Central region holds the key to economic growth

Phuc made the remarks while addressing a central region economic forum held in Danang city on August 15, drawing the participation of many senior officials and leading economic experts nationwide.

Deputy PM Nguyen Xuan Phuc addressing the forum

The Deputy PM affirmed that the central region is seizing tremendous opportunities but simultaneously facing numerous challenges caused by territorial disputes at sea, including, but not limited to, China’s illegal acts in the East Sea.

Thanks to its favourable geographical location, the region enjoys convenient sea routes conducive to boosting foreign trade in the region and the world as a whole, Phuc said.

He stressed the need to improve the cohesiveness of central provinces and cities for stronger and sustainable economic growth.

Phuc’s view was echoed by Party Central Committee's Commission for Economic Affairs (CEA) Chairman Vuong Dinh Hue, who suggested fostering cooperation among localities to increase investment efficiency and create a healthier business climate in the region.

It is also essential to complete institutions for regional economy development and boost economic restructuring process in line with the shift of growth model, Hue added.

Dr. Tran Dinh Thien, Director of the Vietnam Economic Research Institute, spoke of the important role the central region play in speeding up the pace of national economic development apart from the country’s two largest economic hubs – Hanoi in the north and Ho Chi Minh City in the south.

He highlighted the central region’s enormous potential for tourism development. With its beautiful natural landscape, intimate beaches and mountains, the central region should cooperate with the Central Highlands to create a special connection between its “blue beaches” and “massive green forests”, he underlined.

Thien described central Vietnam as a rich gold mine full of miraculous treasures thanks to its seaports that enable the region to easily connect to foreign countries greatly facilitating international integration.

He also cited ocean tuna fishing following Japanese technology as another advantage for sea-borne economic development in the central region. To effectively explore sea potential, more support should be provided for local fishermen who also play an important role in protecting the national sovereignty over sea and islands, Thien noted.

Economist Tran Du Lich placed special emphasis on establishing island economic zones on Cu Lao Cham, Ly Son, Hoang Sa (Paracel) and Truong Sa (Spratly) in order to combine economic development with national defence.

The central region should focus on developing coastal urban areas in a number of tourist attractions such as Chan May, Danang, Hoi An, Can Tuong, Quy Nhon, Tuy Hoa, Nha Trang and Phan Thiet, he elaborated.

To this end, Lich said it is necessary to speed up the development of the Danang high-tech park and increase the effectiveness of key economic zones, including Chan May-Lang Co, Chu Lai, Dung Quat, Nhon Hoi, Nam Phu Yen, and Van Phong.

Sea-based tourism development is pivotal to the transformation of the central region as the spearhead economic sector, he said, adding that the region should invest heavily in developing high quality entertainment services on a par with international standards.

Key facts & figures

Most central provinces achieved an average annual GDP growth of more than 10% in the 2009-2012 period, much higher than the national average (5.96%).

In the first half of this year, the economic growth rate in nine central provinces was rather high, with Quang Nam, Khanh Hoa and Ninh Thuan taking the lead (over 11%).

In the reviewed period, Thua Thien-Hue, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa and Ninh Thuan attracted nearly US$200 million in foreign direct investment (FDI).