Awaking Mekong Delta Region

According to statistics released by the south-western steering committee, total industrial production value of the Mekong Delta region was VND92,521 billion in 2008, ranking the third in the south-eastern and Red River Delta regions and much lower than that in Ho Chi Minh City.

At the 12th seminar on industry in the Mekong Delta region held by the Ministry of Industry and Trade in Tien Giang province, representatives gave many ideas to seek a suitable measure to develop the industry sector, as well as to raise the proportions between the service sector and the industry sector, between the construction sector and the agriculture sector in the region in order to move the economic mechanism in the region and help the region catch up with the average development speed in the country.

Huge Potential

Mekong Delta region provides around 50 % of rice, 52 % of seafood and 70 % of fruits annually. The region has a huge potential for developing rural industry, especially farm products and seafood processing industry for domestic consumption and exports. However, the Ministry of Industry and Trade estimates that the economic mechanism movement of the region is slow, agriculture accounts for over 40 % of its GDP growth rate while the country’s average level is only over 20 %.

The region has a huge potential for developing processing industry, especially seafood and vegetable and fruit processing industry. In 2008, the region processed 597,600 tons of seafood, up 21 % from 2006. The region now has 133 seafood processing plants with a combined capacity of over 690,000 tons a year. Main products from the plants are phi le tra catfish and frozen shrimps. The region also processed 14,709 tons of canned vegetables and fruits in 2008. In Tien Giang province, Tien Giang Vegetable and Fruits Joint Stock Company now owns a plant capable of processing 15,000 tons of canned and frozen vegetable and fruits a year. Traditional food grinding and husking industry is capable of grinding and husking a combined 7,883,000 tons of products in 2009. Ba Dac grinding and husking area with hundreds of grinding and husking plants in Cai Be district of Tien Giang province is considered as the rice market of the western region.

Moreover, the region has huge potential on craft villages and various rural industrial products. The region now has 161 craft villages including 133 ones got licenses, drawing over 84,000 labourers. The number of rush knitting craft villages account for the highest rate thanks to its environmental-friendly products. Some handicraft products made from raw materials of water hyacinth, arecas of banana and rush exported to international markets. My Tho noodle, Go Cong shrimp paste, Cai Be cake in Tien Giang province, My Long girdle cake and Son Doc glutinous rice chupatty in Ben Tre province have been loved by customers.

Unsustainable Development

Addressing the seminar, representatives from some provinces in the region said that infrastructure investment at industrial parks in the region have been sluggish to satisfy the demand for industrial development. The main reason is attributed to the difficulties in attracting and calling for investors to pour money into infrastructure projects at industrial parks due to the shortage of incentive policies from the government. Environmental pollution is a stinging matter in Mekong Delta region not only at the present but also in the future because most of industrial parks and complexes in the region have not yet built waste water treatment systems. Industrial parks in Mekong Delta region discharge annually an average of 6,000 tons of solid waste, 250,000 tons of industrial waste, 3,800 tons of healthcare waste and 102 million cubic metres of household waste.

Most of traditional craft villages in the region have not yet had any detailed and methodical development ways. Over 80 % of the craft villages face capital shortage for technical renovation, especially in the context of industrialisation and modernisation. Rural economy in Mekong Delta region is facing many disadvantages of infrastructure and production spending in additional to the few effect in investment promotion, said Mr Vo Hung Dung, director of the Vietnam Chamber of Commerce and Industry’s Can Tho branch. Rural enterprises in the region, moreover, meet difficulties in approaching market information and loans.

Industry and rural trade in Mekong Delta region have not yet developed correspondingly with its available potential and advantages said the Ministry of Industry and Trade. In the coming time, provinces in the region need to focus on seeking measures and building incentive policies in an effort to boost the development of the region’s industry and rural trade.

Tags: Mekong Delta, Vietnam business news, Vietnam Tourism