Plans for Socio-economic development

Master plan of socio-economic development of Nghe An up to 2020

I. DEVELOPMENT OBJECTIVES

1. Overall objectives

Nghe An will make an attempt to become a developed province relative to Northern counterparts in 2015 and the whole country in 2020, and to become an industrialized province by 2020; building Nghe An to become an industrial, tourist, comercial, educational, financial, health, scientific and technological centre of the North Central  Region; constructing synchronized infratructure; improving people's material, cultural and spiritual life; maintaining political stability, social order and security.

2. Detailed objectives

(1). GDP per capita is 1,700-1,800 USD in 2015 and 2,800-3,000 USD in 2020.

(2) Average GDP growth rate in 2011-2015 is 11-12% per year (of which, Industry – construction 16-16,5%, services 11-12%; and agriculture-forestry-fishery is 4,0-4,5%);

Period of 2016 - 2020 is 11,5-12,0% per year (of which, industry – construction 15,0-16,0%, services 11-12%; and agriculture-forestry-fishery is 3,5-4,0%);

  (3) Economic structure: 

Transforming the economic structure toward increasing industrial and service sectors; especially, the service sector must speed up in the coming years.

Period of 2011-2015: Industry – construction 39- 40%, services 39-40%; and agriculture-forestry-fishery is 20-21%);

Period of 2016-2020: Industry – construction 43 - 44%, services 41-42%, and agriculture-forestry-fishery is 15-16%.

(4).  Export turnover in 2015 is over 500-550 million USD and 1,000 million USD in 2020.

(5). Average budget revenue growth rate is 17-20% in 2011-2020, 9,500-10,000 billion VND in 2015, and 23,000-27,000 billion VND in 2020.

(6). Total investment capital: 180,000 billion VND in 2011-2015 and 450,000 billion VND  in 2016-2020.

II. MASTER PLAN FOR INDUSTRIES AND SECTORS

1. INDUSTRY AND CONSTRUCTION

1.1. Orientation for development

The average growth rate of industry and construction production for period 2011 - 2015 is 16-16.5%, period 2016 - 2020 is 15-16.0%.

1.2. Major development plans for industrial sectors:

1.2.1. Mineral mining industry 

It is to focus on in-depth and modern investment and to increase the effectiveness of mineral exploitation and environmental protection. It is vital to minimize and terminate the situation of selling unprocessed or under-processed products. Mineral mining shall be combined with processing. Construction of stone processing factories in Quy Hop, Nghia Dan, tan Ky shall be invested with modern technology to ensure production capacity of stone powder of various kinds 800,000-1,000,000 tons/year, 600,000-1,000,000 m2/year of cut stones, 300,000-500,000 ton/year of basalt stones, 2,000 ton/ year of processed tin in the year 2015. It is encouraged to develop handicraft stone products to create jobs and income for labourers. 

                It is crucial to check the master plan, good management of sand and gravel exploitation from rivers for building materials, to ensure safety in production, environmental protection, to satisfy the market needs. It is necessary to speed up construction of Kobelco steel Factory invested by Japan in Dong Hoi industrial zone, to attract investment in the factory for heat-proof fibres from basalt stone with capacity of 10,000 tons/year.

                1.2.2. Processing industry

a. Agricultural – forestry – fishery processing

Focussing on developing the province’s strengths, namely agriculture forestry and fishery processing industries.

- Milk processing, sugar production, and sugar-derived products:

To develop milk cows husbandry and dairy processing to ensure the dairy processing yield of over 500 million litres/year in the year 2015 and over 1,000 million litres/year in 2020.

 - Agricultural products processing: to upgrade the capacity of tea processing factories together with good organization of raw material zones and to give priority to high quality tea and to obtain productivity of 12,000 tons of dried tea per year in the year 2015 and 15,000-17,000 tons of dried tea in 2020. To focus on development of rubber in accordance with the planning to obtain 8,000-10,000 tons of rubber sap per year in 2020. To ensure that the area of coffee crop remains stable at 1,000 hectares with high productivity, thereby calling for investment in processing factories for high quality coffee, fruit, peanut, etc; 20,000 ton/year fast food factories; Rubber processing factory with a capacity of 30,000 tons/year.

- Forest product processing: to effectively develop, manage the forest of raw materials, to prioritize raw materials for production of hardboard MDF, HDF, paper pulp. To develop processing enterprises for man-planted rattan and bamboo products, woodworks and handicraft products for export, thereby creating jobs for local residents. To develop herbal plants and herb processing units.

