Economic development (15/08/2016)

1 Achievement of social-economic development

 - Accomplishments:

In despite of many difficulties and challenges, with the efforts from the various local governmental levels and residents, the provincial economy continues to grow and the people’s material and spiritual life continues to be improved. Thai Nguyen has focused on mobilizing different resources for investment development; promoting economic reconstruction and improving growth quality; exploiting local advantages, and emphasizing on key investments. So far, the economic structure has shifted towards the increasing proportion of service & trade; the annual economic growth exceeded 15% in 2015, GDP per capital mounted 60,000,000 VND which is  much higher than the provincial average figure.

Agricultural production has advanced further, driving towards commercial production while the intra-industry structure has been shifted by increasing the proportion of livestock. Rural development programs have achieved positive results. Industrial production grew at a moderate rate, gradually moving towards the application of advanced and environment-friendly technologies. Industrial clusters are planned and accordingly managed.

The technical infrastructure system in urban area is concerned, invested and constructed more spaciously and conveniently. Government management of the municipality is strengthened; the urban space is expanded; the city’s appearance is innovated.


The –socio-cultural, education  - training , and healthcare sectors have made significant changes. 100% of wards and communes have met national healthcare standards. The settlement of issues of labor and employment, and the implementation of social welfare policies, sustainable poverty reduction are concerned and achieved positive results. The poverty rate radically decreased to 1.5%. Political security is maintained, social order and safety is guaranteed. People’s material and spiritual life is constantly being improved and enriched.

- Statistical Figures:

The Provincial gross domestic product (GRDP) in 2015 increased by 25.2% compared to 2014; in which, the agriculture, forestry and fishery increased by 4.8%, contributing 0.84 percentage point to the overall growth rate; the industrial and construction areas increased by 45.5%, making up 21.4 percentage points;  service sector increased by 8.4%, sharing 3% to the overall growth rate.

As  the industrial, construction and service sector have well developed, the growth and the overall contribution are higher than the previous year. The industry grew 55.4% over the same period of last year, in which the processing and  manufacturing industries grew 63.2%, contributing considerably to the overall growth (20 percentage points). In addition to highly developed industry, the workforce has witnessed huge shift to Thai Nguyen province in the last two years, the demand for consumer goods, housing, accommodation and catering services increased, promoting the growth of the service sector in 2015, which is higher than the previous year (previous year: 6.4%).

For economic structure in 2015, the agriculture, forestry and fishery accounted for 16.6%; the industrial-construction sector is 49,4%, and the service sector represented 34%.

  The provincial GDP per capita in 2015 is 46,400,000VND per year, increased by 9,000,000VND compared to 2014, exceeded its plan. If calculated in US dollars, the provincial GDP per capita in 2015 reached $ 2130  per year, 2.2 times higher than that in 2010 (National GDP per capita on average in 2014 was $ 2052 per year).

The estimated value of the industrial production in the province in 2015 ( the price in 2010  is seen as the base price  ) reached 365.2 trillion,  2 times (increased by 104.2%) higher than the same period and achieved 140.5% of the year plan; in which local industry covered 14.5 trillion, increased by 13% in the same period,  being equal to 101.6% of the plan. The value of the State-run industry was 15.6 trillion, an increase of 23% in the same period, achieving 120% of the plan; while the foreign investment section reached 335 trillion, going up by 118.6% (2.2 times) for the same period and achieving 144% of the plan.

Structure of industrial production had substantially changed, the foreign investment sector accounted for 91.7%; Central Industry accounted for 4.3%, the rest is local industrial sector, accounted for 4%.

