Quảng Nam’s economic growth is sustainable and is higher than the country’s average growth target. The province achieved and exceeded the targets set by the Province’s Eighth Party Congress. Appropriate shifts in the economic structure were achieved and new policies and mechanisms have mobilized and attracted external sources for investment and development. New economic and social infrastructure has had a significant impact on economic growth and has improved people’s living standards. The province’s social problems have also been tackled. The following are reviews of the sectors that have contributed most to the province’s development: 1.         Agriculture, forestry and aquaculture:   The three sectors have gradually improved productivity. Food production reached  433 thousand tones, an increase of 5.5 percent year on year. Cù Lao Chàm     The value of crop was over 1.854 billion  VND, with an average of  21.3 million  VND/ha farming, an increase of three million VND/ha compared with the previous year. Livestock values were nearly 919 billion VND, accounting for 30.2 percent of total agricultural production. The province announced an end to Foot and Mouth disease from 1 October 2006. Total cattle in the province are estimated at around 900,530, increasing nine percent yoy. Total poultry was 3,526,500, a fall of 10 percent as a result of bird flu disease. The province contracts households on 49,000 ha of protected forest land. The total area forested in 2006 was around 8,340 ha, an increase of 7.5 percent. Forest exploitation reached 38,500 m3, an increase of 7.,6 percent compared with 2005. Land used for aquaculture was 7,245 ha, an increase of 15 percent compared with 2005. Marine production reached nearly 48,590 tones, an increase of 1.2 percent compared to 2005. Fresh shrimp output was estimated to be 2,930 tones, a fall of seven percent on 2005, due tot the effects of Storm Number 6. The agriculture sector contributed to the economy in the following areas: Eighty-five percent of the population of Quảng Nam lives in the countryside. This rate, unchanged since 2000, is the highest rate in the region and higher than the country average. Unsurprisingly most of the labor force work in the agricultural and fishing sectors. In 2003, 524,000 people (73 percent of the labor force) worked in the agricultural sector, higher than country rate but lower than that of region. However, here is a distinct movement from the agricultural sector to the industrial and construction sectors, especially the service sector. Quảng Nam has the largest labor force in the region with 716.100 laborers. Seventy-three percent work in the agricultural sector, 11 percent in the industrial and construction sector (76,000 people), and 16 percent in the service industry (115.900 people).  In 2003 the state sector employed around 64.600 people (9 percent), of which 75 percent worked in services.   In 2003 there were 554 registered enterprises in the province equal to 11 percent of the total number of firms in the southern central region. Newly registered firms generated employment for 38,241 people or 5.34 percent of the total labor force. In Đà Nẵng 41 percent of the labor force were employed by one registered company and in Bình Định registered enterprises account for ten percent of employment. Ninety-five percent of enterprises in the region and 96 percent of enterprises in Quảng Nam are SMEs according to the definition of SME in Decree 90.       Crops: At the end of 2006, the province had cultivated 70,524 ha  of plants, an increase of 3.6 percent compared to 2005. Food plants accounted for 48,930 ha, an increase of 1.4 percent; vegetables covered 8,124 ha, an increase of 8 percent; industrial trees accounted or 4,288 ha, a reduction of 190 ha. Even though there were more hot days than average and despite the effects of Storm Number 6 which destroyed 2,000 tones of rice (mainly in unharvested paddy fields), rice productivity still reached 43.05 quintal/ha, an increase of 0.92 quintal/ha. Rice production in northern districts reached 4.18 quintal/ha, an increase of 0.14 quintal/ha. The southern districts produced 46.48 quintal, a rise of 2.95 quintal/ha. Total food output was 432,280 tones, an increase of 5.2 percent (21.605 tones) on 2005, of which:  paddy was 384,114 tones, an increase of 4.7 percent (17.236 tones) and corn was 48,166 tones, an increase of 10 percent (4,369 tones).   