- Aquaproduct processing: to focus on indepth investment, modernize technology for processing seafood for export; to call for investment for a new canned meat factory with capacity of 1,500 tons per year and a processing factory for high quality seafood with capacity of 5,000 tons per year so as to utilize all raw sea products havested in the coastal districts.

                - Production of beverages: to maximize the capacity of the present beer factories so as to continue expanding and upgrading the premises, aiming at productivity of 250 million of litres beer per year in 2015 and 400-500 million litres beer per year in 2020.

b. Mechanics, electronics, chemicals and metallurgy

- Mechanics and electronics: mechnical industry is to serve the need for production development of potential industries of the province such as production of building materials, processing agriculture, forestry and fishery products and to meet the demand of industrialization for rural agriculture in the province and the North Central Region. To maximize capacity and step by step modernize the assembly lines for trucks; calling for investment with modern technology, aiming at capacity of 25,000 units in 2020. To make planning for building agricultural machines factories with capacity of 3,000 units per year.

To develop advanced technology industry including electronics, information technology, telecommunication, production of new materials, automation equipment, biological technology, etc.

To gradually prepare infrastructure for development of information technology industry; the vision to 2020 is that information industry will become a key industry with high growth rate. To construct and develop high technology for information industry in Vinh city and in high tech zone in Dong Nam economic zone.

To attract investment in an electronic assembly factory with capacity of 2 million products per year.

- Chemicals: to improve quality of various fertilizers and chemical products. To attract investment in new premises for high quality paint production, development of rubber-derived products, pharmaceutical chemicals, and chemicals for petrochemical industry in Nghi Son.

Master plan: to construct a sodium carbonate factory for PVC plastic products and paper mill projects with capacity of 10,000 tons per year; to build a civil and industrial plastic factory with 15,000 ton products/ year.

- Metallurgy:

  Master plan: to develop the metallurgy complex using Japanes technology with 1 million ton/year at Dong Hoi industrial zone.

c. Textile, garment, leather, and foot wear

To complete the industrial complex for fibres, textle and garment production in Nam Giang, Nam Dan district. To continue investment promotion for fibres, textile and garment projects. Prioritity is given to projects in Tho Loc industrial zone, industrial clusters in Thai Hoa town, Anh Son, Nam Dan, Do Luong. To establish a textile and garment centre of the North Central region to produce 10 thousand tons of fibres and 5 million garment products per year, 20 million shirts per year, 10 million other garment products in the year 2015. To promote new investment for a footwear factory with 500,000 pairs/ year.

d. Production of building materials

To develop industry for production of building materials into a key industry of the province, to encourage development of new products, using advanced and modern techology to meet the domestic demands and for export.

- Cement:

For period of 2011-2015, it is necessary to ensure progress of construction of factories to reach capacity of 6.4 million tons in 2015. To complete cement projects in Do Luong, Anh Son, 19/5, and Tan Thang by 2015; after 2015 for Hoang Mai 2 cement, Tan Ky cement to continue to raise the capacity of other factories when possible.

In addition to investment the above mentioned cement factories, it is necessary to fulfill the master plan and effectively manage basalt exploitation and processing in Nghia Dan for cement production of the province and nationwide.

- Production of natural and man-made granite

Natural granite production: Nghe An has several granite mines with lagre reserve and high quality that can be exploited for domestic use and for export (the stone mines are found in Quy Hop, Tan Ky and Con Cuong). To call for investment to construct a granite processing factory in Anh Son industrial complex.

Artificial granite production: investment to construct another factory for tiling brick with capacity 400,000 m2/year in Dong Nam economic zone.

- Production of unburned building materials

For period 2011-2020, investment to construct an unburned brick factory with capcity of 400,000 m3/year in Hoang Mai; factory for production of plastic building materials with capacity of 2,000 ton/year at Nghia Dan industrial zone; factory for casting concrete production with capacity of 100,000 m3/year in Do Luong, Anh Son.

- Other products: white stone, mable stone processing.

e. Supportive industries

It is encouraged to develop potential supportive industrial products available in the province including manufacturing mechanics, electronics, information technology, automobile production and installation, textile, garment and suppotive industry for high technology. To renovate equipment, technology, to ensure the ability to participate supportive industry programs of government and foreign groups for mechanic factories, to attempt to become a large mechanical centre of the North Central Region by 2020.

