Dong Nai Province’s Shifting Growth Model

​(News Portal – Dong Nai) - Focusing on in-depth growth, encouraging the application of scientific and technological advancements and fostering innovation, enhancing competitiveness, and developing the economy in tandem with cultural and social development and environmental protection, while continuously improving the material and spiritual well-being of the people, are the goals Dong Nai aims for in shifting its growth model. 

The province will shift its economic development model by selectively choosing investors with better technology, not reliant on labor-intensive industries. (Photo: Workers at CSB Energy Technology (Vietnam) Corporation Limited, Nhon Trach District) 

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According to the Institute of Economics, Ho Chi Minh National Academy of Politics, as one of the provinces with an early developed economy, Dong Nai has played a crucial role in the national economy and the Southern Key Economic Zone. In 2023, the province's GRDP ranked 4th out of 63 provinces and cities nationwide. Its economy also recorded an impressive growth rate of 7.06% per year during 2011-2023.​

According to the provincial People's Committee, the economic growth of the province has gradually recovered and developed in recent times. The economic growth rate is among the highest in the country. The average GRDP per capita in 2023 is estimated at around 140 million VND, ranking 7th nationwide. The economic growth rate is also in the top tier nationally, far surpassing the regional and national averages, helping Dong Nai rise to 3rd position in the Southern Key Economic Zone during the same period. The province also maintains its status as a leading industrial center in the country.

Furthermore, the economic structure continues to shift positively, with residents' incomes improving and living standards rising. In 2023, Dong Nai ranked 3rd nationwide in average monthly income per capita, reaching 6.6 million VND. The province has made significant efforts to innovate its growth model, enhance growth quality, encourage the application of scientific and technological advancements, foster innovation, and promote green growth with low carbon emissions, applying new economic models such as the digital economy, circular economy, and sharing economy.

However, the sustainable development goals of the province still face numerous challenges. The growth rate shows signs of recovery but remains slow. The industrial sector, considered the main driver of the province's economic growth, faces many difficulties due to global market fluctuations and downturns, with slow recovery. The sector is still largely focused on labor-intensive industries. "The high-tech industrial sector only accounts for about 2.7-2.9% of the province's total industrial production value, while the target is to reach 8-10% by 2025," stated Vice Chairwoman of the Provincial People's Committee Nguyen Thi Hoang.

Moreover, the service sectors, particularly business support services, industrial services, and logistics services, have developed but not commensurate with their potential. The contribution of the service sector in the economic structure has not improved, even slightly decreased from 23.6% in 2010 to 22.6% in 2022. The agricultural sector of the province, although leading the nation in livestock development, still poses risks of negative environmental impacts and lacks sustainability.

Sustainable Development

According to Vice Chairwoman Nguyen Thi Hoang, amidst rapid changes in the global and domestic economy and the strengthening trends of new economic developments such as the digital and green economy, the need to restructure the economy and transform the growth model based on productivity, quality, and efficiency becomes even more pressing for Dong Nai.

Particularly for Dong Nai, the completion and operation of Long Thanh International Airport in the near future will provide a significant boost, creating opportunities and conditions to exploit new drivers and create breakthroughs in the province's economic model.

Associate Professor Bui Van Huyen, Director of the Institute of Economics, Ho Chi Minh National Academy of Politics, suggests that the three main pillars for Dong Nai's sustainable development include: economic sustainability, social development, and environmental protection.

From this perspective, he proposes renewing Dong Nai's economic model for sustainable development based on several criteria: focusing on industrialization, promoting Dong Nai as a modern industrial center of the country; leveraging its existing advantages in the agricultural sector in the Southeast region, promoting high-value, high-tech, and sustainable agriculture; and fostering the development of the service sector, focusing on the development of Long Thanh Airport city and industrial support services.

Deputy Director of the Department of Planning and Investment Doan Thi Ngoc Van stated that Dong Nai will shift its economic development model by selectively choosing investors with better technology, less labor-intensive, improving labor quality, and increasing income for workers. The province aims to harmoniously and reasonably integrate economic development with cultural, social, and environmental aspects, focusing on comprehensive human development and improving quality of life for its residents.

Mr. Thai Thanh Phong, Deputy Director of the Department of Industry and Trade, noted that the provincial plan for 2021-2030, with a vision to 2050, identifies three key product groups: aerospace industry, semiconductor industry, chip production and artificial intelligence; automation equipment and information technology equipment.

To develop these three key product groups, the province will focus on developing the aerospace industry in conjunction with effectively exploiting Long Thanh Airport and implementing the Bien Hoa dual-use airport project linked to the airport city model.

Simultaneously, developing the semiconductor industry, chip production, AI, automation equipment, and IT equipment is one of Dong Nai's important strategic directions to position the province as a high-tech center of the country and the region.