Economic Condition





Vinh Phuc Province is a province located  in the Northern economic key region, is the door of Ha Noi Capital, a bridge connecting the Northwest provinces with Ha Noi and the Red River Delta. Therefore, the province has a very important role in the strategy of economic development of the region and the country. The economic development of the province makes great impact on the development of the Northern region and is also effected by the general development of the country (chiefly the provinces located along the National Road No. 2) and the provinces in the Red River Delta. The projects, international development programs and the region such as the Asian highway Kunming-Lao Cai – Ha Noi – Quang Ninh also effect the provincial development. Vinh Phuc topography is divided into three zones: mountainous, inland and plain. The mountainous zone is in the North, close to Tuyen Quang Province and Thai Nguyen Province. There are two ranges: Tam Dao and Sang Son, which are considered as a diversified biography, great potential for development and exploitation of forest resources as forestry product processing industries and tourism. The plain zone of Vinh Phuc is in the South of the Province, including the district: Vinh Tuong, Yen Lac, Vinh Yen and some communes of Binh Xuyen District. The figure in 2012 shows that total cultivated land are is 49,689.01 ha. This zone is capable to develop intensified and high yield agriculture.

In between the mountainous and the plain is an inland with hills and hillocks stretching from the East to the West. Total land area of this zone is 24.9 thousand ha, in which the agricultural area is 14 thousands ha. This zone is of much land for industrial and fruit tree plantation, subsidiary crops and cattle and poultry breeding with the scale of farm. This zone has a good condition for shifting the cultivation and raising cattle and poultry into commodity production. In addition, the zone has a favorable geological characteristic to construct the industry and the infrastructure to develop the economy. A rather large part of the zone is close to the transportation ways with available technical infrastructure. This zone is close to Ha Noi, so it helps to attract investment to develop industry. This is of great significance when Ha Noi is going to move its industrial establishments and the universities to its neighbor provinces. Vinh Phuc shall become a cnter for training university or professional levels. On hydrography, there are many rivers and streams in Vinh Phuc territory, of which the bigger rivers are Red River and Lo River. Lo River is in its West with 34 km long and it becomes the natural border of Vinh Phuc and Phu Tho. Red River is 30km long, a natural border of Vinh Phuc and Ha Noi. There are many smaller rivers, streams, such as Day River, Ca Lo River originated from Tam Dao range to the plain zone.

There are many natural or artificial lakes and lagoons scattered in the Province such as Vac lagoon, Dieu lake, Dong Mat lake, Kien Cuong lake, Dai Lai lake, Xa Huong lake, Van Truc lake and some more. These lakes are of great importance to regulate water, harmonize climate, and develop the production industries, services, tourism. Due to it is in the monsoon climate and weather changes in a year, which provide the province to intensify cultivation, diversify agricultural production, and increase the coefficient of arable land. On the other hand, these factor also cause flood, drought, whirlwind, hail which effect on production and people’s daily living. There are several minerals, even rare and precious as Zinc, mineral sand gold but they are small quantity and scattered inconvenient to exploit in a large scale. The most remarkable mineral is construction materials as sand, granite stone (50 million cubic meters/year), kaolin, and china clay etc…     

As said above, Vinh Phuc possesses a large area of forest, chiefly Tam Dao National Park, which results from rather diversified forestry mineral. This is a favorable to develop sylviculture and tourism.  Besides Tam Dao jungle, Vinh Phuc has a potential to develop almost of tourist categories. Many tourist spots are in the overall tourist planning of the North. Vinh Phuc can link to the neighbor provinces to create the attractive tours. In the tendency of urbanization and make Ha Noi become a “great super urban”, demand of recreation and vacation of the surrounding people is higher and higher, not only the tourist category but also the quantity and price. Vinh Phuc is changing its potential into reality by development of ecological tourism, resorts, weekend vacation, and entertainments.    