 Table II-2: The key targets of socio-economic development of Thai Nguyen 2014-2015

Target

Units

2014 Actual

2015 Plan

2015 Est. Actual

Est. Actual against Planned (%)

2015 Est. Actual against 2014 (%)

GDP Growth Rate

%

22,4

15

25,2

Exceed plan

-

2. GDP per person

Million VND

37,3

45

46,4

103,1%

124,4%

Industrial production value

Million VND

178.822

260.000

365.203

140,5%

204,2%

Central industry

Million VND

12.681

13.000

15.568

119,9%

122,8%

Local industry

Million VND

12.860

14.300

14.525

101,6%

112,9%

Foreign investment Industry

Million VND

153.281

232.700

335.110

144%

219%

Export value

Tr.USD

7.930,5

13.650

17.500

128,2%

220,7%

Local Export value  

Tr.USD

255,2

295

257,3

87,2

100,8

State budget balance

Million VND

4.915,8

4.828

6.800

140,8%

138,3%

Social targets

 

 

 

 

 

Jobs creation

Person

25.564

25.000

26.742

107%

104,6%

Labour Export

Person

1.597

1.000

1.610

161%

100,8%

Source: Report on Results of the implementation of socio-economic development in 2015, directions and duties of socio-economic development in 2016 in Thai Nguyen

- Investment

Total local investment was estimated to reach 79.330 billion in 2015, increased by 32.4% compared to 2014, in which the contribution from government managed funds was 5.574 billion VND, increased by 12%; and the contribution from private sector ( business, individuals and households)  was 16.472 billion VND  increased by 15,7%. The annual direct foreign investment was estimated at 16.472 billion VND, increased by 15,7% and accounted for 72% of the total investment in 2015.

Foreign direct investment (FDI): From January to November in 2015, Thai Nguyen province has attracted 18 new FDI projects with total registered investment capital of 177.6 million USD. At the early November of 2015, Thai Nguyen province had 88 valid projects with the total registered capital of over US $ 7.1 billion. Over the same period, the number of valid projects increased by 21 projects, producing an increase in the registered capital of US $ 3.3 billion (+ 87.3%).

The construction production value carried out by local contractors (including individual and household construction type) in 2015 was 11,890 billion, increased by 16.8% in comparison to 2014; in which 4,503 billion is from the business sector ( increased by 22.7%) and the remanning of 7,387 billion is from individual and houshold contractors , increased by 13.6%. The management of architectural planning, urban construction, public works, rural residential and industrial zones in the province was effectively implemented.

Table II- 3: Investment capital in the province (billion, current value)

Target

2006-2010

2001-2011

2011-2015

Total

35.185,0

56.081,0

147.798

Structured by economic type

     

 State-run

16.828,0

26.334,0

23.298,6

Private

15.512,0

26.004,0

59.004,5

Foreign investment

2.845,0

3.743,0

91.811,0

Structured by economic sector

 

 

 

Agriculture, forestry and maritime

2.606,0

3.531,0

3215,5

Industry and Construction

15.033,0

25.357,0

134.242,7

Service

17.546,0

27.194,0

37.324,5

Structured by economic type

100,0

100,0

100,0

State-run

47,8

47,0

13,7

Private

44,1

46,4

33,76

Foreign investment

8,1

6,7

52,52

Structured by economic sector

100,0

100,0

100,0

Agriculture, forestry and maritime

7,4

6,3

1,8

Industry and Construction

42,7

45,2

78,8

Service

49,9

48,5

21,35

                                                                             Source: Statistical Yearbook of Thai Nguyen province

- Attraction of development investment:

Owing to positive progress in administrative reform, the business registration, investment approval, investment licensing processes in the province showed major advances, extending favorable conditions for all business types, development in the industrial production facilities; strengthening in investment attraction. The province has issued various mechanisms and incentives; organized various investment promotion programs to attract home and abroad investors. The reformed administrative procedures recently issued are inspected strictly and reviewed regularly

Many different solutions are proposed  to tackle difficulties in the production and improve the  Provincial Competitiveness Index (PCI), Public Administration Performance index (PAPI), and Public Administrative Reform Index - Par-Index; Simutaniously, the inspection of projects and specific plans of districts, cities and towns in the province is implemented.  The project for investment environmental improvementfor the period of 2010-2015 had been put into practice efficiently which helped attract more than investment 600 projects with a total registered convertible capital of over 200,000 billion VND, in which 40 projects are FDI.

A large number of major industrial investment projects started to go into production: Electronic devices of Samsung High Tech Group; Mining and processing of minerals in Nui Phao; Thai Trung Rolling Steel company; Tien Bo iron mining; An Khanh Thermal Power, making up over 60% of the total investment capital.

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