Southeast region has a geographically advantaged position in developing economic links among regions inside and outside the country and is naturally blessed with good climate and land conditions for industrial development, especially industrial crops such as rubber, coffee and cashew nuts.

In addition, abundant natural resources and minerals has offered favorable conditions for the region to develop the oil industry, building material industry, hydro and thermal power projects to ensure adequate supplies of energy for industrial development in the region. However, in recent times, the industrial sector in the region have developed unevenly and have not yet brought to their strength of regional links effectively.

The southeast region includes eight provinces and cities namely HCM City, Dong Nai, Binh Duong, Ba Ria-Vung Tau, Binh Phuoc, Tay Ninh, Lam Dong and Binh Thuan. It is considered a dynamic economic region, which has higher production capacity, scientific and technological levels and better infrastructure facilities better than those of other regions. Notably, HCM City, Ba Ria-Vung Tau, Dong Nai and Binh Duong play a pivotal role in boosting the country’s socio-economic development.

In the 2001-2005 period, the region proved to be an economic engine of the whole nation with an intensive transition of restructuring the local economy by gradually increasing the proportion of industry, services and exports while reducing the proportion of agriculture.

During the past five years, the industrial sector maintained a high growth rate with an annual industrial production value of 17.25 percent on average.

In 2005 alone, the region’s industrial production value reached more than VND262 billion, accounting for nearly 50 percent of the country’s total while its export turnover also made up over 80 percent of the national total exports.

During the development process, the region has attracted a lot of different economic sectors at home and abroad as well as foreign-invested enterprises accounting for a high ratio of 47 percent.

As many as 3,800 foreign-invested projects has operated in the region so far with total investment capital of US$32 billion, of which US$15 billion were disbursed.

Many key industrial sectors like electricity, electronics, chemicals, rubbers and plastics gain an advantage in production scale and technological standards over other regions.

The southeastern provinces are focusing on developing key industrial sectors, including oil and gas exploitation, electrical production, fertiliser, information technology, machinery, agricultural and forestry products processing and food processing.

In the coming period, the provinces will strengthen industrial processing zones and restrict the construction of labour-intensive factories in urban areas.

To avoid unequal and overlapping development between the provinces in the region, each province will focus on development of key sectors.

For example, HCM City will prioritise such sectors as machinery, metalworking, electronics, information technology, and chemicals. Ba Ria – Vung Tau will focus on oil exploitation and processing, steel rolling and refining, and energy and construction materials production.

Dong Nai Province will promote agricultural products processing, minerals exploitation, textiles, footwear and support services for industry.The southern provinces have targeted an annual average industrial growth rate of 17.5 per cent by 2010.

The Prime Minister recently issued a decision setting for an action plan for socio-economic development of the southern key economic region through 2010, along with orientations for 2020.

Under the plan, the region’s gross domestic product (GDP) in 2010 would be at least 2.5 times that of 2000, and by 2020 2.3-2.5 times that of 2010. Export value should increase at twice the rate of GDP growth, and State budget revenues should rise from 16 to 18 per cent per year.

The region will strive to keep unemployment at less than 5 per cent and renew 20-25 per cent of its technology per year. Meanwhile, the ratio of skilled workers must be over 50 per cent in 2010 and over 70 per cent by 2020, and investment capital for the 2006-2010 period should double the previous five years’ figure.

Sỏuce: VOV news 08/6/2006