Comparing with other localities, the population of Vinh Phuc is a medium size. In 2012, total population is 1,020,597 inhabitants, of which the Viet people stand for 97%, San Diu: 2.5%. The other nationalities are very small, they mainly move to Vinh Phuc for living and marriages. Almost of the population live in the rural. The urban residents increase from 12.97% in 2001 up to 23.02 in 2011. An average density of population in Vinh Phuc is 821 heads/km. This density can increase quickly, causing problem to the infrastructure. The labor force of the Province in 2012 is 626,000 people, accounts for over 70% of the population. The trained labor in 2007 is 36.4% and 2011 is 54%, 3.8% increased as compared   with 2010.

By the convenient geographical position and hydrography, transportation system of Vinh Phuc, by road or by waterway, is developed very early. Right in late XIX century and beginning century XX, the French colonialists built a transportation system with a purpose of exploiting natural mineral existed in the province and other neighboring provinces. At present, 50km of the National way No. 2 (Ha Noi – Ha Giang) are running through Vinh Phuc. The railway Ha Noi – Lao Cai is also through Vinh Phuc; the National way No. 2B from Vinh Yen to Tam Dao Mountain, 2C from Vinh Yen through Tam Duong, Lap Thach Districts to Tuyen Quang Province. The inter-provincial roads are under upgradation to create the convenient conditions for socio-economic development of the districts in the Province. The river way system is also developed, chiefly on the Red River, Lo River. Vinh Phuc is close to Noi Bai International Airport, very convenient to exchange and develop economy in the country as well as the foreign countries. 

Besides the basic favorable conditions, the economic development of Vinh Phuc faces with the difficulty and limitation. One of the most difficult is Vinh Phuc economy depending on the foreign invested economy. Although the labor force of Vinh Phuc are trained higher and higher, but they cannot meet the requirements of the employers, especially that of practical technology, the modern economic entities.

During the recent years, its infrastructure chiefly the transportation system and telecommunication are given investment and up-gradation. This is improved but it shall not satisfy the future demand. The Province should invest more and continuously.

From the re-establishment (1997), the provincial economic growth increases quickly, but the foreign invested enterprises contribute a big percentage. Vinh Phuc economic growth is said to be not stable. The abve said matters are the limitation and insufficiency when the province steps into the industrialization and modernization course. To overcome such difficulties is a great challenge to Vinh Phuc Province.


Before 1945, Vinh Phuc has a tradition of agricultural production. By the lattest scientific research, it confirmed that the hill and hollow zones of Vinh Phuc are in the domesticated area and Oyza Japonica water-rice widespread area. From the inland valley, the old Viet tribe conquered the center of the plain to grow water rice with a high degree. The people apply the measures of the traditional intensification in the economic settled agriculture and residence generation after generation.

Together with rice plant, vinh Phuc people imported and cultivated various kinds of subsidiary crops and fruit trees for their daily living. Besides this, during the leisure after harvest time, people developed many handcrafts, from simple to high skill. Many products such as pottery, textile, black smith etc…satisfied the demand of the people’s daily living though it was a self-sufficient economy. Some of the trade villages remain to the time being like Huong Canh pottery, Bich Chu carpentry, Ly Nhan black smith.

Together with the development of agriculture and industry, market system was formed; firstly, it is village market, open market. One of the famous markets ia Tho Tang trade market. Under the French rule, the French colonialists swept off the minerals, exploited the labor, so they appropriated people’s land, carried out the rice of Vinh Yen and Phuc Yen (the former province). According to the statistic data provided by the Envoy in Vinh Yen, from 1934 to 1938, Vinh Yen produced 32,369 metric tons of rice, 204 metric tons of maize.

In the Phuc Yen monography in 1932 recorded: Phuc Yen was a poor province. Rice was a main product. The province yearly transplanted about 40,000ha with its productivity of 40,000 metric tons of rice, 253 tons of which was exported to Chinese. During this period, the French not only carried out the rice but also appropriated the people’s land to set up their plantations. In Vinh Yen, it had 21 French owners’ plantations with 1,863ha of land, reported in 193. Not only that, the French occupied a great area of land to rent land and get land rent with a purpose of exploiting the local and earning directly the economic sources.

