The year 2014 will mark the record of economic growth

Although still have more four months to the end of 2014, we can affirm that the province’s economic growth rate (GDP) has never been increased dramatically before. It is because for the first six months of the year, the province’s GDP has risen to 15.2% in comparison with the previous year. It is estimated that it will reach up to 18% for the whole year. In that case, this will be the record of growth rate so far, much higher than the target set in the Resolution adopted by the 18th Provincial Party Congress.

As estimated

The year 2013 was considered as an extremely-important pedal step for the strong development of the economy for the following years. In 2013, the province’s economy actually gained proud results: Ranked at the second amongst all provinces in attracting foreign investments with registered capital of up to billions of United State dollars; industry developed in a sharp way with key projects like Samsung, Nui Phao, An Khanh Thermo Power plant, etc. With this result, in 2013, plan-makers estimated that the province’s 2014 GDP would be much higher than previous years. In particular: GDP would increase by 15% at least; industrial output value would rise by 55%, export turnover would be six times higher than the previous year; budget revenue would increase by 20%; average income would be 35 million VND/person/year…

Directly after making the plan, many people doubted about it because the target is much higher than previous years. However, thanks to explanations and clarifications of sectors, the province has officially built up the target of GDP growth rate in 2014 as proposed. And in reality, the province’s economic growth rate for the early six months of this year showed the reasonable calculation of specialists. In the opinion of Mr. Dang Xuan Truong, Director of the Planning and Investment Department, these calculations are still modest compared to the actual gain. The sector built up the economic indicators which had been much reduced in comparison with estimation to ensure safety in the plan implementation.

Industry- construction area made the biggest contribution

The affirmation that industry-construction area made the best contribution is totally reasonable because in the total GDP of the early six months of 2014, agriculture-forestry and aquaculture product area increased by 4.1% only, service rose by 6.4% while industry - construction increased by 28.6%. So, among 15.2% GDP of the whole province, industry-construction area made contribution to 12%.

In the early six months, although the production of industrial enterprises in the province in general and steel production sector in particular still faced many difficulties, thanks to the strong enhancement of production capacity of the sector manufacturing electronic products, communication equipment and non-ferrous metal ore, so that the province’s growth rate of the industry increased to 33.3%. If the calculation is based on industrial output value, for the first six months of this year, the province’s industry increased 3.7 times higher than previous year and beyond all expectations made for the whole year. In which, foreign-invested industrial area was considered the most important, deciding the high growth rate not only in industry but also in GDP of the province.

Nowadays, this area makes up to 73% of industrial output value of the province, in which main new products group of Samsung Electronics Company Limited and Nui Phao Mineral Exploitation and Processing Co., Ltd (electronics, telecommunication and deeply-processed ore) accounted for more than 72% of output value. Plan-maker estimated that by the end of 2014, the province’s industrial output value will be very high, around 222 thousand billion VND, which will be 174 thousand billion VND higher than result gained for early six months. At a forum discussing about this issue held by the Provincial People’s committee, Mr. Dinh Khac Hien, Director of Department of Industry and Trade, affirmed that above calculation is totally reasonable in reality and highly feasible. Not only in 2014 but also in 2015, the province’s industrial output value will continue to increase because there will be more large-scale projects put into operation and making products. 

GDP still very high despite new calculation

Recently, the Prime Minister asked the Department of Planning and Investment to prepare and provide instructional documents about new calculation of GDP to localities, approximate to the international standard, gradually replacing the former calculation. It is because for many recent years, we have calculated GDP according to the Soviet Union’s method. This old calculation is not exact any more, which often reflected the increase tendency and benefited to each locality. In reality, on a yearly basis, every locality gains very high GDP, often more than 10%, in which GDP of the whole country achieves 5% to 7% only. This paradox should be changed.

Nevertheless, the change route will start by 2016 as estimated; it means that at present we make calculations in the old way. Before this situation, many people think that by using new calculation, the province’s GDP will not higher than 10% any more. Yet, referring to this issue, provincial plan-makers all affirmed that the provincial GDP still rise over 10% because the province’s industrial output value continues to go up sharply year by year and leads to the simultaneous increase in GDP. Seeing the foreign investment area only shows the big contribution of this sector. In 2014, Samsung shall operate one project, meaning that among registered capital of more than 3 billion USD, this enterprise only realized one billion USD while it made a remarkable contribution to the output value. In near future, series of other satellite and auxiliary projects of Samsung will be put into operation, accordingly the value gained shall be much higher…