In the first nine months of 2019, Vinh Phuc province carried out socioeconomic development in the context of slowing global economic growth coupled with increasing risks and challenges. Fortunately, with its efforts, the province’s economy continued to grow positively in the period.
The gross regional domestic product (GRDP) of Vinh Phuc province reached VND62,151 billion in the first nine months of 2019 ending September 30, representing a year on year growth of 8.63%. The industrial sector continued to play an important role in the picture of socioeconomic development as it expanded 13.01% and contributed 6.2 percentage points to GRDP growth. Service and trade sectors increased significantly. Merchandise is diverse enough to meet consumer needs.
State budget revenue increased. The Tax Department drastically directed and urged the settlement of state budget revenues such as personal income tax, corporate income tax, land tax, charges and fees and, at the same time, supported enterprises to understand policies and deal with emerging difficulties. State budget revenue totaled VND24,762 billion in the year to September 24, fulfilling 89.09% of the estimate. Of the sum, domestic revenue accounted for VND21,607 billion, equal to 89.12% of the estimate. Foreign-invested enterprises continued to be a major taxpayer with VND16,190 billion in the period, accounting for 65.38% of the total budget revenue of the province.
The banking sector continued to effectively carry out mechanisms, policies, and executive solutions adopted by the State Bank of Vietnam and the province, gave priority credit access to prioritized business sectors, and facilitated businesses and people to access credit. Currently, deposit interest rates are popularly standing at 4.5-7.3% per annum. Lending interest rates for priority fields are 6-9% per annum and ordinary fields are subject to 6.8-10.5%. Deposit value slightly grew 1.43% year on year to estimated VND70 trillion and outstanding loans are estimated at VND72,850 billion, an increase of 8.31% over the end of 2018.
In the first nine months of 2019, investment and construction activities grew well in the province. The investment fund for social development was estimated at VND8,769.3 billion in the period, up 10.48% quarter on quarter and 3.46% year on year. Disbursed investment capital reached VND22,967.2 billion, up 6.18% year on year. In particular, the fund for basic construction still accounted for a high share, reaching VND14,308.5 billion, or 62.30% of total social investment.
In addition to promoting and attracting foreign investment, Vinh Phuc province issued many support mechanisms and policies for domestic investors; improve the investment environment, help the business community to gradually tackle difficulties, and boost production and business. Non-state corporate investment increased significantly. The province licensed 31 new domestic direct investment (DDI) projects with a total registered capital of VND9,787.5 billion and allowed six existing projects to add VND879.37 billion to their investment capital base. By the end of September 2019, the province had 747 valid DDI projects with a total registered capital of VND82,342.41 billion.
With a good geographical location, a healthy investment environment, consistent investment solutions and effective investment promotion programs and activities in many countries in the world, Vinh Phuc continued to be a potential destination of domestic and foreign investors. From January to September 2019, provincial delegations launched investment promotion activities in the United States, the Netherlands, Germany, the Czech Republic, South Korea, Japan and Taiwan. As a result, Vinh Phuc licensed 55 foreign direct investment (FDI) projects with a total investment fund of US$253 million and permitted 40 existing projects to add US$313 million, totaling US$566 million, 67.09% more than a year ago. By the end of September 2019, the province had 373 valid FDI projects with US$4.9 billion of registered capital.
Nguyet Tham
Vietnamese
