midterm exercise development strategy topic developing a strategy for a province khanh hoa

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Students: Nguyễn Vũ Tiến Đức

Nguyễn Hoàn Châu Anh Nguyễn Thị Phương Thảo Nguyễn Thu Phương Nguyễn Mai Phương Nguyễn Khánh Linh

Lê Diệu Thư

Giang Yến Thanh

Class: Economic Development (E) 63 System: AEP

Instructor: Assoc Prof Dr Vii Thi Tuyét Mai

HÀ NỘI - 10/2023

TABLE OF CONTENTS

CHAPTER 1: OVERVIEW 3 CHAPTER 2: LOCAL STATUS IDENTIFICATION: SITUATION

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CHAPTER 1; OVERVIEW Khanh Hoa is a coastal province in South Central Vietnam, and its territorial extent stretches farthest toward the East Sea In terms of administrative divisions, Khanh Hoa consists of 2 provincial-level cities, | town, and 6 districts These cities, towns, and districts are further subdivided into 35 wards, 6 townships, and 99 communes Khanh Hoa covers a natural area of 5,197 square kilometers The mainland portion of the province extends from geographical coordinates 12°52'15" to 11° 42' 50" north latitude and from 108°40'33" to 109° 29' 55" east longitude

- To the north it borders Phu Yen province

- To the south it borders Ninh Thuan province

- To the west it borders Dak Lak and Lam Dong provinces

- It borders the East Sea to the east

The easternmost point is at 109° 27 '55" east longitude, located at Mui Hon Doi

on Hon Gom Peninsula, Van Ninh District, which is also the easternmost point on the mainland of the Socialist Republic of Vietnam In addition to the mainland territory, Khanh Hoa province also includes the coastal areas, continental shelves, coastal islands, and the Truong Sa island district The offshore and sea areas are not under the jurisdiction of Khanh Hoa province

Khanh Hoa province is located near the Truong Son mountain range and the sea The majority of its area is covered by rugged mountains, with a very narrow coastal plain, occupying only about 400 square kilometers, which is less than 1/10 of the province's total area The coastal plain is further divided into smaller sections, separated by mountain ranges that extend towards the sea This geographical configuration results in Khanh Hoa's climate having unique and distinctive features Compared to the provinces and cities to the north, from Ca Pass and to the south, from

Da Bac Reef, Khanh Hoa's climate is relatively milder due to its oceanic characteristics This creates a more temperate and moderate climate in Khanh Hoa

In terms of development potential: the province has three key economic development areas:

- To the south is Cam Ranh Bay, which has a very important position in terms

of defense, security and economic development

- To the north is Van Phong Bay located at the easternmost geographical coordinates of Vietnam, 14 km from international waters, near the junction of international maritime routes

- In the midst of this landscape lies Nha Trang Bay, recognized as one of the most beautiful bays in the world Nha Trang benefits from favorable natural conditions, including its location, stunning scenery, and climate, combined with a rich historical and cultural background This makes Nha Trang and Khanh Hoa well-suited for the development of a wide variety of diverse forms of tourism

Along with that, Khanh Hoa is 1,280km from Hanoi, 448 km from Ho Chi Minh City, blessed with a mild climate and located on the North-South traffic axis, convenient both by road, railway, waterway and air, is the gateway to the Central Highlands and a province with many bays, the closest port to the international maritime route in Vietnam

CHAPTER 2: LOCAL STATUS IDENTIFICATION: SITUATION

IDENTIFICATION 2.1 Context (country), region and world:

2.1.1, Economy:

International Economics

From the beginning of 2023 until now, the world situation is more fast-moving, complex, unpredictable and challenging than forecast Specifically, the global economy grew at a slow rate, inflation was anchored at a high level, global public debt increased sharply, financial, monetary and real estate markets were potentially risky, and export and import activities were shrinking

In terms of global trade in goods, according to the WTO's Global Trade Statistics and Outlook report published in April 2023, the volume of world trade in goods will grow by 1.7% in 2023, following a decline in the fourth quarter of 2022 The outlook for the global economy has improved but the pace of trade expansion in

2023 is expected to remain below average due to being hit hard by the conflict in Ukraine, persistently high inflation, tighter monetary policy and financial instability Energy and commodity prices in 2023 tend to decline, namely oil prices and prices of many metals also tend to decline, reflecting the recovery of supply after production disruptions in 2022 and a decline in global demand Global inflation averaged year-on-year at 7.2% in April 2023, down from a peak of 9.4% in July 2022 The decline in inflation reflects falling fuel and non-fuel commodity prices along with the impact of monetary tightening in many countries around the world

In terms of global financial conditions, according to the World Bank, there is a trend of tightening due to the spillover effect from the collapse of some banks in the United States at the end of April 2023 In many countries, the financial sector will be very vulnerable to a marked increase in interest rates In a severe recession scenario, bank lending in the United States and other developed economies could plummet Household and business confidence will suffer, resulting in higher household backup savings and lower investment Recessions in developed economies will spread to the rest of the world due to lower demand for imports and commodity prices Similar to previous periods of global financial stress, this will lead to widespread capital outflows from emerging markets and developing economies, further strengthening the dollar and exacerbating vulnerabilities in economies with dollar-denominated external debt

Domestic economy

In the context that the world economy in general and Vietnam's economy have many unpredictable fluctuations, in 2022, the socio-economic development of Khanh Hoa province will continue to maintain high growth momentum and achieve many positive results Specifically, this year, the gross product in Khanh Hoa province (GRDP) increased by 20.7% compared to 2021, the highest increase ever and the province with the highest GRDP growth rate in the country In particular, GRDP by economic sector increased by 22.1% compared to 2021 For the whole year 2022, the province's industrial production index increased by 21.7% compared to 2021 Total retail sales of consumer goods and services of the province are also at a high growth rate with 54.6% compared to 2021, reaching more than VND 85,231 billion Khanh Hoa province's tourism revenue in 2022 also increased 5.8 times compared to 2021 The export turnover of goods in the province reached 1600 million USD, up 22.9% compared to 2021

In the first 6 months of 2023, GRDP (at 2010 comparative prices) of Khanh Hoa province reached VND 28,041.5 billion, up 7.86% over the same period last year, ranking 9th out of 63 of the country and 2nd of the North Central and Central Coast regions, of which GRDP by economic sector increased by 8.78% Contributing to the total increase of 7.86% of the whole province, the agriculture, forestry and fishery sector increased by 0.77%, the industry and construction sector increased by 8.33% (of which the processing and manufacturing industry had the highest contribution increased by 4.99%, contributing up 4.2 percentage points of the whole industry and contributing up 0.9 percentage points of the whole province), the service sector is the sector with the highest contribution to GRDP in the province with an increase of 11.21% In the service sector, some industries accounted for a large proportion at a decent growth rate, contributing to the increase of total added value such as administrative activities and support services increased by 33.41%, accommodation and food services increased by 29.72%, transportation and warehousing increased by 21.31%, arts, entertainment increased by 18.83%., In addition, product taxes minus product subsidies decreased by 0.55%, reducing 0.06 percentage points for the whole province

