Mekong Delta region sustains growth rate

Hanoi (VNA) - The Mekong Delta has maintained relatively high growth
levels despite fluctuations of the domestic market in 2008, yet economic
growth still lags behind other areas of the country.

Industry and Trade Ministry officials announced that the Mekong Delta's
export turnover this year reached more than 5 billion USD, while import
turnover hit over 3 billion USD total, rising 22.05 and 13.74 percent
against the previous year, respectively.

The delta also saw total retail sales of goods and services of more than
10.9 billion USD this year, increasing 26.8 percent over a year ago with
industrial output rising 18 percent.

It was found at the Mekong Delta's industry and trade meeting 2008 that a
number of sectors in the 13 regional provinces and city such as Can Tho,
Kien Giang and Ca Mau have great potential for industrial development in the
realms of shipbuilding, engineering, agri-processing, seafood processing,
energy, chemicals, cement and building materials.

The region now has 45 industrial zones with a total area of more than
30,000 ha, six commercial hubs and 31 supermarkets to increase economic
development.

However, the delta is still considered to be a slow growth area compared
to other areas in the nation.

The Vietnam Chamber of Commerce and Industry (VCCI) branch in Can Tho City
said that the region's population of approximately 17 million created a
great potential consumption market. At this point, however, most regional
enterprises only have small-scale operations, and the retail market remains
largely untapped.

Enterprises with less than 60,600 USD capital make up 48 percent of the
total in the region, while the national average is 28 percent.

Le Dinh Tien, an expert of Can Tho City's Business Association said many
enterprises in the delta have limited competitive ability due to a lack of
concern about product quality, flexibility and expenses.

The competitive ability of enterprises are also impacted by some external
elements including a weak transport system and out-of-date infrastructure,
said Nguyen Phuong Lam, an officer of VCCI Can Tho branch.

Lam added that if the transport infrastructure of the region was better,
companies could save about 7 to 10 USD per tonne of products during
transport.

A lack of human resources is the biggest challenge in the region, Lam
said, adding that provinces should invest more in education to boost the
regional economy.

Minister of Industry and Trade Vu Huy Hoang said regional authorities need
to cooperate with the Ministry of Industry and Trade, the Ministry of
Finance and others to seek solutions on capital, site clearance, import and
export for local enterprises.

Hoang hoped that the region would hit the economic growth target of 10.5
percent within the period of 2006-10, as well as move away from farming to
reach a ratio on non-agricultural production to agricultural production of
64/36 by 2010.

With the delta bordering HCM City and the sea in parts, this makes
it a good location for trading with neighbouring regions on the coastline,
said director of VCCI branch Can Tho, Vo Dung Dung. Therefore, it would be
wise to increase the region's strength by engaging in more foreign
trade.-Enditem