According to the French’s statistics in 1930, in the two provinces Vinh Yen and Phuc Yen, the area of rice transplantation was 44,856 hectares, harvested 74,374 tons of rice, paid tax VND 398,276.78. During this period, there were some small scale of waterworks, no establishment of industry and agriculture. With the period of 1914 though 1922, the French built up some canals, damps – Lien Son damp was in this period- and 12-door gate in Ca Lo River. These water works mainly served to the French’s plantations.

It can be said that, within a frame of self-sufficient economy, the traditional economy before August Revolution 1945 was the pre-industry, underdeveloped and agriculture was prevailing. The handicraft established in some localities but it was small scale and out of date technology, local production and consumption.


The August Revolution 1945 succeeded, Vinh Phuc (including Vinh Yen and Phuc Yen provinces then) as the whole country built up the new government. To solve the immediate starvation and step by step to stabilize the people’s life, the Province practiced the slogan “making concession of rice and sharing clothes to each other” as the appeal of President Ho Chi Minh, the local government launched an increasing the production with the slogan “ not to fallow an inch of ground” and focused on production of the short-term plants. By this effort, within a short time, people obtained an active result. The flooded fields or wild mountains had been recovered and put them into production. Thousands of short-term crop hectares brought about good yield and the starvation was no longer.

The local government mobilized thousands of working days to backfilled the broken dykes, repaired canals. The People’s Democracy Government then deleted all the unreasonable taxes, reduced the rent, distributed the public arable field and public land to the poor, which made an important factor to recover the production, prevent starvation, stabilize the people’s life and consolidate the revolutionary government. During the French war, from December r1946 through June 1949, Vinh Phuc was a free zone. The government at all level then mobilized people to push up the production and taking care of the people for a long resistance. Hundreds of thousand hectares of the wild mountain, fallowed field changed to land of cultivation. .In Phuc Yen, the government set up 22 production teams, provided them 100,000hectares of land. The local armed forces also took part in the production. The governments of Vinh Yen and Phuc Yen provinces provided 100,000 hectares of land to the people. The local armed forces also took part in their production activities. The governments of Vinh Yen and Phuc Yen provinces set up the agricultural encouragement boards at all levels, and seed production farms to provide them seeds and assisted them money and guide books to develop their production. There were three seed production farms in Vinh Yen: Phu Vinh, Tich Son (Tam Duong) and Lang Son (Lap Thach).

During this period, the province set up the credit organization in Vinh Yen and Phuc Yen to support and speed up the production. From 1948, the districts also set up the credit organizations and they loaned VND 843,490 and hundreds of buffaloes and cow to the farmers. Together with such encouragement and investment, the resistance government at all levels developed the construction of infrastructures to support the farmers and people increasing their material and spirit life. In 1948, Vinh Phuc constructed 16 small irrigational system works and restored Lien Son irrigational canal for supplying water to 18,461 hectares of rice.

The agricultural production of the province in this period considerably developed. In 1947, Vinh Phuc transplanted 43,229 hectares of the tenth month rice crop and harvested 48,660 tons of rice; 21,561 hectares of the fifth month crop with yield of 24,660 tons of rice. In 1948, both the area and the yield increased. Therefore, the people’s demand of food was secured and the province fulfilled its obligations to State and contributed to the State 4,000 tons of rice. In 1949, Phuc Yen donated 30,000 resistance rice jars. From June 20,1949 to September 2, 1949, Phuc Yen people sold 416 tons of unhusked rice, and 71 tons of rice and various of subsidiary crops to serve the resistance. President Ho Chi Minh sent his congratulatory letter to Phuc yen people on the Independent Day September 2, 1949. Beginning 1950, Vinh Yen and Phuc Yen merged into one named Vinh Phuc province. Together with the resistance activities, the economic development also was implemented in good manner. The people continued to enhance their production, the government carried out the self-sufficient economy. The province asisted seeds, buffaloes and cows to the farmers in temporarily occupied zones; consolidated the dam and dyke systems of Day River and Lo River.

