Ideas sought on Mekong Delta investment plan

News - The Central Institute for Economic Management (CIEM) and the Southwestern Region Steering Committee on Thursday held a seminar to hear opinions about a draft plan on investment in the Cuu Long (Mekong) Delta.

The CIEM, which is under the Ministry of Planning and Investment, has drafted the plan with the aim of evaluating the potential and the obstacles in developing and attracting investment.

Despite having an advantageous location, the Delta has a slower economic growth rate than the country’s other regions, according to the CIEM’s research group.

Although the Delta’s GDP accounted for 23 per cent of the country’s GDP in 1993, the rate has fallen to 15-16 per cent.

In 1988-2009, foreign direct investment capital was only US$8 billion, accounting for only 4 per cent of the country’s total FDI, according to the ministry’s Foreign Investment Agency.

In 2009, the Delta attracted 31 FDI projects with total registered capital of $55.6 million.

Kien Giang, Soc Trang, An Giang and Ca Mau provinces did not attract any FDI project in 2009.

The Delta’s inadequate infrastructure and low-quality labour force are the two main obstacles in attracting investment, according to the research group.

Seminar participants said the Government should help support the Delta in solving its problems and have specific policies to attract investment.

They also petitioned the Government to approve a socio-economic development plan for the Delta and the Delta’s key economic zone with four priority sectors: rice, seafood and fruit cultivation and tourism development.

They also proposed that the Government invest in building a multi-purpose irrigation system for the Delta.

Without such a system, the Delta provinces would not be able to develop rice, fruit and aquaculture cultivation.

Tran Xuan Lich, CIEM deputy director, said the Ministry of Planning and Investment would ask for opinions from the Ministry of Industry and Trade, the Southwestern Region Steering Committee and the People’s Committees of the Delta’s 12 provinces and its one major city, Can Tho, before finalising the plan.

The plan is expected to be submitted to the Prime Minister next month.