Prime Minister Lê Minh Hưng speaks at a working session with the Party Standing Committee of Lào Cai Province on Tuesday to address the province's challenges in striving for a double-digit growth this year. — VNA/VNS Photos Dương Giang

LÀO CAI — Lào Cai needs to focus on developing a border trade economy and turn itself into a smart logistics centre for the northwest region, Prime Minister Lê Minh Hưng said at a working session with the Party Standing Committee of the northern province of Lào Cai on Tuesday.

The meeting was held to address the province’s current challenges in economic development, which is expected to contribute to the country’s double-digit gross domestic product (GDP) growth ambition this year.

The session also saw the attendance of head of the Government Office Đặng Xuân Phong, Minister of Agriculture and Environment Trịnh Việt Hùng, Minister of Science and Technology Vũ Hải Quân, Deputy Minister of National Defence Nguyễn Văn Hiền, Deputy Minister of Public Security Nguyễn Ngọc Lâm, and other leaders of central ministries and agencies.

Secretary of Lào Cai’s Party Committee Dương Quốc Huy represented the province at the meeting, together with leaders of the provincial departments and agencies.

Reports from Lào Cai authorities showed that the province had basically completed all economic development tasks it was assigned during the first half of the year.

The local economy had been growing at a fairly good rate of 9.01 per cent, higher than the national average, ranking fourth in the region and 15th nationwide, according to the reports.

Budget collection reached over VNĐ11.3 trillion (US$430 million), equivalent to 64 per cent of the projected amount, up 21.3 per cent from the same period last year.

Public investment disbursement reached over 47 per cent, higher than the national average of 35.5 per cent and ranking fifth nationwide.

The province has also taken advantage of its signature growth drivers such as the border gate economy, industrial production and tourism services.

The number of newly approved investment projects increased by 31 per cent compared to the same period last year, with the total capital amount increasing 3.4 times.

Acknowledging these achievements, PM Hưng commended the efforts by the province’s Party Committee, People’s Committee and people of all ethnic groups in striving for these positive and important initial results.

He also pointed out the limitations and challenges that Lào Cai is facing, including the modest scale of its economy, low starting point, and limited internal resources.

For example, its gross regional domestic product (GRDP) for the first six months grew only by 47.7 per cent, lower than projected, which creates significant pressure to achieve the annual target.

Economic restructuring remained slow, with the digital economy contributing only 9.46 per cent of GRDP. 

Foreign direct investments remained limited as the province had not been able to attract large-scale projects or high-tech enterprises to its key sectors.

Leaders of central-level ministries, agencies and heads of Lào Cai governing departments attend the meeting.

Growth directions

The Government leader stressed a number of important tasks that Lào Cai must complete in the next six months to achieve a double-digit growth target this year.

It must further promote growth in the key economic sectors where it holds advantages, which are industrial production, border trade and tourism, he said.

The province should focus on creating green, high-tech and high-value-added products, strengthen deep food processing linked to concentrated raw material areas, and promote the development of renewable energy. 

More efforts should be placed on developing border trade and transforming the province into a smart and modern logistics centre, as well as a tourism hub of the northwest region and the country with good road infrastructure, distinctive tourism products and key tourist areas, PM Hưng added.

“The province must turn difficulties into motivation, turn its border position into a strategic advantage and turn its potential and unique advantages into resources for development,” he said. 

It should also coordinate with central ministries and agencies to reduce overlapping and inconsistent regulations, and review provincial planning to drive more growth from its advantages of inter-provincial, inter-regional and international connectivity.

These strengths should be further elevated with connected, modern transport and technological infrastructure, and border and cross-border economic zones, said PM Hưng.

Progress should be accelerated for key provincial and national infrastructure projects such as the Sa Pa International Airport, the smart border gate construction project, the Lào Cai-Hà Nội-Hải Phòng railway line, the expansion of the Nội Bài-Lào Cai expressway towards Yên Bái Ward, and routes that connect northern mountainous provinces.

In addition, the PM stressed that Lào Cai must continue to maintain the public investment disbursement rate and strive to reach 100 per cent of the targets by year-end.

The authorities must keep track of the disbursement progress on a monthly and quarterly basis, reallocate slow-performing capital to projects with good disbursement rates, and prepare to receive and allocate funds from the central Government to implement the national target programmes for the 2026-30 period.

Social welfare

In terms of social stability, the PM requested Lào Cai to implement the directives of Party General Secretary, President Tô Lâm on the development of social and rental housing, ensuring that rental prices are affordable to people who do not yet have the means to own a home.

He emphasised the need for effective implementation of social welfare, cultural, educational, health, ethnic, and religious policies, especially those that help to reduce poverty in the ethnic communities.

The province should continue to streamline the apparatus to ensure smooth and efficient operation of the two-level local government, actively implement the Politburo’s Resolution 57 on creating economic breakthroughs with science, technology and innovation, and further take part in the ongoing 500-day campaign to search, collect and identify remains of fallen martyrs.

Earlier, the PM and the central-government delegation laid wreaths and offered incense at the province’s central martyrs' cemetery. The Government leader also visited 92-year-old Trần Thị Vinh, a resident in Yên Bái Ward, mother of a martyr and wife of a veteran revolutionary. — VNS