Taking drastic action, promoting high economic growth

Update: 05-04-2023 | 11:40:25

Binh Duong's GRDP growth in the first quarter of 2023 was only 1.15%, the lowest level over the past 2 years. For the province's economy to soon recover and maintain a high growth, Nguyen Van Loi, member of the Party Central Committee, Secretary of provincial Party Committee, Head of provincial National Assembly Deputy Delegation suggested departments, agencies, experts, enterprises…to seriously look back at obstacles and frankly proposed solutions to promote the local development.

Nguyen Van Loi, member of the Party Central Committee, Secretary of provincial Party Committee, Head of provincial National Assembly Deputy Delegation speaks at the conference

Looking directly at reality to find solutions

Early April 4, provincial Party Committee held a conference to assess the local situation of economic growth in the first quarter of 2023, tasks and solutions for the second quarter of the year. Nguyen Van Loi, member of the Party Central Committee, Secretary of provincial Party Committee, Head of provincial National Assembly Deputy Delegation chaired the conference.

Facing difficulties, many enterprises in the province have narrowed their production, urgently needing timely support to get thriving again

At the beginning of the conference, Mr. Loi said that after 2 years of trying to overcome the Covid-19 pandemic, Binh Duong's economy gradually reached strong recovery in 2022. However, at the end of 2022, the beginning of 2023, the province's economy once again fell into difficulty. The province's GRDP in the first quarter only increased by 1.15% over the same period last year. This is the lowest growth of Binh Duong over the last 2 years, putting the province in the list of 10 localities with the lowest growth in the country. In the face of this situation, he suggested departments, agencies, experts, enterprises…to discuss obstacles and frankly propose solutions to promote the local economic development in 2023.

Analyzing the reasons for the low growth, Pham Trong Nhan, Director of provincial Department of Planning and Investment (MPI) said that in addition to being affected by the world's decline, the province's economy is facing many difficulties, due to the domestic economic situation. Accordingly, the real estate market and the financial market have faced many difficulties; the bad debt of many banks and bond maturity pressure have tended to increase; enterprises in the province have continued cutting laborers and faced more difficulties in terms of orders and capital sources; consumer purchasing power has plummeted…

In the first quarter of 2023, although province-based enterprises actively changed their approach, introduced products, and searched for new clients, the number of orders and order size decreased sharply. Industrial production still faced difficulties. Some enterprises, especially in the wood, garment, footwear and leather industries, slowed down...

Nguyen Liem, Chairman of Binh Duong Wood Processing Association shared that the difficult economic situation was obvious when the province's wood export revenue decreased by 41.5%. The US and European clients have constantly done bankrupt, so the wood industry will face more difficulties in the coming time. Mr. Liem suggested that in order to reduce difficulties for wood enterprises, the province's public investment projects should consider ordering products from enterprises in the province and in the country, instead of the foreign ones. Truong Thi Thuy Lien, Chairwoman of Binh Duong Leather and Footwear Association also said that enterprises have faced many problems on administrative procedures… for change.

At the conference, representatives of departments, sectors in the province, provincial Business Federation, industries’ associations, State Bank of Vietnam’s Binh Duong branch, commercial banks in the province proposed many ideas for the province's economy to recover in the remaining quarters of the year.

Progress of public investment in need of being sped up

In terms of the province's economic situation in the first quarter of the year, Mr. Loi emphasized that the province's growth during the period was not as expected, but there were also many optimistic signals. The province’s FDI attraction lured US$440 million or Binh Duong Smart Region continued being honored as the Top 21 Intelligent Communities of the world (Smart 21). All were bright streaks in the local growth picture. Departments, sectors and enterprises in the province need to frankly look at their own situations to act. Binh Duong can completely revive the local economy if bottlenecks are solved. Especially, it is important for the province to keep the growth momentum in capital, including public and private investment.

Provincial Party Committee Secretary requested that by the end of the second quarter of 2023, the province must disburse VND6trillion in public investment capital (or 30%-35% of the plan). Public investment projects must be calculated towards using domestic goods, speeding up the approval of digital transformation projects, digitizing administrative procedures towards smart hospitals and happy schools...

Provincial Party Committee Secretary Nguyen Van Loi emphasized: “Departments, sectors, localities, enterprises and industries ‘associations need to objectively look at the problems of the first quarter of 2023, thereby proposing solutions and plans for the remaining quarters of 2023. They also need to further promote the local creation and dynamism to act more drastically. I believe Binh Duong can completely revive the economy if the bottlenecks are cleared. If we are determined, all difficulties can be solved.”

Mai Hung Dung, member of provincial Party Standing Committee, Permanent Vice-Chairman of provincial People's Committee: Provincial People's Committee seriously identifies key tasks to act drastically with the desire of soon getting out of the difficult situation to rise up. Provincial People's Committee asks for departments, sectors and localities to quickly review their work, settle administrative procedures, focus on public investment, and speed up the task of solving difficulties for enterprises. We must continue making more efforts and be more effective in the second quarter and the next time.

Pham Ngoc Thuan, General Director of Becamex IDC: For recovery, there must be an unusual and outstanding way to achieve the goal. First of all, the province needs to focus on fast processing to pass the local integrated planning. Secondly, the province needs to soon remove obstacles for grid projects behind schedule that leads to pressure on power supply for enterprises’ production and business activities. Thirdly, the province needs to further promote the disbursement of public investment capital, creating a pervasive momentum as "bait capital" for the economy; continue amending policies to support enterprises in accessing capital and opening the market.

Reported by Ngoc Thanh-Translated by Kim Tin

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Taking drastic action, promoting high economic growth

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