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On October 11, 2024, Phan Thi Thang, Deputy Minister of Industry and Trade and Giang Thanh Khoa, Vice Chairman of Kien Giang provincial People's Committee chaired the 10th industry and trade conference of southern localities in Kien Giang province’s Phu Quoc city. The conference aimed at assessing the implementation of tasks related to the development of the industry and trade sector in the southern provinces and cities for 2023 and the first nine months of 2024 while proposing tasks and solutions for the last three months of 2024.

In the first nine months of 2024, localities in the southern region implemented various synchronized solutions to help enterprises remove their difficulties. Additionally, the flexibility and proactivity of enterprises in improving production conditions, mobilizing more resources and actively developing markets helped maintain and enhance industrial and trade activities.

An overview of the conference

Accordingly, industrial production in the southern localities was generally stable in 2023, maintaining positive growth. The industrial production index in these localities saw a significant increase compared to 2022. 15 out of 20 provinces and cities in the region experienced higher growth than the national average level (which increased by 1.5%).

During the conference, delegates discussed and exchanged experience on overcoming difficulties and challenges related to State management by local departments; proposed solutions to promote business-production activities, create linkages, support and collaborate in the development of the industry and trade sector for each locality as well as the entire region. Enterprises also shared insights on investment linkage, production development activities, enhancing trade activities among localities in the region.

Nguyen Thanh Toan, Director of Binh Duong provincial Department of Industry and Trade speaking about digital transformation in the industry and trade sector at the conference

However, along with achievements done, the industry and trade sector in the southern region has still faced shortcomings and challenges. For example, the restructuring of industrial sectors has not met expectations yet. Many prioritized industries have not achieved their set goals. Auxiliary industries have not developed strongly. Technological capabilities of enterprises have been slow to modernize, with innovation mainly concentrated in large-scale enterprises and foreign-invested companies. The implementation and allocation of investment for some electrical infrastructure projects have lagged, due to site clearance issues. The annual funding for programs to strengthen the power grid is still limited…

The complete opening of the retail market to foreign investors under WTO commitments from several FTA agreements (ASEAN Economic Community and CPTPP), remains a significant challenge for domestic goods to compete with imports, especially products from developed industrial countries.

The commercial infrastructure system, including markets, supermarkets, shopping centers, logistics centers and convenience stores…, is unevenly distributed, mainly concentrated in cities and towns. Although the quality of goods has improved, it remains inconsistent, lacking diversity in types and styles, making it difficult to access markets with high quality and food safety demands. Enterprises' ability to seize opportunities and take full advantages of bilateral, multilateral and regional trade agreements that Vietnam has signed is still limited and does not meet expectations.

Current trade promotion activities lack a unified plan, are inconsistent and have overlaps, resulting in low effectiveness; there is insufficient coordination among localities to execute a comprehensive, diverse and large-scale trade promotion program.

Leaders of the Ministry of Industry and Trade and the Departments of Industry and Trade from southern localities pose for a group photo

Based on the evaluation of existing challenges, the conference proposed solutions for the industry and trade sector in the southern region to effectively complete tasks for the remaining months of 2024 and set directions for 2025, as follows:

1. Industrial sector:

-Continuing strongly developing production areas, industrial parks, economic zones and industrial clusters to better ensure domestic raw material supply; establishing mechanisms to encourage the production of domestic components and intermediate products to replace imports.

-Supporting enterprises in finding domestic partners for raw materials and components capable of replacing imports in the short, medium and long term.

-Encouraging various economic sectors to innovate technology, prioritize clean technology, develop high-tech industries, high value-added production, export goods, auxiliary industries, agricultural, forestry and fishery processing.

-Collaborating with relevant sectors to promote investment, call and attract industrial production projects to planned industrial parks and compounds; encouraging enterprises to invest in local raw material regions to serve industrial processing industries…, enhancing competitiveness.
2.Trade sector:

-Collaborating with local departments to support enterprises in effectively implementing agricultural production and consumption chain models to improve product quality after harvest, meeting export market demands.

-Proactively working with local businesses to effectively implement market stabilization programs; enhance the expansion of stable sales points and organize mobile sales in rural areas, industrial parks, export processing zones, remote areas…

-Executing domestic consumption stimulus programs, expanding domestic markets and supporting businesses in production and trade. Regularly organizing and coordinating with e-commerce platforms in Vietnam to implement programs for selling goods through e-commerce channels.

-Actively seeking funding to invest in the development of commercial infrastructure, especially market systems, to establish channels and flows of goods between urban and rural areas, including remote regions. Continuing supporting enterprises in seeking, expanding and diversifying export markets while maximizing the potential of the domestic market.
3.Energy sector:

-Developing implementation plans for the National Program on Energy Saving and Efficiency for 2021-2025 in each province and city, implementing electricity savings under the Prime Minister's Directive 20/TTg dated June 8, 2023, on enhancing electricity savings for 2023-2025 and following years.

-Guiding and assisting investors in exploring and implementing projects related to renewable energy (solar power, biomass energy) and LNG power projects; actively collaborating with electricity companies and localities to organize the implementation of electrical infrastructure investment projects for production and daily life such as rural power supply project from the national grid; electrical works serving residential areas; electricity to serve industrial parks and compounds…

-Proposing the Southern Power Corporation to support investment in power supply for critical and urgent areas. Continuing underground medium and low voltage power systems in urban areas; developing medium voltage networks and transformer stations under the local electricity development plans approved.

The conference also included a handover ceremony for Long An provincial Department of Industry and Trade to host the 11th industry and trade conference of southern localities in 2025.

Handing over the flag to Tay Ninh, the locality to host 11th industry and trade conference of southern localities in 2025

Reported by Kim Cuc-Translated by Kim Tin