Bac Giang Province - Economy

Economy

Bắc Giang's land area is primarily dedicated to agriculture. The province is becoming known as a producer of fruit, particularly pineapples and lychees. Around a quarter of Bắc Giang's land area is devoted to forestry. Located 50 km 50 kilometres (31 mi) from Hanoi, the province is within both the Hanoi-Hải Phong-Quảng Ninh Economic Corridor, and the Nam Ninh-Lạng Sơn-Hanoi-Hải Phong-Quảng Ninh Economic Corridor. Before the province was formulated in 1997 and industrial development of the region was initiated, the GDP of the province was only US$ 170 with Agro-Forestry accounting for 55% and Industry hardly contributed. It was a poor economy with 90% of agricultural workers remaining below the poverty line. However, during the period 1997-2008, the province having launched several industrial projects in all its districts, 410 projects were launched with investment of US$ 23.174 billion that included 74 "Foreign Direct Investment" projects worth US$ 432.9 million. As a result, several economic farming models were introduced, which resulted in "Rural Economic Development", social consumer retail sales, and services got a boost, the poverty rate (2005 level) reduced to 17.78%, and textiles and garment exports accounted for about US $130 million, which was 76% of the province's export turnover.

Infrastructure such as National Highways and rural roads were substantially expanded, towns were better planned and beautified. Industrial parks, urban Areas-service and high-tech parks are being added. Key Industries like fertilizer, high technology, engineering, building materials, assembling automobiles, agricultural processing, forestry products, textiles and electric power generation are planned with the objective of achieving a GDP growth rate of 11-12% by 2020. The province has the Bắc Giang Department of Industry and Trade established in 2008 by the Bắc Giang People's Committee, which unifies the Department of Industry and the Department of Trade and Tourism; this testifies to the importance given to promote industrial development of the province.

Some of the economic indicators in respect of farming, agriculture and industrial production are the following. As against the national figure of 7592 of Agriculture, Forestry and Fishery cooperatives there are only agriculture cooperatives in the province. There are 1786 farms as against the national number of 120,699. The output value of agriculture produce at constant 1994 prices in the province was 3,491.7 billion đồngs against the national figure of 156,681.9 billion đồngs. The province produced 569,400 tonnes of cereals as against the national production of 43.26 million tonnes The per capita production of cereals in the district was 349.7 kilograms (771 lb) as against the national figure of 501.8 kilograms (1,106 lb) in 2007.

In 2007, the industrial output of the province was only 3,868.3 billion đồngs out of the total national output of 1.47 million billion đồngs.

Thac Huong irrigation scheme

The Thac Huong Irrigation Scheme in the Yên Thế district, adjacent to Thái Nguyên Province and west of Hanoi, was implemented in early 20th century by the-then French colonial government. Construction of the irrigation scheme for utilization of the Cầu River was started in 1922 and operationalised in 1936. The irrigation system was built on the left bank of the river and envisaged irrigation to a total command area of 57,325 hectares (141,650 acres). Net irrigation provided was to an area of 28,500 hectares (70,000 acres) in Phú Binh (Thái Nguyên province), Việt Yên, Tan Yên, and Hiệp Hoà (in Bắc Giang Province). Additionally, a supply of potable drinking water was built into the system. Navigation was part of its beneficial uses as a transport route for shipment of rice and salt from Hai Phong to Thái Nguyên. The scheme, as built, has a concrete dam of 6.7 metres (22 ft) height and 100 metres (330 ft) length, known as the Thac Huong dam across the Cầu River. A head regulator on the canal is 36 metres (118 ft) in width and 6.5 metres (21 ft) in height. 10 branch canal intakes were provided, each with a capacity of 25m3/s. However, the energy dissipation arrangements of the dam have been damaged, several times since it was built, by floods and bombing raids. The Asian Development Bank (ADB) funded the rehabilitation project in 2000. Although restored after 1955, the project is facing water shortages and is unable to meet the demands for irrigation due to building of many projects in the upstream reaches of the river, over utilisation by industries and poor maintenance. Transbasin diversions have been implemented along with pumping from other streams to meet the water demands for irrigation and other uses of drinking water and industries.