Binh Thuan Province: Active Integration for Speedier Development

2:17:16 PM | 11/5/2007

Reporter Ngoc Huong of Vietnam Business Forum interviewed Mr. Huynh Tan Thanh, Chairman of Binh Thuan Province People’s Committee.
 
Could you talk about the most outstanding socio-economic development achievements in Binh Thuan Province in 2006, especially the seven action plans of the province?
In 2006, Binh Thuan Province had 13.9 per cent GDP growth. The development quality of most sectors and fields continued improving. The economic structure of each sector and field also had suitable changes. Industrial and handicraft production, and service-tourism kept expanding. Export revenues were US$100.7 million, primarily from apparel, textiles, dragon fruit and seafood.
 
All available social sources were mobilised for development investment (up 32 per cent), contributing to the realisation of seven key action programmes. Budget collection brought in VND3,305 billion (US$206.56 million), an increase of 12.73 per cent year on year.
 
Social and cultural aspects also improved. Binh Thuan continued effectively carrying out social and economic development in areas where ethnic minority people live. Education and training continued developing.
 
The grassroots healthcare network was consolidated to improve service quality for the people. Poverty reduction and accommodation for poor and prioritised people were taken into consideration. The poverty rate was lowered to 12.1 per cent and nearly 22,000 new jobs were generated. Living conditions stabilised and improved.
 
Administrative reform, especially procedural reform, was intensified. Most State-funded organisations from provincial to grassroots levels positively applied the “one-door” policy. Anti-corruption and thrift exercises were intensified. Social security and order were maintained to facilitate local social and economic development.
 
In the years following WTO entry, what are the opportunities and challenges for Binh Thuan Province?
Vietnam’s WTO admission created numerous opportunities and advantages for Binh Thuan to speed up its pace of development. Enterprises have more chances to expand export markets for their products and services, and import good, competitive products and services for domestic consumption. Besides, foreign investors will increase investment in the province. Thus, the province will be able to shift its economic structure, raising industrial content and dropping agriculture contributions.
 
Apart from opportunities and advantages, Vietnam’s WTO entry poses numerous difficulties and challenges for Binh Thuan Province regarding the competitive capacity of domestic companies as well as the whole economy, economic restructuring and the income gap.
 
So, what measures has Binh Thuan Province applied to grasp opportunities and overcome challenges?
First, all administration levels and branches of the province need to focus on publicizing the advantages, opportunities, difficulties and challenges of Vietnam’s WTO entry and integration into the world economy. Then, local governments and enterprises need to build roadmaps for integration, and concentrate on training and improving human resources to meet the requirements of industrialisation and modernisation.
 
To enhance the competitiveness of local companies and the entire economy, all branches and levels must join hands in streamlining administrative procedures. In the short term, reforming administrative procedures will be given priority to create a favourable investment environment and a clear legal corridor, persuading more investors to enter the province. The province will also grasp all opportunities to speed up development of its industrial and handicraft sectors, and expand its traditional and potential markets. The local government and companies also need to distribute resources to make full use of competitive advantages.
 
Investment capital attraction and economic development must include environmental protection and avoid unplanned massive production, which may lead to ecosystem degeneration.
 
The province will implement synchronous measures narrowing the income gap between rural and urban areas.
 
I believe that with meticulous preparation of the State, the province and enterprises, we will take the initiative in joining the WTO and integrating into the world economy; we can raise the development growth rate, address the income gap and escape poverty.
 
Before integration pressure, Binh Thuan Province has been supporting programmes for local companies to edge up competitive capacity. Accordingly, the province People’s Committee instructed all administration levels and localities to implement the Investment Law and Enterprise Law. It will issue policies to develop advantageous products, support training activities, foster human resources, disseminate information and policies for small and medium enterprises and set up credit funds for small and medium enterprises. In addition, it will promulgate programmes providing technological assistance sharpening the competitiveness of local companies and building trade and export promotion activities.
 
At present, the government attaches great importance to the capital market to boost economic development. Does Binh Thuan have any financial policies and solutions to develop its local capital market?
Under the provinces five-year social and economic development plan from 2006 to 2010, annual GDP growth rate is 14-14.2 per cent and total social investment capital is some VND41,000 billion (US$2.56 billion), including 20 per cent from the State Budget, 70-72 per cent from the private sector and 8-10 per cent from foreign sources. So, during the five years, Binh Thuan Province will mobilise VND27,700 billion (US$1.73 billion) from the private sector, VND26,000 billion from credit organisations and VND3,500 billion from foreign direct investment.
 
To reach these goals, the province is focused on examining, adjusting and supplementing plans to draw investment capital, strategic investors and breakthrough projects.
 
Binh Thuan Province will resolve difficulties investors encounter in industrial zones and will facilitate the execution of tourism projects.
 
The province will take full advantage of central capital sources, and investment capital sources from land funds.
 
Administrative procedures will be simplified and decentralised to facilitate the managerial activities of State agencies, as well as the operation of companies and investors in the region.