Hoá 4n Tinh Binh Trị Thiên Năng ! Ngãi Định Yên Hod Thuận Thuận

Huế

(9,16)

Figure 2.1 GRDP growth rate in the first 6 months of 2023 North Central and

Central Coast regions (Source: Khanh Hoa Provincial Statistics Office)

It can be seen that, although in the context of the world economy in general and Vietnam's economy in particular, there were many fluctuations before the wave of global recession, the economy of Khanh Hoa province still developed stably or even the growth rate was always high This shows the development potential of the province in the future if Khanh Hoa is oriented and developed with the nght strategies

2.1.2, Competitiveness:

Khanh Hoa province's PCI competitiveness score in 2022 reached 67.74 points,

up 4.63 points compared to 2021 (the highest in the past 10 years), ranked 16/63 provinces and cities, up 28 places compared to 2021 (44/63) Compared to other provinces in the South Central and Central Highlands regions, Khanh Hoa province has the 2nd PCI score after Da Nang Compared to other provinces in the Central Coast and Central Highlands, Khanh Hoa province ranked 3rd after Thua Thien Hue and Da Nang From 2012 to now, 2022 is the year Khanh Hoa province has the highest PCI score, as well as the year with the highest rank and score in the past 10 years

2.1.2.1 Firm strategy, structure, and rivalry:

Over the past years in Khanh Hoa province, the province has been very drastic

in directing departments, departments and localities to develop action programs to improve the provincial competitiveness index, propose appropriate solutions, close to reality, closely follow each specific indicator constituting 10 component indicators of PCI including (1) Market entry, (2) Access to land, (3) Transparency, (4) Time cost, (5) Informal CP, (6) Fair competition, (7) Dynamism, (8) Enterprise support policies, (9) Labor training and (10) Legal institutions

In 2022, the People's Committee of Khanh Hoa province issued Decision No 1781/QD-UBND on June 21, 2022, to establish a working group dedicated to improving the business environment, contributing to enhancing the Provincial Competitiveness Index (PCI) The leadership of the PCI Working Group displayed strong determination and effective management in implementing various action programs aimed at improving the province's PCI Additionally, an inspection team was formed to monitor the implementation of the Action Program for enhancing the PCI in several provincial departments and localities throughout the province in 2022 The province also organized business dialogues twice a year to directly address the suggestions, difficulties, and challenges faced by businesses and investors On a monthly basis, the Department of Planning and Investment compiled reports on the status of addressing these suggestions and challenges to provide timely direction from the provincial leadership, with the goal of resolving issues for businesses and investors Furthermore, the province held meetings with entrepreneurs and exemplary businesses on Vietnamese Entrepreneurs’ Day and provided support and encouragement to specific outstanding businesses in the province Two sessions of the Entrepreneur Café program were also organized to disseminate information about the province's policies and development directions to business associations and the business community in the province

Additionally, in the early part of 2023, Khanh Hoa province, in collaboration with Dak Lak province, organized a conference on economic and social development cooperation They also held a conference to review economic development cooperation between Ho Chi Minh City and the coastal Central provinces These conferences created new opportunities, fostered innovative ideas, established new development models, and offered new prospects Such cooperation allowed the localities, especially Khanh Hoa province, to expand opportunities for development and enabled businesses within the province to connect, exchange cultural experiences, and collaborate with businesses from other regions to build and expand their markets

Thus, it is evident that in recent years, the provincial government, along with related departments and agencies, has consistently provided conditions and opportunities for businesses in Khanh Hoa province to develop, build and expand their markets, and enhance their competitive capabilities This collective effort has contributed to the socio-economic development of Khanh Hoa province

2.1.2.2 Factor conditions:

About geographical location:

Khanh Hoa is a coastal province in South Central Vietnam, bordered by Phu Yen Province to the north, Dak Lak Province to the northwest, Lam Dong Province to the southwest, Ninh Thuan Province to the south, and the East Sea to the east It is also home to Hon Doi Point on the Hon Gom Peninsula, which is the easternmost point on the Vietnamese mainland

Khanh Hoa Province enjoys favorable transportation connections through road networks, railways, seaports, and airports Its strategic geographic location, with the North-South Railway and National Highway ILA running through the province, facilitates economic and cultural exchanges between Khanh Hoa and neighboring provinces

The province's geographical location holds strategic importance for national defense, as it is close to international maritime routes, hosts the Truong Sa Island District, boasts the Cam Ranh Port, and serves as a gateway to the East Sea

About natural resources:

Khanh Hoa is a coastal province of South Central Vietnam, which has a lot of natural resources, especially mineral resources, marine resources and forest resources

Marine resources:

Khanh Hoa is not only blessed with the longest coastline in Vietnam but also one of the most beautiful coastal provinces in the country The coastline stretches from Dai Lanh commune to the end of Cam Ranh Bay, covering approximately 385 kilometers along the water's edge, featuring numerous estuaries, lagoons, bays, and around 200 small and large islands along the coast Khanh Hoa boasts six large bays and lagoons, including Dai Lanh, Van Phong Bay, Hon Khoi, Nha Phu Lagoon, Nha Trang Bay (Cuu Huan), and Cam Ranh Bay Among these, Cam Ranh Bay stands out with a length of 32 kilometers, a width of 16 kilometers, a sea connection through a 1.6 km wide sea strait, and a depth ranging from 18 to 20 meters, often regarded as the most naturally suitable seaport in Southeast Asia

Along the coast of Khanh Hoa, there are numerous beautiful beaches, such as Nha Trang Beach located in the city center, Tien Beach to the north of the city, Doc Let Beach in Ninh Hoa town with a length of 4 kilometers, and Dai Lanh Beach in Van Ninh district, with a length of nearly 3 kilometers In addition, there are many islands, both large and small, scattered along the coast that can be developed for tourism, snorkeling, and recreational activities

Ecologically, Nha Trang Bay is a rare natural model of estuaries and bays worldwide, as it hosts a majority of the typical and valuable ecosystems of tropical marine areas These include wetlands, coral reefs, mangrove forests, seagrass beds, river mouths, island ecosystems, and coastal sand dunes Particularly, the Hon Mun area within Nha Trang Bay features the highest biodiversity, with 350 coral species accounting for 40% of the world's coral