Following the Government’s policy on temporary allocation of no-French owners’ land to the farmers, in June 1951, the province temporarily allocated 277 hectares of land to 2,088 farmer households. Answering the emulative movement of saving and producing, Vinh Phuc people signed a mutual agreement to emulate each other in reclaiming the virgin soil and restoring the former cultivated soil, constructing irrigation net. The mutual help movement spread everywhere. The province set up 86 mutual help groups and 2,260 production groups.

From the mid of 1951, the French colonialists re-occupied a part of Vinh Phuc. The French colonialists also set up a “no man’s land belt” stretching from Lap Thach to Da Phuc and they intensified their military actions. A great part of land became vacant, the provincial handcraft affected and goods exchanged obstacle.

Before this situation, the local government encouraged people to encroach on the French’s land belt, return to homeland and to struggle against the enemy. The enemy carried out their pacification operations and made raids on this zone, but people and government made great efforts to maintain their production. Within three years (1951-1952), the local people contributed to the State hundreds of thousand tons of rice. Although, the handcraft industries met with so many difficulties, but people still produced the articles of daily necessity to serve the people, such as twenty thousand ploughshares for the farmers.

Also in 1953, Vinh Phuc government continued to reduce the rent, reduce the interest, temporary allocation of land, temporary grant of land to the farmers in the free zone, which encouraged the farmer and people to develop production, make an important part in the resistant war to the final victory. Vinh Phuc people contributed their human physical strength and their property to the Border battle and the Dien Bien Phu historical victory in 1954.     


4.1 From 1954 through 1975

From the end of 1954, Vinh Phuc had to overcome the consequence of the war at the same time to restore its economy. The provincial government concentrated on restoring and developing agriculture while attached to develop industry and commerce. From October to December 1954, people in Lap Thach, vinh Tuong, Yen lac, yen Lang and Binh Xuyen districts contributed nearly 70,000 working days to repair Lien Son irrigation canal at the soonest and put it into operation to supply water for 21,500 hectares of rice in the six districts.

Parallel with the above said activities, the government enhanced the reclaiming the virgin soil and reactivating the vacant land. During the wartime, there were 47,222 hectares of land left vacant, but only one year to July 1955, more than 70% of the vacant land were restored. The trade also obtained a new development, which could contribute to stabilize the people’s life. The province set up the marketing cooperative system in various communes, and from 1959, many credit cooperatives set up, too.

Parallel with the economic restoration, Vinh Phuc implemented the socialist transformation toward the industry and commerce, especially after the success of land reform. The mutual-help movement itself born in the resistance war, but after the restoration of peace, this movement continued to develop strongly. This became an important premise for building the agricultural co-operative movement. In 1954, there were 3,564 mutual-help groups, but in 1956, the figures were 13,923 groups. Based on this ground, the agricultural co-operative movement developed over the province scale. At the end of 1960, the three-year plan of the socialist transformation completed, the province had then 1,350 cooperatives with 107,944 farmer households, accounting for 92.68% of the total farmer households in the province. The field belonging to the agricultural cooperatives was 2,000,335 hectares (or 81.21% of the total agricultural area). The number of buffaloes and cows in the cooperatives were 68,921 heads (or 83.4% of the total buffaloes and cows in the province). Following the policy of establishment of model high-grade cooperative, in 1960, the province changed and set up 32 high-grade cooperatives. Up to 1960, Vinh Phuc fulfilled the agricultural cooperatives in the whole province.

For handicraft industry and commerce, Vinh Phuc transformed them under the manner of cooperative or a venture share unit. At the end of 1960, Vinh Phuc invited 14,550 handicraftsman into the cooperatives and 5,393 (or 88% of total merchant households in the province) merchant households into business or services organizations.

In 1961, Vinh Phuc prepared the first five-year plan to build and develop the socialist economy. The basic targets and tasks were as follows: complete the socialist transformation to all economic sectors; build a new production relationship; build the base of material and technology for the premise of industrialization and improvement of people’s life. The Second Congress of Vinh Phuc Party’s Committee (1961) concretized the orientation and task of the provincial economic development in a new satage as follows: Strive for development of all-sided agriculture at the same time develop the local industry and handicarft to serve the agriculture, promote marketing cooperative, complete socialist transformation to the agriculture, handicraft indusstry and commerce, change some enough-condition cooperatives into high-grade cooperatives. Accodingly, the household members of the cooperative in Lap Thach, Tam Duong, Binh Xuyen, Kim Anh, Đa Phuc districts were less than 100; others districts above 200 household. In 1961, the province concentrated, merged the cooperatives to a village cooperative scale. The whole province then remained 817 cooperatives, or 95.1%. In two years 1961-1962 agricultural output increased by 7.3%/year. Total rice equivalent yield in 1962 increased 33,780 tons compared with 1960.

