Decoding Bac Giang's resilience - Vietnam's economic growth phenomenon: Part 2 - Industry - the spearhead shaping the position of a transforming region

BAC GIANG - Without inherent advantages in industry, Bac Giang used to be a purely agricultural province with slow growth. However, since the early 2000s, the province has firmly chosen a breakthrough direction: Developing industry as a spearhead. Bold and consistent decisions through each term have gradually formed a modern industrial ecosystem, creating outstanding growth momentum and bringing Bac Giang to a strong breakthrough over the past decade.

Timely decision

Re-established since January 1, 1997, Bac Giang province has more than 380 thousand hectares of natural land, of which about 77% is agricultural land. Thanks to favorable terrain and climate, farmers rarely have crop failures. But in reality, "no worker, no rich" - without industrial development, it is difficult to get rich. Thoroughly implementing the Party's policy on promoting industrialization and modernization, on the basis of correctly assessing local realities, the Provincial Party Committee and the Provincial Party Committee Standing Committee decided to choose industrial development as a breakthrough direction. Reality shows that this is the right choice.

Comrade Nguyen Viet Oanh, Chairman of the Provincial People's Committee visited enterprises at Van Trung Industrial Park.

In order to unify the goals, viewpoints and development solutions, the 15th Provincial Party Congress (term 2000-2005) clearly defined the orientation: "Exploiting potential and internal resources; issuing mechanisms and policies to encourage investment; at the same time, taking advantage of support from the Central Government to focus on developing industry and handicrafts". To concretize this orientation, the Provincial Party Committee issued a Resolution on the Industrial and Handicraft Development Program for the period 2001-2005 and identified "industrial years" to focus on directing decisively.

When the industrial development resolution was implemented, a number of cadres and party members were still confused, because the province's industrial starting point was almost zero. In that context, the province issued a series of policies to realize the policy. On July 3, 2000, the Provincial People's Committee issued Decision No. 121 on preferential policies and investment incentives - considered a "land-breaking" decision, creating the premise for many policies to improve the investment environment later.

The province's preferential policies clearly demonstrate the motto: "maximum benefits - minimum obligations" for investors, within the framework of current laws. Along with that, the province established the Industrial Park Management Board; compiled documents introducing investment potential and opportunities; organized working groups to localities with strong industrial development such as Binh Duong, Dong Nai, Ho Chi Minh City to learn the management model and promote investment.

Many conferences calling for investment were held to promote the image and gain trust from the business community. From the practical implementation and receiving comments from experts, managers and businesses, in 2002, the Provincial People's Committee issued Decision 34 replacing Decision 121, creating a new breakthrough in incentive mechanisms and attracting investment. This Decision clearly stipulates the investment procedures and processes according to the principle of "one-stop shop, one-stop shop", contributing to simplifying administrative procedures and improving the efficiency of serving investors.

Production line at Hana Micron Vina Co., Ltd. (Korea).

Under the new mechanism, investors only need to contact the focal point, the Department of Planning and Investment (now the Department of Finance), which will take the lead and coordinate the settlement of all related procedures. This approach has built trust and sympathy with the domestic and international business community, affirming the province's commitment to administrative reform for development.

From the synchronous implementation of solutions, the work of attracting industrial investment has reaped the first “sweet fruits”. In 2001 – the first year of implementing the Industrial Development Resolution – foreign investment capital in the province tripled the total amount of the previous 10 years combined. This is an important sign of the confidence and new attractiveness of Bac Giang in the eyes of investors.

In 2002, foreign investment capital in the province continued to increase 1.5 times compared to the previous year. Many foreign-invested enterprises have established and operated effectively in Bac Giang. At the same time, dozens of domestic projects also continued to pour capital into the province. Compared to some provinces and cities in the country, the investment capital in Bac Giang at that time was still modest but contributed significantly to promoting growth and shifting the economic structure towards increasing the proportion of industry and services.

More importantly, from the initial achievements, the province has drawn many valuable lessons to continue planning policies and strategies to "light the way and give direction" for industrial development in the next phase - with the highlight being the birth of Dinh Tram Industrial Park, the first industrial park of the province, which later became a "red address" to attract investment.

