About $10 billion of capital will be poured into the Red River Delta to boost regional socio-economic development, according to a conference held on February 12.

Prime Minister Pham Minh Chinh (center) and Government officials chair the conference about socio-economic development of the Red River Delta on February 12. Photo: The Vietnam News Agency

At the conference, the municipal authorities granted investment licenses to 30 projects with a total capital of US$7.1 billion. Most of the projects are for setting up manufacturing and industrial plants.

In the northern coastal city of Haiphong, property developer Thaiholdings will pour some VND4.86 trillion ($206.3 million) into a social housing project.

Two other projects on battery production and container shipbuilding will be executed, worth a total of VND4.68 trillion ($198.5 million).

An auto safety components plant with a total capital of VND3.8 trillion ($161.2 million) will be built in Quang Ninh province. In Hai Duong province, Pegasus Sewing Machine MFG Co. Ltd. will set up a manufacturing plant worth VND958 billion (US$40.6 million).

In Thai Binh Province, Compal Electronics, an Apple supplier, will build a VND6.5 billion (US$275.7 million) spare parts plant for electronic devices and smart products. Meanwhile, ET Solar Power Hongkong plans to construct a silicon semiconductor factory worth VND3.49 billion (US$148 million).

At the conference, the Ministry of Planning and Investment signed agreements and memorandums of understanding (MoUs) with international institutions to fund 20 official development assistance (ODA) projects with total capital of US$2.6 billion.

Sponsors of the ODA projects are the Asia Development Bank (ADB), the Agence Française de Développement (AFD) Group, the Japan International Cooperation Agency (JICA), and the Export-Import Bank of Korea – Vietnam (KEXIM).

The conference was held to implement the Government's action plan on socio-economic development and security of the Red River Delta until 2045.

Minister of Planning and Investment Nguyen Chi Dung told the conference that municipal authorities and ministries should work together to achieve groundbreaking breakthroughs for the region, thus strengthening the region as the country's main economic hub.

Dung said the action plan focuses on developing modern infrastructure and urban areas and improving connectivity between provinces and regional cities to create growth for the entire region.

The action plan will enable provinces and regional cities to restructure their growth models, take technologies as the foundation for future growth, integrate digital solutions into problem-solving, and obtain resources to develop the region and its sub-regions, he said.

The action plan sets 21 social, economic, and environmental targets for the region's provinces and cities to meet by 2030. Key targets include an average growth rate of 9% per year in 2021-2030, VND274 million (US$11,600) of regional gross domestic product (GDPR) per capita, a 7% annual increase in productivity, and a 1.5% annual reduction in the number of poor households.

By 2045, the action plan aims to turn the Red River Delta into a modern, civilized, and environmentally friendly center of Southeast Asia and the world, as well as the country's largest cultural, educational and training, scientific and technological, and health hub.

Furthermore, the Red River Delta will have a modern regional transportation network based on smart, green, and sustainable solutions, in which Hano will become a global urban city on par with the development of other regional metropolises and the world.

The reference was attended by Prime Minister Pham Minh Chinh and 900 delegates from ministries, municipal governments, private companies and enterprises, and international organizations. Themed "Development Linkages - Innovation - Green and Sustainability," the conference is of great significance for the development of the Red River Delta and opens "new opportunities for advancement" for the region.

The Red River Delta consists of 11 subnational provinces/cities and is divided into the Northern Red River Delta sub-region, which is made up of Hanoi, Hai Phong, Quang Ninh, Vinh Phuc, Bac Ninh, Hai Duong, Hung Yen, and the Southern Red River Delta sub-region, comprising Thai Binh, Ha Nam, Nam Dinh, and Ninh Binh.

It has a dynamic private economic sector, with the country's second-largest number of companies. It also ranks second in Vietnam, attracting foreign direct investment (FDI), with 31.4% of the country's total FDI capital.