Why is Lao Cai's GRDP growth lower than the national average growth rate?

- First of all, could you please evaluate Lao Cai 's GRDP growth in the second quarter of 2024?

According to the General Statistics Office, the growth of the province's gross regional domestic product (GRDP) in the second quarter increased by 6.59% over the same period in 2023, lower than the national growth rate (6.93%), ranking 7th out of 14 provinces in the Northern midlands and mountainous region and 37th out of 63 provinces and cities.

However, the above growth rate of Lao Cai province is much higher than the 1.77% increase in the second quarter of 2023 (4.82 percentage points higher) and the 4.63% increase in the first quarter of 2024 (1.96 percentage points higher). Importantly, growth in most economic sectors and fields of the province compared to the same period, of which: Agriculture, forestry and fishery increased by 4.23%; industrial sector increased by 3.8%; construction showed signs of improvement, increasing by 12.96%; service sector increased by 8.01% and product tax minus product subsidy increased by 6.62%.

Import and export of goods through Kim Thanh Border Gate.

Although the province's GRDP growth in the second quarter of 2024 has not reached expectations and planned targets, it also shows that economic sectors have recovered strongly; the province's economic management solutions in the past have basically gone in the right direction and achieved positive results, which is a premise for recovery and development in the third quarter and the whole year of 2024.

- So what is the reason why Lao Cai's GRDP growth in the second quarter of 2024 is lower than the average growth rate of the whole country, sir?

The reason why Lao Cai's GRDP growth in the second quarter of 2024 is lower than the national average is due to both objective and subjective reasons. Regarding objective reasons, the world economic and political situation continues to fluctuate, is complicated, unpredictable, impossible or very difficult to predict, causing Vietnam's key export markets to decline, supply chains to break down, and monetary policy to tighten...

Industrial production faces many difficulties.

About subjective causes from the difficulties in the industrial sector, at the same time, some industries and sectors have not achieved the expected growth rate due to some problems of enterprises that have not been resolved and removed. These include lack of raw materials and fuel for production; problems with compensation, site clearance, land lease, and limitations in production technology; investment attraction has not met expectations due to problems with legal procedures; some planning has not been completed, leading to difficulties in attracting investment from corporations and enterprises; budget revenue is still low. Digital transformation and administrative reform have not had clear changes. Coordination between industries and localities in the process of handling some tasks has not met the progress and requirements.

- To achieve growth in the third quarter and the whole year of 2004, what will Lao Cai have to do, comrade?

To ensure the highest economic growth target (about 10%) in the third quarter and the whole year of 2024, the Department of Planning and Investment has coordinated with relevant agencies and units to propose and advise the Provincial People's Committee to issue a plan to implement a number of key solutions and tasks, specifically directing each department, branch, and locality to manage the socio-economic development plan.

Proactively monitor progress, provide information, provide timely support, and remove difficulties for processing, manufacturing, and mining enterprises operating in the area. Urge to speed up the progress of the following projects: Investment in the factory producing food acid, electronic acid, and phosphate salts in Tang Loong Industrial Park (phase II); Vitamec Lao Cai Center for Research, Seed Production, and Processing of Medicinal Herbs; Industrial and Hazardous Waste Treatment Plant in Tang Loong Industrial Park. Continue to support the resolution of difficulties for completed and operating hydropower projects in terms of legal procedures, while focusing on supporting enterprises to promote investment and put into operation 20 hydropower projects that have been approved for investment.

Speed up construction progress of basic construction projects.

Authorities at all levels and sectors need to be more active, proactive, resolute, and closely monitor the review and supervision of state budget collection in the area; strengthen and review to prevent state budget losses from the tourism, restaurant, catering, hotel, and accommodation sectors. Continue to strengthen tax management for e-commerce activities; promptly grasp difficulties and obstacles, especially in land auction procedures, to resolve or report to competent authorities for consideration and direction; review and promote the implementation of land use purpose conversion, resettlement arrangements, and strive to complete the remaining land use fee collection target of 2024 from now until the end of the year.

Assign tasks to Party committees at all levels to strengthen leadership, remove obstacles, especially obstacles in compensation and site clearance; link disbursement progress and project efficiency with the personal responsibility of the head and the person assigned to perform the task, considering this as a criterion for assessing the level of work completion in 2024; ensure the progress of the commitment to disburse monthly capital plans, strive to achieve 95% - 100% of basic construction disbursement (local budget capital alone must reach 100%).

Promote investment attraction in economic zones and industrial parks and industrial clusters in the area. In particular, it is necessary to speed up the progress of establishing and approving key planning of the province (Adjusting the General Planning for the construction of Lao Cai Border Gate Economic Zone to 2040, with a vision to 2050; Adjusting the General Planning of Lao Cai City; Adjusting the General Planning, Urban Tourism Sub-zone of Y Ty (Bat Xat); planning of industrial parks of the province...); focus on completing the planning and investing in industrial parks: Coc My - Trinh Tuong (Bat Xat), Vo Lao (Van Ban), Cam Con (Bao Yen); Ban Qua Processing Industrial Park (Bat Xat); establishing Thong Nhat Industrial Cluster (Lao Cai City), Pho Rang Industrial Cluster (Bao Yen); completing the investment in the construction of Bat Xat Industrial Cluster.

Departments, branches and sectors continue to synchronously and resolutely implement solutions to improve the investment and business environment, remove difficulties for enterprises, and focus on bringing all internal administrative procedures of agencies and units to the provincial Public Service Portal for public and transparent management.

- Thank you very much, comrade!

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