To speed up high technology application and development in industry for IT, biology technology at the initial step. To invest for development in the high tech zone in Dong Nam economic zone and construction of software park in Vinh city to call for investment for high technology.

1.2.3. Electricity and water supply for production

- Electricity: To speed up the progress of investment projects for hydroelectricity plants in line with master plan to enhance capacity of these plants of 800-850 MW by 2015. Other kinds of electricity production are  encouraged. Quynh Lap thermo-electricity plant is designed for capacity of 2,400 MW. It is expected to produce electricity with 2.9 - 3.1 billion KWh by 2015. After 2015, some other plants have been planned to be constructed to increase capacity up to 1,000 MW, 4 billion KWh by 2020.

It is to build and upgrade the wire grid and transformer station as planned, to ensure sustainable socio-economic development and people’s living condition.

- Water supply: to construct water supply for urban, industrial and rural areas, especially key economic areas. To upgrade water supply plants in Vinh city, Cua Lo town, Thai Hoa town and investment for new construction of water supply plants in the town of districts, in industrial zones with total capacity of 120,000 m3 per day by 2015, to reach the consumption capacity of 35 million m3/year and 73 - 75 million m3/year to supply enough clean water for daily life and production.

2. SERVICE SECTOR

2.1. General orientation for development of service sector

It is aimed at rapid and sustainable development of service sector, making Nghe An a hub of services in the North Central provinces; enhancing the role of services for the economy and promoting other industries and trades to develop.

The growth rate of service sector shall be in accordance with the reality; the average growth rate of the period 2011 - 2015 is expected at 11.0-12% per year, and the period 2016 - 2020 is 12.0-12.5% per year.

The service structure shall be oriented toward speeding up key services; setting up new types of services with high value in line with the potentials of the province; and gradually increasing high quality services.

                2.2. Planning of key service areas

2.2.1. Tourism

a) Overall objectives for tourist development by 2020

The annual average growth rate of the period 2011-2015 is set at 20-22% per year, the period 2016-2020 is 18-20%/year. Tourist revenues account for 4.5-5% of the province’s GDP.

b) Specific development orientations

It is to expand and combine different types of tourism (ecological, cultural, historical, spiritual, relax, health care, leisure and recreation,...) to create a variety of tourist activities; to focus on the construction of some unique, attractive tourist products, to strengthen the trade mark “Nghe An tourism”.

The main areas of tourism development include: Nam Dan and its neighbouring areas; Vinh city; Cua Lo town; Western Nghe An biosphere nature reserve; Hot spring stream Giang Son – Do Luong; Quy Chau – Que Phong; beaches in Quynh Luu, Dien Chau, and Nghi Loc.

2.2.2.      Trade services

- Total transaction of commodities for retail and social services in the province is expected to reach VND 56,000 billion in the year 2015 and VND 120,000 billion in 2020; the average growth rate is expected at 18% per year in the period 2011-2015 and 16.5% per year during 2015-2020). 

- Export turnover is expected to reach over 500 - 550 million USD by 2015 and 1,000 million USD by 2020, the average growth rate shall be 14% per year for period 2011-2015 and 16-17% per year for period 2016-2020.    

 2.2.3. Finance and banking services

The province will do its best to facilitate and ensure credit organizations to operate effectively; to attract domestic and foreign banks, securities companies to establish their subsidiaries; to develop and diversify banking services; and to develop stock markets and insurance.

                2.2.4. Services of post, telecom, information technology and publication

The plan is to develop post and telecommunication into one of province’s key services. It will play an increasingly important role in socio-economic development. Modern and synchronized networks of telecommunication will ensure a diversity of high quality services. The emphasis will also be placed on rural areas since the countryside is a potential market.

2.2.5. Transportation and warehouse services

It is planned to develop a diversity of transportation services, making good use of roadways, railways, airways, and water lines; to modernize transport technology and improve the service quality to meet the increasingly high demand for passenger and cargo transportation.

Once the national North-South highway through the province has been upgraded and enlarged, it will be more effectively used; the airway transportation will be maximized after the upgrading project has been completed; the construction of warehouse complex attached with the deep seaports of Cua Lo and Dong Hoi will make a breakthrough in maritime transportation. 

2.2.6.      Development of other services

The province will robustly, selectively, and sustainably develop services of consultancy, science and technology, assets bussiness, and investment to better serve individuals and community, and to meet the requirements of people, investors, and tourists.  

