Central economic area in focus

QUANG NGAI — Representatives from the Ministry of Industry and Trade and localities in Viet Nam's central key economic region committed themselves to further boosting the region's economic community, under an agreement signed at a forum last Saturday.
The localities includes Da Nang City and Thua Thien-Hue, Quang Nam, Quang Ngai and Binh Dinh provinces.
Deputy Minister of Industry and Trade Le Danh Vinh said the region had achieved notable economic results with gross domestic product (GDP) growing by an average 10.6-11.5 per cent over the last few years.
But he said that the area still faced significant difficulties compared with other key economic regions in the north and the south, with major problems related to natural disasters, poor infrastructure and the lack of capital, technology and human resources.
As a result, the area was still failing to meet its demand for development particularly in attracting investment.
An important factor was that, he noted, co-operation among localities had not reached necessary levels, which generated a significant hindrance to the entire growth of the region.
The forum heard that provinces with similar economic development conditions had their own policies on land rent reductions and tax deferments which acted as a deterrent to investment.
"Closer links between localities is needed, in order for the key economic area to truly become the socio-economic motivator for the nation's central and highlands regions," said Vinh.
Forum participants said pressing matters for co-operation should include infrastructure development, education and training, and policies for industrial development and investment.
Acceleration in the construction of the Chan May-Lang Co, Chu Lai, Dung Quat and Nhon Hoi economic zones, which are considered central for the region's progress, was called for.
Vinh suggested the Government develop a comprehensive master plan, legal framework and policies for the area to facilitate co-operation.
Deputy director of the Institute for Development Strategies Nguyen Ba An said that in order for the central key economic region to reach its potential, it should increase the contribution ratio to the nation's total GDP from a current 5.5 per cent to around 6.5 per cent by 2020.
Per-capita export value should be raised to US$2,500-2,600 by that time, from an expected $350 this year. By 2020, it should also aim at an urbanisation rate of 45 per cent, a technology innovation rate of 20 per cent, and a trained worker ratio of 60 per cent.
The ministry said in a press release that industries including energy, iron and steel, construction materials, ship-building, agricultural-forest-aquatic product processing, tourism, and banking and finance should continue developing. Supporting industries were also necessary.
The central key economic region was formed under Government Decision No 1085/QD-TTg issued in August 2008, and covers a total area of nearly 28,000sq.km with a population of about 6.5 million. The region is set to become the nation's centre for international transport, trade and tourism.

source vietnamnews.vnagency.com.vn