Kon Tum - Half Term of Vibrant Development

After half a term of implementing the resolution of the 16th Provincial Party Congress, Kon Tum province’s socioeconomic development has witnessed significant progress. The province’s outstanding achievements have further strengthened the confidence of the business community and investors in the judicious and timely leadership and direction of the Provincial Party Committee. It has also enhanced the province’s image in the eyes of domestic and international investors.

Prime Minister Pham Minh Chinh addresses the working session with the Standing Committee of Kon Tum Provincial Party Committee

Rapid acceleration on the socioeconomic front

Kon Tum province has made impressive strides in rapid socioeconomic recovery and development in the past term. The gross regional domestic product (GRDP) in 2023 was estimated at VND34,100 billion, which is 1.32 times that of 2020. The annual growth rate was quite good, averaging 8.8% per year in the 2021-2023 period. The economic pattern shifted, with the share of agriculture, forestry, and fishery sectors contracting from 19.75% in 2020 to 19.06% in 2023; while the share of industry and construction rose from 26.83% to 31.26%. GRDP per capita in 2023 was estimated at VND57.8 million, which is 1.24 times higher than in 2020 and 82.53% of the target by 2025. State budget revenue in 2023 was forecast at VND4,500 billion, which is 1.28 times higher than in 2020 and equal to 90% of the target stated in the resolution.

The agricultural sector developed intensively. In particular, the area of key crops expanded, including: Coffee, 29,018 ha (116% of the target); Rubber, 77,341 ha (110.5%); Macadamia, 3,363 ha (168.15%); Fruit trees, 10,695 ha (106.95%); Ngoc Linh ginseng, 2,284 ha (50.76%); and Medicinal plants, 7,606 ha (76.06%).

The province attracted some high-tech livestock projects linked to value chains like the high-tech dairy farming and processing project in Sa Thay district and a pig farming project in Ia H’Drai district. The One Commune One Product (OCOP) Program was launched with 188 OCOP products certified as three-star or higher class. By the end of 2023, seven more products were expected to be recognized as five-star national class.

Kon Tum province’s industry has grown in both scale and quality. The industrial development index rose by an average of 16.51% per year in the 2021-2023 period. Processing industries developed strongly, especially the agricultural, forestry, and fishery processing industry. The province focused on developing and utilizing its potential and strengths of hydropower, wind power and solar power. Kon Tum mobilized and effectively used social resources for socioeconomic infrastructure construction. The road system was invested in and upgraded to smooth regional connectivity. Many urban development and upgrading projects were launched.

The new rural development program brought in positive results. By the end of 2023, the province will have 47 communes certified to meet new rural standards, reaching 78.33% of the target stated in the resolution. Ten communes were recognized as exemplary new rural residential areas, and 19 villages (in extremely poor border communes) were certified to meet new rural standards.

The province also saw significant progress in culture-society, education-training, health, culture-information-sports, and social security. Labor, employment, and sustainable poverty reduction were well implemented, with the poverty rate sliding from 10.29% in 2020 to 6.32% in 2021 (according to the old standard) and from 15.32% in 2021 to 10.86% in 2022 (according to the poverty standard applied to the 2021-2025 period). Political security, social order, and safety were kept stable. Unity within the Party and among the people was reinforced. Public confidence in the Party leadership, governmental administration, Fatherland Front, and unions continued to increase.

 Achievements in investment attraction

Kon Tum province has been a “bright spot” in investment promotion and attraction, administrative reform, and business climate improvement in the past half term.

 The province has an attractive investment environment thanks to good incentive policies, available premises, and streamlined administrative procedures. Provincial leaders are always ready to roll out the red carpet to welcome investors. The business community’s strong response has effectively improved the province’s business and investment environment and enhanced its competitiveness. In 2022, the Provincial Competitiveness Index (PCI) scored 64.89 points, ranking 37th out of 63 provinces and cities, climbing 24 places from 2021 to reach the highest ranking since 2006. This is clear proof of the province’s resolve for a better business and investment environment and stronger provincial competitiveness. The investment promotion was reformed and more focused. Many large corporations came to conduct surveys and invest in the province like Sun Group, Intracom Company, Vinaconex Corporation, Vimeco, Alphanam Company, and Vi Tri Vang Company. In the past half term, the province has attracted 53 investment projects with a total registered capital of VND16,226.9 billion. Localities favored by investors include Kon Tum City, Kon Plong, Tu Mo Rong, and Dak To districts. In 2023, the province is expected to have 985 newly established enterprises, equal to 65.67% of the resolution target.