The province promoted the reclaiming the virgin soil and restoring the vacant land. By 1965, the province reclaimed 19,000 hectares of land increased the agricultural area to 1,440m2/head. The province encouraged the innovation of management in the cooperative, in agricultural production so the productivity, area, output of the cultivated crops considerable increased as to the previous years. In 1963, the average food per head was 397kg. The buffalo and cow meaninglessly increased, the fish breeding developed everywhere. The breeding cooperatives increased from 180 units (1962) to 201 units (1963). In 1963, Vinh Phuc was one of the leading provinces with respect to food production, plantation, waterworks construction and the agricultural cooperative. In 1964, total rice equivalent output of the province was 256,740 tons, exceeded 4.39% compared with that in the given plan. This was a highest yield that the province achieved since the restoration of peace. Vinh Phuc was a leading province with respect of rice productivity, 4,351 kg/ha. Some cooperatives obtained higher number, 6,000kg/ha.    

On Industry: Vinh Phuc followed the policy of the economic development strategy of Government and Party that is to concentrate priority on economic development under the manner of developing heavy industry reasonablly, closely coordinate the development of industry with agriculture; make every effort to develop the light industry together with the heavy industry; make every effort to develop the cental industry and enhance to develop the local industry; coordinate the large scale enterprise with small and medium enterprises; coordinate the modern technology with rudimentary technique.

Before 1960, Vinh Phuc industry was small and out of date. Physical base of industry and handicraft was weak. The value of the industry only accounted for 14.9% of the economic structure. During the period of implementation of the first five-year plan, Vinh Phuc industry and handicraft moved actively. Some new production establishments were built and came into operation. The State owned enterprises such as Bach Hac carpentry, Quat Luu making brick, Quyet Tien sugar, Cau Oai carpentry etc...were invested in physical base and equipment. During this period, the province set up seven mechanic enterprises at district level with purpose of intensifying equipment to the agricultural cooperatives. In general, the local industry develops slowly. In 1965, total productivity value of industry and handicraft accounted for over 15% of the total agro-industry value.

From 1965, Vinh Phuc people and people in the North had to confront with the US imperialist war. Economic development under the war conditions was an urgent task then. Based on the throughly considered and objectively and accurately evaluated the difficulties and chalenge in the agricultural production from 1965-1966 (weather, pestilent insect, war, management in the cooperatives, production motive force and output, reduced manpower), on September 10, 1966, the standing committee of Vinh Phuc’s Party issued a resolution on labor management in the cooperative.

Right afterward, Vinh Phuc made model of leaving the whole work to cooperative member in the cooperative. This policy - a new heading implemented first time in the North at that time - is a decisive factor to open a road fro Vinh Phuc agriculture develop. Relying that, the provincial agricultural production maintained in the stable mood and gained remarkable achievement even in the fierce war situation. Many district and communes had their productivity of five tons/hectare, some communes reached over seven tons/hectare. Following the policy of industrialization, Vinh Phuc industry and handicraft gained a good growth. In 1967, there were 12 large-scale enterprises and small-scale enterprises putting into production such as paper mill, peat enterprise, Lap Thach and Yen Lac mechanic enterprises. The enterprises as porcelain bowl, wood sawing, and vehicle repair and more than 200 commune mechanic enterprises were put into operation. The marketing cooperative system was concentrated and expanded. During 1968-1975, the two provinces Vinh Phuc and Phu Tho merging, the production met with a lot of difficulties because of war consequence and natural calamity. The province paid great attach to agricultural development, considered the building high grade of agricultural cooperative to be a central point. Beginning 0f 1971, the whole province had 1,064 high-grade cooperatives and they came into operation with 98% of the farmers. 

