Optimistic Progress in Tay Ninh Economic Picture in Q1, 2023

3:02:49 PM | 31/5/2023

In the first quarter of 2023, despite facing many difficulties and challenges, Tay Ninh's economic picture remained bright, with many optimistic signals that created a premise for the province to achieve its highest socioeconomic goals in 2023.

Mr. Nguyen Thanh Ngoc, Chairman of Tay Ninh Provincial People's Committee, introduces local products to participants at the review conference on the cooperation program between HCM City and the Southeast provinces

Specifically, the gross regional domestic product (GRDP) expanded 2.21% (with agriculture - forestry - fishery growing by 2.65%; industry - construction contracting 0.89%; and service tumbled 5.51%). In the Southeast region, Tay Ninh ranked above Ho Chi Minh City, Binh Duong province and Ba Ria - Vung Tau province. Total state budget revenue was estimated at VND2,946 billion, fulfilling 26.8% of the full-year target, down 0.8% from a year earlier. Total local budget expenditure was forecast at VND3,271 billion, equal to 29.3% of the target and up 11.5% year on year.

One of bright spots in the economic picture in the first quarter of 2023 was agricultural production, with 101,889 ha cultivated in the Winter-Spring crop, equal to 95.7% of the plan and up 4.7% year on year. Livestock production and prices of livestock products remained stable, with no dangerous diseases in livestock or poultry detected. The small-scale livestock production shifted to larger farming with guaranteed biosecurity. Cattle and poultry output increased over the same period: Cows increased by 0.5% in quantity and 3.6% in output. Hogs grew by 6.1% in quantity and 6.7% in output. Poultry expanded 3.2% in quantity and 1.7% in output.

In industrial production, due to difficulties in input imports and narrowing product consumption market, the Industrial Production Index was estimated to dip 0.3% over the same period of last year, with the key processing and manufacturing sector slipping by 0.07%. To clearly figure out challenges, the industry and trade sector of Tay Ninh province adopted many consistent solutions on business support and asked relevant authorities to take action to deal with difficulties and obstacles to help businesses to maintain production capacity and look for outputs for products.

Another bright spot in the first quarter economic picture was trade, service and tourism sectors that lived through the tough time of COVID-19 epidemic to advance on the way to a strong recovery. Total retail revenue of consumer goods and services was estimated at VND26,066 billion, up 11.1% year on year. The export value totaled US$1,176 million, equal to 16.8% of the yearly plan; and the import value reached US$1,244 million, or 20.2% of the plan. Total tourism revenue was VND980.4 billion, equal to 54.5% of the plan and up 88% year on year, with 2.5 million visitors at tourist sites and attractions, equal to 50% of the plan and up 18.3%.

The banking sector also gave a boost to economic growth as it funded capital needs for the economy. In the first quarter of 2023, credit institutions mobilized VND61,900 billion, up 0.6% from the start of the year and 8.9% from a year earlier; and total outstanding loans were estimated at VND88,900 billion, 3.5% more than the beginning of the year and 10.7% more than a year ago. Bad debt ratio was 0.7% of total outstanding loans.

Development investment and basic construction were implemented as scheduled. This resulted from firm and flexible management of the Provincial Party Committee and the Provincial People's Committee, the ongoing effort of branches and localities in disbursing public investment capital, implementing the Socioeconomic Recovery and Development Program and three national target programs (National Target Program for New Rural Development; National Target Program for Sustainable Poverty Reduction; National Target Program for Socioeconomic Development in Ethnic Minorities and Mountainous Areas).

Total social development fund was projected at VND8,397 billion in the quarter, equal to 19.9% of the yearly plan and up 6.8% year on year, boosted by the 13.5% growth of the FDI sector and the 3.7% growth of the private sector, despite a 5% contraction of the state sector. The fund for basic construction was VND4,579 billion in 2023, of which VND4,242,735 billion was allocated to meet 92.6% of the plan assigned by the Provincial People's Council and the remaining VND336.68 billion was unallocated. In the first quarter, the disbursement was estimated at VND1,148.5 billion, meeting 28.3% of the plan assigned by the Prime Minister and 25.1% of the plan assigned by the Provincial People's Council.

The province saw substantial progress in administrative reform, business and investment climate improvement and competitiveness enhancement. Right from the beginning of the year, the Provincial People's Committee issued the action plan on main tasks and solutions for a better business environment and stronger national competitiveness in 2023 and the investment promotion program in 2023. The province also reviewed and announced the list of investment projects in 2023 and introduced conditions, criteria, scale and ratio of public land area to be separated into independent projects in the locality towards greater transparency and a more favorable investment environment.

In the year to March 15, the province had 679 valid domestic investment projects with registered capital of VND116,554 billion (over US$5 billion), including 345 projects with VND64,303 billion in operation; and 355 valid FDI projects with US$9.14 billion of investment capital, of which 245 projects with US$7.1 billion were operational.

In addition to economic development, social and cultural aspects were given a facelift. The quality of education - training and vocational training linked with job creation was enhanced. Poverty reduction, social security, protection and health care received more attention. Political security, social order and safety, and national defense were maintained. Foreign affairs were promoted. The construction and rectification of the Party and the political system continued to be strengthened.

This will be an important premise and a solid launch pad for the province to advance to fulfill its social and economic goals in 2023 and keep the economic growth rate higher than the national average.

In 2023, Tay Ninh province set out 20 key social and economic indicators. Economically, the province will strive to achieve a GRDP growth of 8% or more and a per capita GRDP of US$4,100. It targeted to obtain the agricultural yield of VND108 million per hectare of cultivated land. In the economic (GRDP) structure, agriculture - forestry - fishery will account for 18-19%; industry - construction, 46-47%; and services, 29-30%. The processing and manufacturing sector will make up 37% in the GRDP. State budget revenue was estimated at VND11,000 billion. The investment capital will account for 37% of the GRDP. The Industrial Production Index will climb 15%, the total retail revenue of consumer goods and services will look up 12%, while the export value will jump 8%.
Socially, the poverty rate (according to the multidimensional poverty line) will fall by 0.15-0.2%; unemployment rate will be 1.4% in urban areas and 1.8% in rural areas. The number of employed workers will grow by 16,000 and the share of trained and vocationally trained workers will account for 73%. The ratio of physicians and hospital beds to 10,000 residents will be 8.3 and 28, respectively. The rate of children under 5 years of age malnourished (stunting) will be kept under 19.2%. Up to 91.5% of communes will meet new rural development standards. 100% of the population will have access to clean water and hygienic water. Forest coverage (excluding rubber trees) will reach 16.3%. Hazardous solid waste from manufacturing, trading and service facilities will be completely collected and treated.

By Cong Luan, Vietnam Business Forum