Workers at Kim Long Motor Hue Joint Stock Company operate machinery during the car production process. Photo: KIM LONG MOTOR

Major challenges after natural disasters

The historic floods in late October and early November have caused heavy losses to the socio -economic situation of Hue city. The agricultural sector, which is the stable foundation for the suburban area, has been severely affected, with growth forecast at only about 1.3%. Tourism activities have stagnated, many businesses have been struggling due to disruptions in supply chains and consumer markets.

In that context, the expectation of GRDP growth of 10% or more in 2025 becomes a big challenge, forcing Hue to quickly find new growth drivers so as not to lose its development momentum.

Deputy Secretary of the City Party Committee and Chairman of the Hue City People's Committee Phan Thien Dinh said that although the city has made many efforts in socio-economic development, Hue's expectations are very high, so it must make more efforts to achieve them. Mr. Dinh emphasized that some basic targets have approached the plan, but to achieve the double-digit growth target in the next term, Hue needs a strong enough push. "Without new growth drivers, Hue will find it difficult to catch up with other localities, especially those with greater room for development," Mr. Dinh said.

Hue has the advantage of a stable administrative apparatus when it has not merged its boundaries like many other localities, but this also leaves little room for development. “If we do not change our thinking, our way of doing things and act more decisively, it will be difficult for us to achieve the expected results. Hue has potential, but to develop sustainably and in the right direction is not easy,” Mr. Phan Thien Dinh shared.

A report at the recent regular meeting of the City People's Committee showed that to achieve the growth target of over 10%, the fourth quarter must achieve a growth rate of 12.6%, a figure that is almost impossible after the recent floods. It is forecasted that the GRDP growth for the whole year will only reach about 9 - 9.5%, due to negative growth in the agriculture - forestry - fishery sector, although the industry - construction sector increased by 13.4 - 13.8%, and services increased by 8.5%.

Floods damaged many roads in Nam Dong district (old).

Don't let the economy slow down after the floods

Faced with that situation, Hue launched the "60-day and night campaign" to promote production, stimulate consumption and speed up the disbursement of public investment capital. "The goal is to complete the budget revenue target of 15,700 billion VND assigned by the City People's Committee, while ensuring the progress of key projects, especially post-flood infrastructure reconstruction," said La Phuc Thanh, Director of the Department of Finance.

According to the City Statistics Office, Hue's growth in recent times has depended heavily on the industrial and construction sector, with bright spots such as Kim Long Motor, Kanglongda and electricity production. However, traditional industries such as beer, yarn and garment have declined, causing the overall production index to drop. It is forecasted that achieving double-digit growth is extremely difficult in the current context.

Sharing the same view, Director of the Department of Industry and Trade Dang Huu Phuc said that beer and automobile production, two industries that contribute greatly to the budget, have both decreased compared to the same period last year. “In particular, automobile production increased more than 6 times in the first 6 months of the year compared to the same period last year, but by October it had only increased more than 3 times, with the whole year expected to reach about 7,000 units,” said Mr. Phuc.

To maintain growth momentum, the Department of Industry and Trade will work directly with relevant agencies and units to remove obstacles and support Kim Long Motor - an enterprise considered the "industrial driving force" of Hue to further develop. At the same time, the industry and trade sector is coordinating with enterprises such as Hue Beer to research new consumer markets, even expanding to potential markets in Laos and Cambodia.

According to Chairman of the City People's Committee Phan Thien Dinh, despite facing many difficulties and challenges, Hue still shows a proactive spirit and high determination in economic recovery. Accordingly, the city focuses on supporting large-scale industrial projects such as Kim Long Motor Production - Assembly Complex (phase 2), Kanglongda Hue Factory (phase 2), and at the same time implementing policies to support businesses to restore operations after floods. In particular, the city will review growth scenarios, promptly adjust operational solutions, and ensure the best completion of the socio-economic development targets and tasks set for 2025.

“Hue needs a strong enough growth engine not only in industry but also in development thinking. We must promote the role of the private economic sector and encourage creative start-up businesses. When internal strength is aroused, Hue will create new growth momentum after the flood,” Mr. Phan Thien Dinh affirmed.

Article and photos: LE THO

Source: https://huengaynay.vn/chinh-tri-xa-hoi/theo-dong-thoi-su/kich-hoat-noi-luc-tao-da-phuc-hoi-kinh-te-160002.html