Binh Thuan’s Trade and Tourism

FORE MORE SUCCESSES

Early development

In January 1976, Thuân Hải Commerce Section was founded by combining the economic and financial boards for Southern Central Vietnam and the provinces of Bình Thuận, Ninh Thuận and Bình Tuy. Since then, the State-run commercial system was formed, with many State-owned commercial companies in charge of specific commodities. By 1982, the State-run commercial system was enlarged throughout the province, with 21 second- and third-grade companies and 214 shops and kiosks providing coupons. Besides, a number of communal/ward-level trade cooperatives were established to meet the locals’ demands for necessities: especially primary consumption goods, during the first years after the national reunification.

From 1975 to 1985. the main functions of Bình Thuận Province's commerce sector were to provide and distribute production materials. primary commodities and other necessities to civil servants and common people m accordance with the standards and volumes set by the State. At the same time, it also bought agricultural products and foodstuff from localities in line with the entrusted quotas and orders.

Under the centrally-planned economy, inflation rate was high, production stagnated and the people's life was very difficult. Thus, the province's commercial activities were also affected. However. with its great efforts and role as the society's logistics, the sector fulfilled its tasks, greatly contributing to the stabilization of production and life of civil servants, armed forces and people m the province. The total value of the provided and retailed commodities and the purchase of local products increased significantly every year. The goods were provided in line with the State-stipulated quotas and quantities. The business modes and budget contribution of enterprises and units in the sector were increasingly stabilized and developed. The activities of business, trade and services in the private sector were tightly managed for a proper development.

To implement the đổi mới policy initiated by the 6^th party Congress. Bình Thuận's commerce sector has entered a new period of development. In June 1986, the province's sector of trade and tourism was established on the basis of the former Thuận Hải's commerce. It becomes the staff of the provincial people’s committee in realizing State management over trade and tourism within Bình Thuận Province.

During the first years to change from a centrally-planned economy into a market economy, though facing a lot of difficulties, Bình Thuận's trade and tourism sector made great efforts to strengthen and renovate its organization and operation. It has gradually adapted itself to a commercial environment to compete with other economic sectors. The sector has identified its socio-economic role, contributing to stabilize market prices. Particularly, it has realized the policy to subsidize prices and costs for some commodities to serve production and life in the mountainous areas, the residential areas of ethnic minorities and the old resistance bases within the province. The State management over trade and tourism has been gradually institutionalized and its efficiency has been raised.

Today's successes

Thanks to the direction of the Province's Party Committee, People's Council and People's Committee, the interdisciplinary cooperation and its own great efforts, Bình Thuận's trade and tourism sector has gained many achievements.

Internal trade: The total volume of retail trade of social-commodities increased quickly, reaching 28 percent in the period 1991-1995 (VND 1,197.7 billion in 1995, increasing 2.5 times higher than in 1991). In 1996-2000, the average increase was 17.5 percent (VND 2,386.5 billion in 2000, increasing by 74.5 percent against 1991). In 2001, the province's internal trade developed strongly both in a broad and deep scale. The total retail of social goods and services reached VND 3.000 billion with the annual average increase of 11.8 percent. In 2002, it reached VND 3,300 billion and VND 1,750 billion in the first six-months of 2003.

The province's markets are stabilized and enlarged, closely linked with other domestic markets, especially those in the neighboring provinces and Hồ Chí Minh City. The commodity circulation between the regions and localities within the province has been smoothly conducted, meeting the demands of production and people's life. Furthermore. the economic sectors who engage in trade and service activities within the province have increased. Up to June 2003. the province has 27 State-run enterprises, 491 private enterprises, 130 limited companies, six stock companies, twelve foreign-invested enterprises, two foreign joint-ventures and 21,651 individual business households. Though the value of commodities traded and provided to the markets by State-run enterprises accounts for a small percentage, the State commerce has been still strengthened. Its operation network and categories of goods have been diversified, contributing to stabilize the province's markets. Thus, its role and prestige has been raised.

The policies on subsidizing goods and purchasing agricultural products have been effectively applied for the mountainous areas and the residential areas of ethnic minorities within the province, promoting the development of production and improving the people's living standards. The non-state economic sectors have actively engaged in trade and business, creating a healthy competition in the market. Some enterprises in Phan Thiết and Hàm Tân have even diversified their business fields, invested in intensive development, improved their services and trade civilization, met the demands and tastes of every consumer, especially tourists.

