Northern Key Economic Region needs momentum to grow further: experts

Hanoi (VNA) - Trade development in the Northern Key Economic Region is significant to economic and commercial development in the entire northern region and the country at large, experts said.

Deputy Minister of Industry and Trade Do Thang Hai speaks at the workshop (Photo: VietnamPlus)

The Ministry of Industry and Trade and the People’s Committee of the northern province of Thai Binh on September 25 organised a seminar aiming to seek measures to develop trade and services in the Northern Key Economic Region, and create regional connectivity for businesses. 

The Northern Key Economic Region comprises seven cities and provinces, namely Hanoi, Hai Phong, Quang Ninh, Hung Yen, Hai Duong, Bac Ninh and Vinh Phuc. It is the political, economic, cultural and defence-security centre of the country.

The region accounts for almost 32 percent of the national GDP and 35.52 percent of the combined GRDP of the four key economic regions. The seven localities contribute over 31 percent of the State budget and 32 percent of the national export revenue. They all hold potential for socio-economic development. Developing trade in the area is crucial to economic and commercial development in the entire northern region and the country as well.

Statistics released by the Ministry of Industry and Trade unveil that during the 2014-2018 period, the Northern Key Economic Region experienced busy commercial activities, with the strong development of distribution systems and the diversity of goods.

Total retail sales of goods and services in the region exceeded 846 trillion VND (36.45 billion USD) in 2018, a rise of 8.38 percent year-on-year, making up 19.17 percent as compared with the national revenue. During the 2014-2018 period, the regional value grew 10.74 percent on average.

The ministry, however, pointed out limitations in trade and services in the region, saying the growth remained lower than the national average.

Besides, commercial infrastructure has developed robustly with the establishment of super markets and commercial centres, contributing to giving a facelift to the trade sector of the region and the country in general.

However, the infrastructure system has developed unequally, the ministry said, urging localities to take timely measures and businesses to pour more investments, and expand production and business scale, while continuously improving their competitiveness.

Speaking at the seminar, Deputy Minister of Industry and Trade Do Thang Hai said over the past time, localities in the Northern Key Economic Region have grown faster than the nation and other key economic regions. However, the development of the trade and service sector has yet to match the region’s potential.

He called for opinions from experts, managers and businesspeople to seek synchronous measures for State management agencies and enterprises to spur rapid, sustainable development of the region.

An overview of the seminar (Photo: VietnamPlus)

Nguyen Khac Than, Vice Chairman  of the People’s Committee of Thai Binh province, said the seminar is of practical significance as it contributes to creating momentum for trade and service development, and regional connectivity in service of businesses in the years to come.

The Party and State have paid attention to trade and service development as well as regional connectivity in economic restructuring and growth model reform, as reflected through the issuance of many relevant policies, guidelines and mechanisms, he stressed.

The official added that regional connectivity aims to create economic spearheads in order to optimise potential and advantages of the region and each locality.

Delegates at the seminar focused their discussion on the reality, experience and solutions to boost trade and services in such localities as Thai Binh, Quang Ninh, Hung Yen and Hai Phong, and enterprises.

They shared the view that the Northern Key Economic Region plays an important role in the national economy.

The Ministry of Industry and Trade, therefore, suggested building mechanisms to increase connectivity between domestic and foreign investors and developing value chains.

More efforts will be made to review international commitments and domestic laws and soon perfect regulations relating to distribution activities in order to protect rights and interests Vietnam has gained in international commitments, it said./.