Bac Ninh Welcomes New Investment Opportunities

 

 

In 2003, Bac Ninh enlisted a part of the Northern Focal Economic Zone, a move to create more momentums to develop its overall economy. In the 2001-2005 period, Bac Ninh enjoyed a stably good socio-economic situation, which can be seen from the economic growth rate, size and sector structure. The economic growth rate averagely reached 14 per cent, ranking the second in the Northern Focal Economic Zone. The economic size in 2005 swelled 1.9 times larger than in 2000. The economic structure is also shifting on the right track.

 

In industry, the industrial sector maintained a high growth of 26 per cent. The industrial production value in 2005 was VND6,655 billion (US$416.56 million), exceeding 25.6 per cent of the year’s goal. The State-run sector increased 24.6 per cent, mainly in garment, tobacco and construction material. The local industry saw a 33.9 per cent growth, mainly thanks to animal feed production of Farm Products Co. The robust growth of the industrial sector played a key role in shifting the economic structure, increasing incomes for the State Budget, raising incomes for labourers and becoming a momentum of other sectors to develop.

 

In agriculture, the formation of tam xoan rice area in Que Vo District (nearly 200ha), sticky rice area in Tu Son District (150ha), flower area around Bac Ninh Town and milk cow breeding zone in Tien Du District is a clear evidence for the agricultural development work. The cultivation proportion was gradually reduced from 65.5 per cent in 2000 to 58.9 per cent in 2005, the husbandry up from 27.3 per cent to 37.2 per cent and fishery 3.5 per cent to 6.5 per cent.

 

The trade and service sectors have developed to meet the production and business requirements and serve the needs of the people. The busy trading activities ensured the circulation of the cargos and materials in the province. The total retail value in 2005 reached VND4,094.2 billion (US$255.89 million), a year-on-year increase of 2.75 per cent from 2000. The import-export activities also developed. The number of importing and exporting enterprises increased from 29 in 2001 to 91 in 2004. The export revenue in 2005 was US$90 million. The export value percentage of industrial and handicraft products is increasing while the value percentage of materials and farm produces is falling. The tourism, transport, post and telecommunication service also have significant growths.

 

To tap all potentialities and optimising all forces in the province to maintain the high growth of 14 per cent and increase the quality and competitiveness of the economy, the province will focus on the following targets:

 

In industry and construction: the province ensured the 19-20 per cent growth, developing the industrial and construction sector of Bac Ninh in relation with other provinces in the Northern Focal Economic Zone, cooperating with large industrial zones and industrial strip along the National Road 18 axis and neighbouring provinces. The province will focus on building and completing infrastructure in approved industrial zones and complexes and carry out the development of 340-ha Yen Phong Industrial Park, 520-ha Que Vo II Industrial Park, 200-ha Thuan Thanh Industrial park and medium and small industrial zones. Until 2010, the total area of large-scaled industrial parks is 3,278 ha. Bac Ninh will prioritise the development of high-tech content industry, supporting industry, processing industry, manufacturing, and new material industries, which are easy to recover investment capital and labour-intensive. The province will centre on developing industries that use local resources and eye for export.

 

In service, Bac Ninh prioritise investment to make breakthrough progresses in tourism and service activities. By 2010, the service sector will account for 31 per cent of the provincial GDP. The export revenue in 2010 must reach US$800-900 million, nine times higher than in 2005, while the tourism turnover will be VND117 billion (US$7.31 million). The province will take advantage of beauty spots and historic sites to develop key tourism projects.

 

Due to limited land fund, Bac Ninh focuses on developing an urban, ecological and stable agriculture. The province will grow cash-earning crops. By 2010, each hectare will generate a revenue of VND65 million (US$4,000) a year. With a favourable location (near Hanoi), the province can plant organic vegetables, flowers and ornamental trees to supply for the Hanoi market.

 

Employing flexibly State and Party policies to its actual socio-economic situation, Bac Ninh targets to attract 60-80 FDI projects with a total investment capital of US$200-250 million.

 

In coming years, we will focus on further streamline administrative procedures to increase efficiency of the management apparatus. The administrative machinery must create the most favourable conditions for enterprises and investors and issue incentive policies for investors like preferential service fees and worker training.

 

Then, all socio-economic development plans must be kept clear and transparent to help investors to introduce long-termed business strategies. Finally, the province will upgrade the infrastructure system. In a couple of years, Bac Ninh will use its finance sources to upgrade the 282, 295 and 271 provincial roads, streets to industrial zones and build concreted roads to all communes by 2010. The electricity sector will erect more high voltage and low-voltage lines to serve production of enterprises and daily activities of the people. It will build the 220KV Bac Ninh Transformer with a capacity of 1x125MVA, the 110KV Que Vo Industrial Park Transformer, stretch additional 160 km of middle-voltage line (10-22-35KV), 352 electricity distributing stations, 20km of 0.4-KV line to prevent power overload. With careful preparations, Bac Ninh is ready to receive new investment waves from APEC and other economic regions.