Vinh Phuc economy: grow 6.38% in the first quarter of 2020


2020 is the last year in the socio-economic development plan for the period of 2016-2020. Right from the beginning of the year, the provincial Party Committee, People's Council and People's Committee have directed branches and levels to strongly deploy tasks and solutions, focusing resources to strive to complete and exceed the planned targets. However, the spread of Covid -19 has affected the socio-economic development of the province. Dealing with the complicated situation, Vinh Phuc has drastically and actively taken measures to prevent and control the epidemics; issued many synchronous guidelines, policies and measures, timely and strongly to cope with and prevent epidemics. Therefore, the disease has been initially controlled; the production - business situation and life of people in the area have been basically stable.

Generally in the first quarter, Vinh Phuc’s economy has achieved a good growth. Agricultural production is stable, industrial production maintains a fairly high growth rate. Although commercial and service activities in the province have been directly affected Covid-19, the amount of supplies and goods in the area still meet the people's production and consumption needs.

In the first 3 months of 2020, the Gross Regional Domestic Product (GRDP) increased 6.38% over the same period, lower than the increase of the first quarter of 2019 (up 8.75%). In which, the industry continued playing the key role, achieving the highest growth rate (10.49%) and the overall industry-construction increased 10.77; agriculture, forestry and fishery increased 1.4%; services up 4% and product tax up 1.98%.

Although the province's industrial production has been affected by Covid-19, the impact is not much because businesses have proactively responded to and had stable production plans overcoming difficulties in case of labor and raw materials shortage. Along with that, the People's Committee of Vinh Phuc has accompanied with businesses to solve difficulties and grasp thoroughly them to implement prevention measures in industrial parks.

In the first quarter, production output of some industrial products decreased compared to the same period last year, such as: air conditioners, down 29.24%; tiles used for tiling reduced by 12.26%; clothes of all kinds decreased by 5.36%; motorbikes of all kinds decreased 4.87%; the remaining major industrial product groups of the province have a good growth compared to the same period in 2019 such as: electronic component sales increased by 22.47%; commercial tap water increased by 22.06%; feed for cattle increased by 17.68%; commercial electricity increased by 5.78%; sports shoes and sandals up 4.50%; car up 0.27%.

Commercial and service business in the province have been strongly affected by the epidemic, especially transportation, accommodation and catering services.

The total retail sales of consumer goods and services in the first quarter of 2020 was estimated at 12,786.4 billion dong, up 6.16% over the same period (mainly due to large consumer demand on the occasion of the Lunar New Year). Consumer price index in the first quarter increased by 6.44% over the last same period. Transport business activities face many difficulties because people restrain travels. The total transport revenue in the first quarter was estimated at VND 1,011.6 billion, down 5.3% compared to the same period of the last year. Tourism has been hardest hit by Covid-19. Some businesses now operate moderately, reduce staff. Some must be temporarily closed. The turnover of accommodation, catering services and tourism in the first quarter was estimated at VND 796.0 billion, down 13.76% compared to the same period of the last year.

The field of investment attraction and business development is also affected by the complicated movements of the Covid-19 epidemic. Investment attraction results in the first quarter of 2020 were lower than the same period in 2019, of which FDI capital reached 48.4 million USD, equaling 18.66% compared to the same period in 2019 with 5 new projects and 8 projects to increase capital; DDI capital reached VND 2.29 trillion, equal to 48.89% over the same period in 2019 with 16 new projects and 2 capital increasing projects. The number of newly established enterprises was estimated at 260 enterprises with a registered capital of over VND 1,880 billion, making an increase of 2.4% in the number of enterprises and up 4.03% in the registered capital over the same period in 2019. At the same time in the first three months of the year, 186 enterprises suspended operation, up 4.1 times compared to the same period in 2019 and 16 enterprises registered to dissolve, down 40.7% compared to the same period in 2019.

About the State budget revenue and expenditure, the provincial People's Committee directed the tax industry to study the extension of tax payment, exemption of late payment due to the impact of the disease, in order to solve difficulties for businesses, and direct the financial industry to have specific solutions to ensure budget revenue and expenditure balance. The result of budget revenue in the first quarter of 2020 is estimated at VND 8,926 billion, reaching 26.1% of the estimate, up 4% over the same period. The result of the total budget expenditure in the first quarter of 2020 is estimated at VND 3,399.88 billion, reaching 18% of the estimate, up 26% over the same period in 2019.

In the coming time, the situation of Covid-19 in the province in particular and the country in general will continue to affect business and production activities of businesses and people. In addition, the provincial People's Committee will continue to focus on directing industries and levels to implement more drastical and stronger measures to remove difficulties for manufacturing and trading, promoting economic growth, striving to complete the economic development targets set by 2020.

By Thanh Tu



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