The Underperforming Southeast Region: Failing to Meet Expectations as Vietnam’s Dynamic Economic Powerhouse

On August 10th, in Ho Chi Minh City, Prime Minister Pham Minh Chinh – Chairman of the Southeastern Region Coordination Council – chaired the 4th meeting of the Council. Attending the meeting were members of the Council, comprising leaders of ministries, sectors, and provinces in the Southeastern region.

Reporting on the socio-economic situation for the first seven months, Mr. Nguyen Chi Dung, Minister of Planning and Investment, said that the Southeast region achieved fairly good growth but fell short of expectations as the country’s leading and driving economic region.

The region’s economic growth reached 5.58%, lower than the national average and only higher than the Central Highlands region (3.86%). Total state budget revenue reached nearly VND 400 trillion, accounting for 38.1% of the country’s total state budget revenue, second only to the Red River Delta region (nearly 43%). Export turnover reached USD 59.2 billion, accounting for 31% of the country’s total export turnover, second only to the Red River Delta region (nearly 35%).

However, in the first seven months, the Southeast region had the largest number of newly established and reactivated enterprises among the six economic regions, with more than 58,200 enterprises, an increase of 9.8%.

Regarding the activities of the Southeastern Region Coordination Council in the past time, Minister Nguyen Chi Dung said that the Council has completed three tasks so far: The National Assembly has issued Resolution 138 approving the investment policy for the Chon Thanh – Gia Nghia expressway project; The Prime Minister has approved the adjustment of the master plan for the development of Vietnam’s seaport system for the period of 2021-2030, with a vision to 2050, which includes the addition of the Can Gio International Transit Port; The Prime Minister has also approved the investment policy for the project to build the Ho Chi Minh City – Moc Bai expressway (phase 1).

Meanwhile, the Council members have completed 28 out of 41 tasks assigned in the decision to issue the plan for implementing the coordination tasks in 2023 and 5 out of 30 tasks assigned to be completed in 2023 in the Government’s Action Program to implement Resolution 24. The remaining tasks are being urgently implemented by the ministries and localities.

Regarding the plan to implement the master plan for the Southeast region, the Minister of Planning and Investment said that the master plan for the Southeast region for the period of 2021-2030, with a vision to 2050, has been approved by the Prime Minister in Decision No. 370 dated May 4, 2024, reflecting the close and strong direction of the Government leader in implementing the tasks and solutions in the Resolution of the Politburo.

Currently, the Ministry of Planning and Investment has drafted a plan to implement the master plan for the Southeast region for the period of 2021-2030, with a vision to 2050, and sent it to the ministries, sectors, and localities in the region for comments. After receiving feedback from the members, the Ministry of Planning and Investment will consolidate, review, amend, and finalize the plan for submission to the Prime Minister for approval.

Regarding the review of special mechanisms and policies for the region, in addition to the groups of policies and mechanisms proposed for application in all regions nationwide, the Southeast region also proposes a number of specific groups of special policies and mechanisms, including: Policies on increasing the local budget debt balance of localities in the Southeast region; policies on industrial park development; policies on increasing the land allocation for industrial parks; policies on priority sectors and industries to attract strategic investors.