The seafood resources in the sea area of Khanh Hoa province are estimated to

be around 150,000 tons, primarily consisting of floating fish (70%) The annual harvest capacity is approximately 70,000 tons Apart from fish, squid, and various shellfish, Khanh Hoa's waters are also a habitat for swiftlet birds, allowing the annual collection of about 2,000 kilograms of edible bird's nests This is a precious specialty not found in every province in the country and contributes not only to exports but also

as a valuable ingredient for the high-end herbal processing industry

The Khanh Hoa Sea also plays a significant role in salt production The relatively high salt concentration in seawater is suitable for large-scale salt production and post-salt products, especially industrial salt

Forest resources:

The existing forest area is 186.5 thousand hectares, wood reserves are 18.5 million m3, of which 64.8% is production forest, 34% protection forest and 1.2% special-use forest Protection forests have 34%, but most of them are rich forests in high mountain areas, watershed of Khanh Vinh, Khanh Son districts and Ninh Hoa town The forest cover is 38.5%, the largest is in Khanh Vinh and Khanh Son In addition, Khanh Hoa also has about 104ha of mangroves scattered in the coastal areas

of Van Phong Bay, Nha Phu Lagoon, Vinh Truong estuary (Nha Trang), Tidal Lagoon and Cam Ranh Bay with about 34 species of mangroves such as: mangroves, sticks, white cork, white sauce, sea sauce

It can be said that Khanh Hoa is one of the centers of forest biodiversity, including many migratory components from many different streams from North to South, including the flora of South China, Indonesia, Malaysia, including many rare

native species According to data from the Institute of Planning Investigation (1996), the province has 1,035 species of plants belonging to 559 genera and 161 families Hon Ba alone has 595 species ranked in 401 genera and 120 families, accounting for 57% of the province's plant species

The biological richness of Khanh Hoa forest is also especially known for the diversity of genetic resources, notably the Gourd tree (Aquilaria crassna), which provides famous sediment products at home and abroad

Mineral Resources:

Khanh Hoa province possesses a variety of mineral resources, including mudstone, molybdenum, kaolin, clay, gold-bearing quartz, mineral water, fire-resistant clay, sand, coral, and granite Among these, the most notable resource is white sand in Cam Ranh, which meets the requirements for the production of optical glass and crystal, with a reserve of 52.2 million cubic meters There is also sand on Hon Gom Peninsula in Van Ninh district, with approximately 555 million cubic meters Imenite reserves stand at 26,000 tons, and there is an abundance of granite, with 2 billion tons Mineral water resources in the province have a total flow rate of about 40 liters per second, with an extraction capacity of 3,400 - 3,500 cubic meters per day Some places have been put into industrial exploitation, such as Danh Thanh mineral water, with an annual production of 57 million liters

Khanh Hoa's mineral resources are among the types of resources that can be continuously mined in the future to develop products for competitive market participation

About infrastructure:

Khanh Hoa has a fairly rich transportation network, fully converging all types

of transport such as road, railway, inland waterway, sea and air, in which road plays an important role in both passenger and cargo transport activities In addition, Cam Ranh International Airport is | of the 5 busiest airports in the country

In recent years, many traffic projects, especially national highways, important traffic axes, airports and seaports have been invested in construction and renovation Most recently, the Van Phong Economic Zone Management Board has put into operation the road project from National Highway 1 to Dam Mon (Van Ninh district), with a total investment of nearly VND 1,000 billion, 14.3 km long

About capital:

According to a report of Khanh Hoa province, up to now, the province has attracted 119 foreign investment projects with a total registered capital of 4.39 billion USD, ranking 23/63 localities From 2020 to now, there are 7 new projects with a total registered capital of 119.85 million USD

In terms of domestic investment, the province has attracted nearly 500 projects with a total registered capital of more than VND 480,000 billion; From 2020 to now, there are 44 projects with a total registered capital of more than VND 12,000 billion

In the morning of April 2, in Nha Trang city, Prime Minister Pham Minh Chinh attended the Conference to announce the planning and investment promotion of Khanh Hoa province in 2023.At the conference, Khanh Hoa province selected, awarded and approved investment policies and awarded investment certificates for 8 projects with a total registered capital of more than VND 32,250 billion; handing over project development memorandums to 15 enterprises with a total expected capital of over VND 80,000 billion

Conclusion: Natural conditions, geographical location, and cultural history have given Khanh Hoa province a great potential to develop tourism and services Nha Trang - Khanh Hoa is currently identified as one of the 10 major tourism and service centers of the country

2.1.2.3 Demand conditions:

Tourism industry

With the strength of geographical location, beautiful landscapes and coastlines

of the South Central coastal region, Khanh Hoa tourism is a spearhead economic sector of the locality, with high professionalism, relatively synchronous and modern material and technical base system; high-quality, diversified, branded tourism products imbued with traditional cultural identity; Nha Trang - Khanh Hoa has truly become the tourism center of the South Central Coast, a high-class and attractive tourist destination with high competitiveness not only domestically but also regionally and internationally

In the period of 2016 - 2020, the province's tourism revenue continuously increased over the years, reaching VND 27,131 billion in 2019, more than 2 times higher than that of 2016; in which the period of 2016 - 2019 alone increased by 26.2%/year; if including 2020, which was heavily affected by the Covid-19 pandemic, the average increase was 5% / year The main indicators of tourism increased from 15-20% per year In particular, the total number of tourist accommodation in the period of 2016 - 2020 reached 24.9 million, especially the total number of

international tourists reached 10 million In 2019, the contribution of the tourism industry to the GRDP of Khanh Hoa province reached about 12.29%

In 2022, tourism business activities in Khanh Hoa province will increase in all indicators compared to 2021, specifically: Tourism revenue reached VND 13,843.8 billion (up 5.75 times); welcomed 2.57 million visitors (up 4.28 times) with nearly 6.2 million guest days (up 3.64 times) In which, there were 275.3 thousand international visitors (up 11.1 times) with nearly 1.3 million guest days (up 10.1 times)

Generally, in the first 9 months of 2023, the total number of visitors staying in Khanh Hoa province is estimated to reach 5.7 million, marking a 173.1% increase compared to the same period last year (exceeding the plan by 42.5%) Specifically, international visitors are estimated to reach 1.45 million, a 9.6-fold increase compared

to the same period last year; and domestic visitors are estimated to reach 4.25 million, showing a 119.4% increase compared to the same period in 2022 The tourism revenue is projected to reach VND 27,502.8 billion, reflecting a 154.8% increase compared to the same period last year (surpassing the plan by 31%)

