Cabinet members discuss regional growth

Friday, 2019-07-26 16:55:56
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Prime Minister Nguyen Xuan Phuc (C) presides over a government meeting on the growth of key economic regions and its affection to the national growth during 2011-2017, Hanoi, July 26, 2019. (Photo: VGP)
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NDO – Prime Minister Nguyen Xuan Phuc and cabinet member discussed results from a report on key economic region (KER) growth and its impact on the overall growth of the nation during a government meeting held at the Government Headquarters in Hanoi on July 26.

The report was developed by the Ministry of Planning and Investment (MPI) based on the data collected during 2011-2017 to quantify the impact of four key KERs on the overall growth of the country. According to the report, during 2011-2017, gross domestic product of four regions (GDPR) KERs averaged at 7.14% per year. The source of this growth came mainly from the processing and manufacturing industries - one of the key factors that play a decisive role in the level and quality of economic growth in the KERs.

The report quantifies the relationship between the growth of the southern and northern KERs with the whole country (1% in the GRDP of the northern and southern KERs made the national GDP increase by 0.49% and 1.12%, respectively). Hanoi and Ho Chi Minh City are two important growth poles, contributing to the national average growth in the period at 13.6% and 19.4%, respectively. The northern and southern KERs lead the country in labour productivity, proving its importance as one of the core factors that play a decisive role in the level and quality of economic growth of these two KERs.

However, there are still shortcomings and weaknesses that need to be addressed, such as the spillover effects and the linkage of KERs with neighbouring provinces and the whole country are still limited. Localities in the KERs have not fully utilised their advantages and potentials of the regions yet.

Praising the report for initially providing an overall picture of the whole economy with relatively updated data, PM Phuc assigned the MPI to collect recommendations to finish the report. Along with the results of the Government's conferences with the KERs, the MPI should build and complete a project on promoting the role and improving the efficiency of KERs then report to the PM. In which, attention should be paid to the new breakthrough solutions to create a driving force for the development of the four KERs which currently accounting for 70% of the country's GDP.

Regarding future tasks, the cabinet leader urged for continuing to speed up disbursement of capital construction investment although the total social investment capital still increases at a higher level than the same period last year.

It is important to remove difficulties for production and attract more investment, he said, asking for continuing to apply scientific and technological advances and solve bottlenecks for urgent infrastructure projects, including those in the electricity sector, with special solutions and mechanisms to ensure the supply of electricity for production and business.

PM Phuc also stressed the need for promoting other important infrastructure projects, especially transport infrastructure. Localities should have key projects to create breakthroughs for development, he said, adding that urban development should be considered the driving force of growth.

The government top leader also noted the issues in environmental protection and anti-plastic waste, in which he emphasised that the KERs must take the lead in not using disposable plastic products.