The Billion-Dollar Projects: How Thanh Hoa’s Mega-Investments are Powering its Economic Rise

Attracting Multi-Billion Dollar Projects in the First Half of 2024

According to the Planning and Investment Department of Thanh Hoa province, as of June 30, 2024, the province attracted 71 direct investment projects, up 91.9% from the same period last year (including 15 foreign direct investment projects), with a total registered investment capital of VND 11,615 billion (up 22.3% over the same period) and USD 184.4 million (up 23.8% over the same period); foreign investors bought shares and capital contributions in 01 company, with a total capital contribution of VND 23,700 million; adjusted investment capital for 03 projects, with an additional capital of USD 3.44 million, and reduced investment capital for 01 FDI project, with a reduced capital of USD 21.5 million. When divided by region, the number of projects attracting investment in the delta region was 44, 12 in the coastal region, and 15 in the mountainous region.

Specifically, in the field of industry and handicrafts, Thanh Hoa province attracted 28 projects (including 10 FDI projects), accounting for 42.4% of the total attracted projects, with a capital of VND 4,522.7 billion and USD 177.33 million, respectively accounting for 41.5% of the total domestic investment capital and 99.9% of the total FDI capital.

In addition, in the field of trade and services, Thanh Hoa province attracted 22 projects (including 2 FDI projects), accounting for 28.8% of the total attracted projects, with a capital of VND 333.1 billion and USD 0.17 million, respectively accounting for 3.1% of the total domestic investment capital and 0.1% of the total FDI capital.

In the field of agriculture, Thanh Hoa attracted 04 projects, with a capital of VND 190.5 billion, accounting for 6.8% in terms of the number of projects and 1.7% in terms of domestic investment capital; in the field of mining, there were 09 projects, with a capital of VND 120.7 billion, accounting for 15.3% in terms of the number of projects and 1.1% in terms of domestic investment capital; in the field of infrastructure, there were 04 projects, with a capital of VND 5,738 billion, accounting for 6.8% in terms of the number of projects and 52.6% in terms of domestic investment capital.

According to the Planning and Investment Department of Thanh Hoa province, some projects have a large scale, such as: Water supply system for the chain of urban areas along National Highway 47, Thanh Hoa city and its vicinity (with a total investment of VND 2,545.8 billion), OSB staBOO Thanh Hoa Bamboo Plywood Factory in Ba Thuoc district (with a total investment of VND 3,199 billion), 500kV Substation Project in Thieu Tien, Thieu Phuc, Thieu Vien, Thieu Ly, Thieu Trung, and Hau Hien wards, Thieu Hoa district (with a total investment of VND 1,444.5 billion).

According to statistics from the Planning and Investment Department of Thanh Hoa province, there are currently 172 foreign-invested projects (FDI) still valid in the province with a total registered investment capital of about USD 14.78 billion, including: 76 projects in Nghi Son Economic Zone and Industrial Parks, and 96 projects outside Nghi Son Economic Zone and Industrial Parks.

Striving to Speed Up Large and Key Projects

According to the Office of the Provincial Party Committee of Thanh Hoa, in 2024, the province of Thanh Hoa has identified a list of 71 large and key projects that need to be focused on and directed for implementation. So far, 04 projects have been basically completed, including the Sea Square and the festival landscape axis of Sam Son city; Thanh Hoa Vocational College of Industry; Investment in construction and equipment procurement for 05 district-level medical centers in Thanh Hoa province; Investment in construction of new works and equipment procurement for 70 commune-level medical stations in Thanh Hoa province; 34 projects are being implemented; 33 projects are completing investment preparation procedures and documents.

Talking to the Vietnam Industry and Trade Newspaper about the progress of implementing large and key projects in the area, the leader of the Planning and Investment Department of Thanh Hoa province said: In the process of implementing large and key projects, many projects encountered difficulties, with 36/71 projects having problems during implementation. Specifically, for projects that are completing investment preparation procedures and documents, the formulation and approval of master plans and functional subdivision plans related to some projects are still slow, such as: Nam Song Ma Urban Area and Resort and Entertainment Park; New urban area along the South Song Ma Avenue; Ben En tourist and resort ecological complex with high-class entertainment and entertainment services…