Livestock:  Foot and Mouth disease was already under control by the end of 2006. Transportation, trading and consumption of livestock have returned to normal. Cattle farming increased due to subsidies for livestock development. Total livestock production has reduced because of the effects of Bird Flu at the end of 2005 and early 2006.    Forestry: Most of Quảng Nam’s land is forest. Of the 592,500 ha used, 443,900 ha or 75 percent is forest. 113.000 ha was used for agricultural production, accounting for 19 percent. Quảng Nam is the leading forestry site in the region. Bình Định has the second largest area used for forestry of 202.000 ha. Agricultural land is mostly owned by non-state organizations. Forestry land is owned by state organizations and enterprises. Some donors and provincial authorities have already transferred land to the public to better exploit sustainable forestry. The province is currently improving forestry production (Forestry project number 661 funded by JIBIC, Project KFW6, Project WB3, and Project FAO). Forestry areas now cover 5,400 ha, accounting for over 65 percent of the planned target. Wood exploitation in the first ten months of 2006 was 115.000 m3, equal to 90 percent of the year’s target, an increase of 14.2  percent (14.500 m3) compared to 2005.   Aquaculture raising and exploitation: Storm Number 6 sunk 61 boats and damaged 250 boats. Reduced fishing time reduced potential output, which now stands at 46,081 tones, an increase of 1/3 percent (600 tones) compared to 2005 and equal to 98 percent of the 2006 target. Eighty percent of the total shrimp raising area has been harvested. Output has reached 1,000 tones, a reduction of 22.5 percent (290 tones) compared to 2005. Total shrimp productivity was 2,930 tones, a reduction of 7.02 percent (221 tones). The fall is due to Storm Number 6, which flooded 475 ha of the shrimp production area and destroyed 360 tones of fresh shrimp. Seventy-five percent of the fresh fishing area was flooded causing the loss of 80 tones of fish. lakeside and pond land were reduced by 50.600 m3.   2.         Commercial and Tourism industry:     The sector is growing at the targeted rate. The tourism sector continues to develop with the participation of many economic sectors ensuring it will successfully exploit the cultural, historical and ecological potential of the province. Quảng Nam tourism industry has already concentrated on promotion and marketing campaigns. It has also further developed the cultural, eco-tourism and traditional village tours and improved the quality of current tourism products. In addition to the World Cultural heritage sites in Hội An ancient town and Mỹ Sơn Holy Land, Quảng Nam has also organized interesting tours to Phú Ninh lake, Tiền spring, Le pass,Bồ Bồ hill and Giang Thơm lake. The province is also encouraging internal and external investments in tourist infrastructure with preferential policies and quick and convenient procedures. Thanks to these policies, the volume of tourists visiting the province has increased by an average of 22 percent/year and turnover by 30 percent. There are 88 investment projects in tourism development, of which 62 projects are in operation. In 2006, the total retail turnover of goods and services in was 419,33 billion VND, an increase of 27.75 percent on 2005. The non-state owned sector accounted for more than 91 percent; the foreign invested economic sectors fell by 3.7 percent. Compared to 2005 all economic sectors grew with the exception of the collective sector, which fell by 5.3 percent. From 12 October to 18 October 2006 the APEC Ministerial Tourism Conference was held at Hội An, broadcasting Quảng Nam’s image  to the world. Other activities included Vietnam’s tourism Picture, Quảng Nam tourism exhibition and “Hội An – cultural integration festival”. An estimated 1,514,176 tourists visited of which 388,533 stayed, an increase of 21.3 percent compared to the same period in 2005. Turnover of hotel services was estimated to reach 106.76 billion VND, up to 0.37 percent against last month, among hotel services achieved 27,47 billion VNDThe turnover of hotel and restaurant services reached 937.23 billion VND, an increase of 50.3 percent compared with 2005. Traveling tours earned 33.36 billion VND, an increase of 28.3 percent.   