Focus on solutions for rapid and sustainable industrial development

Long An province is a "bright spot" in attracting investment

A "bright spot" in attracting investment

In 2023, the province's socio-economic situation achieved many important results in all fields. Economic growth gradually recovered, reaching 5.77%. Although the stat is lower than the set target, it is still good compared to the whole country. The province increases domestic and foreign investment promotion activities, proactively approaches organizations, large investors, and projects in accordance with the province's investment attraction orientation.

According to statistics, in 2023, the number of newly established enterprises, FDI projects, and the registered capital of domestic and foreign investment projects increased over the same period. Regarding domestic investment, 1,928 new enterprises were established, an increase of 14% with a total registered capital of 21,703 billion VND. Currently, the whole province has 16,991 enterprises with a total registered capital of 373,087 billion VND.

For foreign investment, in 2023, the province granted investment certificates for 116 projects, an increase of 57 projects with new investment capital of 594.96 million USD, an increase of 37.1% over the same period. Currently in the province there are 1,245 FDI projects, total capital reaching over 10.6 billion USD, of which 588 projects are in operation with total investment capital of over 3.62 billion USD.

Thanks to the synchronous implementation of many economic recovery solutions, administrative reforms and supports, the province's PCI had a breakthrough, increased 6 places, rising to the position of top 10 provinces and cities with the best PCI in 2022.

However, according to Deputy Director of the Department of Industry and Trade - Chau Thi Le, although the province has many potentials, advantages and attracts more investment projects in the field of supporting industries than other provinces and cities in the Mekong Delta region, the province's supporting industries are still limited compared to provinces and cities in the Southeast region. Currently, there are only about 200 projects in the list of 6 priority support industry product groups.

Of which, the textile, garment, and footwear industries account for about 47%; mechanical manufacturing industry is about 21%; the remaining are distributed in the fields of electronics, manufacturing, automobile assembly and industrial products supporting high-tech industry.

Most of the province's supporting industry projects are still simple, do not meet the requirements of technology and design, are not highly competitive, have not developed supporting industries systematically, lowly contribution to industry. The connection between domestic enterprises and FDI enterprises is still weak, supporting industry enterprises in the province have not participated much in the value chain of FDI enterprises; Many FDI enterprises still use many imported raw materials as well as products and semi-finished products, especially when more and more free trade agreements take effect, causing many imported goods and raw materials to have low tax rates. In particular, the province lacks leading enterprises in supporting industry development.

Develop industry in both breadth and depth

From that reality, the Provincial Master Plan for the period 2021-2030, with a vision to 2050, focuses on developing industry in the direction of product diversification, industry with high, green and clean technology. In particular, for supporting industries, there must be connections between domestic suppliers and multinational corporations to enhance the ability of domestic enterprises to participate in domestic and global production networks. At the same time, the province will focus on promoting the development of textile, garment, and footwear industries; metal spare parts, electrical and electronic spare parts; components and spare parts for mechanical processing machines and high-tech industry associated with the development of textile and garment industries, electronics industry and mechanical manufacturing.

“To achieve that goal, the Department of Industry and Trade is focusing on implementing the Project to restructure the Industry and Trade sector for the period to 2030 focusing on 5 areas: Industry, energy, import and export, domestic market, international economic integration associated with the tasks and solutions of the Prime Minister's Project on restructuring the Industry and Trade sector for the period to 2030" - Ms. Chau Thi Le said.

The production process applying smart science and technology, automation, reducing labor use

The Industry and Trade sector determines and focuses on promoting industrial development in both breadth and depth, aiming for sustainable development on the basis of industrialization and modernization; focus on developing a number of product manufacturing industries, creating a breakthrough in improving productivity, quality, competitiveness, and domestic added value of products with leading products with large export value, using high technology, increasing knowledge content in industrial products.

The sector strives to achieve an average growth rate of industrial production value of 13%/year; carry out restructuring the industry to fundamental, priority, spearhead industries with high technological content and added value; transform resource, energy, and labor-intensive industries into green, low-carbon industries; develop a number of key industries such as processing and manufacturing industries to serve agriculture; biological industry; textile, garment, and footwear industries that create high added value based on smart, automated production processes; etc.

At the same time, the Industry and Trade sector focuses on implementing the plan to distribute the province's industrial development space in a direction associated with driving regions, centers, and key economic corridors in accordance with the Provincial Master Plan for the period 2021- 2030, vision to 2050 and other plans in the Planning Law, ensuring high specialization, promoting the advantages of each region and locality in infrastructure, human resources, etc.

In particular, the industrial sector must restructure economic zones and industrial parks towards sustainability and ecology associated with the formation of industrial linkage chains, production networks, and industrial value chains that take into account comparative advantages of each locality to increase support and connection of commodity supply chains, promoting international economic integration.

“To ensure effective implementation of the Project for rapid and sustainable development of Long An province in the period 2021-2030, with a vision to 2050, for the industrial sector, the industry determines priorities for developing high technology, with priority given to key supporting industries such as textiles and garments, footwear, mechanical engineering and development industries when opportunities arise such as electronics and information technology. In industrial development, the Industry and Trade sector focuses on implementing the plan to organize the province's industrial development space into 4 regions. Of which, Region 1 - the central area of Tan An City - Ben Luc district prioritizes the development of high-tech industry, forming a new industrial area concentrated in Ben Luc urban area; Region 2 - the northern region of Duc Hoa district, develops supporting and processing industries; Region 3 - the eastern region of Can Giuoc - Can Duoc district to form a concentrated industrial park and port industry at Long An International Port; Region 4 - the western region of Kien Tuong town to form and develop a tax-free industrial park of Long An border gate" - Ms. Chau Thi Le added.

In addition to solutions for sustainable industrial development, the province also recommends that the Government and central ministries and branches to soon complete the legal corridor on supporting industries, in the direction of reducing conditions, simplifying the dossier components so that businesses can be granted preferential certificates for projects producing supporting industrial products. This helps businesses access support policies according to regulations. At the same time, ministries and branches also need to urgently promulgate normative documents, concretizing regulations on preferential policies for supporting industrial projects according to Decree No. 111/2015, creating an attractive investment environment for supporting industry enterprises./.

By Kien Dinh - Translated by Q. Thien

Source: https://baolongan.vn/tap-trung-cac-giai-phap-phat-trien-cong-nghie-p-nhanh-va-ben-vung-a169441.html