Besides, the State management agencies and enterprises have paid attention to trade promotion. The province's potential and advantages (agricultural, forestry and fishery products, and investment opportunities) have been effectively heightened. The Trade and Tourism Promoting Center was established in January 2003, collecting and providing domestic and foreign economic and market information. meeting the demands for management of State agencies as well as enterprises' production and business activities, especially in seeking for partners and consumption markets. The Center also suggests the province's People's Committee to organize trade fairs, exhibitions and seminars in Hồ Chí Minh City, Cần Thơ and Phan Thiết, attracting a number of enterprises, producers and consumers.

The external trade activities are also a great success of Bình Thuân's trade and tourism sector. The export turnover and volume have increased considerably. The value of export turnover reached US$ 43.6 million in 2001, US$ 55 million in 2002 and US$ 27.3 million in the first half of 2003. The annual average increase is 20.6 percent. The total export turnover since 2001 reaches US$ 123.6 million in sum. The productivity of exported marine products has increased at a high rate (accounting for 42.2 percent in 2002 and 48.8 percent in the six first months of 2003). The marine products are increasingly diversified. Beside the major products as frozen squids, dried cuttlefish, frozen shrimps and fish, many high- quality instant processed marine products have been exported to foreign markets in greater quantities.

 The major agricultural products for export include cashew and thanh long fruit. The productivity of cashew remains over 5,000 tons/year, gaining 5.400 tons in 2000 and nearly 2,580 tons in the first half of 2003. The yield and export turnover of thanh long fruit increased significantly during 1996- 2000 with an annual volume of 8.000- 10 000 tons.

The export markets have been expanded. Beside China and Hong Kong as the major markets, agricultural products (cashew) have been also exported to the United States, Canada and some European countries. Some marine products have penetrated into EU and America, gaining a bigger and bigger export turnover. because they can meet strict requirements on quality.

The number of export processing enterprises has increased. Up to now, the province has 37 export processing, production and business enterprises, and 60 units providing materials for export processing industry. They have an annual capacity of 9,000 tons of frozen marine products, 4.000 tons of dried marine products, 8,000 tons of cashew and 1.5 million standardized garments. Many enterprises have invested in advanced technologies, modern equipment and competitive products. The majority of hem have paid attention to managing lua/1ty in according to international quality management systems.

Import activities of the province's enterprises are mainly to serve production of exports. The annual import turnover accounts for about 24-28 percent of the export value, with an average increase of 40 percent per year. It was USS 15.4 million in 2002 and US$ 8.2 million in the first six months of 2003.

The major imports include material for export processing and production (unprocessed cashew, materials for garment, shrimp raising food, special fertilizers for thanh long tree) and equipment for foreign-invested enterprises.

Recently, together with aquaculture and industry, tourism has increasingly become an important economic sector of Bình Thuân. In fact, the sector is obtaining many good opportunities. Through a number of effective methods and actions. Bình Thuân's tourism has been making use of its potential and advantages. Under the management and direction of the trade and tourism sector, tourist activities have developed quickly in many aspects.

The number of tourists to the province has gained an annual growth rate of over 30 percent in which foreign tourists account for over 40 percent. In 1995, the province welcomed and served 532,000 turns of tourists, including 90,000 turns of foreigners. The number of tourists increased to 800,ono turns in 2001, 1.1 million in 2002 and 50,000 in the first six months of 2003. The average growth rate reached 32.6 percent of the target.

The average stay-time of tourists has been raised. In the first half of 2003, on average, domestic visitors stay m the province for 1.58 days and international tourists for 1.9 days, increasing by 0.38 and 0.55 days respectively against the period 1996-2000. The efficiency of the room use in hotels and tourist zones reaches an average rate of 55-60 percent. The difference between the maximum and minimum coefficients of the room use has been reduced because more and more tourists visit Bình Thuận everyday.

The revenue from tourist activities is high and stable. In 2001, it was VND 176 billion, increasing to VND 226 billion m 2002 and VND 152 billion in the first six months of 2003. The average growth rate was 31.6 percent. The revenue structure from tourism has shifted to increase the income from lodgment, catering and other services. The budget contribution from lodgings and tourist agencies increases by 23-25 percent on average. The tourist revenue goes up by 18 percent every year, accounting for 5.85 percent in 2001, 6.7 percent in 2002 and about 8-8.2 percent in 2003 (estimated).

Investment in tourism has remained high. The province's great tourist potential and good investment environment have attracted domestic and foreign investors. Up to now, in the province, there are 267 investment projects approved by the province's People's Committee, including 15 foreign investment ones of the total registered capital of VND 649.66 bi/11on and 252 domes- tic ones of VND 1,826.3 billion. In comparison with the early 2001, the number of tourist investment projects increases 4.5 times and the registered capital 3.5 times. The scale and fields of tourist investment have been properly changed. Some projects are rather big in scope and investment capital, such as the Pennywort Pool Project (50 hectares), the Golf Course Project (150 ha), two projects in Lan Isle (100 ha each), the Cableways Project in Tà Kóu valued VND 64.5 billion. At present, 57 projects have been implemented (27 under construction and 30 just started).

