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(VEN) - Progressive improvements in transport infrastructure, the investment environment and linkages between Southwestern provinces in the Cuu Long (Mekong) Delta in Vietnam and between them and neighboring areas have together created many opportunities for foreign economic development cooperation in the delta to make the region an open, dynamic, sustainable and integrated economy.
The Ministry of Planning and Investment reported that between 1988 and 2010, the Mekong Delta drew 657 foreign direct investment (FDI) projects with total registered capital of a little more than US$9.89 billion. Of this, almost 30 percent has been invested accounting for 4.8 percent of FDI projects in Vietnam, 4.6 percent of the amount of registered investment capital in the country, and 5 percent of the total investment in the delta during those years. In 2006-2010 alone, the delta received 358 FDI projects with total registered investment capital of US$7.61 billion.
Apart from FDI, the delta has also strongly attracted other sources of capital such as official development assistance (ODA) and assistance capital via non-governmental organizations (NGOs). Between 2006 and 2010, ODA pledged for the Southwest amounted to almost US$1.9 billion, including about US$1.7 billion in ODA loans and about US$99 million in non-refundable aid. These sources of capital have contributed actively to socioeconomic development in the region. ODA and NGO capital has channeled to major socioeconomic fields in the delta such as economic infrastructure, education, health, social security, research and development, environmental hygiene and clean water, and business support.
Bui Ngoc Suong, the deputy head of the Southwest Steering Committee, said that through an understanding of the key role played by foreign affairs, provinces and cities in the delta have actively recommended links with foreign provinces and cities to learn from their experience in the development of agriculture, health and culture. For example, Long An Province has made friends with Chungcheongnam Province in the Republic of Korea; Vinh Long Province has connected with Kongponspu Province in Cambodia, while An Giang Province has formed friendship with Campasac Province in Laos and Val d'Oise Province in France. Ho Chi Minh City in particular is expanding trade exchange and economic development cooperation.
In addition, the Provincial Competition Index (PCI) for provinces and cities in the delta has increased for years now. All these provinces and cities were ranked above the average PCI level in the last three years. This has become an engine for them to increase external investment attraction. Four provinces in the Mekong Delta - Dong Thap, Ben Tre, Long An and Ca Mau - were listed among the top ten provinces and cities in Vietnam in 2008, regarding their levels of improvement. The delta was a highlight in a PCI survey in 2009, with Dong Thap and Vinh Long provinces recognized as excelling in terms of PCI over five years. Dong Thap took fourth place with 68.54 points, and Vinh Long took fifth place with 67.24 points and took the lead in the region in four consecutive years. In 2010 the delta was in the group of provinces and cities nationwide that recorded a bevy of improvements in administration. Specifically, one of all 13 provinces in the delta was in the very good group, eight were in the good group, and the remaining four were in the fairly good group. None of them were listed in the average and fairly low groups. Rapid improvements have made provinces and cities in the delta more attractive to domestic and foreign investors and have created conditions favorable for the delta to expand foreign relations and to integrate with the rest of the country.
The Mekong Delta is developing robustly through many national major projects. Its contributions to the national Gross Domestic Product (GDP) has also increased from year to year. As for now, the delta is in a dire need of investment capital for economic development. Required investment capital should total VND2,700-2,850 trillion between 2011-2020, including VND420-450 trillion in terms of the state budget. For this reason, provinces and cities in the delta should actively seek solutions to boost foreign relations and cooperation ties and to make the most of external assistance on the basis of developing internal strengths.
To achieve the development goals in the new period and foster foreign affairs, the Mekong Delta needs to take specific steps towards building alliances, integration and cooperation in the economy to further grow in the next period, said Trinh Minh Anh, the deputy chief of the Office of the National Committee for International Economic Cooperation. The steps should be to enlarge the export markets for the delta's most advantageous products, particularly farm products and seafood, attract investment from outside the delta and improve the quality of Foreign Direct Investment (FDI) and domestic investment capital, continue developing advantageous sectors and increase sector competitiveness, and broaden people's understanding of international economic integration, particularly international legal practice.
At the same time, the delta needs to properly deal with other issues such as protecting the environment to ensure sustainable development, improve the mechanism for management, combination and connection of regions and sectors, identify foreign economic development goals for each sector, each province and the entire region to practically use FDI, official development assistance (ODA) and non-governmental organization (NGO) investment capital, and examine and evaluate operations every quarter and every year to timely overcome shortcomings.
In addition, Nguyen Phuong Nga, the Deputy Minister of Foreign Affairs, pointed out the need for the delta to clarify the level of contributions from overseas Vietnamese in order to apply sound policies on support, cooperation and development in each and every sector, particularly in terms of science and technology, human resources, and training. She also said that the delta needs to better attract overseas Vietnamese investment and to call on overseas Vietnamese to invest in the delta. Provinces and cities in the region need to timely observe legal regulations and policies towards overseas Vietnamese, regarding preferential treatment, land, investment and more. It is also important for the delta to simplify administrative procedures, to break down barriers and to put in place a one-stop policy for overseas Vietnamese. Other tasks include encouraging overseas Vietnamese intellectuals and experts to work in the delta and to build database on overseas Vietnamese businesspeople and experts in the delta in order to facilitate policy research, composition and application./.
By Le Anh
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