Industry and handicraft was still in the difficult condition. To stabilize and develop the industry, the province concentrated to invest and expand the local enterprises, promote producing consumer goods with the purpose of meeting the needs of the people. The industries of mechanics, construction materials, pottery, glass and paper developed strongly.

Promoting the movement of forestry, the province made the planning, invested in technical base for science and technique, put the management, natural source protection, restoration, taking care of the forest into a focuss task. Though confronting with natural calamity and heavy consequence of war, the whole province planted 9,100 ha with over 71 million of trees or 25% of the total planted area of 15 previous years.

The period from 1973-1975: The US American was forced to end its war in North Viet Nam, Vinh Phuc people started to heal the war wounded, restored the production in the very difficult condition. The province directed to consolidate the agricultural cooperative in the inland and plain zones aiming at expansion of the cultivated area quickly; increasing the productivity and yield; strengthening breeding, and forming the specialized zone for rice, tea, tabaco and vegetables.

The province invested tin construction some industrial projects, such as apatite grinding in Phuc Yen, Kim Anh truck station. The province also invested in providing equipments to Thong Nhat tile making factory (Binh Xuyen), Ly Nhan blacksmith (Vinh Tuong). In anyhow, Vinh Phuc economy in this period developed slowly, agricultural production was unstable, industry and handicraft was backward. However, under very difficult condition, the results gained was the great achievements, creating the important premises fro Vinh Phuc to step in a new stage.

4.2 From 1975-1996  

This was a stage for Vinh Phuc people started to build their native land, to lay material base for a big socialist production in the condition of reunification of the country. However, the consequence of war and natural calamity, Vinh Phuc faced with many difficulties. The subsidized, bureaucratic and centralized mechanism became a resistant force to implementing the socio-economic development of the province as well as the whole country.

During the years of 1976-1980, Vinh Phuc (a province in the merged Vinh Phu province) implemented the five-year plan, concentrated to develop agriculture-forestry (sector occupied a bigger weighting in the economic structure). Before the food difficulty, the Party’s Committee issued a resolution on agricultural development in three years 1978-1980 defined that: the leading task was to develop agricultural development, solved at a moment the food and foodstuffs problem, created basically changes in agriculture in a way of large scale-socialist production. Thanks to this, the equivalent rice yield reached 340,000 tons. The industrial trees, subsidiary crops developed. Some concentrated production areas were formed, such as rice in Vinh Tuong, pineapple in Tam Dao. However, the agricultural production was stll in difficulty, average food per capita was lower than that in the period 1965-1967.

From 1976, following the policy of rearrangement of cooperative under the thought of big production, the cooperative, on the one hand, continued to expand the scale and on the other hand, many cooperatives merged into the whole commune-scale cooperatives. Consequently, if in 1975 there were 1,062 cooperatives, then in 1976, there remained 555 ones and in 1977 were 492. In 1980, there were only 121 cooperatives. The problem was the capacities of management of the carders were not met with such commune cooperative scale.   

Within five years, the province took out 35% of the total social investment capital to invest in irrigation works; mobilized hundreds of thousand working days to make new or restore hindreds of irrigation works, supplying to over 70% of arable land arear. The irrigation works allocated in every localities of the province, chiefly in the bigger area of cultivated land. The management of such works complied with the cultivated plan and suited to the weather condition. Parallel with the irrigation works construction, the province also paid great attach to the mechanization in agriculture. The system of the State owned enterprises set up at the district level and they operated effectively. The essential articles such as knife of all types, plough, spade and race glass sufficiently provided to people. Some enterprises were equipped machines, equipments and technicians carders. At the end of the five-year plan, each cooperative had 5.2-motiveforce machine on an average.

Handcraft started to prosper. In 1980, handicraft increased by 34% as compared with 1976. Handicraft articles for export increased considerably as the enterprises of Lung Hoa, Dai Dong, Tu Trung (Vinh Lac). Investment in industry developed, transportation sector began to develop, school, cultural house, cinema house and apartments for workers was constructed.

