The 5th Meeting of Dong Nai Party Executive Committee (9th Term): Focus on Solutions for Promoting Economic Development and  Maintaining Social Security

The meeting

 * Stable socio-economic development:

In spite of facing many difficulties and challenges caused by high inflation, skyrocketing prices, and interest rate fluctuations in the first half of 2011, levels of Party Committee’s tight directions and the efforts of all levels of authorities and of sectors, of the community, and of businesses the province’s socio-economy continued being stabilized and showing appropriate development, affirmed Secretary of Dong Nai Party Committee Tran Dinh Thanh.

Director of Department of Planning and Investment Bo Ngoc Thu said that in the first half of 2011, the province’s socio-economy kept growing steadily.

The economic growth is higher than the national average one, representing 13.2 percent compared with the whole country’s 5 percent.

Production and Services maintains a pretty high growth rate. Meanwhile, industrial production, total retail sales, volume of goods traffic, and passenger transport rise by 17 percent, 24.8 percent, 8.9 percent, and 10.9 percent respectively over the same period.

 Total exports in the first half of 2011 hit US$4.4 billion, up 31.4 percent over the same period.

The production value of Agriculture-Forestry-Aquaculture increases by 4.1 percent.

State budget revenue hits VND11.79 trillion, up 43 percent over the same period.

Culture-Health-Education made a lot of progress and social security was focused on. Especially, such activities as organizing campaigns and visits, giving encouraging words, covering electricity costs, offering poverty allowances to government policy beneficiaries, and needy people and workers were paid attention to.

Director of Department of Labor, War Invalids, and Social Affairs Le Thi My Phuong said that in the first half of 2011 VND5 billion was spent to pay the electricity costs of 42,000 poor households, loans were made to 3,000 poor households, and jobs were provided for more than 51,000 job seekers.

Political security continued being maintained and the building of the Party and people mobilization obtained many positive achievements.

The election of the deputies into the 13th National Assembly and of delegates into levels of People’s Council in 2011-2016 period was held as planned.

Campaigning for masses and the building of achieved important progress.

* Difficulties and Challenges to Overcome:

There are many reasons to cause a decrease in foreign investment attraction, Director of Department of Planning and Investment says

Inflation and the implementation of the government’s Resolution no. 11 on the cancellation of ineffective investment projects and of those with slow construction progress affect the province’s breakthrough tasks in 2011, said Director of Department of Planning and Investment Bo Ngoc Thu.

Attracting domestic and foreign investment declined in the first half of 2011.

Dong Nai attracted more than VND6 trillion in domestic investment, accounting for 20 percent and US$463 million in foreign investment, accounting for 30 percent according to the ​​targets set in the resolution.

High inflation has caused investors to be more cautious. Besides, tight credit and loan reduction have made businesses take a more careful consideration.

Moreover, the province’s investment attraction policies in 2011 to give priority to non-pollution projects and to avoid the projects in need of a huge number of workers and inappropriate projects result in a decline in investment.

Under these circumstances, in addition to the adjustment of some targets set in Resolution no.01, foreign investment capital is adjusted from US$1.5 to US$1.7 billion down to US$850 million, domestic investment capital from VND30 to VND35 trillion down to VND15 trillion, and the province’s total investment capital down to VND34 trillion, Thu proposed.

Levels of authorities and sectors are required to more closely monitor, to take measures and remove obstacles for businesses, and to encourage the development of agriculture and rural areas, added Thu.

It is necessary to keep cutting down public investment, asking the government’s permission for the province’s urgent investment attracting projects in 2011, and enhancing investment promotion campaigns to expand opportunities for years to come, continued Thu.

Director of Department of Trade and Industry Le Van Danh is making a speech at the conference

Rising bank interest rates were due to inflation. Bank are required to conduct research and to counsel the province on how take positive and effective measures under the decision of the central government, to give priority to agricultural production and export activities so that these sectors can gain an access to preferential capital sources, said Director of Department of Trade and Industry Le Van Danh.

From now to late 2011, the Department’s tasks are to keep stabilizing the market and dealing with speculation, rising prices, and stabilizing the prices of essential commodities.

General Director of Dofico Nguyen Thi Le Hong expressed her concerns that 2011 is an extremely difficult year for businesses. Especially, it is hard to access loans. Businesses must borrow loans at a 20 to 21 percent interest rate, which caused difficulties in the implementation of the projects.

Businesses expressed their wishes that sectors ought to assess the factors that were previously considered as effective investment attraction ones to see whether they are still attractive. Sectors need to pay prompt attention to removing businesses’ difficulties and problems.

Regarding the building of technical infrastructure, many participants at the conference said that Resolution no.01 in 2011 is mainly to focus on the building of technical infrastructure and transport systems, especially the transport network to connect industrial parks with urban residential areas.

In reality, local transport systems have not met the requirements for development. To find a solution to this mathematical problem, Dong Nai has implemented the project of the building of Ho Chi Minh City- Long Thanh-Dau Giay Expressway and a bypass for Bien Hoa city and Dong Nai bridge. However, these projects have been postponed due to site clearance-related issues.

The transport system has deteriorated, which causes the bauxite transportation from Lam Dong via Dong Nai to be a growing concern.

Concerning this issue, Secretary of Party Committee Tran Dinh Thanh stressed: “In terms of the bauxite transportation via Dong Nai, it is estimated that 2,000 vehicles go via and return to the province. Meanwhile, the province’s transport system hasn’t been upgraded, which might cause the province's economic development to decline, and increase traffic congestion and a rising occurrence of traffic accidents.

Dong Nai will comply with the principle, “If roads have not been upgraded, bauxite transportation is not allowed – Overloaded trucks will get strict penalties”. Dong Nai can not sacrifice for the benefits of the Vietnam Minerals and Coal Corporation.

Regarding social security, Director of the Department of Labor, War Invalids and Social Affairs Le Thi My Phuong asked that sectors and levels of authorities should have stronger directions to accelerate the implementation progress of agriculture, industry, and forestry encouragement projects and vocational training and employment generation programs to make sure that poverty rate will be reduced sustainably.

Department of Labor, War Invalids, and Social Affairs will continue implementing electricity the electricity cost covering program for poor households and raise allowance levels for those who are contributors, the poor, and the earners with a less than VND2.2 million per month income, added Phuong.

Secretary of Dong Nai Party Committee Tran Dinh Thanh stressed that the above difficulties and challenges need to be dealed with to effectively implement the tasks in the second half of 2011 and to accomplish the targets set in Resolution no. 01-NQ/TU by Dong Nai Party Executive Committee.

Reported by Lien Huong, Translated by Duy Minh