Hung Yen (VNA) –The northern key economic region has advantages over other regions in thecountry to develop, especially in terms of infrastructure and human resources,Prime Minister Nguyen Xuan Phuc said at a conference held in the northernprovince of Hung Yen on June 25.

The Government leaderhighlighted the region’s strategic importance in terms of politics,society-economy, and defence-security, adding that it is the second biggesteconomic region nationwide and the only region where all localities contributeto the central budget.

The region has nearly 80percent of communes recognised as new rural areas and the lowest rate of poorhouseholds – 2 percent, Phuc said.

He asked regionallocalities to reform policies in investment, finance, land, human resources, aswell as pay attention to institutional reform and improve regional coordinationmechanism.

The PM pointed toshortcomings in the region such as unsustainable growth of the service sector,which is the region’s strong point but its proportion in the economic structureis declining; small-scale agricultural production with out-of-date cultivationtechniques and processing technology; weak connection in production andbusiness; and environmental pollution in urban and rural areas, river basins,trade villages, and industrial clusters.

Most of foreign directinvestment (FDI) projects focus on sectors and industries subject to investmentincentives and using low-cost labour. Industrial projects are mainlyconcentrated in Hanoi, Hai Phong and Bac Ninh such as Samsung, LG, Microsoftand Canon, and just stop at processing and assembling with low added value, thePM noted.

The region should maintainits role as the country’s centre of politics, economy, culture andscience-technology, and strive to become one of the nation’s two biggesteconomic hubs besides the southern key economic region, he said.

The region must take thelead in science-technology and innovation as well as economic restructuring,the PM requested.

He also urged the regionto push ahead with building rural areas and reforming administrativeprocedures, improving business environment, preventing corruption andwastefulness, and ensuring social safety for people.

Regional linkage was afocal point at the conference, with leaders of localities proposing severalmeasures to promote regional connectivity.

Chairman of the Hanoimunicipal People’s Committee Nguyen Duc Chung submitted six key measures,emphasising on the development of transport network, industrial parks, cleanwater supply, waste treatment, housing and environmental protection.

Chairman of the Hung Yenprovincial People’s Committee Nguyen Van Phong proposed the Government supportHanoi and Hung Yen to implement some transport projects, including theconnection of expressways of Hanoi – Hai Phong and Cau Gie – Ninh Binh.

Leaders from Quang Ninhprovince suggested speeding up the construction of Hanoi-Cai Lan railway andbuilding a high-speed rail route linking Hanoi, Hai Phong and Quang Ninh.

The northern key economicregion, comprising Hanoi, Hai Phong, Bac Ninh, Quang Ninh, Hai Duong, Hung Yenand Vinh Phuc, covers nearly 16,000 square kilometers, making up 4.7 percent ofthe country’s total area. It has a population of over 16 million, accountingfor 17 percent of the nation’s total population.

The region boasts a modernand synchronous transport infrastructure network linking regional localitiessuch as the Hanoi – Hai Phong, Hanoi – Cau Gie – Ninh Binh, Hanoi – ThaiNguyen, Hanoi – Lao Cai, and Ha Long – Hai Phong highways, along with domesticand international airports such as Noi Bai, Cat Bi and Van Don, and importantseaports like Lach Huyen and Cai Lan.

According to Minister ofPlanning and Investment Nguyen Chi Dung, the region’s average gross regionaldevelopment product (GRDP) growth exceeded 9 percent in 2016-2018.

Last year, its total GRDPmade up about 31.73 percent of the country’s GRDP, ranking second after thesouthern key economic region. The region contributed over 31 percent of the Statebudget’s revenues and over 30 percent of national exports.

The total developmentinvestment in the region reached nearly 1.6 quadrillion VND (70 billion USD),making up 29.76 percent of the country’s total investment.-VNA