According to the General Statistics Office, Bac Ninh’s GRDP in the first quarter, at comparable 2010 prices, is estimated at VND 27,765 billion, down 3.83% year-on-year. This is a lower decrease than in previous quarters (Q1/2023 decreased by 11.38%; Q2/2023 decreased by 13.01%; Q3/2023 decreased by 5.89%; Q4/2023 decreased by 7.56%) and is basically in line with the province’s growth scenario for the first quarter of 2024. By economic sector: The agriculture, forestry and fishery sector and the service sector both increased compared to the same period, while the industrial and construction sector continued to decline.
Faced with difficulties and challenges, the business community is grasping market signals, proactively seeking orders, retaining traditional markets, opening new markets with great potential. However, the province’s GRDP growth in the first quarter has not yet reached positive territory. However, in terms of trend, the negative growth in the first quarter has decreased compared to previous quarters. Growth drivers such as exports, public investments, and foreign direct investment are all affected by external factors. Specifically, on exports, orders are still decreasing, which affects production in the province and export products, followed by slow disbursement of public investment capital of the province, which is a significant decrease compared to the same period. However, this is a lever to stimulate growth in many sectors and directly affects the total development investment in the province.
Workers at a Bac Ninh industrial zone
In addition, new growth drivers have a rather large proportion as expected (semiconductor manufacturing enterprises have no revenue yet), directly affecting growth. Total domestic and global demand recovers slowly, businesses have difficulties in finding consumer markets, and financial capacity is limited.
In the first quarter, the average registered capital per newly established enterprise decreased by 3.8%, indicating that the scale of enterprises is narrowing. Notably, the number of enterprises withdrawing from the market increased by 31%, proving that difficulties in operation still exist and continue to increase. The import and export of goods continues to decline significantly, although the trade balance is in favor of exports. The province’s exports fell to third place after Ho Chi Minh City and Thai Nguyen, while imports remained third in the country.
Currently, the recovery trend is not clear, as Bac Ninh’s economy still faces many risks. Production and business activities in some sectors and fields are still facing difficulties, and the economy’s demand remains weak. Growth is mainly driven by exports. FDI investment has been slow to translate into economic growth. Meanwhile, the budget continues to record a decline in total revenue compared to the same period, while on the other hand, expenditure increases more strongly…
Bac Ninh from above
However, the GRDP growth in the first quarter shows that Bac Ninh’s directives and management solutions are moving in the right direction, gradually removing difficulties, creating a level of improvement for subjects in various economic sectors, and although growth is still negative, the rate of decline has been lower than in previous quarters.
To achieve the planned target of GRDP growth of 5% in 2024, the following quarters must have a growth rate of nearly 8%, creating a favorable momentum to strive to achieve the highest targets set out in the socio-economic development plan for the period of 2021-2025. Localities need to diversify the supply chains of multinational corporations, continue to implement fiscal policies to support businesses, such as extending the deadline for paying taxes and fees for businesses, and continue to remove legal barriers to create a transparent business environment and build trust in the business sector.
Green development is an inevitable trend and acts as a new growth engine for the economy, such as in the high-tech sector, semiconductors, artificial intelligence, circular economy, and renewable energy, developing high value-added service industries associated with urban economic development, promoting agricultural and rural development, and applying high technology in agriculture.
Strengthening land, resource management, and environmental protection, focusing on resolving cases of land allocation beyond authority, land encroachment and occupation, removing difficulties, accelerating the progress of land auction projects, residential land projects, land for BT projects, and upgrading urban areas, and clearing land for the implementation of major and key projects of the province.
Proactively integrating internationally in a comprehensive and in-depth manner, promoting external activities, and promoting the potential, strengths, cultural traditions, and people of Bac Ninh – Kinh Bac to attract economic resources, investment capital, and human resources, creating momentum for comprehensive development in all socio-economic sectors.
