Wanted: Foreign investors for Nghe An
The north-central Vietnamese province of Nghe An is creating favorable conditions to attract investment especially foreign direct investment (FDI) in industrial development in order to fulfill its targets.
Support industry limitations
According to the Nghe An Province Department of Industry and Trade, the province's support industry has grown rapidly in recent years thanks to a number of large-scale foreign invested projects in the fields of manufacturing and supplying electronic components and accessories.
Nghe An's production value of support industry products reached about VND7.6 trillion in 2021, accounting for 9.51 percent of the province's total industrial production value
Nghe An's production value of support industry products reached about VND7.6 trillion in 2021, accounting for 9.51 percent of the province's total industrial production value. The production value of domestic support industry enterprises hit about VND2.1 trillion, making up 2.63 percent of the province’s total industrial production value.
Support industries are found in the fields of electronics, packaging, textiles and garments, engineering and more. However, support industry enterprises remain relatively small in size and quantity.
The provincial industrial sector needs to develop on a sustainable basis, while resourcing still makes up a large proportion of its production structure and its contribution to the province's gross regional domestic product (GRDP) remains modest and incommensurate with the potential. Most investment projects are labor and resource intensive ones, and industrial infrastructure remains inadequate, leading to investment attraction difficulties. Investment promotion policies need to be improved, and enterprises functioning as a driving force for regional economic growth need to be formed.
Plans call for the average production value of support industries to increase annually by 9-10 percent
The province plans to develop support industries in the direction of both prioritizing sectors with competitive advantages, restructuring high technology-based fields, increasing the proportion of industrial exports, and promoting final product manufacturing industries.
Plans call for the average production value of support industries to increase annually by 9-10 percent and account for 10-12 percent of the province’s industrial production value by 2025, with 20-30 support industry enterprises capable of supplying foreign-invested manufacturers with parts and raw materials.
Accordingly, the province will focus on attracting investment for rapid development in the fields of electronics, information technology, energy, mechanical assembly, construction and pharmaceutical materials, chemicals, farm produce, forest product and seafood processing, and the biological industry.
Provincial authorities are hoping these improvements will provide 18-20,000 new jobs a year, with skilled labor forces accounting for 60 percent of the total.
In the 2026-2030 period, Nghe An Province will transform its development model in accordance with international economic integration, prioritize investment in high-tech industries, reach an average industrial production growth of 17-18 percent a year, and increase industry’s and construction’s contributions to the provincial GRDP to 17-45 percent.
To achieve the targets, Nghe An Provincial People's Committee is researching how to attract investment especially FDI in industrial and handicraft development, giving priority to processing, manufacturing, support industry and renewable energy sectors. The province will boost development of craft village products, including fine art and handicraft articles, using local raw materials, to create more jobs and products with a brand name.
The province will regularly hold trade promotion and other supply-demand connection activities to create conditions for provincial businesses to join global supply chains while focusing on export development and diversifying export markets.
Nghe An has committed to helping investors overcome difficulties and develop production, and will continue administrative reform, e-government development, and information technology application to provide high-level public services and simplify administrative formalities.
|About 90 support industry enterprises of all sizes are operating in Nghe An, representing eight percent of all province-based industrial enterprises.
VietNam Economic News