(VOVworld) – All localities will be given incentives to develop their potentials and advantages to shape appropriate economic structure and enhance regional linkage in order to generate momentum for national socio-economic development.  

Head of the Party Central Committee's Commission for Economic Affairs Vuong Dinh Hue told a conference on local economy in national economic restructuring and growth model change in Hanoi on Sunday. Georg Christian Berger, German Ambassador to Vietnam, said close cooperation among localities is the prime condition for socio-economic development. Public and private partnership will produce higher efficiency.
Berger said: “As a practical example to illustrate this, let me use one that I know from my own country, namely the Ruhr region in western Germany. This region used to be Germany's economic center of heavy industry in the post-war years. As mines and steels closed one after another, the region has to reinvent its economy. To achieve new economic vigor, the region decided to shift the economy towards more  knowledge-based economy including science, media, technology. 15 local governments, largely comparable to the level of provinces here, founded a regional organization which was tasked of promoting economic development in the region.”

Mr. Hue said in order to remove geographical divisions and scattered investment projects, it’s important to establish special economic zones: “We need to promote the advantages of each locality while giving priority to locomotive economic region to motivate other regions. It’s necessary to have incentives for disadvantaged areas, develop agro-forestry, and reform the management mechanism to enhance the duties of the local and central administration.”