In addition, projects in the field of culture must be appraised and agreed upon by the central ministries and sectors, and in some cases, a contest must be organized to create a cultural image to choose a model as a basis for implementation, which prolongs the time for performing investment preparation procedures, such as: Project to honor the Trinh Dynasty Vestige Site; Project for Conservation, Restoration and Promotion of Values of the National Special Relic of the Mausoleum and Temple of Lady Trieu; Project for Restoration and Restoration of the Historical and Artistic Relic of Lady Trieu…

In addition, difficulties in site clearance are also a reason for the slow progress of projects that are being implemented, due to the slow determination of land origin, compensation rates, and investment in the construction of resettlement areas, such as: Duc Giang – Nghi Son Chemical Complex Project; Flamingo Linh Truong Area A and Area B Project; New urban area project at Hoằng Quang and Hoằng Long wards, Thanh Hoa city…

Some projects using foreign capital (ODA) have a multi-step implementation process that takes a long time and depends on foreign sponsors; some projects must carry out procedures and documents to adjust investment policies and investment projects due to increased site clearance costs, such as: Dynamic Cities Development Project – Tinh Gia Urban Sub-project; Dam Repair and Safety Improvement Project (WB8); Improvement of Urban Infrastructure in Ngoc Lac District, Ngoc Lac District…

Although some key projects of Thanh Hoa province are slower than the set progress, however, up to now, Thanh Hoa is still leading the country in disbursement of investment capital. Specifically, up to July 26, 2024, the disbursement value of investment capital of Thanh Hoa province reached more than VND 6,800 billion (in 2024, the total plan for investment capital from the state budget of Thanh Hoa province is VND 12,800 billion), equivalent to 53.4% of the plan and 11.5% higher than the same period.

Striving to be in the Group of Leading Provinces by 2025

Thanh Hoa province sets the goal that by 2025, it will be in the group of leading provinces in the country – a new growth pole, with a rapidly and sustainably developing economy, along with Hanoi, Hai Phong and Quang Ninh to form a development quadrangle in the North of the country; by 2030, it will become a modern industrial province, with people’s living standards higher than the national average; national defense and security are firmly guaranteed; maintaining stability and social order and safety.

By 2030, strive to make Thanh Hoa province one of the major centers of the region and the country in heavy industry, energy industry, processing and manufacturing; large-scale, high-value agriculture; logistics services, tourism, education and training, specialized healthcare, culture and sports.

In terms of economy, Thanh Hoa province strives for a GRDP growth rate of 10.1% or higher in the period of 2021 – 2030. By 2030, agriculture, forestry and fisheries will account for 5.1%; industry and construction will account for 57%; services will account for 33.3%; tax on products will account for 4.6%. GRDP per capita by 2025 will reach about USD 4,200 or higher; by 2030 it will reach USD 7,850 or higher.

Sharing with the Vietnam Industry and Trade Newspaper about the goal of developing industry in Thanh Hoa province in the coming years, Mr. Mai Xuan Liem, member of the Provincial Party Committee, Vice Chairman of Thanh Hoa Provincial People’s Committee, once said: To soon realize the goal of becoming a new growth pole in the North of the country by 2025, Thanh Hoa province will focus on implementing strongly and effectively the programs, projects, and plans to implement the Resolution of the 13th National Party Congress, Resolution No. 58- NQ/TW and Resolution No. 26-NQ/TW of the Politburo, Resolution of the 19th Provincial Party Congress, Socio-economic Development Plan for the period of 2021 – 2025. Effectively implement the Master Plan of Thanh Hoa province for the period of 2021 – 2030, with a vision to 2045; specific mechanisms and policies according to Resolution No. 37/2021/QH15 of November 13, 2021 of the National Assembly, creating new momentum for socio-economic development of the province.

Continue to restructure the economy in association with growth model innovation, focusing on reviewing, supporting, and removing difficulties and obstacles to improve production and business efficiency for enterprises. Focus on developing industry with a high growth rate, focusing on heavy industry, energy industry, and processing and manufacturing industry; prioritize developing industries of petroleum refining and post-refining, industries serving the marine economy, high-tech industries, high added value…; attract investment in new large-scale industrial projects, making Thanh Hoa province one of the centers of the North Central region and the country in terms of industry.

Develop strong service industries, making Thanh Hoa province one of the key tourism, transportation, and seaport centers of the region and the country. Take advantage of the deep-water port cluster of Nghi Son to promote seaport and maritime transport services; build a class I regional logistics center in Nghi Son Economic Zone.