The technical foundation of the sector has been developed in a broad and in-depth scale. The province has now 71 tourist lodgings with a total of 2.010 rooms including 255 four-star, 327 three-star, 279 two-star, 138 one-star. 61 basic, 950 unclassified and 1,860 lodging-rooms. The capacity and service quality have been raised, meeting the demands of tourists.

It is noteworthy that Bình Thuân's tourism sector has a lot of great potential and advantages to develop. Beside geological and natural conditions, the province is also endowed with resources of sea tourism, picturesque landscape of mountains, forests, rivers and springs, waterfalls, and grandiose passes. Bình Thuân has a 192 km long coast and numberless islands, isles, beautiful bays and clean beaches. The well-known sites include Cà Ná, Câu Isle, Bình Thạnh (Tuy Phong Distrlct). Vĩnh Thuỷ-Dương Hill, Rang, Né Cape-Rơm Islet (Phan Thlết City), Điên Cape, Gà Ravine (Hàm Thuân Nam District), Dương Hill, Bà Isle, Tam Tân Lagoon (Hàm Tân District), Tiên Spring (Hàm Tiến), Ông Đia Rock and Prince Pavilion (Phan Thiết). There are also many beauty spots of natural and man- dug lakes, forests and mountains such as Biển Lac Lake (280 ha in area), Bàu Trang Pond (Bắc Bình), Hàm Thuận-đa Mi Lake, Ông Mount (1,320 m high), Bà Waterfall, Reo Waterfall in Đức Linh- Tánh Linh. Bình Thuận is famous for its historical, cultural and artisitic sites: Duc Thanh Historical Site, Communal Houses of Đức Nghĩa and Đức Thắng, Por Saneu Champa Tower, Cổ Thạch Pagoda, Tà Kóu Pagoda. All of these sites and spots provide good conditions to organize abundant tourist activities. They are an important  factor to heighten the province's tourism in the present and future.

Based on natural and geological advantages, under the assistance and direction of the province's leaders, tourism has become a keynote economic sector in the province's orientation for socio economic development. Investment of domestic and foreign organizations and individuals in tourism has valued over VND 2,000 billion. The number of tourists to Bình Thuận is increasing day by day. Tourist activities have further socialized and supported by other economic sectors through various investment ways. Moreover, great attention has been paid to material and technical foundation, social security and safety, environmental sanitary m tourism. With the above-mentioned advantages, Bình Thuận's tourist sector has great opportunities to develop.

Causes of success

For the above success of the sector, Mr. Ngô Minh Hùng, Vice Director of the Bình Thuận Service of Trade and Tourism gave some explanation.

Firstly, the sector has fully realized and thoroughly grasped the stand- point and requirements for socio-economic development in the period 2001- 2005 set by the 10^th Congress of the Provincial Party Committee. The leaders of the trade and tourism sector have directed to design and take measures to put all targets and tasks into reality with a high determination and great efforts in the context of difficulties and lack of materials and human resources.

Secondly, the State management over trade and tourism has been strengthened, focusing on the planning schemes for the sector's development. The counsel work to the Provincial People's Committee has regular/y carried out, contributing to fortify the market order, create an equal competitive environment, and raise the qua/1ty of trade and tourist business in the orientations of advance and civilization.

Thirdly, the trade and tourist pro- motion work has been soundly managed and realized, enabling enterprises of all economic sectors within the province to approach the world market, seek for consumption markets and partners, introduce the province's potentialities and strong points to attract investment capital from domestic and foreign economic sectors. The provincial authority cooperated with the Ministry of Trade in holding a conference on the Vietnam-us Trade Agreement and international economic integration, a meeting of commercial counselors to raise the aware- ness of opportunities and challenges in production and business activities of enterprises in the new period.

Fourthly, the work of training and developing human resource of the sector has been promoted to improve professional level and ability of practical activities for the sector's staff, meeting the demands of trade and tourist development in the period of international and regional economic integration as well as enhancing the province's socio-economic industrialization and modernization.