In order to attract tourists, since the beginning of the year, the locality has organized many communication activities, promotion and stimulation of tourist attraction, such as: Coordinating with units to welcome international tourists from two flights from Incheon (South Korea) and Almaty (Kazakhastan) to Khanh Hoa on the occasion of the New Year; welcoming Chinese tourists during the Lunar New Year; coordinate with businesses in the area to organize many combos and preferential products during Tet, holidays and summer 2023; organize Famtrip program for Indian travel enterprises to survey and explore tourism products In particular, the organization of major events such as the 370th anniversary of the establishment and development of Khanh Hoa province, Nha Trang Beach Festival 2023 has contributed

to promoting local culture, people and images, attracting tens of thousands of visitors, regaining growth momentum for the tourism industry More specifically, if in the past, China and Russia were the 2 largest international tourist markets in Khanh Hoa province, now, this position gives way to Korean tourists With more than 530,000 arrivals so far this year, Korean visitors account for more than 53% of international visitors to Khanh Hoa Effective stimulus strategies and focused communication campaigns have brought positive signals to tourism in the province Although the average length of stay of Korean visitors is not as long as Chinese and Russian visitors before, according to many tourism businesses, Korean visitors belong to the group with quite high spending Most Korean visitors need to relax and use sports services such as golf, entertainment services on the sea, tourism associated with health care,

mud bath, spa , Notably, in recent years, among Korean tourists to Nha Trang, there are a significant number of celebrities who come to Nha Trang to experience tourism, share photos and cuisine in the coastal city Thereby, contributing to spreading the tourism image of the land of Frankincense to international friends

Industry

Khanh Hoa industry continues to maintain a high growth rate, accounting for

an increasingly large proportion in the economic structure of the province Currently, most of the main industries of the province have decent and advanced technology such

as textile and garment, footwear, seafood processing; Modern technologies such as renewable energy (wind power, solar power), shipbuilding, precision engineering, supporting industries

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According to data from Khanh Hoa Department of Industry and Trade, in August 2023, the industrial production index of the whole province will increase by 7.6% compared to July 2023 and increase by 32.76% over the same period Accumulated in the first 8 months of 2023 will increase by 12.52% over the same period, of which: processing and manufacturing industry will increase by 1.23%; production and distribution of electricity, gas, hot water, steam and air conditioning increased by 124.79%; water supply; waste and wastewater management and treatment activities increased by 6.35% Mining alone decreased by 16.93%

Some processing and manufacturing industries with an increase in production indexes in the first 8 months of 2023 compared to the same period last year are sugar production (up 36.8%); production of tobacco products (up 19.43%); production of other means of transport (up 17.21%); production of paper and paper products (up 99.84%); production of food, beverage and tobacco processing machines (up 7.17%); textiles (up 4.01%); In the opposite direction, processing and manufacturing industries have low or decreased production indexes such as production of

non-alcoholic beverages, mineral water (down 1.54%); other processing and manufacturing industries (down 16.01%); apparel production (down 27.76%); processing and preserving aquatic products and aquatic products (down 26.69%) Furthermore, some major products have seen increased production in the first 8 months of 2023 compared to the same period the previous year, such as refined sugar (up 164.08%); granite, sophia, and bazan stones (up 103.32%); shipbuilding (up 17.21%); electricity production (increased 3.8 times); and commercial electricity (up 13.53%) However, some products have experienced a decrease in production, including frozen miscellaneous fish (down 20.43%); frozen shrimp (down 12.38%); and frozen tuna (down 34.8%)

According to Khanh Hoa Department of Industry and Trade, the total retail sales of consumer goods and services in the province in August 2023 is estimated at VND 10,561.35 billion, down 0.05% over the previous month and up 24.71% over the same period last year Total retail sales of consumer goods and services in the first 8 months of 2023 are estimated at VND 75,412.54 billion, up 19.57% over the same period last year and reaching 78.30% of the 2023 plan

In terms of consumer price index (CPI) in August 2023 increased by 1.22% compared to the previous month; up 4.3% year-on-year The average CPI for the first

8 months of 2023 increased by 3.47% compared to the same period last year Notably, the export turnover of goods in the whole province in August 2023 is estimated at 88.9 million USD, down 31.64% over the same period In the first 8 months of 2023, the export turnover of goods in the whole province is estimated at 955.16 million USD, down 9.99% over the same period and estimated at 54.58% compared to the plan for 2023

Export items decreased including: seafood products (estimated export of 57,820 tons of all kinds, worth 385.49 million USD, down 25.94% in value over the same period); Textiles and garments are estimated (reached 47.08 million USD, down 28.85%); Coffee (estimated at 38,220 tons with a value of 81.61 million USD, down 3.71% in value),

Import turnover in Khanh Hoa province in August 2023 is estimated at 105.37 million USD, down 29.4% over the same period In the first 8 months of 2023, import turnover in the whole province is estimated at 790.86 million USD, down 34% over the same period, estimated at 68.47% compared to the plan for 2023

Prioritize hi-tech projects: Khanh Hoa promotes the attraction of industrial park infrastructure projects and mechanisms to use foreign investment capital for research,

application, innovation, creative start-ups and technology transfer The province will also prioritize projects with high technology content, advanced technology, modern management, high added value, spillover impact, advanced technology transfer, ensuring the participation of Vietnamese enterprises in the value chain, and contributing to socio-economic restructuring

More specifically with the fisheries industry

According to a report of Khanh Hoa Provincial People's Committee, it is estimated that in 2022, the total seafood production in the province will reach 115,000 tons, up 3.3% compared to 2021 In which, fishing output reached 97,800 tons, up 2%; aquaculture production reached 17,200 tons, up 1.6%

According to Khanh Hoa Provincial People's Committee, in the first 8 months

of 2023, the province's total seafood production is estimated at over 87,560 tons, up 0.75% over the same period last year; in which, the exploited seafood output was over 74,880 tons, up 0.13%; aquaculture production was 12,675.6 tons, up 4.61% The total aquaculture area is more than 3,160 ha, up 2.89% over the same period last year However, the current product price is still low, the profit is not much, people have the mentality of "hanging ponds", not stocking waiting for market signals As a result, it leads to the risk that in the last months of the year, there may be a shortage of aquatic materials for processing and export, affecting the target of the 2023 growth plan

In order for aquaculture in the last months of 2023 to develop stably, meeting the demand for aquatic raw materials in both quantity and quality for processing and export, the Ministry of Agriculture and Rural Development requests the People's Committees of provinces and centrally-run cities to urgently organize the capture, review, synthesize and statistics on sources, quantity and ability to produce and supply input materials for aquaculture At the same time, the amount of seafood currently farmed, the amount of seafood available at processing and export facilities in the area, the price movement of raw seafood; promptly inform enterprises and farmers to have specific and appropriate plans and solutions tn the organization of farming, processing and exporting

Transportation industry

Maritime Routes - Seaports:

Khanh Hoa is a coastal province, with outstanding advantages in the sea and great potential for marine economic development with a coastline length of about 385km This locality is near the international maritime route cutting through the East Sea, has a very narrow continental shelf, steep continental slopes with about 200 large

islands, small and famous coastal bays, along with the Spratly Atoll Islands off the coast Khanh Hoa has a special geostrategic position of Spratly island district, Cam Ranh military port, Van Phong international transit deep-water seaport, along with the global values of Nha Trang beautiful bay and one of the 5 fishery centers of the country

