Dongnai’s economy in the first half of 2008

An automatic production line in Vinacafe company

* Good general view “picture” in inflation “storm”

    The first half of 2008 is really a shocking and challenging time for the economy in general and for each enterprise and individual in particular. Thus, Dongnai province is not an exception. In the situation which inflation is rising, price of raw material, fuel and interest rate are increasing; it is really a difficult issue for managing persons, entrepreneurs and consumers. However, according to provincial Department of Planning and Investment, the total production value in the first six months of 2008 in the province is estimated to reach 12,755 billion (price of 1994), 15.3% higher than that of 2007 and it is higher than the average of the whole country. This is really an optimistic signal. In which, all key sectors and fields have high growth rate such as construction (15.8%), service (17%), agriculture-forestry-fishery (5%), import (36.4%), investment capital (20.7%)…It is significant that tax collection of the first six months in the province has the higher speed than that of previous years. The total tax-collection amount is 6,000 billion VND, fulfilling 56% of year forecast and 46% higher than that of 2007. In which, domestic tax is 3,500 billion VND, equal to 50% of year forecast, up 42%; import-export tax collection is 2,370 billion VND, fulfilling 68% of year forecast, up 53%

    It is noticeable that foreign investment attraction in the first six months has passed the year target with the total new registered capital and increasing capital of 2.168 billion USD, 44.5% higher than year plan and increasing by 3.5 fold in comparison with that of last year. In addition, domestic investment attraction has set a new record with 22 new projects with investment capital of 7,040 billion VND (440 million USD), 7 fold higher than that of 2007. Registered capital, consisting of new registered capital and increasing investment capital, is 8,700 billion VND, fulfilling 49% of year plan. This means that Dongnai is still an acttractive place for foreign and domestic investors.

* Be proactive to find solutions in order to achieve target of 2008

    Although the speed of accomplishing the year plan in the first six months of 2008 has made significant breakthrough, provincial leaders have realized that there stand many challenges in the second half of 2008 to face in order to achieve the target in 2008. It is obvious that the impact of global economy as well as rising inflation and consumer price has caused bad effects on some sectors, manufacturers, farmers and lives of labors. Therefore, provincial leaders have proposed supplementary solutions in order to achieve socioeconomic target of this year. 

Many buildings are mushrooming along Nguyen Ai Quoc street (Quang Vinh ward, Bien Hoa City)

    The first priority is to focus on overcoming obstacles in order to maintain the speed of development in the fields of industry, service and agriculture. In this difficult time of the whole country, Dongnai province has intensified efforts to get rid off obstacles and encouraged entrepreneurs and individual to overcome difficulties, especially to apply economizing methods, to reduce cost and price, to improve competition capacity, to promote export activities. To be one of a leading province in term of quantity of livestock and poultry, Dongnai will strengthen active solutions to prevent the spread of disease on animal and plants, strictly control the transport, trade and slaughter of livestock and poultry in the province and encourage to build up centralized animal husbandry in accordance with provincial master plan. In additional, it will promote the application of technological advance and construct “4-Yes” agriculture model.

    Because the price of construction material is abnormally up and down, provincial leaders instruct to check and promote construction speed of projects invested by national budget, urge investors and contractors to pay and settle payment on time. In the field of banking, finance and tax, Dongnai reinforces its supervision on activities of commercial banks to ensure that quality of credit activities should comply with regulations of the law and to reduce risks. It also strengthens activities to prevent fraudulence in trade, loss of tax collection and to discover fraudulence in paying tax. Financial sector will strictly control public expenditure and improve the effect of using national budget…

* Be in need of spirit of responsibility, support and cooperation

    Through these solutions to achieve socioeconomic target of 2008, it is obvious to everyone that provincial leaders are determined and proactive to face challenges. For example, the meeting on inter-province traffic system projects such as Naitonal Road No. 51 upgrade, Bien Hoa-Dau Giay highway, Bien Hoa – Vung Tau highway, bridge connecting district 9th of Ho Chi Minh City to Nhon Trach district, route from 768 road to Thu Bien bridge…is really a positive action in the situation lacking of investment capital. If investors rush into BOT (Build-Own-Transfer) projects, Dongnai’s economy will be enriched as investment capital is poured into the province and thousands of jobs are created.

    One of the significant solutions is to keep on reforming public administration by checking the process of “one shop”, “inter-shop”. This will make investors feel secure about the cooperation and companion of relevant sectors, departments of all level. The attitude of public servants in dealing with civilians (including entrepreneurs, foreign and domestic investors…) will be a mirror to reflect how the devotion and responsibility of public administrative system area and whether it is professional or not; especially in undertaking the commitment of companion with entrepreneurs to people who are deserved to have these services. In addition, the determination to reinforce regulations on environmental protection is a judicious action of provincial government.

    Solutions and proactive spirit of provincial leaders are clear. Now, the responsibility, compliance, cooperation, support of executives at all level will determine the race toward the target of 2008 will be quick or slow, stable or unstable.

(Written by Dong Nai Newspaper, Translated by A.T)