Phu Tho: Towards Rapid and Sustainable Development

In the conditions of intensified economic integration, upgraded infrastructure and economic recovery, Phu Tho is taking efficient measures to promote stable and sustainable development. To get more information, Vietnam Business Forum had an interview with Mr Hoang Dan Mac, Chairman of Phu Tho People’s Committee. Ngo Khuyen – Tran Trang reports. 

 

Beside historical significance, Phu Tho has great potential and advantages for development, how do you evaluate these advantages? 

First, I would like to refer to the historical fact that Phu Tho was the first royal capital of ancient Van Lang (now Vietnam) and its political, economic and social centre for a long time. It reaffirms the advantages and influences of Phu Tho on other parts of Northern Vietnam. Today, Phu Tho is an important gateway linking North-West Vietnam with Hanoi and the Red River Delta (80km from Hanoi and 50km from Noi Bai International Airport). Furthermore, Phu Tho is located half way from Haiphong seaport to the border gates of Lao Cai , Ha Giang and Lang Son  (170-200km).  

 

Phu Tho has favourable networks of communication and transport, with Haiphong – Hanoi – Lai Cai railway – to be expanded as an international transport line, and river transport on the Red, Lo and Da Rivers with three major river ports of Yen Mao, Bai Bang and Viet Tri. Meanwhile, Highways 2, 32, and 70 have been broadened, Ho Chi Minh road and Hanoi – Phu Tho – Lao Cai highway developed. In the near future, Phu Tho will be an important link in the international economic corridor of Hanoi – Haiphong – Kunming (China), a connection and transit point in the trans-Asia transport line. 

 

The province also has diversified resources of minerals including materials for cement industry, steel, kaolin, fenspat, clay, hot mineral water, etc. Large areas for agricultural and forestry development remain open for investment projects. 56,000 hectares of natural forests and 60,000 hectares ofplanted forests are large areas for the development of forestry processing industries such as pulp and tea. 

 

Phu Tho is also known as a centre ofculture and humanity, the land of Hung Vuong, the ancestors of the Vietnamese people. Various forms of tourism can be developed such as Xuan Son national park, festivals of Hung Temple and Bach Hac, and Xoan folk songs. In the near future, tourism will become a spearhead sector of the local economy. The province has some 800,000 people of working age, 33.5 percent of which have been trained and can meet the demand of industrial and service projects.

 

Resolution 37-NQ/TW of the Politburo of IX Congress and Decision of the Prime Minister set Phu Tho as a centre of economy, culture, education, science and technology in the region. The decision helps promote investments in infrastructure, health, education and poverty reduction, thus accelerating socio-economic development in the province.

 

How is the socio-economic development of the province in the present time? 

In 2006-2010, Phu Tho recorded important successes in socio-economic development. The GDP growth rate was 10.6 percent a year, the highest ever recorded and 3.4 percent more than the national rate. The economic restructuring is in favour of industry and service. In 2010, industry made up 38.5 percent, service 35.9 percent and agriculture 25.6 percent of the provincial economy. Socio-economic infrastructure has been invested with VND29,900 billion. All economic sectors have been encouraged to develop the local economy. As a result of socio-economic development, living conditions have been upgraded with increased generation of jobs and reduction of poverty. 

 

There are, however, many shortfalls. Economic growth remains unstable, the size small in comparison with the potential, restructuring is slow and not efficient, the planning late and human resources fail to meet the demand of development. In spite of great efforts, the investment environment remains little improved to attract more investment, especially big projects serving as driving force for other industries.

 

To ensure fast and stable development in 2011-2015, Phu Tho is determined to attain such objectives as: average economic growth rate of 12-13 percent a year, GDP per capita in 2015 of US$1,500-1,600, export value increases of 13 percent a year (US$600-650 million by 2015), and total social investment of VND67,000-68,000 billion. The economic structure in 2015 will be: industry-construction 41 percent, service 39-40 percent, agriculture-forestry 18-19 percent. In 2020, Phu Tho will basically be an industrial province.

 

What are the solutions to attain those objectives? 

Phu Tho will focus on the following solutions: 

The province will complete policies and mechanisms to promote socio-economic development and improve the investment and business environment. For instance, on September 30, 2011, Phu Tho People’s Committee issued Regulations on one-stop shop to facilitate investment formalities in the province. 

 

The province will upgrade infrastructure in industrial zones to attract investments with advanced technology and clean industry, assist businesses in land clearance, training the workforce and transferring technology. Businesses and services will be developed in rural and mountainous areas and they will be assisted in operation and consumption of products. 

 

Socio-economic development will be in harmony among regions, ensuring linkage between rural and urban areas and priority for key economic areas such as Viet Tri – Phu Tho town, Lam Thao, Phu Ninh – Tam Nong, as well as disadvantaged regions. Agriculture-forestry will be developed with cash crops. Bio-technology will be applied. Large areas will be developed for tea, fruit, timber, and animal husbandry, with some agricultural centres applying high technology. 

 

Industry-construction will be developed with larger scale, higher quality and competitiveness, with priority for new and strategic products such as mechanics, high class construction materials, electronic, supporting industries, IT, pharmaceuticals, and wood-based furniture. Large scale projects will be encouraged especially industries in service of agriculture and rural development. 

 

The province will promote tourism and service, developing the existing advantages to make Phu Tho a tourist centre of historical and eco-tourismwith the nucleus of the Hung Temple and Viet Tri festivals.

 

With greater determination and efforts, we will successfully implement the above solutions, mobilizing all the resources of the province to ensure rapid and stable development of Phu Tho.