Unlocking the Puzzle of a ‘Wealthy Province with Modest Incomes’: A Strategic Imperative for Vietnam’s Socio-Economic Transformation

On August 14, the Vinh Phuc Provincial Party Committee organized a provincial-wide online conference to propagate several regulations promulgated by the Politburo and provide an update on the province’s situation in the first months of 2024. The conference was attended by over 1,600 delegates, connected through online platforms to various districts and cities.

Providing an update on the situation in Vinh Phuc Province for the first months of 2024, Secretary of the Provincial Party Committee Duong Van An acknowledged certain difficulties and challenges directly impacting the province’s political and socio-economic development since late 2023. However, with determination and a spirit of resilience, the province has witnessed a recovery and positive growth in all three economic sectors: state-owned, private, and foreign-invested.

Specifically, in the first six months, the GRDP growth rate reached 6.26%; the economic structure shifted in the right direction; and state budget revenue for the first seven months of 2024 exceeded VND 18,030 billion, an increase of 8% compared to the same period. Vinh Phuc remains an attractive destination for investors; in the first seven months of 2024, the province granted investment registration certificates and increased capital investment for 52 FDI projects, totaling US$473 million. Additionally, 17 FDI projects were approved with a total capital of VND 3,502 billion.

Mr. Duong Van An noted that while Vinh Phuc is a wealthy province, its per capita income is not high. Therefore, the province needs to create new economic pillars and revenue sources for the budget, reducing dependence on any single sector to ensure stable and sustainable revenue.

To achieve this, Mr. An suggested continuing to innovate investment promotion activities by increasing the scale of capital and the ratio of land rent and use in projects. He also emphasized the need to enhance the occupancy rate of industrial parks, boost tourism and services, and create demand stimulation from the service sector to promote economic growth and increase people’s income.

Additionally, he stressed the importance of improving the efficiency of public investment capital by focusing on key areas and avoiding dispersion. He also highlighted the need to pay attention to the demarcation of protection boundaries for irrigation works and strictly handle violations of these boundaries, especially in large lakes such as Dam Vac and Dai Lai. He proposed developing Dam Vac Lake into an ecological heart and an integral part of the symbol of Vinh Yen City.

Regarding future orientations and key tasks, Secretary Duong Van An affirmed that the province would focus on leading and directing the development of the economy across three pillars: industry, tourism-services, and high-tech agriculture, linked with building value chains.

Furthermore, the province will strengthen the investment and business environment, vigorously reform administrative procedures, and ensure transparency in information disclosure. Upgrading infrastructure to enhance regional connectivity, developing tourism and services, and promoting digitization across the three pillars of the digital economy, digital society, and digital government are also key priorities. Accelerating the implementation of the Vinh Phuc Province Planning for the period of 2021-2030, with a vision to 2050, will also be a focus.