VINACHEM

The northern key economic region (NKER), as a leader in economic development, is expected to account for 32 percent of total national exports.

Prime Minister Nguyen Tan Dung has approved a master NEKR socio-economic development plan that incorporates a vision towards 2030 and explicitly positions the region as an emerging national political, cultural, scientific, and technological centre.

The strategic convergence of national resources and competitive advantages makes the region the nucleus of Red River Delta development, a hub for trade exchange, international integration, and a status marker within ASEAN and the global community.

The plan also elaborates how the NKER is at the centre of national economic restructuring, growth model renewal, and the next stages of national industrialization and modernization.

Projections place regional per capita income at US$5,500 by 2020. The agro-forestry-fishery sector will contribute 5.5 percent of GDP, the service industry 45.4 percent, and industry- construction 49.1 percent.

The NKER wants to reduce the number of regional households formally classified as poor by 2 percent annually and raise poor household per capita income 2.5–3.5 times every five years. Authorities want at least 80 percent of regional communes to meet national health standards.

The NKER is also striving to bring the trained proportion of its labour force to 80–85 percent, with 40–45 percent of workers receiving specialised vocational training.

Under its master plan, the NKER’s service industry, trade activities, and cultural sphere are intimately linked to Red River civilisation, festival, and spiritual tourism.

It will concurrently focus on modernising financial and banking services and cultivating a business environment capable of transforming the capital city into a finance centre of international standards.

The NKER prioritises improving the competitiveness of highly localised industrial sectors with footholds in the global value chain, including electronics, science and technology, telecommunications, mechanical engineering, ship building, maritime facilities, high quality steel, construction materials, pharmaceuticals, food processing, garments and textiles, and leather & footwear.

The region wants to encourage industrial sectors that are technologically advanced, minimise carbon emissions, and produce environmentally products.

The development of rural areas and agriculture should be linked to the region’s expanding pharmaceutical and food processing industries.

Industry and construction is set to grow at a rate of 8.2 percent for 2011–2015, 10 percent for 2016–2020, and 9 percent for 2021–2030.

The region will develop intensive farming to maximise the income value of its cultivated area.

Newly formed fishing industry logitistics centres in Hai Phong, Cat Ba, and Bach Long Vi Island will be in charge of intensifying offshore fishing while subsuming smaller scale inshore fishing into more efficient economic activities.

Cattle and poultry husbandry and aquaculture will be subject to food hygiene and safety and environmental protection regulations. The region will invest in building refrigerated warehousing to serve its exports.

The NKER has outlined a network of “nucleus and satellite” municipalities as a framework for regional development. Relatively established urban centres such as Bac Ninh, Vinh Phuc, Ha Long, and Hai Duong will support satellite urban areas in Son Tay, Tu Son, Xuan Mai, Chi Linh, Cam Pha, Uong Bi, and Mong Cai.

The NKER divides itself into two sub-regions. The Hanoi sub-region includes Vinh Phuc, Bac Ninh, Hung Yen, and Hai Duong. The coastal sub-region consists of Hai Phong, Quang Ninh, and sea and island areas.