Formation of 17 industrial parks

October 11, 2003 marked a turning point in the industrialization process of Bac Giang when the province started construction of Dinh Tram Industrial Park. Previously, on December 7, 1999, the Prime Minister allowed the province to plan Dinh Tram Industrial Park with an area of ​​101 hectares, located in Hong Thai and Hoang Ninh communes (now Hong Thai ward, Nenh ward, Viet Yen town). However, the implementation process encountered many obstacles due to difficulties in site clearance.

A corner of Quang Chau Industrial Park (Viet Yen town).

One of the reasons is the environmental pollution incident from a pesticide business that used to operate in this area, causing concern and opposition from the people. Many officials were assigned to campaign and propagate, but the fear still spread, affecting the progress of land acquisition.

Through conversations and meetings, many former cadres and leaders who participated in the propaganda and mobilization of land clearance at that time affirmed that the industrial development policy was completely correct, but due to limited dissemination of the policy, many households did not fully understand, leading to anxiety and reactions. Many households believed that losing land would lose their livelihood, affecting the future of their children and grandchildren. In addition, some bad elements took advantage of this to incite and exaggerate conflicts. In particular, there were retired cadres who also sided with the opposition.

Internal divisions, villages and hamlets are divided, and in some places, supporters of the policy are even boycotted and threatened. In some localities, the grassroots political system has not yet played its role, and the risk of forming "hot spots" of security and order is very clear. In this situation, the province persists with the orientation of industrial development, directing departments, branches and organizations to take drastic action. Many working groups have been established to dialogue and answer people's concerns; to grasp each subject, especially those with high-ranking positions or criminal records. Being both gentle and resolute in handling each specific case, any difficulty is gradually resolved.

According to comrade Nguyen Van Phuong, Deputy Director of the Department of Home Affairs, former officer of the Quang Chau Industrial Park site clearance team, site clearance is a difficult task. Meanwhile, Bac Giang is still in the early stages of industrial development, so in order to gain people's trust and consensus on the general policy, the working group has stayed close to the grassroots regardless of rain or shine, coordinated propaganda, explained the policy, recovery and compensation mechanism; listened to the people's thoughts and aspirations. After a period of perseverance, the site clearance work has received the cooperation of the people and it is exciting to witness the change in the lives of people living near the industrial park, with some households becoming millionaires and billionaires thanks to service development.

Dinh Tram Industrial Park was started, this is the first industrial park built with state budget capital combined with enterprise capital, with a total investment of about 210 billion VND. In the context of limited budget, the province has flexibly mobilized internal resources and sought support from the Central Government for implementation. The model of leasing land with infrastructure (annual collection) helps domestic investors, especially small and medium enterprises, easily access. This method is considered suitable for localities in the early stages of industrial park development.

After Dinh Tram Industrial Park, the province continued to approve enterprises to invest in the Dong Vang Automobile Industrial Park project with a total capital of more than 4,000 billion VND. At the same time, Song Khe - Noi Hoang Industrial Park (now Song Khe - Noi Hoang Industrial Park) was also planned nearby. Bac Giang expects these industrial parks to form a chain of large-scale industrial parks, creating a new industrial driving force of the province.

Although the first steps were arduous, they left many valuable lessons. From that reality, the province has gradually perfected the system of mechanisms, policies and implementation methods. Resolution No. 147-NQ/TU dated July 15, 2021 of the Provincial Party Committee clearly established the development perspective: Taking industry as the main pillar and driving force for growth; promoting industry towards modernity, efficiency and sustainability; synchronous development between industry - urban - services to form a comprehensive industrial ecosystem.

To date, Bac Giang province has 17 industrial parks, of which 8 have been put into operation with more than 500 projects, creating jobs for hundreds of thousands of workers inside and outside the province. The strong development of industry not only plays the role of a growth driver but also contributes to reshaping the economic picture of Bac Giang - more diverse, more dynamic and more deeply integrated into the global value chain. However, for industry to fully promote its spreading role, the province must strengthen regional connectivity, expand development space, and create new growth drivers.

(To be continued)

PVKT GROUP

Source: https://baobacgiang.vn/giai-ma-suc-bat-bac-giang-hien-tuong-tang-truong-kinh-te-cua-viet-nam-bai-2-cong-nghiep-mui-nhon-dinh-hinh-vi-the-vung-chuyen-minh-postid418907.bbg