The North Van Phong Port area is strategically planned to serve the socio-economic development of the surrounding region, with the potential to develop into an international transit port It includes container terminals and international passenger terminals This area can accommodate container ships with a capacity of up

to 24,000 TEU (250,000 tons), general cargo ships with a capacity of up to 100,000 tons, or larger vessels when conditions permit It can also accommodate international passenger ships with a capacity of up to 225,000 GT (1 GT is equivalent to 1.5 tons)

In addition, the South Van Phong Port area directly serves the Van Phong economic zone and handles bulk/liquid cargo, with general cargo terminals and bulk/liquid cargo terminals This area can accommodate general cargo ships with a capacity of up to 100,000 tons, bulk cargo ships with a capacity of up to 300,000 tons, and bulk/liquid cargo ships with a capacity of up to 150,000 tons Furthermore, the Cam Ranh Port area is planned to serve the socioeconomic development of Khanh Hoa province and the Central Highlands region It includes general cargo terminals, container terminals, bulk/liquid cargo terminals, passenger terminals, and terminals for national defense and security This area can accommodate general cargo, container, and bulk cargo ships with capacities of up to 70,000 tons, bulk/liquid cargo ships with capacities of

up to 10,000 tons, and international passenger ships with a capacity of up to 225,000

GT Additionally, it 1s designed to support sea tourism and yachting In Nha Trang city, the port area is planned as an international passenger terminal and yacht terminals, serving international sea tourism in line with the needs and values of Nha Trang Bay

According to leaders of the Vietnam Maritime Administration, in the first 5 months of 2023, the seaport areas with the highest throughput volume in the country will decrease However, the bright spot belongs to some areas, when the volume of goods through seaports increased, including Nha Trang, which increased by 23% over the same period last year

Since the beginning of the year, Khanh Hoa has welcomed 14 ocean liners with the number of visitors coming ashore is 19,142 visitors from many places It is expected that in October will continue to welcome 3 ships to visit The strong return

of tourists by ship from many countries around the world is said to be a good sign,

affirming the position of Nha Trang-Khanh Hoa destination Cruise tourists are characterized by a large number, stable flow of visitors, and high spending

Airways:

According to the vveconomy.vn website, the capital investment demand for the construction of Cam Ranh International Airport in the period of 2021 — 2030, with a vision towards 2050 is expected to be VND 39,376 billion Within this estimate, the period of 2021 - 2030 is expected to be about 24,311 billion VND, the period after

2030 with a vision to 2050 is expected to be about 15,065 billion VND

This year, the frequency of international flights from Khanh Hoa's key markets, such as South Korea, China, Malaysia, Thailand, and Kazakhstan, has been maintained and is showing growth South Korea has become Khanh Hoa's leading international market, with 10 flights per day and passenger numbers recovering to 60% of the 2019 levels The frequency of flights from various Chinese regions to Khanh Hoa is also gradually increasing, with 4-5 flights per day, averaging 900 passengers per day in July 2023 Statistics for July show that there were 13 daily flights from South Korea bringing thousands of Korean tourists to the coastal city of Nha Trang Not only has the number of flights increased, but many airlines have also switched to using larger aircraft to increase passenger capacity With the current positive growth trend, in the past month, Nha Trang - Khanh Hoa welcomed over 130,000 South Korean tourists It is expected that this number will increase significantly in the coming months and could reach up to 900,000 South Korean tourists in the whole year of 2023

2.1.2.4 Related and supporting industries:

Up to now, in Khanh Hoa province, there are about 25 enterprises operating in supporting industries, the total industrial production value of supporting industries accounts for about 4.4% of the total industrial production value of the province, annually contributing to the budget of about VND 35 billion The total number of workers in supporting industries accounts for about 9.5% of the total number of industrial workers The development situation of some major supporting industries is

as follows:

+ Textile — Garment industry: including enterprises engaged in the production

of zippers, sewing threads, buttons, yarns, woven fabrics, leather production The industrial production value of the textile sector has seen an average growth rate of 2.77% per year, while leather production has achieved a growth rate of 2.55% per year As for raw materials for the textile and garment industry, there is only one

company, namely the Nha Trang Garment Accessories Jomt Stock Company, specializing in the production and trade of garment accessories such as zippers of various types, sewing thread, metal buttons, adhesive tapes, elastic bands, snap fasteners, metal rivets, trouser hooks, plastic and metal decorative products for the textile and garment industry, clothing hooks, and zipper pullers, among other products

+ Mechanical industry: there are many shipbuilding mechanical enterprises in Khanh Hoa province, specializing in manufacturing and repairing fishing vessels, cruise ships, and other types of ships These businesses play an important role in supplying and maintaining vessels for fishermen and the seafood industry The shipbuilding engineering industry has also gradually shifted from traditional ship production to ship production using more modern technology This includes the use of automated systems, high-quality materials, and high-performance vessel design to meet increasingly stringent safety and performance requirements Moreover, many shipbuilding mechanical enterprises in Khanh Hoa have cooperated with international partners in developing shipbuilding projects and related products This helps to provide new technical knowledge and technologies to the industry and expand export markets Three shipbuilding plants, Hyundai Vinashin, Nha Trang Sico, and Cam Ranh, achieve an average annual revenue of around 6,000 billion

+ About leather — shoes: Tanning factory, producing products from ostrich and crocodile leather for consumption and export under Khanh Viet Corporation with a capacity of 40,000 ostrich skins and 10,000 crocodile skins / year

+ Marine industry and fisheries: Khanh Hoa possesses vast marine resources, and the marine industry and aquaculture play a crucial role in the province's economy Businesses in this sector include aquaculture farms, seafood processing enterprises, and various activities related to the sea With its three bays (Cam Ranh, Nha Trang, Van Phong) offering deep, sheltered waters, the province has a significant number and volume of marine aquaculture It boasts three notable distinctions: the largest production of lobsters, the largest production of marine fish seeds, and the largest scale of offshore fish farming using advanced technology For example, Australis Vietnam Aquaculture Limited Liability Company operates the world's largest sea bass farming facility, with each cage yielding 250-300 tons of fish No other enterprise in Vietnam's waters has invested in such large-scale cages Australis Vietnam Aquaculture applies Norwegian technology for offshore fish farming, using automated feeding systems, underwater robotic cameras to monitor fish, precise feeding management, and environmental hygiene The company maintains fish breeding

facilities year-round, operates four fish processing plants, and recently launched a 300-ton fishing vessel specializing in harvesting and initial processing of fish at sea Seafood products of Khanh Hoa province have been exported to 64 countries and territories and in 2019, the province's seafood export turnover is 600 million USD Regarding aquaculture, seafood export turnover accounts for 35 to 44% of the province's export value, making Khanh Hoa become | of 5 strong seafood exporting provinces of the country The agricultural sector gradually forms concentrated and Intensive production areas, strengthens chain links, and enhances the value of Khanh Hoa agricultural products External links