Trade in Quảng Nam was modest. Export turnover reached 111,42 million USD. The turnover of centrally owned and foreign invested enterprises was 47.84 million USD, 96 percent of the target and an increase of  38.83 percent. The marine group earned 24.04 million USD, accounting for 22.3 percent of total turnover and an increase of nearly 30 percent on 2005. Textiles earned around 17 million USD, an increase of 15.8 percent; footwear turnover was 20 million USD, 1.5 times higher than 2005. Wood product turnover achieved 19.20 million USD and paper was 10.23 million USD, an increase of 23.2 percent. Total turnover was 105,8 million USD, an increase of 13 percent. The value of locally imported products was 79,20 million USD, 75.52 percent of total imports and an increase of 6.39 percent. Imported consumption goods were valued at 26.54 million USD accounting for 25.31 percent of total imports, an increase of 77.79 percent. Production goods were 78.32 million USD, a reduction of 0.34 percent against 2005. However, the Storm Number 6 inflated prices, particularly for necessity goods such as food, foodstuffs and construction material. The CPI in the last ten months has increased by 5.74 percent. The rise was driven by rises in food and foodstuff prices (0.36 percent and 0.77 percent respectively). 3.         Industrial Production Sector:   The industrial sector continues to grow thanks largely to the Chu Lai Open economic Zone, industrial zones and industrial model groups with preferential policies. New exports include enameled tiles, zigzag tiles, motorbikes, automobiles, sports shoes, wood, beer, soft drinks and processed marine products.   Storm Number 6 caused considerable losses to the industrial sector. One hundred and twenty four enterprise suffered total losses of 103.2 billion VND and total employment fell by 3,500, resulting in productivity losses of by  346.36 billion VND, a fall of 5.9 percent compared to the same period in 2005. The centrally owned sector fell by 1.72 percent, the locally owned sector by 3.7 percent and the non-state sector by 7.1 percent. Production in Đại Lộc fell by 28.8 percent, Quế Sơn by 28 percent and Hội An by 10,74 percent. In 2006 total output was 3,345.5 billion VND, an increase of 26.6 percent and 81.9 percent of the target. The non state sector and the foreign invested sector recorded the highest growth rates (34.75 percent and 64 percent respectively).  The state owned sector achieved 88.55 percent of the 2006 target, valued at 2.452,72 billion VND; the foreign invested sector earned  206.2 billion VND, equal to 73,64 percent of the target. Centrally owned state enterprises increased production by nearly 14 percent. Production in the locally owned state sector fell by 10.1 percent and achieved only 61.7 percent of the annual target because some stated owned enterprises had been equitized and moved outside state sector. The exploitation industry production was 178.23 billion VND, an increase of 23.8 percent. The processing sector earned 3,091.5 billion VND, up 27.48 percent. The food processing and soft drink sector increased by 9.28 percent, textiles by 39.9 percent, garments by 34.15 percent, footwear by  64.74 percent, wood processing and wood products by 17.42 percent and brick and concrete by 43.38 percent. Electricity, water and gas supply was valued at 75.76 billion VND, an increase of 3.35 percent. Bad weather and the equitization process caused processed aquaculture production to fall by 4.1 percent in the last ten months.      4.         Labor force: Eighty-five percent of the population of Quảng Nam lives in the countryside. This rate, unchanged since 2000, is the highest rate in the region and higher than the country average. Unsurprisingly most of the labor force work in the agricultural and fishing sectors. In 2003, 524,000 people (73 percent of the labor force) worked in the agricultural sector, higher than country rate but lower than that of region. However, here is a distinct movement from the agricultural sector to the industrial and construction sectors, especially the service sector. Quảng Nam has the largest labor force in the region with 716.100 laborers. Seventy-three percent work in the agricultural sector, 11 percent in the industrial and construction sector (76,000 people), and 16 percent in the service industry (115.900 people).  In 2003 the state sector employed around 64.600 people (9 percent), of which 75 percent worked in services.   In 2003 there were 554 registered enterprises in the province equal to 11 percent of the total number of firms in the southern central region. Newly registered firms generated employment for 38,241 people or 5.34 percent of the total labor force. In Đà Nẵng 41 percent of the labor force were employed by one registered company and in Bình Định registered enterprises account for ten percent of employment. Ninety-five percent of enterprises in the region and 96 percent of enterprises in Quảng Nam are SMEs according to the definition of SME in Decree 90.