The Central Key Economic Region stretches along the coast from Thua Thien Hue province to Binh Dinh province. This is the third largest economic region in Vietnam with much potential and advantages for socio-economic development and also the driving force for socio-economic promotion in the central and the Central Highlands regions.
In 2020, the pandemic caused the suspension of production and business activities with the closure of a series of enterprises in the tourism and service sector in Hue, Da Nang, Hoi An and Quy Nhon. Economic activities in the central region were hit hard and posted negative growth of -1.02% by the end of the financial year. Of which, the service and tourism sectors experienced a serious decline, with a negative growth rate of -2.65%.
In 2021, provinces and cities in the Central Key Economic Zone have persisted with the dual goal of preventing the pandemic and maintaining production and business activities. Many enterprises have implemented the “2 on the spot” and“3 on the spot” models to continue production amid the pandemic.
Deputy General Director in charge of production at the Truong Hai Automobile JSC (THACO) Nguyen Quang Bao said that the outbreak of the pandemic has caused difficulties for the production activities of the company as well as many other businesses in Quang Nam. However, to achieve the set plan and ensure the life and safety of more than 9,000 workers, THACO has always strengthened pandemic prevention and control in factories in the Chu Lai Open Economic Zone.
When the pandemic broke out in Quang Ngai for the fourth time, the company relocated its workers from Quang Ngai to Quang Nam to avoid the pandemic and continue to participate in production.
As a result, its production value increased significantly with the production of nearly 58,600 vehicles of all kinds in the first eight months of 2021, up 40.7% over the same period in 2020, with a contribution to the state budget of over VND12.8 trillion, double that of the same period last year.
 |
A processing facility of Binh Dinh Seafood Joint Stock Company. (Photo: CAT HUNG)
Like many enterprises in the Central Key Economic Region, Hoa Phat Dung Quat Steel JSC in Quang Ngai put as its top priority fighting the pandemic. The company arranged for 1,500 workers (out of a total of nearly 12,000 workers) to stay and work at the factory. As a result, the company's crude steel output in the past eight months was twice as high as in the same period in 2020 while its finished construction steel output increased by 37.5% over the same period last year.
General Director of Doosan Vietnam Heavy Industry Co., Ltd (Doosan Vina)Jeong Young Chil said that thanks to unanimity and determination in fighting the epidemic, Doosan Vina's production chain has been maintained as normal. Since the beginning of the year, Doosan Vina has exported more than 18,000 tonnes of products to Japan, Thailand, and Indonesia, contributing to improving the export turnover of QuangNgai province and creating jobs and a stable income for thousands of local workers.
Da Nang city was severely damaged by the COVID-19 pandemic in 2020 with broken production and business chains and declining economy. Entering 2021, the city government deployed many groups of solutions to both prevent the pandemic and restore the economy.
Da Nang’s import and export activities maintained growth in the first months of 2021. The city posted total export turnover of US$1.15 billion in the first eight months of this year, up 20.3% over the same period last year and total import turnover of US$875.1 million, up 15% over the same period in 2020.
Director of the Binh Dinh Department of Industry and Trade Ngo Van Tong said that in the first six months of 2021, the province's GRDP grew by 6.1%, ranking second in the central region (after Quang Nam) and the industrial production index increased by 7.38% over the same period last year. The province's total export turnover was also estimated at US$873.1 million, up 22.2% over the same period in 2020.
According to Chairman of Quang Ngai Provincial People's Committee Dang Van Minh, the province’s industrial production index in the first eight months of this year increased by nearly 9% over the same period while export turnover was estimated at US$1.22 billion, up 41.6% over the same period last year. Quang Ngai also attracted total investment of VND85 trillion in the industrial sector during the eight-month period.
Chairman of the Quang Nam Provincial People's Committee Le Tri Thanh said that Quang Nam's economy has prospered since the beginning of 2021 with GRDP up by 11.7% in the first six months of this year.
Quang Nam is one of nine localities in the country with a two-digit growth rate, ranking fifth in the country and highest in the Central Key Economic Zone.
The recovery and expansion of production and business activities has created jobs and incomes for local workers and made significant contributions to the state budget. By the end of August, total state budget revenue in the province was estimated at VND14.1 trillion, up 54% over the same period last year.
Despite the positive economic results, the region still faces many difficulties and challenges due to the new outbreak of the pandemic in recent months, causing declines in local revenue.
Provinces and cities in the region will continue to strengthen the control and prevention of the pandemic, considering it an important task in order to restore the economy and promote production and business.
Localities in the region will continue to tighten connectivity to have a smooth and unified coordination mechanism regarding pandemic prevention and control in addition to implementing the Government’s relief packages and policies in support of enterprises.
