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Mekong Delta region sustains growth rate
The Cuu Long (Mekong) River Delta has maintained relatively high growth levels despite fluctuations of the domestic market in 2008, yet economic growth still lags behind other areas of the country.
Industry and Trade authorities announced that the Mekong Delta's export turnover this year reached more than US$5 billion, while import turnover hit over $3 billion total, rising 22.05 and 13.74 per cent against the previous year, respectively.
The Delta also saw total retail sales of goods and services of more than $10.9 billion this year, increasing 26.8 per cent over a year ago with industrial output rising 18 per cent.
It was found at the Mekong Delta's industry and trade meeting 2008 that a number of sectors in the 13 regional provinces and city such as Can Tho, Kien Giang and Ca Mau have great potential for industrial development in the realms of shipbuilding, engineering, agriprocessing, seafood processing, energy, chemicals, cement and building materials.
The region now has 45 industrial zones with a total area of more than 30,000ha, six commercial hubs and 31 supermarkets to increase economic development.
However, the delta is still considered to be a slow growth area compared to other areas in the nation.
The Viet Nam Chamber of Commerce and Industry (VCCI) branch in Can Tho City said that the region's population of approximately 17 million created a great potential consumption market. At this point, however, most regional enterprises only have small-scale operations, and the retail market remains largely untapped.
Enterprises with less than $60,600 capital make up 48 per cent the total in the region, while the national average is 28 per cent.
Le Dinh Tien, an expert of Can Tho City's Business Association said many enterprises in the Delta had limited competitive ability due to a lack of concern about product quality, flexibility and expenses.
The competitive ability of enterprises were also impacted by some external elements including a weak transport system and out-of-date infrastructure, said Nguyen Phuong Lam, an officer of VCCI Can Tho branch.
Lam added that if the transport infrastructure of the region was better, companies could save about $7 to $10 per tonne of products during transport.
A lack of human resources was the biggest challenge in the region, Lam said, adding that provinces should invest more in education to boost the regional economy.
Minister of Industry and Trade Vu Huy Hoang said regional authorities needed to co-operate with the Ministry of Industry and Trade, the Ministry of Finance and others to give solutions on capital, credit, site clearance, import and export for enterprises.
Hoang hoped that the region would hit the economic growth target of 10.5 per cent within the period of 2006-10, as well as move away from farming to reach a ratio of non-agricultural production to agricultural production of 64/36 by 2010.
With the Delta bordering HCM City and the sea in parts, this makes it a good location for trading with neighbouring regions on the coastline, director of VCCI branch Can Tho, Vo Hung Dung. Therefore, it would be wise to increase the region's strength by engaging in more foreign trade.
Viet Nam News
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