NSEC SYMPOSIUM

Kunming 19-20 May 2011

NSEC AND PHU THO DEVELOPMENT

Phu Tho Province A snapshot

60km to the north west of Hanoi, between Lao Cai and Hai Phong (200km from Lao Cai and 200km from Hai Phong) Area: 3.528km2 (mountains, hills and plains) Advantage: forests, mines, soil, climate Population: 1.4 million Economic structure: Agriculture and forestry: 25,7 % Industry and construction: 38,5 % Service: 35,8 %

The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

Phu Tho Province A snapshot

GDP per capita in 2010: $650/a year, expected to reach $1500/year by 2015 Education: 2 universities in 2010, 5 universities by 2015 Transportation:
More than 3000km national high way and tens of thousands of provincial roads 3 major rivers: Hong, Lo, Da with dozens of river ports National railway goes through the province, connecting Lao Cai and HCM City

NSEC and Phu Tho Development

NSEC is the driver of the provinces development: Major transportation route connecting Phu Tho and south west of China, and major sea ports and cities in Vietnam
Express railway Lo Cai Hi Phng Trans Viet HCM Railway Lo Cai - HCM; Waterway connecting Lo Cai-H Ni-Hi Phng-Qung Ninh

Industry: promoting the development of industrial parks and clusters

According to plan: 9 industrial parks with area of 300 ha to 700 ha and more than 20 industrial clusters with area of 100 ha Priority given to agricultural and forestry products, mining and mineral processing, construction, supporting industries, manufacturing and high technology

NSEC and Phu Thos Development

Promote the development of trade and services areas along Lo Cai Hi Phng, especially the logistics transit areas providing transit warehouse, bonded warehouse, shallow port, complementary trade and services areas) Form services economy for all cities and provinces all over the country, especially Hanoi

Role of Phu Tho

Coordinate with provinces and economic sectors to push up the development process of infrastructure along the corridor including roads, industrial parks, trade and services areas, stopovers, etc. Coordinate with cities, provinces, ministries and agencies in Vietnam and China to develop economic relationship and to turn Phu Tho into a transit area soon. Create a favorable business environment to attract investment from domestic as well as foreign enterprises

Activities in NSEC
Planning for industrial parks/clusters along the corridor Planning for transportation connection points and roads Developing the electricity network along the corridor Making economic development strategy to 2020 with NSEC as an important factor and dynamism Developing specific projects attached to the corridor such as the transit area (Phu Tho town), industrial park (Phu Ninh district in Viet Tri city) Building transportation system connected with Hanoi-Lao Cai highway

Future activities
Continue to develop projects for industry and trade in services Push up the implementation progress of approved projects Complete mechanisms to attract investment including land policies, resettlement and compensation policies, to develop infrastructure including electricity, water supply, transportation, tax policies, etc. Step by step push up cooperation with other provinces in Vietnam and China to form economic and services framework

Difficulties, Constraints
Limited infrastructure (roads, warehouse and port facilities, electricity) Human resource and strategic thinking Inter-provincial coordination:
Mindset Absence of regional planning for socio-economic development

Lack of capital for development planning for the province (e.g: industrial parks, services) Lack of effective government policies to promote industrial and service development for mountainous provinces, especially the northern uplands of Vietnam

Recommendations
Speed up the implementation of approved projects (roads, railways, waterways) Review development plans relevant to the NSEC (provincial, regional, industry, corridor plans) Focus on timely completion and implementation of specific projects (cross border economic zones, transit areas, end-to-end logistics, stop-over points accompanied by gasoline retail outlets)

Recommendations (cont)
Maintain periodical (semi annual) meetings among provinces along the corridor with local and central government agencies to exchange information and feedback on the development of the corridor. The government to support in funds mobilization to quickly implement key projects to fully utilize transportation corridors Continue the implementation of socio-economic development policy of the government for mountainous provinces with special focus on industry, trade and services, contributing to the development of the corridor

THANK YOU!