3. AGRICULTURE, FORESTRY, AND FISHERY DEVELOPMENT

3.1. Major objectives

To change the structure of production and products and use high technology to increase their value so as to achieve an average growth rate of 4 -4.5% during the 2011 – 2015 period, and 3.5-4 % from 2016 to 2020.

To increase production value of husbandry sector, accounting for 40 -50% agricultural production value for the period 2011-2015, over 50% for the period  2016-2020; production value of fishery sector accounts for over 15% of agricultural – forestry - fishery production during the period 2011-2020.

By 2020, food grain yield will have been about 1.25 million tons per year, of which rice accounts for 940,000 tons, the total herd of water buffaloes, cows shall increase 1.3 million heads; total fishery catching and farming shall be 106,000 tons.

3.2. Development directions for major agricultural sectors

3.2.1. Cultivation

a) Crops

Rice: the area for rice will be 180,000 hectares in 2015; 165,000 ha in 2020 and mainly in the following districts: Yen Thanh, Dien Chau, Quynh Luu, Hung Nguyen, Nam Dan, Do Luong.

        Corn: It is estimated at 60,000 ha in 2015; 60,000 ha in 2020.

b) Vegetables and ornamental plants 

Vegetables: To concentrate on developing intensive farming areas for vegetables (about 30,000 ha) in urban and suburban areas, economic zones, industral zones and coastal communes to satisfy the local needs.

Ornamental plants: to develop intensive farming with high technology (raised in nest houses) for local use.

c) Short-termed industrial trees

Peanuts: The area for peanut growing is estimated at 25,000 ha in 2015 and 25,000 ha in 2020 in Dien Chau and Nghi Loc districts.

        Sesame The area for sesame growing is estimated at 6,000 ha, using intensive farming with an average productivity of over 700 kg per ha.

Sugar canes: The supply of sugar cane is expected to be 12,000 tons of cane per day, among which Nghe An Tate & Lyle sugar factory consumes 9,000 tons of cane/day, Song Con sugar factory 3,000 tons of cane/ day. The land for sugar cane growing is estimated at 30,000 ha in 2015, 29,000 ha in 2020. The sugar cane is mainly grown in districts of Nghia Dan, Quy Hop, Quy Chau, Que Phong, Tan Ky, Anh Son, Con Cuong, Quynh Luu.

Cassava: There will be sufficient cassava supply for processing factories in Thanh Chuong, Yen Thanh with capacity of 170 - 200 ton/ day. The estimated area is 4,000 ha, mainly grown in Thanh Chuong, Nam Dan, Tan Ky, Do Luong, Nghi Loc and Yen Thanh.

d) Long- term industrial trees

Tea: It is to expand the growing area, using modern technology for processing and adopting intensive farming to increase productivity and quality by introducing new. The growing area will increase to 12,000 ha in 2015, and 13,000 ha in 2020. Tea is mainly grown in following mountainous districts: Thanh Chuong, Anh Son, Con Cuong, Que Phong, Ky Son.

Rubber trees: It is mainly planted in following districts: Nghia Dan, Quy Hop, Tan Ky, Anh Son and in some low mountainous districts with an estimated area of 22,700 ha in 2015 and 33,000 ha in 2020.

e) Fruit trees

Nghe An has a farourable condition for the following fruit trees:

Pineapples: to grow sufficient pineapples for the processing factory in Quynh Luu. The estimated area for pineapples is 2,000 ha mainly in the districts of Quynh Luu, Yen Thanh, and Nghia Dan. 

Oranges: to develop orange trees with a total area of about 2,000 ha in 2015 and 10,000 ha in 2020. Some areas for oranges have been replaced by other crops and for TH True Milk Company, therefore oranges will be mainly grown in the districts of Nghia Dan, Tan Ky, Quy Hop, Con Cuong, Anh Son, Thanh Chuong. Special attention will be paid to application of science and technology to prevention and treatment of diseases as well as preservation after harvesting and building processing factories.

Other fruit trees such as bananas, lemons will be encouraged to be grown in areas such as Yen Thanh, Do Luong, Nam Dan, Hung Nguyen, Tan Ky. Raising crops will go with building factories for processing the products.

3.2.2. Animal husbandry

Attention will be paid to developing animal husbandry including water buffaloes, beef cows and milk cows, pigs and poultry; cows will make a breakthrough in animal husbandry. By 2020, the cow herd is expected to be 842,000 (including 60,000 milk cows); 362,000 buffalos; and 2,000,000 pigs.