Orientations for the future development

Trade: The overall tasks are to continue expanding and developing social markets: to concentrate investment in infrastructure to rapidly develop trade activities and services; to give priorities to rural and mountainous areas; to attract more domestic and foreign investment capitals: to strengthen and increase efficiency of the trade and service promotion in order to create important changes in trade, services and export processing activities. By doing so the province can promote the development of production. the rapid shift of economic and labor structure m order lo better serve socio-economic development in the residential areas of ethnic minorities, the revolutionary bases and to meet the demands of rural and agricultural industrialization and modernization

Enterprises in engaging in trade and service in all economic sector are encouraged to invest in renovating technologies and equipment to improve their own operation capacity and the competitiveness of their products in the markets, meeting the demands of international and regional economic integration It is necessary to strike best to fulfill the major targets in the fields of trade and services set by the 10^th Congress of the Provincial Party Committee.

Besides, the following main economic and commercial norms must be realized: the annual growth rate of the trade and service sector should be 16-17 percent on average; the total circulation of social retail commodities should reach 13-14 percent per year (equivalent to US$ 180-190 million in 2005); the investment in fundamental construction and infrastructure to serve trade and tourism development should increase by 20 percent annually. The overall planning scheme for trade development during the period of 2001-2010 must be perfected. The Phan Thiết Trade Center should be built. The investment projects' should be designed for the Trade Centers in Mũi Né, Hàm Tân, Bac Phan Thlết Market, market of Exported Agricultural Products in Hàm Tân District: markets of marine products in Phan Thiết, Hàm Tân and Tuy Phong.

The State's preferential policies in trade should be implemented. The system of the province's preferential policies must be completed and publicized, creating an advantageous and safe investment environment, attracting more domestic and foreign investment capitals in trade. The State's laws on trade should be popularized and strictly applied among traders in all economic sectors within the province. The State-run commercial network should be further strengthened and perfected. It is necessary to promote the training and in-depth development of labor force as well as raise the State management over trade and business administration.

In parallel with the development of domestic commerce export should be enhanced, especially the province's products with competitive advantages such as marine products, cashew, thanh long fruit, and garments. At the same time, the markets in Japan. EU. the United Slates. European countries and China should be stabilized. It is necessary lo boost the trade promotion; to conduct market inspection and control effectively and timely; and to perfect the management apparatus of the trade sector.

Tourism: The targets are to make full use of the contribution from tourism to the province's revenue; to change the economic structure by creating an advantageous economic environment for the sector's development. By 2010, all units with good conditions for tourist 1 development must be planned. The growth rate of GDP from tourism must reach 20-22 percent during 2000-2005 and 25-27 percent in 2010. By 2005, the province strikes to welcome 1.5-1.7 million turns of domestic tourists and 150.000 turns of international visitors, and the tourism sector should account for 10 percent of the province's total 1 GDP. In 2010, these figures should be raised to three million, 400,000 and 15 percent respectively. The sector will contribute 15-20 percent of the province's total budget.

The viewpoints for tourist development stress on attracting investment from all economic sectors in the development of tourism, diversifying products and investment scales, promoting tourism development in combination with national security and defense and other social issues. To create the highest efficiency for tourist activities and the province's economy, it is necessary to develop the sector in accordance with the following orientations: The major tourist models include relax tourism, biological tourism, researching visit, fishing, sea-diving, sea sports, hunting. cultural tourism and festivals. The tourist spaces of Bình Thuận will constst of the tourist zones in Phan Thiếi - Mũi Né, Cà Ná - Vĩnh Hảo, Câu Isle - Bình Thanh, Hàm Tân, Tiến Thành- Hàm Thuận, and Bắc Bình.

The investment orientations for tourism development is set up, namely to invest m entertainment and amusement parks, Iodgings and tourist services, green areas. environmental protection, restoration of historical and cultural sites, and traditional festivals. Moreover, it is necessary to invest in infrastructure to serve tourism development, advertisement on Bình Thuận tourism; lo improve environment; to raise management ability and tourist knowledge among the sector's staff. Tourism must be considered as one of four keynote fields for investment of the province. The relevant sectors and echelons should focus on realizing the four programs of action for tourism up lo 2005.

Conclusion

According to Mr. Ngô Minh Hùng, in the near future, the trade and tourism sector will suggest the Provincial People's Committee to over- come difficulties and facilitate the development of the sector. Especially, the sector will require the Committee to build and issue an integrated system of preferential policies on investment assistance to develop export processing industry, material areas to serve export processing industry, and disadvantageous areas with the shortage of infrastructure (communication network, electricity, water supply). The provincial authority will direct the establishment of the Trade Promotion Fund under Ordinance No 86/20021TT-BTC.

By further bringing its achievements into play, Bình Thuân's trade and tourism sector is surely to advance m the coming years. fulfilling all of its duties and tasks to gain more successes.

Tam Diep