Prospects for Industry and Trade Breakthroughs

The Bac Kan Provincial Planning for the 2021 - 2030 period, with a vision to 2050, emphasizes “industrial development is driven by production restructuring and powered by sectoral transformation and the increased share of high-tech technical sectors to contribute greatly to the budget and environmental protection.” This is an important foundation to promote the growth of the industry and trade sector in particular and the province's socioeconomic development in general in the coming time.

Stable and sustainable growth

To successfully achieve industrial, trade and service development goals and tasks in 2024, the Department of Industry and Trade advised the Provincial People's Committee to launch and implement Plan No. 206/KH-UBND dated March 26, 2024 on implementation of the sector’s growth scenarios of Bac Kan province in 2024. Accordingly, with the participation of all levels of government, sectors and localities, the effective implementation of solutions for a better investment environment and eradication of difficulties for companies and the introduction of business support policies, the industry and trade sector achieved excellent work outcomes.

Bac Kan province organized a series of trade promotion events across the Northeast region in November 2023, with participation from 21 provinces and cities

Industry continued to make such products as foods, beverages and nonmetallic minerals. In particular, Bac Kan - Vietnam Chung JYE Shoes Manufacturing Co., Ltd started construction on a factory that planned to hire about 5,000 workers. Some projects are in trial operation like Feromangan Production Factory with an annual output capacity of 60,000 tons and Metal Lead Production Factory with a yearly output capacity of 20,000 tons. Some companies have stable production and increased production output from a year-ago period, including lead ores, iron ores, metal lead, fresh concrete and commercial electricity.

Trade activities are stable, with goods circulated smoothly, diverse in designs, guaranteed quality. Import and export activities have improved a lot. Right from the beginning of the year, companies have launched many promotional programs, discounts, vouchers and gifts to stimulate consumption.

The gross regional domestic product (GRDP) of the industrial sector was estimated at VND289.77 billion, an increase of 9.44% over the same period of 2023. The Industrial Production Index rose by 10.08% and the industrial production value was up 12.5% year on year to VND891.49 billion.

Total retail revenue of consumer goods and services was forecast at VND4,800 billion in the first half of 2024, up 10.36% year on year. Total import and export value advanced 37.25% to US$19.475 million, equal to 63.23% of the full-year plan. Specifically, the export value accounted for US$13.193 million, up 6.29%. The main exports include zinc sulphate, unprocessed lead, wooden chopsticks, multilayer industrial flooring and processed fruits.

Promoting “green growth”

The Northeast mountainous province of Bac Kan is 170km from Hanoi, 200km from Tan Thanh Border Gate and Huu Nghi International Border Gate in Lang Son province and 200km from Noi Bai International Airport (Hanoi) and Hai Phong Port. Thus, merchandise exchange between Bac Kan with neighboring provinces and cities is quite convenient. Bac Kan has a natural land area of 485,941 ha, most of which is agricultural land (including forestry land) of 413,044 ha (accounting for 85%). The forested land area is 374,027.12 ha, including 102,222.18 ha of planted forests (accounting for 27.3%). With the largest forest coverage rate in the country (73.38%), Bac Kan has potential and strengths for developing the agricultural and forestry processing industry.

Wood production and processing is the key industry of the province

To encourage and attract industrial development investment, the province defines that infrastructure development to attract investment projects is extremely important, especially industrial zone infrastructure

According to the Bac Kan Provincial Planning for the 2021 - 2030 period, with a vision to 2050, Bac Kan will have eight industrial parks (IPs) with a total area of 2,361 ha and 27 industrial complexes with a combined area of 676.4 ha (currently, the province has an IP with 80.7 ha and seven industrial complexes with 234.9 ha). The development and completion of technical infrastructure in industrial zones to create a platform to attract investment projects is a consistent policy of the province, specified in Resolution No. 16-NQ/TU dated August 12, 2021 of the Provincial Party Committee on industrial development in 2021 - 2025, with a vision to 2030.

This is the foundation for the industry and trade sector to achieve the goal of attracting industrial processing projects with advanced technology, high added value and little impact on the environment in 2025 - 2030, especially electrical engineering, electronics, high technology. At the same time, Bac Kan province is ready to attract investors, especially FDI firms.

The sector has carried out the Bac Kan Green Growth Action Plan in 2018-2020, with a vision to 2030, to deploy consistent solutions and achieve common goals: Boosting rapid and sustainable economic development, with focus on low-carbon economy, reducing emissions and increasing absorption of greenhouse gases, enriching natural capital, and using energy and natural resources economically and efficiently. Hence, the province’s economic structure has to date shifted positively towards green and sustainable economic development.

Currently, the province's industry is developed towards increased value, associated with environmental protection. The agricultural and forest product processing industry has seen much progress, with production models transformed from individual business households to cooperatives and enterprises, to create a value chain that interlinks sustainable production of industry, agriculture and services and manufactures typical rural industrial products that meet OCOP standards trusted by the market.

To improve and address environmental pollution, Thanh Binh Industrial Park in Cho Moi district has built a centralized wastewater treatment system. Solid waste from factories in the park is collected and treated. All established industrial parks have plans to build centralized wastewater treatment systems in accordance with the 2020 Environmental Law. At the same time, the Department of Industry and Trade advised the Provincial People's Committee to issue policies to encourage socialized investment in construction, business and operation of environmental protection infrastructure projects for local industrial parks (in Decision No. 03/2023/QD-UBND dated February 22, 2023 of the Provincial People's Committee); consulted the Chairman of the Provincial People's Committee to issue Directive No. 05/CT-UBND dated June 17, 2024 on management and development of the sustainable wood processing industry associated with input supply sources to promote the formation of value chains (replacing Directive No. 12/CT-UBND dated October 5, 2021).

The department continued to implement the Bac Kan Processing Industry Development Project to 2025, with a vision to 2030, under Decision No. 2736/QD-UBND dated December 31, 2021 of the Provincial People's Committee. It has focused on guiding and urging processors and manufacturers to protect the environment, especially small ones, and relocating companies that cause pollution or pose a risk of causing environmental pollution into industrial parks.

With the effort and determination of the entire political system and a clear direction, Bac Kan expects that green growth will continue to contribute positively to economic restructuring and growth pattern transformation. At the same time, the province will create a foundation and an attractive destination to woo investors to the locality.

Thai Duong (Vietnam Business Forum)