From 1976 through 1980, the subsidized, centralized and bureaucratic mechanism revealed insufficiency in economic management. The Standing Committee of Vinh Phuc’ Party issued the resolution No.13 in August 1979 on leaving the crop plant in the main crop and directed to pay trials the rice plant in Tho Tang agricultural cooperative.

Although the management mechanism and result of economic development got changes but the economy of the country in general and in Vinh Phuc in particular was in crisis. The collective economy faced with many difficulties and got waver while the private economy did not have climate to develop.

The Sixth Party Congress decided to follow the Renewal policy, the first was from economic mechanism, developed market economy with multi-sector in the socialist orientation, took the material interest as a tool to exploit all resources to develop economy.

Being fully aware of the policy of the sixth Party Congress, The sixth provincial party congress defined the main tasks in the five-year plan 1986-1990 was to strength agricultural production, forestry, industry in which concentrated to produce food, foodstuffs, consumer goods and articles for export. At the same time, reorganized the distribution and circulation, stabilized and improved the life of carder, worker, armed forces, and working people, consolidated and improved the socialist production relationship, innovated the management mechanism and increased the culture and education activities.

Together with cultivation, breeding also changed a lot. The new paying to farmer mechanism that made the buffalo and cow quickly increases. During 1988-1989, buffalo and cow had 68,000 heads; in 1993, the figure was increased 7,000 heads more. The pig number was 18,000 heads in 1989; in 1993 were over 281,000 heads. Especially, during the first years of implementing the renewal policy (in the common policy of the former Vinh Phu), Vinh Phuc province followed the change of domestic animal adoptable to the market mechanism, giving more employment and bring about the high income to the working people. Following this direction, the high yields and quantity of domestic animal and cultivated crop introduced to production. This change was not only in rice cultivation, pig and poultry production (the traditional product) but also in various kinds of vegetables and fruits. In this period, flower of Me Linh became the commercial product to Ha Noi and neighbor markets.

During the renewal stage, the handicraft obtained a good result. The province pai attention to the branch, sector of handicraft fallen into poverty. The province created the favorable fro the cooperatives and the craftsmen to restore the production. Almost of the local State owned companies actively linked and closely connected with the planning and development of the raw material zones. Owing to the renewal policy of the handicraft branch, the handicraft cooperatives expanded many production groups, created much employment to the working people.

The development of economic sectors created quickly the changes of socio-economic life of the province. The period 1986 - 1998 was considered a change from the subsidized, bureaucratic and centralized economy to the account economy. The following period (1990-1996), Vinh Phuc changed definitely to the multi-sector commodity and achieved the important results. In this period, Vinh Phuc had five economic sectors. In 1992, the export wooden chopsticks project was the first foreign invested project in Vinh Phuc.

However, during ten years 1986-1996, the socio-economic situation of Vinh Phuc confronted with certain obstacles: the State economy, the collective economy-the economic sectors occupied a bigger part in the provincial economic structure- continued to face with difficulty in every aspect and the recovery seemed to be unstable. The State economy had a backward technology and slowly changed in management mechanism resulting from low production and business effect. Most of the State owned establishments in the province did not develop even they got losses at the end of this period. The collective economy, the role of the cooperative declined. Many cooperatives existed on title. This was clearly seen from Decree No. 64/CP dated September 27, 1993 issued by the Government on the granted long-term Land to the farmer household and private for agricultural production.

During 1989-1991, affected by the change of economy in the direction of reducing the subsidization, many credit cooperatives and marketing cooperatives gradually stopped operation because of no preferential given to.

But in early 1990, right after the Law on Private Enterprise, the Law on company limited and the Law on Joint Stock Company issued, some private companies in Vinh Phuc were set up. These companies confirmed their role, positions in the local economy and they were really the motive force to develop next stage.

One of the bright point of the socio-economic development in this stage was the speed of construction and infrastructure development. Many strong works such as irrigation, school, electric station, transportation road were constructed in the ten years of the beginning of the renewal stage.    