Kon Tum province has achieved impressive figures in socio-economic development by exploring, reforming, and constantly improving the quality of investment promotion and attraction. The Kon Tum Provincial People’s Committee worked out an action plan for implementing Resolution 11-NQ/TW dated May 16, 2022, of the Provincial Party Committee on improving the investment environment, enhancing provincial competitiveness, and increasing investment in the province to 2025, with a vision to 2030. The province deployed the District and Department Competitiveness Index (DDCI) firmly. Every month, the provincial government hosted a business dialogue to grasp investors’ difficulties and supported them in conducting surveys, exploring investment opportunities, and quickly carrying out business registration procedures.

The province regularly monitored and captured the progress of investment projects, especially important ones, to promptly remove obstacles and facilitate investors to bring their projects into operation soon. The investment in infrastructure development in existing industrial zones was favorable, especially industrial zones in Dak To district, Dak Ha district, and Kon Tum City, to provide available space for investors. The administrative reform was further accelerated to reduce cost and time for people and businesses. Streamlined administrative procedures made Kon Tum’s investment environment more attractive. The degree of satisfaction of investors and businesses with administrative agencies rose. The sense of responsibility of officials and public employees was enhanced.

Mr. Y Ngoc, Vice Chairman of the Provincial People’s Committee and Major General Nguyen Thanh Nam sign a cooperation agreement

Rapid, inclusive and sustainable development

The outstanding economic and investment achievements in the past half term are a testament to the leadership, direction, and determination of the Executive Board of the Kon Tum Provincial Party Committee to further boost local socioeconomic development. This success has also created new momentum for the Party, government, and people of Kon Tum province to work harder to successfully fulfill the resolution of the 16th Provincial Party Congress.

To successfully complete its goals and tasks set for the 2020-2025 whole term, in the coming time, the Kon Tum Provincial Party Committee will focus on leading and directing the effective implementation of programs, projects, and plans to execute the resolution of the 13th National Party Congress, Resolution 23-NQ/TW of the Politburo, the resolution of the 16th Provincial Party Congress, the Socioeconomic Development Plan in 2021-2025, and newly issued resolutions, directives, and conclusions. The province will complete and effectively carry out the Kon Tum Provincial Planning for the 2021-2030 period, with a vision to 2050, and other plans to attract investment capital, particularly for advantageous industries such as agriculture, forestry, pharmaceutical materials, and renewable energy.

Kon Tum province will further upgrade its Provincial Competitiveness Index (PCI) standing; improve the Vietnam Provincial Governance and Public Administration Performance Index (PAPI) and the Public Administration Reform Index (PAR Index). It will create an equitable, open, and favorable environment for all economic sectors to do business; focus on mobilizing investment funds from economic sectors for infrastructure development; and promptly remove difficulties for ongoing projects to be completed as scheduled. The province will effectively unlock and utilize local potential and strengths for rapid and sustainable economic growth with a reasonable structure.

The province will accelerate the development of high-tech agriculture in conjunction with processing and market expansion. It will reorganize the agricultural land to establish large production zones for enhanced agricultural development; diversify and maintain the sustainable development of key crops such as fruit trees, macadamia trees, Ngoc Linh ginseng and other medicinal herbs; and foster high-tech livestock development connected to value chains. Kon Tum will persist in mobilizing and integrating resources for sustainable forest development; cultivate various forms of eco-tourism, exploration and cultural tourism, and improve the quality of tourism services; and advance and construct Mang Den National Ecotourism Area as a national and regional tourist attraction.

Besides economic development solutions, Kon Tum province will persist in effectively restoring, preserving and promoting the values of traditional cultural identities of ethnic minorities and revolutionary historical relics, and publicize tourist routes and destinations. The province will implement sustainable poverty reduction, and fully and timely execute social security policies.

With the utmost political determination of the Provincial Party Committee; with the spirit, responsibility and courage of authorities at all levels and branches along with the high public consensus, Kon Tum province is confident to accomplish the highest goals stated in the resolution of the 16th Provincial Party Congress to create momentum for faster, stronger, more comprehensive and sustainable development in the following years.

By Cong Luan, Vietnam Business Forum