic projects.
Relatively developed trade and service, engaged by all economic sectors, has better and better quality. The supply of diverse and abundant commodities in the market, province-wide distribution network and balanced supply and demand promoted economic growth and met consumer demands across the province, including remote areas. Total retail revenue of goods and services sold in 2013 was VND29,829.7 billion (262.48 times as much as in 1989) and it jumped to VND41,617 billion in 2016, representing a growth of 10.1 per cent over 2015. The average annual growth of retail sales of goods and services was 15.8 per cent in the 2011 - 2016 period.
Export activity expanded strongly, especially in 2010 - 2013. In 2013, its export turnover grossed US$508.8 million, 130 times more than in 1989 and an average annual growth of 22.47 per cent. Key exports included machinery and equipment, petrochemical products, starch and pulp. In 2016, its export turnover totalled US$364.5 million, representing an average yearly growth of 5.1 per cent in 2011-2016.
Up to now, Quang Ngai industry has made a great leap and sustained growth. In the 1990s, industry accounted for less than 20 per cent of the province's gross regional domestic product (GRDP). The share climbed to about 30 per cent in 2005 and to over 52 per cent in 2016. This success is considerably attributed to the role of the local business community. Over the past years, Quang Ngai-based enterprises have made great efforts to seize all opportunities to overcome difficulties. Some large enterprises have boldly invested in new machinery and equipment to improve labour productivity, expand production and business presences to other provinces and cities, and Laos, such as Quang Ngai Sugar Joint Stock Company and Quang Ngai Agricultural Products and Foodstuff Joint Stock Company.
Mr Tran Phuoc Hien, Director of Department of Industry and Trade, said that, in order to overcome difficulties, the Provincial People’s Committee has promptly carried out business support policies such as Decision 45/2015/QD-UBND dated August 31, 2015 on specific support policy for enterprises and cooperatives investing in agriculture and rural development in Quang Ngai province in 2015 - 2020 and Decision 36/2016/QD-UBND dated September 27, 2016 of the Provincial People’s Committee on investment incentives, support and attraction. In addition, the province has intensified trade promotion to consolidate, maintain and expand consumption market; supported business development and held direct dialogues with enterprises in order to promptly solve their difficulties and obstacles and create favourable conditions for them in business operations.
Towards sustainable development
Industrial development is one of three breakthrough tasks set out in the Resolution of the 19th Provincial Party Congress. In order to develop Quang Ngai industry in sustainably and effectively, in the coming time, the province will focus on increasing added value in industrial development, interrelating production with market consumption and building synchronous infrastructure. The province will also shift towards high-tech and clean industrial development, increase the ratio of locally made components in industrial product, and ensure rapid and sustainable industrial development in the integration period. Quang Ngai will focus investment resources on infrastructure development in Dung Quat Economic Zone and industrial parks and accelerate the development pace of VSIP Quang Ngai Industrial Park; positively and actively support investors to carry out their projects on schedule; actively promote the early establishment of the Supporting Industry Centre in Quang Ngai province, the National Petrochemical and Refinery Centre in Dung Quat Economic Zone and Hoa Phat Iron and Steel Production Complex.
In addition Quang Ngai will actively accelerate investment promotion, enhance investor support solutions to carry out projects, and gradually form and develop supporting industries. It will develop industry based on the development of science and technology and high-quality human resources; actively integrate into the international economy; effectively exploit resources for investment and development, and create a solid foundation for Quang Ngai to become a modern industrial province.