Escape from "low-lying areas" of growth by promoting linkages in the Northern Midlands and Mountains

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Forum: Business linkages to promote sustainable development in the Northern Midlands and Mountains. Photo: H.D

Lack of traffic connection capacity, so "close to home, far from alley"

Speaking at the Forum "Linking businesses to promote sustainable development in the Northern midlands and mountainous regions", directed by the Vietnam Confederation of Commerce and Industry (VCCI), organized by Business Forum Magazine On the afternoon of September 27, Hoang Quang Phong, Vice President of VCCI, said that the Northern Midlands and Mountains region has a particularly important strategic position in terms of politics, economics, culture, society, environment, defense, security and foreign affairs of the whole country.

According to Phong, this is a region with many potentials, advantages, and convenient trade connections with China and ASEAN to develop the border trade economy. Furthermore, this is also a region rich in resources and minerals; Favorable development of agriculture, forestry and fisheries; fully converging many unique tourism potentials…

However, the Vice President of VCCI also acknowledged that the region's potential and advantages have not yet been properly exploited and promoted effectively. The Northern Midlands and Mountains region is still a "low-lying area" in development and the "poor core" of the country, with regional linkages still not tight.

The report of the Ministry of Planning and Investment said that the Northern Midlands and Mountainous region has made many important contributions to the socio-economic development of the whole country, but the scale is still modest (accounting for only about 8-10 million people). 9% of the country's GRDP), no locality in the Region has been able to balance its own budget, and regional development in many areas is still lower than the national average. The region's multidimensional poverty rate in 2022 is 22%, nearly 3 times the national average.

Furthermore, in terms of businesses, the Northern Midlands and Mountains provinces only have a business density less than 1/3 of the national average. By the end of 2022, the entire region has only 39,341 businesses. And up to 8 provinces in the Region appear in the group of 10 provinces with the lowest number of operating businesses in the country.

According to experts, one of the reasons why this is still a "low-lying area" is because the traffic connection capacity, including both vertical and horizontal axes, is still limited, and the transport infrastructure is not synchronous. leaning towards road traffic, leading to a situation where localities in the region are like "close to home, far away" neighbors, wanting to get from Cao Bang, Bac Can, Thai Nguyen to Lao Cai, Yen Bai, Phu Tho as quickly as possible. There is a way to go to Hanoi and then back because there is a lack of horizontal traffic connecting the two localities.

Links to form growth poles

Faced with these challenges, Vice President of VCCI said that many new points were mentioned in the resolutions of the Party and Government. Therefore, new thinking, new vision, new development roadmap, new opportunities... are important foundations, helping the "poor core region" in the Northern mountainous region to develop breakthroughly in the coming time.

Therefore, Hoang Quang Phong affirmed that a close connection is when not only the government but also businesses join hands to build a common plan for the entire region. Linking to form a number of growth poles and economic centers of the Region, in parallel with the development of economic corridors, associated with a connecting transportation system, along with the potential and strengths of each location in the region, avoid competing with each other at all costs.

From a local perspective, to realize the goal of building Lao Cai into a center connecting economic trade between Vietnam and ASEAN countries with the Southwest region and China, Hoang Quoc Khanh, Permanent Vice Chairman Lao Cai Provincial People's Committee said that the province is accelerating the implementation of major projects on road, rail, waterway and air transport infrastructure systems to promote regional connectivity.

For example, investing in the Noi Bai - Lao Cai expressway investment project, Yen Bai - Lao Cai section with a scale of 4 lanes by 2023 and completing the scale of 6 lanes by 2030. Mr. Khanh also proposed that the Government support the province in completing and putting into operation Sa Pa airport before 2030; early research and planning of the Lao Cai - Hanoi - Hai Phong railway project with a gauge of 1,435mm, because this is a route connecting railway transport with China and from there connecting with railways of Eurasian countries…

Similarly, Phan The Tuan, Vice Chairman of the People's Committee of Bac Giang province, also requested localities in the region to promote regional linkages, linkage chains, and product chains. At the same time, the orientation of linking economic chains and product chains on a regional scale, focusing on creating links in urban and rural development, associated with industrial parks and border gate economic zones.

And in Tuyen Quang, with the commercial potential of forest carbon absorption and storage, Mr. Nguyen Van Son, Deputy Secretary of the Provincial Party Committee, Chairman of Tuyen Quang Provincial People's Committee recommended that ministries and branches advise the Government. Soon there will be a legal framework for issuing carbon certificates and participating in the carbon market so that the province can have more resources, support people and businesses, thereby developing sustainable forests.