Industrial sector helps promote Vinh Phuc economic growth
The northern province of Vinh Phuc’s industry has been growing to become a key economic sector that contributes greatly to the local gross regional domestic production (GRDP).
According to the provincial People’s Committee, nine out of 20 industrial parks and clusters approved by the Prime Minister have become operational. The locality has had more than 10,500 businesses.
In the 2015-2020 period, the average growth of the province’s industrial-construction production value is estimated to reach 12.1% per year, nearly doubling the target set at the resolution released at the 16th Party Congress of the province.
The sector also makes up more than 65% points to the whole economic growth of the province.
The added value of the processing-manufacturing sector of the province accounts for 4.5% of the added value of the sector in the whole country. Meanwhile, electronic spare parts have been the leading export products of Vinh Phuc, accounting for 40% of the province’s industrial sector’s production value.
At the same time, automobiles and motorbikes have been the leading industrial products of the province, which has long been the largest hub of automobile and motorbike production hub of the whole northern region.
Besides, supporting industry has been formed and developed rapidly, especially for the manufacturing, electronics and information technology sectors.
According to the Vinh Phuc People’s Committee, the development of industrial sector has helped promoted the economic growth of the locality, increasing budget collection and creating jobs for labourers.
In the 2016-2020 period, the province’s economic growth is estimated at 8% per year, while average budget collection in the period rose 30.3% per year, with domestic collection entering the top localities across the nation in the field and the second in the Northern region.
Particularly, in 2020, the scale of the province’s economy is estimated at VND128 trillion, 1.63 times higher compared to that in 2015. The per capita GRDP is likely to reach VND110.4 million per year, while labour productivity hit nearly VND200 million per person per year, up 9.43% and higher than the average figure of the country.
In order to promote the industrial sector’s growth, Vinh Phuc will continue to strengthen investment promotion activities, along with administrative reform and the removal of difficulties for business and production.
At the same time, the province will better the implementation of mechanism and policies in market production, investment mobilisation as well as science and technology application and support industry development.
Alongside, the province will train and effectively use human resources, while supporting investors in the locality.
Between 2016 and 2019, Vinh Phuc attracted US$2.5 billion in foreign direct investment (FDI) and some VND55.28 trillion (US$2.38 billion) in domestic direct investment (DDI).
As of the end of June 2020, Vinh Phuc had been home to 392 FDI projects with total registered capital of US$5.57 billion, according to statistics of the provincial Department of Planning and Investment.
The projects were run by investors from 18 countries and territories. The Republic of Korea has the most projects with 210, followed by Japan, China and Thailand.
Many global groups have made their presence in Vinh Phuc, such as Toyota, Honda, Sumitomo from Japan, Piaggio from Italy, De Heus from the Netherlands, Daewoo, Haesung Vina, Partron Vina, Cammsys from the Republic of Korea, Prime Group from Thailand and Weldex from the US.
Vinh Phuc has designated 18 industrial parks with total area of 5,228 ha in a master plan to 2020 approved by the Prime Minister. By now nine industrial parks have received investment certificates. Industrial parks in Vinh Phuc have good technical infrastructure and professional management, thus contributing to attracting investors to the province. They reported an average occupancy rate of nearly 62%.
