Growth drivers to be promoted through hardship

As external factors become increasingly unpredictable, renewing old growth drivers and creating novel growth ones will be the key to helping Binh Duong's economy recovers and develops quickly and sustainably. Trinh Hoang Tuan Anh, Deputy Director of the Department of Planning and Investment, discussed with Binh Duong Newspaper on this matter.

Binh Duong is trying to implement various solutions to help the province's economy recover and develop. In the photo: Production activities are on-going at Yazaki EDS Vietnam Co. Ltd.

- Sir, how does the Department of Planning and Investment forecast growth in 2023 and the next stage in the face of difficulties and challenges?

- In the first 9 months of 2023, the province's socio-economic situation continues to achieve positive results in all fields as GRDP was estimated to increase by 4.9% compared to the same period in 2022 which was by 7.2% compared to the same period in 2022. However, achieving a growth rate of 8.5 - 8.7% in 2023 is extremely difficult. It is expected that Binh Duong's GRDP in 2023 will increase by 6.0% over the same period.

Accumulation  for 10 months of 2023 show that both exports and imports decreased significantly over the same period due to fluctuations in the world economy. However, with the efforts of the entire political system, businesses and people, the province's economy still achieved growth in 10 months of the year and is recovering positively with each month being higher than the previous month, the next quarter is higher than the previous quarter. Forecasts about the possibility of recovery of the world economy by the end of 2024 show that there will still be many difficulties for the province in implementing the goals and growth targets of the term. In addition to old growth drivers, the province is trying to unlock new growth drivers in the medium and long term, which is the strong development trend of digital, green, circular, innovative economy promoting regional connectivity.

- How does the Department of Planning and Investment evaluate the current situation and the coming time to achieve the highest growth target, sir?

- Binh Duong's economy is still on the growth path, but due to external influences and some internal limitations, the pace has been slowing down. When world market signals are still unclear and many factors are unpredictable, one of the factors most expected because of its ability to revive growth targets is to accelerate public investment, especially in transport projects connecting the regions such as Vanh Dai 3, Vanh Dai 4, Ho Chi Minh city - Chon Thanh Expressway, DT746, Bach Dang 2 Bridge etc. Currently, cash flow into these projects is being prioritized. Therefore, ensuring the progress of projects will contribute to promoting the province's growth in accordance with the planning the province is building, and will also contribute to stimulating investment, directly maintaining and expanding capacity of production and business of enterprises when these projects reach completion schedule.

In parallel with traditional export channels, recent practice has shown that online export and selling goods on e-commerce platforms have maintained growth for many businesses. Therefore, in the coming time, it is necessary to build and accelerate a cross-border e-commerce strategy in addition to traditional exports. In the immediate future, it is necessary to identify promising industries and products on the e-commerce platform, and at the same time, support businesses, especially small and medium-sized enterprises, to approach and become more and more professional in this form of export.

One of the current difficult and complicated developments is organizing the relocation and resettlement of businesses to northern localities in order to restructure the province's development space and territory during the next term. Implementing such policy will create motivation for development in northern localities while changing the development trend in dynamic cities in the south. The infrastructure of industrial parks and transportation infrastructure in the northern districts are being fulfilled  and ready to welcome businesses and investors. Therefore, it is necessary to urgently research and establish policies and plans to encourage enterprises to resettle in new areas.

- So what solutions do you think necessary to be implemented to achieve the growth target of 8.5 - 8.7% a year in 2021-2025?

- For the mentioned analysis and the results achieved during the half term, to ensure growth from now until the end of the term, the Department of Planning and Investment proposes to focus on the following groups of solutions, accelerate the progress of public investment in 2023 and the remaining years in the medium-term public investment plan 2021-2025, recommend localities and units with low public investment disbursement rates to seriously review the causes slow down disbursement progress and take measures to thoroughly overcome the above problem, clear cash flow to create growth momentum, striving to complete key transport infrastructure on schedule, relieving bottlenecks in transport and export, saving costs for businesses, and strengthening Binh Duong's achievements in the investment environment. For the supporting platform, mechanisms are necessarily solid to attract businesses in potential industry groups with revenue scale and production value of USD 20 - 30 million a year.

Investment in infrastructure of industrial parks and clusters in the area should be accelerated with a set goal by 2025 that Vietnam - Singapore Industrial Park III and Cay Truong Industrial Park come into operation and quickly attract investment. The occupancy rate of these industrial parks has been 85 - 90% to initially form industrial clusters in the Bac Tan Uyen and Phu Giao areas for the occupancy rate of industrial clusters at 65 - 68%. The functions of manufacturing enterprises located outside industrial parks and clusters in southern localities based on the planning orientation to be approved should be urgently relocated and restructured. Specific logistics services should be quickly formed 0to serve industrial development. Along with that, focus on solving social security issues for workers should be established  to attract and train a highly skilled workforce with focus on loans for production and business operations, to further promote the improvement of the business investment environment and enhance foreign and domestic investment promotion.

- Thank you!

Interviewed by Ngoc Thanh – Translated by Vi Bao