+ Service industry and information technology: Service and information technology enterprises are developing in Khanh Hoa Software development centers and software development companies have emerged, creating job opportunities for the local community

+ Tourism and hotel industry: Playing a crucial role in the development of Khanh Hoa province, especially the city of Nha Trang, are its beautiful beaches and appealing tourist services Khanh Hoa province boasts a plethora of high-quality resorts and hotels, including both international and domestic chains For example, luxurious resorts like Vinpearl and renowned brands such as InterContinental Hotels Group have a significant presence in the region Businesses in this sector, including hotels, guesthouses, travel companies, and restaurants, play an essential role in attracting tourists and ensuring they have a great experience while visiting Khanh Hoa Beach tourism significantly contributes to the growth of various economic sectors, generating employment opportunities and improving the livelihoods of coastal communities It also contributes to national security and defense and protects the marine environment and islands During the 2016-2020 period, the average annual growth rate of tourism revenue was 5%, with a total of 26.39 million tourists visiting Khanh Hoa, including 11.07 million international visitors, showing an average annual growth rate of 9.9% The tourism industry continued to develop with investments in depth and large-scale operations This period also saw the rapid development of trade, with an average annual growth rate of 4.9% in retail sales of goods and consumer service revenue The transportation sector, especially air and sea transport, experienced rapid growth In the first eight months of 2023, the tourism industry contributed over 24,000 billion VND to Khanh Hoa province's total revenue Leveraging its natural advantages and relentless efforts, Khanh Hoa has successfully established its own unique brand by building and consolidating solid tourism foundations

2.2 Internal environment:

2.2.1 Strengths:

Favorable geographical location and climate: Khanh Hoa is a coastal province with numerous potential advantages It shares its borders with Phu Yen province to the north, Ninh Thuan to the south, and Dak Lak and Lam Dong to the west To the east, Khanh Hoa faces the East Sea, boasting a 385-kilometer-long coastline Along this coastline, the consecutive bays of Van Phong, Nha Trang, and Cam Ranh all offer distinctive values and abundant potential that can be harnessed for various economic purposes, particularly in beach tourism, landscapes, scientific research, and national security and defense

Van Phong Bay, in particular, covers a vast area of approximately 46,000 hectares with an average depth ranging from 20 to 30 meters It is relatively sheltered and has good wind protection It is the closest location in Vietnam to international shipping routes and lies near the confluence of major global shipping routes Therefore, it holds an exceptionally advantageous position for the development of seaports and associated port logistics services, especially as an international transshipment port With Van Phong Bay, Khanh Hoa province has the potential to become one of the country's most important maritime gateways

Khanh Hoa boasts a vast mainland and a large sea area with over 200 islands scattered across the sea, including the Truong Sa (Spratly) archipelago, which holds great significance for the national defense and economy of Vietnam

The topography of Khanh Hoa is characterized by western slopes of the Truong Son Nam mountain range in the west and the East Sea to the east The terrain gradually descends from west to east, offering a diverse landscape that includes mountains, hills, plains, coastal areas, with more than 67% of the province's total area being hilly or mountainous

Khanh Hoa's climate is typical of a tropical monsoon climate with oceanic influences, featuring average annual temperatures ranging from 25.3 to 27.1°C It enjoys a mild climate throughout the year and has over 300 sunny days, making it a favorable place for economic development and tourism

Tourism industry is strongly developed: The tourism industry is a key economic sector of the province Khanh Hoa ts one of the largest tourism centers of the region and the whole country with a variety of tourism types, synchronously developed tourism infrastructure With the development of high-end resorts, resort

projects, and diverse entertainment activities, Khanh Hoa attracts millions of visitors annually and contributes greatly to the provincial GDP

High-quality world-class beach resort tourism with a series of resorts, 5-star standard hotels, 18-27 hole golf courses of international standards

Spiritual sites: Thap Ba, Long Son Pagoda, Stone Church is the destination of many domestic and foreign tourists

Amusement parks: Vinpearl Land, Hundred Egg Resort, Resort, Thap Ba Hot Mineral Spring Resort, Create high-class & special entertainment experiences for visitors

Cultural development activities: Thap Ba Festival, Nha Trang Beach Festival, Cau Neu Festival, Khanh Son Fruit Festtval, every year or two are organized to attract a large number of domestic and foreign tourists to Khanh Hoa The festivals held are also activities to preserve the beauty and uniqueness of the culture and spiritual values of the land and local people

Thap Ba Festival is held periodically from March 20 to 23 (lunar calendar) every year, attracting a large number of Kinh, Cham, Raglai and other ethnic communities in the Central and Central Highlands to participate in the Festival This is one of the most meaningful and largest cultural and spiritual activities in Nha Trang City, Khanh Hoa

Khanh Son Fruit Festival is held in Khanh Son mountainous district to promote local agricultural products and the image of people in Khanh Son land full of inner strength and belief in life

Concentration of many research and education centers: Khanh Hoa is the locality where most institutes & research centers on health, science, environment, fisheries, contribute to improving scientific research activities in professional fields

to support sustainable scientific and educational development in the locality The local education system is invested in facilities and equipment, focusing on improving the expertise of managers and teachers, implementing new programs, strengthening the quality of mass education, paying attention to improving the quality of spearhead education; accelerating digital transformation across the industry, Including: 06 specific research institutions, many universities, academies, colleges, over 30 vocational training institutions and Vietnam - Singapore International School (SVIS) Health service development : Khanh Hoa province focuses on developing a health system to meet the needs of medical examination and treatment and community

health care, the local health system includes a hospital system and private polyclinics The system of general hospitals throughout the province serves medical examination and treatment and community health care Development orientation of the people's health and health care system: Khanh Hoa aims to build a fair, modern, quality, effective and sustainable health system in Khanh Hoa province, towards universal health coverage Making Khanh Hoa become a health care center for the South Central coastal region and Central Highlands

Social security activities are focused: In addition to economic construction and development activities, the Provincial Leaders and the business community always accompany to implement activities to motivate and encourage the working spirit and striving of the people, labor force create a foundation for stable and sustainable development of the locality

Rich in revolutionary traditions and historical relics: Khanh Hoa is a land rich in revolutionary traditions, with many historical and cultural relics Natural conditions, geographical location, revolutionary traditions, and cultural history have given Khanh Hoa great potential for comprehensive development to achieve the goal

of turning Khanh Hoa into a direct city by 2030 under the Central

Relatively developed transportation system: Some important traffic projects have been advocated by the National Assembly and implemented by the Government such as the North-South expressway in the east; highways connecting Khanh Hoa - Buon Me Thuot to connect with the Central Highlands The Government will continue

to create conditions for the province to soon complete the coastal road through Khanh Hoa and strategic roads connecting to the dynamic regions of the province and the region