However, after ten years of renewal, Vinh Phuc was still a poor province, a pure agriculture and low starting point. Average GDP per capita stood for 48% as compared with that of the country. The commodity economy developed slowly. Agricultural production still played a decisive role, accounting for 52.5% of the completely provincial GDP. Ninety percents (90%) of population lived in rural. Industry and handicraft developed slowly, not worthy with the requirement. Tourist potential not yet exploited. The innovation of the cooperative economy changed slowly. The economy of non State-owned sector was small. The natural resource did not exploit effectively, The material base and infrastructure was poor, financial source small, revenue of budget was approximately VND 100 billion.

  4.3 From 1997-2013

Since the re-establishment of the province, Vinh Phuc concretized the development policy, exploited its strong advantage and resources; paid great attach to agricultural development to secure the society. Industry was defined as decisive role, attracted investment capital and industrial development to create the source for agricultural development and to ensure social security.

Vinh Phuc has exploited the internal sources to have a good premise for external attracting. The province reviewed and adjusted its planning of socio-economic development, issued the investment policy, supported the investors in site clearance and land acquisition, planned, constructed and developed the industrial clusters or zones for high speed attraction of investment; simplified the administrative procedures in approval of the project, enhanced the investment promotion and introduced the provincial image inter or outer country. Special attention was paid to solve the service land, labor training and employment to secure society, creating good condition for attracting investment as well as developing economy.

Thanks to the right policy, complete solution, form 2000-2013, the provincial economic evolution changed much and all sided. The economic growth rate was always in a high speed on an average, 17.2% year on year. Industrial production gained a high-speed growth, especially in the foreign firect investment and the private enterprises sectors. Agricultural production also had very important changes, goods agricultural production was promoted; plant crop structure moved in compliance with the orientation. Many new cultivated crops and domestic animals were applied on the whole province. The breeding occupied a large portion in agricultural production. In short, the structure followed the industrialization.

In economic structure, the value of industry-construction production increased 22.1%/year. Agro-forestry increased 6.7%/year and services: 11.7%/year. The export turnover 1997 was USD 13.7 millions, in 2000 was USD 21.46 millions, 2005 was USD 35.6 millions, and 2010 was USD 526.59 millions. The output of grained agriculture was 356,000 tons, 2010 was 388,000 tons. The rate of economic growth (GDP according to the fixed price in 1994) in the period 1998-2010 was 16.8%/year on an average. In 2010, GDP of the province increased by 14.83%.

With the above-said growth, the provincial budget increased also. In 1997, the province receipt was VND 114 billions, 2000 was VND 669 billions and 2005 was VND 3,162.2 billions. In 2011, the receipt was VND 16,714 billions, in which the internal receipt was VND 11,366 billions. It can be said that, since its reestablishment, from the pure agricultural province the province has increased the weight in industry, services, decreased the agricultural weight so far (in 2011, industry-services occupied 85.5%, agriculture: 15.5%).    

As compared with the provinces in the Northern economic key region, Vinh Phuc obtained the highest growth rate and had its total investment capital, total budget revenue and foreign investment capital attraction were rather high, standing after Ha Noi, Hai Phong and Quang Ninh only. (in 2010, the internal budget collection was behind Ha Noi). In order to prepare for the intensified socio-economic development, Vinh Phuc has prepared an overall planning of the province and of each branch, each field. Premier Minister approved the general urban planning of Vinh Phuc in 2011. The branch and field planning was constructed. New rural planning of 112 communes was completed in 2011.

To meet the requirement of development in the stage of industrialization and modernization, Vinh Phuc, during 20 years of implementing the renewal policy, created a hinge for forwarding to reach the strategy of steady, vigorous and sustainable objectives successfully. The main objectives are to maintain the high and sustainable rate of economic development; change vigorously the economic structure, chiefly the industry and services, 86% to 90% of provincial GDP. Take the applying the modern production technology combined with high knowledge people for the breakthrough to advance the province having the basic factor of a industrial province by 2015 and become the industrial province by 2020. Vinh Phuc will contribute its effort to the cause of industrialization and modernization of the country successful.

(From: Vinh Phuc Monograph-Social and Scientific Publishing House - Ha Noi)



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