Regional competition harms Vietnam’s overall advantages

Tran Tuan Anh, Politburo member, Head of the Party Central Committee’s Economic Commission (Photo: VNA)

Administrations find themselves focused regionally on their own communities, which hinders inter-regional connection in developing society and the economy. Localities are even competing against each other, which undermines the advantages of the whole region, heard a seminar on promoting connection in key economic regions in the central province of Quang Nam on July 1.

The event drew the participation of representatives from five key central economic regions, namely Thua Thien-Hue, Da Nang, Quang Nam, Quang Ngai, and Binh Dinh.

Tran Tuan Anh, Politburo member, Head of the Party Central Committee’s Economic Commission, said although each local economy has maintained high growth, the overall economic scale in the central key economic region is still relatively small and accounts for a modest proportion of Vietnam’s economy.

According to the official, per capita income in these central localities is lower than the national average. In particular, agriculture is inefficient and has not developed sustainably; restructuring is slow and not transparent. Therefore, although some localities have large budget revenues, they still rely heavily on a number of large enterprises located in the region.

“There are many reasons behind this, but one of the main causes is the limited inter-regional connection,” he said.

He elaborated that regional linkages are weak because of the shortage of legal corridors and appropriate coordination and enforcement mechanisms. The council of the key economic zones does not have the full legal status and sufficient resources to coordinate the region’s general development. “Therefore, it is impossible to formulate regional connection orientations, strategies and plans.”

An overview of the seminar on promoting connection in key economic regions in the central province of Quang Nam on July 1 (Photo: VNA)

The council has not been empowered to decide on resources for regional projects. Therefore, the linkage and coordination between localities is fragmented and superficial. It fails to create momentum to tap the benefits of the regional advantages.

In reality, regional management capacity has yet to receive due attention from localities. Some resources were exploited ineffectively, while linkages among sectors have yet to be strengthened.

“There is a lot of shortcomings in connection of transport infrastructure, seaports, railway and urban areas.”

Particularly, the idea of interests based on administrative boundaries is still prevalent. Each locality regards itself as a separate economy, a separate kingdom if you will, and even competing with others in the region. This thinking undermines the advantages of the whole region, Anh emphasized.

Priority mechanism needed

Secretary of the provincial Party’s Committee from Thua Thien-Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh mentioned obstacles in promoting regional development linkages.

Though there were disagreements, most of the participants opined that the establishment of a regional council or a regional coordination group is not important, but rather an institution and mechanism for effective operation is key.

According to the delegates, the central region had proactively established a regional coordination board, but it was able to operate in only a short period of time due to inefficiency.

They said the role of the central government is important in coordinating regional connection.

A priority mechanism for developing the key economic regions is important, they added.

Additionally, due attention should be paid to re-dividing key economic zones. Five cities and provinces alone are unable to create a driving force for the whole central region. Therefore, participants suggested connecting the central region with the Central Highlands.

Anh noted these opinions for consulting with the Politburo and the Secretariat to put forth policies and orientations to develop the connectivity in the north central region and the central coastal regions./.