Urban and Industrial Development: The development of industrial parks, urban areas, and infrastructure projects is creating opportunities for investment and development of the local economy, including services and manufacturing The coastal urban system was formed relatively modern Van Phong Economic Zone gradually positively impacts the economic development of the province and region Tourism has become a key economic sector Khanh Hoa is a national marine tourism center, with international brands, gradually becoming a pole of growth in the region

Local people are united and attached: The people of Khanh Hoa province have a unique culture, solidarity and attachment; The people here are simple, labor-loving, rich in revolutionary traditions, full of creativity and desire to rise Khanh Hoa has a large scale of human resources, a young population structure The

province also has a young, dynamic, united, unanimous, determined and visionary leadership team who are constantly striving to promote development

Economic growth is good: During the period from 2012 to 2019, the economy achieved an average annual growth rate of over 7.32% By 2019, the scale of the economy had nearly doubled compared to 2011 The per capita income reached over

70 million VND, which is 2.3 times higher than in 2011 Tax revenues increased rapidly, ensuring the local budget's self-sufficiency and placing the province in the group of localities with balanced central and local budgets Significant investments were made in infrastructure, especially in transportation infrastructure, with a focus on upgrading and improving it

Further analyzing the grounds of that belief, the Prime Minister emphasized that Khanh Hoa has many favorable conditions for the development of tourism, services, industry, agriculture, logistics ., including many favorable factors for the development of contemporary fields such as creative industries, ete organic agriculture; clean energy and especially high-class ecotourism, marine economic development associated with the protection of national sea and island sovereignty 2.2.2 Weaknesses:

Inadequate potential development: Khanh Hoa province has not developed commensurate with its potentials and strengths, and there has not been a breakthrough

in socio-economic development The economic scale is small, the quality of growth is not high, the economic structure is unbalanced and sustainable The province has not promoted its role as the center of the South Central region and connected with the Central Highlands, the results of cooperation and linkage with localities in the region are limited The remedy of consequences of violations in land management after inspection and inspection is slow, has not been completely handled, leading to waste

of resources The planning and planning management are still inadequate, lacking a long-term vision

During the 2015-2020 term, Khanh Hoa province had four out of twenty targets remaining incomplete as per the Resolution of the 17th Provincial Party Congress These are crucial targets that reflect the province's economic and social development, including the GRDP growth rate, the value of goods export, state budget revenue in the region, and the total social development investment capital

The new rural construction movement has achieved its goals, but not commensurate with the province's capabilities; The poverty rate in ethnic minority areas and mountainous areas is still high

State management in a number of fields such as land, planning, construction, price appraisal It is not good, so there are also violations, leading to the collective

of the Standing Committee of the Provincial Party Committee, the Party Personnel Committee, the Provincial People's Committee and some key officials of the province being disciplined This adversely affects the prestige of committees, authorities and localities and causes anger in society

Environmental issues and development management: Population growth and tourism can put great pressure on the environment and infrastructure, requiring effective and sustainable management

Industrial development activities: Currently, economic development is still broad, mainly based on the exploitation of natural resources; Many manufacturing industries and sectors also use outdated technology, causing serious environmental pollution Funding for environmental protection work in some sectors and fields in general and environmental funding for industry and trade is still limited The database system on the environment of industry and trade is still under construction and is being completed Therefore, industrial, trade, import-export and energy development activities still have many potential adverse impacts on the environment

Energy development activities: The construction of energy development projects (hydropower, solar power) in recent years focusing on solar power development has brought many benefits to the whole country in general and Khanh Hoa province in particular In addition to the positive impact of promoting all local capacities, in order to increase the ability to meet the requirements of the socio-economic development of the province as well as the region where the project is built, the energy development will have adverse impacts on the surrounding environment such as: land and forest area due to factory construction, risks of dam breakage affecting socio-economic life downstream, loss of ability to regulate water downstream

Agricultural development activities: In recent times, the agricultural sector has made significant contributions to the local economy However, it has also led to increased environmental pollution and rural environmental degradation The use and storage of plant protection products (pesticides), as well as the inadequate collection and disposal of pesticide containers, have led to environmental pollution in terms of soil, water, and air, as well as contamination of agricultural products with potentially harmful residues There are still limitations in the awareness of pesticide use among some farmers, which can have health implications for the community due to pesticide residues in certain vegetables and fruits available on the market Additionally, the

collection, transportation, and treatment of solid waste in rural areas continue to face difficulties and shortcomings in management Khanh Hoa province currently lacks proper sanitary landfills in its districts The rapid economic and social development of the province, along with an increasing population, has led to a significant increase in rural solid waste This puts immense pressure on centralized landfills in the districts Manual construction and operation of rural landfills do not meet sanitation standards, which adversely affect groundwater and the surrounding environment The collection and transportation of waste are still lacking adequate and sophisticated equipment, leading to pollution during collection and transportation processes The funding needed for constructing sanitary rural landfills, procuring equipment for waste segregation, collection, recycling, energy recovery, and organic fertilizer production remains insufficient Furthermore, the participation of organizations and individuals in waste collection and disposal is limited

Development of tourism and service activities: Alongside other economic sectors, services and tourism have been chosen as a focal point for economic development in Khanh Hoa province for many years, exhibiting a high annual growth rate However, several issues need to be addressed, particularly in terms of landscape and environmental preservation and management The problem of indiscriminate waste disposal at piers, tourist ships at sea, bus stations, and other public places is still prevalent, especially during weekends and peak holiday seasons when the number of tourists increases The public's awareness of proper waste disposal, civic behavior, public order and traffic safety still has some limitations The rapid expansion of the tourism sector has, at times, exceeded the province's capacity to control, leading to significant pressures on water environments, biodiversity, and an increase in solid waste Furthermore, there are environmental impacts associated with golf course projects The economic benefits of golf courses are evident, but the harms they cause can be substantial and have long-lasting consequences for various stakeholders, affecting land and water resources Currently, Khanh Hoa province has two active golf courses, namely Vinpearl Golf and Diamond Bay Golf The construction and operation of golf courses have altered the landscape as they often convert large areas

of forest or agricultural land into golf course facilities Additionally, golf activities can lead to environmental degradation due to high water consumption for irrigation, which may threaten areas that share water resources and do not have ample water supplies The use of a significant amount of pesticides and fertilizers can also impact the environment and potentially affect human health

Dependence on the tourism industry: Khanh Hoa also depends too much on the tourism industry, making the provincial economy vulnerable to tourism market fluctuations This dependence can create risks to economic stability

