In the midst of a challenging global economic landscape marked by soaring inflation and the tightening of monetary policies worldwide, Ha Tinh province has still enjoyed steady development. Undeterred by the sluggish economic recovery and a decline in consumption among major trading partners, the province has demonstrated resilience by diligently executing socioeconomic development tasks and solutions. It has undertaken proactive measures to surmount obstacles in production and business, expediting the progress of significant industrial projects. Furthermore, Ha Tinh has exhibited a commitment to administrative reform, fostering an enhanced business investment environment, and providing support for business recovery and development.
Ha Tinh city
In 2023, the Gross Regional Domestic Product (GRDP) surged by 8.05%, surpassing the growth rate of 2.54% in 2022. This performance secured Ha Tinh's position as the 15th highest-ranking province in the country and the leader in the Northern Central region. The growth trajectory was particularly notable, with increments of 4.11% in the first quarter, 7.33% in the second quarter, 10.11% in the third quarter, and 9.76% in the fourth quarter. This rise reflects a positive trend in economic recovery.
The agriculture, forestry, and fisheries sector expanded by 2.71%, contributing 4.62% to the overall growth. The industry and construction sector recorded an impressive 11.43% growth, making the most substantial contribution of 59.14%. The service sector also made significant strides with a growth of 6.5%, contributing 27.81%. Product taxes minus product subsidies grew by 6.66%, contributing 8.43%.
The agricultural sector displayed good growth, marked by increased productivity and output in the spring crop, along with stability in livestock farming. Forestry and fishery production remained steadfast. In 2023, the agriculture sector contributed 0.28 percentage points to GRDP growth, while the forestry and fisheries sectors contributed 0.07 percentage points each.
The industry and construction sector rebounded, achieving a growth rate of 10% and contributing 3.63 percentage points to GRDP growth. The processing and manufacturing sector led the way with a growth of 9.14%, contributing 2.54 percentage points. The construction sector, buoyed by large-scale projects like Vung Ang 2 Thermal Power Plant and the North-South Expressway, surged by 16.62%, contributing 1.67 percentage points to growth.
In the service sector, stability returned in 2023 as consumer activities normalized. Wholesale and retail sectors expanded by 7.63%, transportation, logistics, and warehousing soared by 13.92%, housing and food services sector increased by 12.09%, and financial, banking, and insurance fields grew by 6.14%. Each of these sectors made noteworthy contributions to the GRDP growth.
Structurally, the GRDP composition in 2023 showcased a well-balanced economic landscape. The agriculture, forestry, and fisheries sector accounted for 14.71%, the industry and construction sector constituted 39.78% (with industry at 30.18% and construction at 9.60%), the service sector made up 35.58%, and product tax minus product subsidies accounted for 9.93%.
Operational activities at Vinfast Ha Tinh facility
Optimistic production and business activities
In 2023, business operations in Ha Tinh province developed better than previous years. However, apart from favorable factors, many companies are currently facing numerous difficulties and challenges, with the hardest being shrinking market demand and rising production costs. Corporate bankruptcies were 21.01% higher than the previous year.
In the year to December 21, 2023, the province had 1,179 new companies and corporate affiliates with a total registered capital of VND5,580 billion, down 14.87% and 44.74% year on year, respectively. On average, the capital per enterprise was VND4.73 billion, down 35.08%. In the year, Ha Tinh province witnessed 370 companies resume operations, down 3.39%.
Ha Tinh province also saw many corporate suspensions and dissolutions in the year. Specifically, 569 companies temporarily suspended operations (up 19.79%) and 243 companies were dissolved (up 23.98%). Over 41% of companies declared tax payment (versus 47% in 2022).
Currently, to remove difficulties for businesses, it is necessary to further promote policies on business development support, trade promotion, market search and development and adopt policies to tackle difficulties in consumer markets. When more policies are in place to boost output, businesses can improve their ability to repay debt and increase capital absorption.
2024 - the year of breakthrough
2024 is a breakthrough year to complete the 5-year plan in 2021-2025. Nevertheless, to carry out tasks in a volatile, complex and unpredictable world with ongoing conflicts in Ukraine and the Middle East, the domestic economy is forecast to still be under pressure from inflation, exchange rate and rising input costs. Business operations and labor market are forecast to be tight. Climate change and complicated epidemics will affect agricultural production.
To realize socioeconomic goals and targets stated in the resolution of the Provincial People’s Council, Ha Tinh province will continue to remove difficulties and obstacles and speed up the progress of large, important industrial projects: Creating all favorable conditions for Vung Ang II Thermal Power Plant to test-run by the end of the year; facilitating the lithium battery factory to complete and start production; quickly completing documents and procedures of infrastructure investment projects in industrial zones; actively attracting investment capital into supporting industries and post-steel industries, encouraging in-depth industrial production development.
Ha Tinh will also proactively monitor weather events, strengthen disease prevention measures and prevent African swine fever and lumpy dermatitis in cattle herds; continues to effectively enforce agricultural and rural development incentive policies according to Resolution 51/2021/NQ-HDND; enhance the effectiveness of land concentration and accumulation movement according to Resolution 06-NQ/TU of the Standing Board of the Provincial Party Committee; and focus on executing organic agriculture development projects and policies, especially the production chain associated with Que Lam Group.
The province will launch budget collection tasks right from the beginning of the year; intensify post-inspection, prevent budget revenue loss, and collect outstanding taxes; continue to review and adjust policy and mechanism frameworks for the 2021-2025 period; implement consistent solutions to reform administrative procedures regarding the allocation and disbursement of public investment capital right from the beginning of the year, especially for ODA projects and three national target programs; and ensure a reasonable and effective investment structure among localities and sectors.
The locality will concentrate resources on science, technology and innovation associated with training and attracting high-quality human resources; accelerate research, application and replication of scientific and technological advances into production, especially key local products; focus on supporting and encouraging startups and innovations, intellectual property development, product traceability, technical standards and regulations to add the value to products and goods.
Ha Tinh will focus on handling land bottlenecks; and resolve legal conflicts on land allocation procedures, pricing of land compensation, and procedures of capital construction payment to speed up the disbursement of public investment capital. In the near future, priority will be given to clearing difficulties for slow-moving projects, especially key, large-scale, influential projects, and improving production capacity for the economy.
By Dau Viet Tam, Vietnam Business Forum
Vietnamese
October 2024
Hanoi