Insights from the Mekong Delta 2024 Annual Report and Policy Forum: Driving Economic Growth and Sustainability
On March 27, in Ho Chi Minh City, the Mekong Delta 2024 Annual Economic Report was unveiled by the Vietnam Chamber of Commerce and Industry (VCCI) and the Fulbright School of Public Policy and Management (FSPPM). The event saw participation from Ho Chi Minh City leaders, Mekong Delta provincial representatives, diplomatic organizations, international agencies, and businesses.
Key highlights of the report include:
1. Economic Growth: From 2015 to 2023, public investment in the Mekong Delta doubled compared to previous periods, boosted by international support. This growth facilitated increased total social investment, resulting in steady economic development. The region’s industrial sector has grown rapidly, outperforming the national average and solidifying the Delta’s position as a leading agricultural production and export hub.
2. Challenges: Despite progress, the Mekong Delta continues to face hurdles such as inadequate infrastructure, slow economic restructuring, limited investment attraction, underdeveloped businesses, workforce shortages, and low competitiveness.
3. Report’s Focus: The 2024 report examines investment capital structures and the constraints faced in mobilizing funds for regional development. It suggests comprehensive and long-term strategies to unlock the Mekong Delta’s vast economic potential. Recommendations include:
- Continued public investment to attract private capital.
- Policy reforms at both central and local levels to improve business appeal.
- Encouraging domestic and international businesses to seize opportunities in the Delta.
4. Private Investment’s Role: Experts emphasize that public investment is key to drawing private capital, which is the primary driver for sustainable growth. While foreign direct investment (FDI) plays a significant role, the importance of official development assistance (ODA) is declining. Regional authorities are urged to address policy bottlenecks, prioritize strategic investments, and enhance both public and private sector engagement.
On the same afternoon, the Vietnam Chamber of Commerce and Industry (VCCI) Mekong Delta branch organized a forum on the policy “Promoting Investment and Sustainable Development in the Mekong Delta”.
The forum brought together prominent figures, including the Deputy Secretary-General of VCCI, the Director of VCCI’s Mekong Delta branch, leaders from provincial People’s Committees across the Mekong Delta region, ambassadors, trade counselors from various countries, and over 400 delegates. Participants also included representatives from 20 international promotion agencies and 150 businesses spanning multiple industries, including finance, education, logistics, infrastructure development, technology, renewable energy, and green transformation, from countries such as Australia, Japan, Singapore, the United States, South Korea, Taiwan, and Europe.
Discussion Highlights
The forum served as a platform for attendees to discuss strategies, analyze challenges, and propose solutions for driving sustainable development in the Mekong Delta. Key areas of focus included:
1. Infrastructure Development: Enhancing transportation, logistics, and renewable energy infrastructure is critical for sustainable growth. Prioritizing the development of an intra-regional expressway network and improving connections with HCMC, Southeast Vietnam, and the Central Highlands were deemed essential for regional progress. Additionally, establishing deep-water ports and modern logistics facilities will bolster the region’s export capabilities.
2. Private Investment and Industrial Growth: The Mekong Delta aims to attract private capital and foreign direct investment (FDI) into sectors such as high-tech agriculture and advanced processing industries. Transitioning from raw export models to deep processing approaches will elevate product value, boost productivity, and integrate digital supply chain management. Strengthening regional linkages and public-private partnerships is vital to maximize competitive advantages. The Delta must also foster strategic connectivity with major economic hubs like Ho Chi Minh City to leverage market potential, technology, and skilled labor.
3. Climate Resilience and Circular Economy: Provincial authorities must proactively adapt to climate change, emphasizing water resource management, saline intrusion mitigation, and biodiversity preservation. Promoting green and circular economic models through resource efficiency, renewable energy utilization, and sustainable production practices will ensure long-term development and environmental harmony.
Economic Contributions of the Mekong Delta:
The Mekong Delta is a cornerstone of Vietnam’s economy and global supply chain contributions. It accounts for nearly 18% of national GDP, 90% of exported rice, 70% of fruit production, and 60% of seafood output. These achievements solidify its importance for national food security and global supply chains.
In 2024, the region’s GRDP grew by an impressive 7.3%, surpassing the national average. Export revenues reached nearly $28 billion, demonstrating its economic vitality and potential for sustainable investment.
In terms of per capita averages, when compared across the 6 socio-economic regions of Vietnam, the Mekong Delta ranks 3rd in ODA capital, 4th in public investment, 5th in FDI, and 6th in domestic private investment.
Sources: Báo Trà Vinh, Báo Cần Thơ
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