Underdeveloped education: Although the education sector is being promoted towards the goal of fundamental and comprehensive reform of education and training , in general, the quality of education and training is not enough to meet the needs of labor resources and businesses

2.2.3 Opportunities:

"Khanh Hoa has many potential and outstanding advantages compared to many provinces and cities in the country The Central Committee has fully promulgated priority policies for the province to accelerate development It requires strong action, according to the main goal assigned to Khanh Hoa by the Politburo, by

2030 to become a centrally run cit - Comrade Nguyen Hai Ninh, Member of the Party Central Committee, Secretary of Khanh Hoa Provincial Committee gave the Border Protection newspaper an exchange to be open about this issue

Develop diversified industries: Khanh Hoa has the potential to develop other industries such as manufacturing, agriculture, and seafood This could help reduce dependence on the tourism industry and diversify the provincial economy

New opportunities for the development of Van Phong Bay: Domestic and foreign experts and consultants have determined that Van Phong Bay has a very special position, converging all factors to develop many economic sectors It is both a deep-water, airtight bay, one of the best in the world, which can develop an international transshipment port; It is both a sea without large rivers pouring fresh water, affecting aquaculture, allowing the development of industrial-scale marine aquaculture Van Phong Bay has a double cape that is the easternmost point on the mainland of the country, with many pristine islands, lagoons and sandy beaches to develop high-class marine tourism It is important to have a vision and orientation for the harmonious development of economic sectors, maximizing the potential and advantages of Van Phong Bay In addition, it is necessary to take into account the competitive advantages in each economic sector of Van Phong Bay with domestic and regional locations to determine investment priorities at each stage; avoid the situation

of imposing subjective will but not associated with investment needs and capabilities, leading to the fact that investment in Van Phong has remained limited for many years Investment in infrastructure is expected to bring many benefits: Investments in transportation, energy, and electricity infrastructure can facilitate

sustainable development and attract investment Support the investment in construction and completion of important infrastructure, such as high-speed roads, high-speed railways, charter airports in Van Phong Economic Zone create a foundation for long-term development as well as create conditions to attract investors

to build new urban areas, towards the goal that by 2030, Khanh Hoa will become a centrally run city

The Khanh Hoa - Buon Ma Thuot expressway is strategically important in many aspects, both economic and defense and security When this road is opened, it will become the shortest road, connecting two regional centers, from Buon Ma Thuot - the capital of the Central Highlands, down to Khanh Hoa which is the center of the South Central region The port in the South Van Phong region will become the

"gateway" for the Central Highlands, the Central Highlands’ exports will be transferred to the world market as quickly as possible At the same time, imported goods such as raw materials, equipment, machinery from the port in Van Phong will also go to the Central Highlands more easily In fact, in the past few years, wind power equipment of the Central Highlands has been transferred from South Van Phong port; then petrol and building materials, also from the port in this area to the Central Highlands

Having this highway will help Dak Lak province in particular and the Central Highlands in general develop industrial parks, especially agricultural product processing industry to add value to agricultural products in this large and potential area At the same time, it will help Khanh Hoa province develop logistics services in the South Van Phong area, Ninh Hoa town

The Government will continue to create conditions for the province to soon complete the coastal road through Khanh Hoa and strategic roads connecting to the dynamic regions of the province and the region

Develop diversified industries: Khanh Hoa has the potential to develop other industries such as manufacturing, agriculture, and seafood This could help reduce dependence on the tourism industry and diversify the provincial economy

2.2.4, Threats:

Potential impacts of climate change: Climate change can cause natural disasters such as floods, hurricane warnings, and sea level rise, affecting tourism and agriculture Climate change could cause warnings for the tourism industry because of rising seas, hampering tourism activities and degrading the commercial value of coastal real estate Climate change could create conditions for increased storm

intensity and more frequent heavy rains This can pose a risk of flooding and damage

to agriculture and transport infrastructure Khanh Hoa also has an important agricultural and fishery economy Rising sea temperatures and variations in the marine environment can affect fisheries resources, such as salmon and clams, as well as agricultural sectors such as tobacco and rubber crops

Competition from other tourist destinations: The strong competition from other tourist destinations at home and abroad can affect Khanh Hoa's visitor traffic and profitability With the development of tourism in many other destinations across Vietnam, Khanh Hoa has to compete to attract tourists This requires the province to upgrade services, improve infrastructure and promote marketing to maintain its appeal

Environmental management challenges: The rapid development of the tourism industry can cause problems related to environmental protection and sustainability Strengthening the management and protection of key tourism areas to ensure the sustainability of the tourism industry is a key challenge The rapid development of tourism and coastal economic activities can cause saturation and damage to the marine and beach environment Beaches are eroded, coral reefs are damaged, and seawater can be polluted by littering and garbage Climate change could lead to increased sea temperatures, sea rise, and storm intensity All of this can affect the marine environment, pose a risk of subsidence and affect coastal infrastructure and economic activities The problem of environmental pollution, especially water pollution and marine environment, is an important challenge Activities such as discharges and the use of chemicals can cause seawater pollution, while the amount of plastic waste can harm marine animals and marine ecosystems Marine resources, including fish, clams, seafood, and coral reefs, are facing overexploitation This can harm marine ecological infrastructure and affect resources for local people Another important challenge is the need to strengthen environmental management and monitoring This includes promoting compliance with environmental protection rules, controlling discharges and waste, and ensuring that economic and tourism activities are carried out in a sustainable manner

CHAPTER 3: VISION DEVELOPMENT/ DEVELOPMENT ORIENTATION 3.1 Vision

The planning of Khanh Hoa province in the period of 2021 - 2030, with a vision to 2050, clearly outlines the focus on attracting investment to maximize potentials and advantages for development with the marine economy as a foundation, high-tech processing and manufacturing industry, logistics services, etc the energy industry, digital economy are breakthroughs; Tourism is a key economic sector 3.2 Development orientation

Industrial development by key economic regions

Development by field and industry

About agriculture

Along with improving quality and promoting processing, taking care of stable and sustainable output for agricultural products is the main orientation in the provincial agricultural restructuring plan for the period of 2021-2025, especially in the field of cultivation

Develop advantageous crops and livestock with high economic value, in line with market demand, competitiveness and adaptation to climate change

Develop agriculture in the direction of linking production and consumption Invest in the development of hi-tech agricultural production areas, applying advanced technologies such as biotechnology, information technology, new material technology

Develop product quality standards, support farmers to build brands, promote products, promote trade.,

About the marine economy

Improve high-quality marine tourism services, diversify tourism categories in terms of scale and form

Industrial development, seaports, economic zones associated with coastal urban

New energy technology: development of new, renewable energy sources such

as wind power, solar power, biomass power

About the digital economy cluster

Khanh Hoa province has determined to develop 4 main digital economy clusters, including: