CAN THO, Vietnam, Dec. 13, 2023 (GLOBE NEWSWIRE) — The Vietnam Chamber of Commerce and Industry (VCCI) hosted the launching of the “Annual Mekong Delta Economic Report 2023”. This research represents a tangible outcome of the responsibilities outlined in Government Resolution 57/NQ-CP from 2022, which mandates the Chamber to lead and collaborate with pertinent agencies in autonomously monitoring, assessing, and regularly reporting on the holistic socio-economic progress of regions. The focus is on evaluating the effectiveness of regional coordination and linkage activities in each locality, as stipulated by the resolution.
VCCI and the Fulbright School of Public Policy and Management (FSPPM) jointly conducted the report. VCCI Chairman Pham Tan Cong provided guidance for the project, with oversight from Mr. Nguyen Phuong Lam, the director of VCCI’s Mekong Delta region, and Dr. Vu Thanh Tu Anh, the Director of FSPPM and 30 experts from various fields.
Annual Mekong Delta Economic Report 2023
Socio-economic situation of the Mekong Delta
Confronted with the adverse impacts of the global economy, characterized by a downturn in global economic growth, Vietnam stands out as a positive anomaly with an 8% growth rate. However, the diminishing demand both domestically and internationally has led to Vietnam achieving only a 4.2% growth in the first nine months of 2023 compared to the same period. In parallel with the overarching national trajectory, the economic recuperation of the Mekong Delta exhibited pronounced resilience in 2022; however, a discernible deceleration ensued in 2023.
Investment growth in the Mekong Delta lags behind the national average, resulting in a decline in the region’s investment proportion relative to the entire country.
While agriculture occupies a central role in the Gross Regional Domestic Product (GRDP) of the region, it does not function as the primary driver for propelling the regional economy forward. The agricultural sector receives the second-largest investment, approximately 32 trillion VND annually, yet its growth rate remains below the median at 3%. This underscores the limited growth potential within the existing agricultural institutions and models, signaling the need for fundamental changes.
Challenges of the Mekong Delta & Research results
The Mekong Delta Annual Economic Report for 2022, identifies three negative trends in the realms of economy, society, and environment. It succinctly outlines these challenges within these downward spirals. A pivotal message conveyed in the 2022 Annual Report is that the Mekong Delta can achieve sustainable economic development and enhance people’s incomes only by disrupting some aspects of these downward spirals and subsequently transforming them into upward trajectories.
A bottleneck underpinning economic, social, and environmental challenges, as highlighted in both the 2020 and 2022 Annual Reports, is the inefficiency in regional governance, coordination, and linkage mechanisms.
The research process reveals that six groups of factors directly contribute to the existing challenges in the Mekong Delta, encompassing: (i) natural conditions; (ii) technology; (iii) human capital; (iv) infrastructure; (v) investment and business environment; and (vi) governance, cooperation, and regional linkage mechanisms. These immediate causes result from a complex interplay of institutions, policies, and economic processes, ultimately stemming from fundamental institutional factors. Consequently, institutional bottlenecks are currently impeding regional economic development, and without adjustments, sustained rapid and sustainable development in the long term for the region is likely to be challenging.
The release of this year’s report comes at a juncture where Mekong Delta provinces have recently completed their individual planning at the provincial level. To address obstacles in the implementation of each local plan, an enforcement mechanism is essential.
On December 12, 2023, in Can Tho, VCCI hosted a ceremony to unveil the “Mekong Delta Annual Economic Report 2023″ and organized the Policy Forum titled” The Mekong Delta development from regional connections and cooperation mechanisms among localities”. The forum aimed to assess the efficacy of the mechanisms in implementing regional planning and managing resources in the Mekong Delta, including proactive measures related to climate change and helping the region grow sustainably despite hard situations.
Vietnam Chamber of Commerce and Industry (Mekong Delta Branch)
Website: www.vccimekong.com.vn
BambuUP Jsc.
Website: https://bambuup.com/
Media contact: [email protected]
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