Seven provinces and cities in the north of Vietnam discussed mechanisms to form the Northern Key Economic Region of the country (Photo: enternews.vn) Hai Phong (VNS/VNA) -Seven provinces and cities in the north of Vietnam discussed mechanisms to formthe Northern Key Economic Region (NKEC) of the country.
The first forum of the NKEC wasorganised by the Vietnam Chamber of Commerce and Industry (VCCI), BusinessForum Newspaper and the relating municipal departments of Planning andInvestment in Hai Phong city on December 20.
Spanning more than 15,000 sq.km, theNKEC includes seven provinces and cities, Hanoi, Hai Phong, Quang Ninh, Hai Duong,Hung Yen, Vinh Phuc and Bac Ninh.
As the NKEC’s three pillars, Hanoi,Quang Ninh and Hai Phong have three airports and 44 industrial parks that arehome to many key industries such as cement, cars, electricity.
Nguyen Hong Long, Deputy Head ofthe Steering Committee for Enterprise Innovation and Development told theforum: "NKEC contributed nearly 32 percent of GDP and 31 percent of thenational budget.”
Earlier, Prime Minister Nguyen XuanPhuc said together with maintaining the role of a political, economic, culturaland scientific centre for Vietnam, the NKEC should develop as an anothereconomic hub with breakthroughs that helps restructure the economy and fostergrowth.
The PM told the NKEC to becomethe country’s hub of processing and manufacturing industries; hi-techagriculture; information technology, tourism and other services and laterbecome a trading centre of the region and the world.
Attracting the private sector, theNKEC still needs much improvement
Most recently, the city of Hai Phongagreed an investment project with VinFast manufacturing and trading complex inVan Phong and Nghia Lo communes, Cat Hai district.
Nguyen Van Thanh, Vice Chairmanof the Hai Phong People's Committee, said private groups such as Vingroup,Sungroup, Geleximco, FLC had so far invested 200 trillion VND (8.6 billion USD)in the city.
Next Hai Phong, Hai Duong provincealso received an investment project for an automobile assembly andmanufacturing factory of Ford Vietnam Co., Ltd.
Hung Yen province also has beenreceiving huge capital inflows from real estate companies such as Vingroup,T&T Group, Hoa Phat.
In Quang Ninh, Sungroup has builtand operated the first private airport of Vietnam, Van Don InternationalAirport at the total investment of 7.4 trillion VND.
Seeing the potential of the NKEC,Long said: “It still relies mainly on the foreign direct investment (FDI)sector.”
He also added the remainingproblem of the economic region included uneven development among localities inthe region with low index of the Provincial Competitiveness Index (PCI).
“There are two provinces in thetop ten and five in the top 20 but there are also two provinces at the bottomof the list.”
According to the Planning andInvestment Ministry, the growth rate of the service industry which is themotivation of the NKEC’s development, was not sustainable.
It increased by 9.05 percent in2016 but only 7.54 percent last year. Export growth in 2018 only increased by20 percent, lower than the rate of 31.2 percent in 2017.
The forum aims to receivecontributions, analysis and policy recommendations from leading economicexperts, investment organisations, and the business community to developsolutions to strengthen the investment resources for the NKEC./.
VNA
