Government officials and provincial authorities again called for investment from domestic and overseas sources to develop the Mekong Delta region at a forum in HCM City yesterday.

During the "Mekong Delta – WTO Effects" economic forum, deputy chief of the Southwestern Region’s Steering Committee Huynh Phong Tranh said the delta played a crucial role in the country’s socio-economic development.

He mentioned that VND180 trillion (US$11.2 billion) was invested in the region between 2001 and 2005, accounting for an 11.5 per cent economic growth over the period.

However, foreign direct investment in the delta is low compared to other regions in the country. The delta’s FDI currently accounts for only 3 per cent of total FDI in the country. According to figures from the Ministry of Planning and Investment, the delta’s 2001-2005 FDI was merely $1.8 billion compared to the country’s $60 billion.

Tranh said poorly-developed infrastructure, poor human resource development, poor programming, and an economy based on farming and local resources made the region less conducive to FDI.

With a population of 17 million (or 21 per cent of the country’s population) the Mekong Delta contributed 18 per cent of the country’s GDP (gross domestic product).

The Mekong Delta is viewed as one of Viet Nam’s key economic hubs as it is the country’s leading rice and seafood exporting area. The region accounts for 90 per cent of the country’s rice shipments.

The region has contributed more than half the country’s rice output while its farm and seafood products made up 70 per cent and 52 per cent of the national total respectively.

Big plans

According to the Ministry of Planning and Investment, the Government will allocate VND6.3 trillion (US$393.6 million) in official development assistance (ODA) and other funds for several major projects in the region this year.

The Ministry of Finance also plans to provide funds for major infrastructure projects such as the Can Tho Airport, Chanh Bo Canal, and Cao Lanh and Van Cong bridges. The bridge projects will each require nearly $250 million.

Keeping on course

Professor Nguyen Ngoc Tran, deputy head of the National Assembly’s External Relations Committee, said that while striving to develop the region in a sustainable manner, Mekong provincial authorities should be sure not to break existing programmes and regional land use plans.

Tran said the provincial authorities should forecast the changes in labour supply and develop the region’s human resources, paying close attention to environmental issues.

Viet Nam’s WTO accession has created opportunities for development but has also posed challenges to the Mekong Delta. Tran said the region’s production lines must be re-structured to manufacture high quality and competitive goods.

He proposed that advanced biological technologies should be used to improve agricultural production.

Tran said alliances should be built between farmers, producers, scientists, and the State to boost production.

He also asked the Government to increase investment in human resources and infrastructure development.

"The infrastructure and the transportation facilities must be developed so that they can facilitate the distribution of goods and products from the Mekong Delta," said Tran.

Some 400 economists, scientists, Government officials and company representatives attended the forum organised by the Ministry of Trade, the National Committee of International Economic Co-operation and the Southwestern Region’s Steering Committee.

Source: VNAgency