Tuesday,  Oct 23, 2018,18:18 (GMT+7) 0 0
Delta region’economic growth slows down
Trung Chanh
Tuesday,  Feb 6, 2018,23:18 (GMT+7)

Delta region’economic growth slows down

Trung Chanh

CAN THO – Economic growth in the Mekong Delta region has been slowing, despite achievements in some fields like transport infrastructure construction, heard a review meeting of the Steering Committee for the Southwest Region held on February 5.

A report of the committee showed that the region obtained annual growth of 11.7% in 2001-2010 before the tempo slowed to 8.55% in 2011-2015. Last year, however, the region’s growth rate was 7.39%, compared to 2016 growth of 6.9%.

The report did not tell why economic growth of the region has slowed down. However, at a conference organized in Can Tho City last July, slowing economic growth was attributed to the declining agricultural sector of the region.

In particular, at this conference, Vo Hung Dung, the then director of the Can Tho branch of the Vietnam Chamber of Commerce and Industry (VCCI), said agriculture of the region grew by around 6% before 2014, but only 3% in 2014-2015 and 0.6% in 2016. Such figures are proportional to the economic growth rates as aforementioned.

While the region’s agricultural growth was recorded at 2.77% last year and 0.6% in 2016, its economic growth was 7.39% and 6.9% respectively. It can be seen that fluctuations of the agricultural sector have impacted on the region’s economy.

With the decline in agricultural production, localities relying on agriculture have posted low growth rates, Dung noted. Dung’s remarks accord with data of the committee.

For instance, with agriculture contributing VND10.02 trillion, industries VND3.65 trillion, and trade-services VND9.93 trillion, Bac Lieu Province recorded economic growth of only 6.5% last year.

Meanwhile, Long An Province’s economy grew by 9.53% last year, when its agriculture generated VND12.77 trillion, the lowest among the three sectors compared to the manufacturing sector’s VND29.275 trillion and trade-services revenue of VND19.902 trillion.

It then seems fair to say that local economic development, if depending too much on agriculture, would find it hard to make breakthroughs. Therefore, it is necessary to research into economic development strategies for the region in the coming time.

Addressing the meeting on February 5 reviewing the committee’s activities of last year and the past 15 years, standing deputy head of the committee Son Minh Thang said that the region has made breakthroughs in logistics and transport infrastructure besides proposing many policies concerning regional connectivity.

The Politburo earlier decided to terminate the operations of the steering committees for the northwest, Central Highlands and southwest regions.

Thang of the Steering Committee for Southwest Regions said activities of his committee will end this quarter.

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