High technology will be applied to raising 60,000 milk cows in Phu Quy. Water buffaloes and beef cows are raised in all over the province, especially in mountainous districts. Pigs and poultry will be raised on industrial in plains and low mountainous districts. Land areas for animal husbandry will be allocated appropriately.

3.2.3.         Forestry

 Attempts will be made to have reached 59% of forest covering by 2020. Socialization of forestry will be the focus of social forestry development in line with sustainable ecological protection and improvement of forestry quality.

Annual reforestation areas will be 15,000-17,000 ha. Commercial forests will be 150,000 ha, of which the forest area for paper production is 72,500 ha; the forest area for MDF plywood board are 68,000 ha; Priority will be given to development of forests for wood and timber.

3.2.4.      Fishery

Attempts will be made to achieve 50,000 to 55,000 thousand tons per year, of which sea catching accounts for 45 to 50 thousand ton/year, including catching in Nghe An and in other sea areas; to rapidly increase farm aquaculture productivity to 51,000 tons. The total aquaproduct is expected to have reached 106,000 tons by 2020.

3.2.5.      Salt production

To continue upgrading salt fields to produce clean salt with 100,000 to 120,000 tons per year; all salt products shall be bought to ensure livelihood for farmers.

4. PLAN FOR EMPLOYMENT OF LABOURERS

The total number of labourers at working age in need of employment is 1,536,590.

- Agriculture, forestry and fishery: it is estimated that labourers working in these sectors shall be 789.3 thousand people in 2015 (accounting for for about 50% total labourers), reducing to about 461.2 thousand in 2020 (29%).

- Industry and construction: there will be about 382 thousand labourers in 2015 (24.5%) and 611.6 thousand in 2020 (38.5%).

- Services: it is estimated that there are about 407 thousand labourers in 2015 (25.8% of total labourers) and increase up to 517.7 thousand labourers in 2020 (32.5%).

Table 5: Human resource forecast by 2020

Unit: person

No.

Subject

2010

2015

2020

1

Population at working ages

1,871,861

1,940,433

1,920,737

2

Unemployed

37,437

29,106

19,207

3

Go to school

93,593

97,022

96,037

4

Housework

149,749

174,639

192,074

5

Others

93,593

97,022

96,037

6

Labourers at working ages need to be employed

1,534,926

1,571,750

1,536,590

 

Rate compared with population at working ages

82.0

81.0

80.0

 

Rate compared with total population

52.2

52.2

49.7

Source: Nghe An Statistics Department

- According to vocational skills: By the year 2015 it is forecast that over 55% of labourers in the economy will have been trained (868.2 thousand labourers), of which there are 408 thousand labourers shall be vocationally trained (47% of total labourers got trained) with following levels: shorterm training accounts for about 5%; pre-intermediate vocational training 2.8%; intermediate vocational training 8.2%; college training 24.4% and technicians account for 59.4%. Until the year 2020 it is forecast that over 477.2 thousand labourers will get vocationally trained (50% of total trained labourers) with following levels: shorterm training account for about 4.3%; pre-intermediate vocational training 1.9 %; intermediate vocational training 7.2%; college train 31.4 % and technicians account for 55.2%.

- Labourers with an associate’s degree: there will be about 40.8 thousand people in 2015, accounting for 4.7% of total trained labourers; 43.32 thousand people in 2020, accounting for 4.54% of total trained labourers.

- Labourers with a college or higher degree: there will be about 224 thousand people in 2015, accounting for 25.6% of total trained labourers; 250 thousand people by 2020, accounting for 26.2% of total trained labourers.

- It is projected that every year about 35 to 40 thousand jobs will be created. The average working days in rural areas will be raised. The unemployment rate will be reduced to below 2.1% of the total work force, and the rate of jobless people in urban areas will be below 3%.

1.2. Some targets of socio-ecocnomic development during 2011-2015

                - GDP anual growth rate: 11-12%.

                - Production value rate: Industry - construction 17-18%; services 11-12%, agriculture, forestry and fishing 4,5-5%.

                - Economic structure: Industry - construction 39- 40%, services 39-40%, agriculture, forestry and fishing 20-21%.

                - Bugdet revenue: 9,500- 10,000 billion VND.

                - Export turnover: 500-550 million USD.

                - GDP per capita: 33-34 million VND.

                - The whole society’s investment capital: 180,000 billion VND.

                - Trained labour acounting for 55%.

 
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