Mekong Delta targets annual 12% growth over the next decade

Vietnamese Deputy PM Vu Van Ninh, who is also head of the Southwest Region Steering Committee, reaffirmed the strategic role played by the Mekong Delta in the country’s economy.

“It is headed in the right direction in tapping its advantages and potential and contributing to the country’s development,” he said.

In the first decade of this century, the region grew at 11.7 per cent and accounted for 18-19 per cent of the country’s GDP and 10 per cent of exports.

Its average annual industrial growth rate in the period was 18.8 per cent.

Eleven industrial parks were established, attracting US$743 million (Bt22.8 billion) and offering over 70,000 jobs.

But a report released at a conference to promote investment in the region said the achievements fell short of potential.

Economic development remained unsustainable and not very competitive, and faced high risk. Agriculture was threatened by climate change and rise in sea levels. Infrastructure was not well developed, making the region less attractive to investors.

There was a shortage of qualified and skilled labour.

The region also suffers from a brain drain, losing out to Ho Chi Minh City and the south-eastern region, leading to shortages of qualified workers. At the conference, the steering committee called for investments of nearly $1.6 billion into 178 major projects. Nguyen Phong Quang, its deputy head, said the region would tap gas reserves off the south-west coast, set up wind and thermal power plants, and further develop transport, irrigation, and other infrastructure facilities.