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| Vice chairman Phan Quy Phuong speaking at the conference |
Contributing over 10% of the province’s GRDP
In the context of economic recovery post-pandemic and domestic economic challenges, Thua Thien Hue's GRDP growth in 2023 reaches 7.03%, surpassing the national average growth rate (estimated at 4.7-5.8%). The industrial-construction sector grows by 5.12%, the service sector by 8.64%, agriculture by 5.88%, and per capita income is estimated at 62.6 million VND (2,665 USD), a 9.5% increase. State budget revenue is estimated at 11,000 billion VND, exceeding the projection by 10.8%, with an export turnover of 1,200 million USD, a 6.85% increase, and import turnover of 650 million USD, a 15% decrease.
To achieve these results, foreign-invested enterprises in the region play a significant role, contributing over 10% to the province's GRDP. In 2023, their revenue is estimated at over 1,400 million USD, accounting for 36.8% of the total provincial budget revenue; their budget contribution is estimated at 4050 billion VND, an increase of 16.9% over the same period. Notably, Carlsberg Vietnam Limited Company contributes 3,500 billion VND, representing 86.4% of the total budget revenue from the foreign-invested sector. FDI also has a positive impact on other economic components, stimulating domestic investment, fostering competition, promoting innovation and technology transfer, enhancing overall production efficiency, and developing the supporting industry, contributing to gradually integrating Vietnam in general, and Thua Thien Hue province in particular, into the global production value chain.
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| Leaders of the Planning and Investment Department exchanging information with businesses |
With these contributions, Thua Thien Hue consistently identifies attracting Foreign Direct Investment (FDI) as the focal point in investment promotion activities. As a result, during the year, the situation of attracting FDI projects has achieved some encouraging results. The province issued 11 new investment registration certificates for 11 foreign-invested projects with a total investment capital of 141.7 million USD (equivalent to 3,389 billion VND). Currently, there are 126 foreign-invested projects in the province with a registered capital of 4,524 million USD.
Thua Thien Hue has become a destination for several global corporations in various fields, including Carlsberg (Denmark), Banyan Tree (Singapore), HBI (USA), Scavi (France), Luks Ciment (Hong Kong), CP (Thailand), Caribbean Cruise (USA), Baosteel (China), SBH (Spain), AeonMall (Japan), Kanglongda (China)… with products that bring high economic value, thereby contributing to continuously enhancing the province's position domestically and globally.
More conditions are needed to attract Foreign Direct Investment (FDI)
Speaking at the conference, Mr. Tran Van My, General Director of the Central Management Center of Scavi Group and Chairman of the FDI Club of Thua Thien Hue, expressed joy when Thua Thien Hue continues to receive an additional 3,500 billion VND in new registered foreign investment. This indicates that the investment environment continues to improve, welcoming the global supply chain shift towards Southeast Asian countries, including Vietnam. This presents both an opportunity and a challenge for Hue to attract selectively chosen large capital inflows, aiming to boost the economy of Thua Thien Hue.
For Thua Thien Hue to truly become a destination for foreign direct investment, according to Mr. Tran Van My, the province needs to focus on improving the investment environment and enhancing competitiveness. In this regard, Thua Thien Hue should prepare a workforce that ensures both quantity and quality to create an advantage in attracting investment. The province also needs policies to attract talent through housing development for workers, building an education system, recreational facilities, and developing infrastructure for residents, turning Thua Thien Hue into an ideal place for talented individuals to live and work.
There should be a concentration on developing logistics services that are both convenient and cost-effective, reducing transportation times, maintaining reasonable costs, and ensuring competitiveness with domestic and international ports. Simultaneously, investments and direction in developing specialized industrial zones are crucial to creating a complete value chain, reducing costs, and increasing the competitive advantage for businesses.
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| Leaders of the Planning and Investment Department, together with businesses, engage in discussions and share insights |
During this conference, FDI enterprises also engaged in discussions around the collaboration between businesses and the local community to promote the FDI ecosystem in Thua Thien Hue, as well as the opportunities for Hue in green economic development.
Speaking at the conference, Mr. Phan Quy Phuong, Vice Chairman of the Provincial People's Committee, emphasized that in the upcoming period, Thua Thien Hue will concentrate on attracting investment selectively, prioritizing industries with high technology content, advanced technology, and high added value. Simultaneously, there will be a strong push to attract foreign investment into manufacturing and processing for export. The province actively supports the implementation and commencement of approved investment projects, particularly large projects that significantly impact the province's socio-economic situation, creating added value and contributing to the local budget. There will be a focus on developing high-quality human resources, especially in technical, technological, legal, and financial fields, and enhancing the capabilities and ethical standards of the state management officials in foreign investment to better collaborate with FDI enterprises.