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The provincial economic situation: there are still many positive signals

Like many other locals, several important indicators of Dong Nai for the first 6 months of 2012 declined or​ increased slightly. However, many comments at the meeting which were about economic - social reports for the first 6 months supposed that we do not  need to propose expenditure reduction as there are still many good signals for the next 6 months.


For the past six months, the gross domestic product (GDP) in the local is estimated to reach 46.3% of the plan, up by 11.8% over the same period. According to the assessment, this increase is better than the country and some other localities.

* Many sectors have witnessed declines

However, as estimated for the first six months of 2012, industrial production index rose only by 6.3% over the same period, in which the index of state owned enterprise (Enterprise) fell by 1.3%, and that of non state-owned enterprises and enterprises with foreign investment increased slowly over the same period last year.

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With many supportive measures, the production - business situation for the last 6 months of year is hoped to get better
 
In addition, the estimated export turnover for the first six months of this year rose by 10.5% over the same period, equal to one third of the increase for the first six months in 2011. Besides, Import turnover for 6 months is only equal to 97.2% of that over the same period. 2012 was the first year after many years, Dong Nai has created export surplus. However, evaluation of the Department of Trade and Industry showed that this expression of concern for production difficulties, many companies have reduced their imported machinery and raw materials and maintained only moderate operation rate.

Mr. Nguyen Van Quan, Deputy Director of the Department of Trade and Industry said: "This is the first time after many years, the index of industrial production of Dong Nai increased less ominously. This index is almost always twice as that of the country, but for the past 6 months, it has been only about 1.5 times as high as the country. "According to Mr. Quan, 92% of export turnover of Dong Nai is now dependent on Foreign Direct Investment, but the export markets in Europe, America, and Japan ... are still facing difficulties, causing great influence on turnover. On the other hand, domestic enterprises suffer slow consumption, increase in inventory, etc. These put more pressure on the index of production and exports.
In addition, the total budget revenue in the province for the past 6 months is also slow, increasing only by 6.4% over the same period in 2011. Other indicators, such as attracting domestic investment and business registration capital etc are lower. However, foreign investment attraction for the first 6 months is very positive; so far it has reached over 883 million USD, equal to 98% of the set plan in 2012.

* Feasible hopes for the last 6 months

As proposed by departments and sectors, although the situation was not as satisfactory as expected and many important criteria increased slightly for the first 6 months, some macro adjustments carried out in May and June such as Resolution 13 about tax extension and reduction for enterprise, lower interest rates, etc may work well in the future. Therefore, at the provincial People's Council session held in next early July, we will propose to reduce one criterion for Domestic enterprise to register business instead of many criterion reductions in 2012. Specifically, this criterion will be proposed to reduce from 18 trillion down to 10 trillion in 2012 (which has reached 5.8 trillion currently). In addition, many ideas express that we should consider increasing criteria of foreign capital investment attraction in 2012 because for the first 6 months of the year there have been many advantages. Currently, foreign investment capital attraction of Dong Nai province has reached 98% of the plan.

In May and early June, the Government has adopted a series of measures to support manufacturing business – in which taxation reduction, extension of tax and decrease in interest rate are the most important. On the other hand, stable exchange rate and slight increase in consumer price index are the factors to be considered as quite favorable for the domestic economy for the rest of the year.
Mr. Ho Thanh Son, Director of Finance said that although the increase in revenue for the first 6 months is low, only by 8.7%, while the revenue for the same period of the previous year increased by 13-14%, but generally, for the last 6 months of the year there will be more positive changes, such as interest rates decline, which may lead to public expenditure being somewhat "open", so hopefully this year's budget revenue will not decline.

Similarly, Mr. Tran Quoc Tuan, Deputy Director of Dong Nai Statistics Department said that besides slight increase in some criterion, some other sectors have witnesses fairly good increase such as: agriculture services, total retail for the past 6 months ... In addition, the consumer price index of Dong Nai in April and May rose lowly. "Some areas have witnesses decline but they were anticipated; Hence, with many policies and supportive measures, the situation may be better in the next 6 months" - Mr. Tuan said.

Chairman of Provincial People’s Committee - Dinh Quoc Thai emphasized, the overall situation is difficult, but Dong Nai has unique advantages and should seize the such good things to try to fulfill the set targets at the beginning of the year and at the moment; we should find ways to support enterprise, handle difficulties for production - business...
 
 
Source: Dong Nai Newspaper
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