Vladimir Region Needs New Factories to Increase Gross Regional Product by 30%

For now our region lags behind even its geographical neighbors in economic indicators

During the January 25 direct line, Alexander Avdeev, acting governor, shared his vision of the situation in the economy of the Vladimir region. He did not talk about this topic in detail, citing a lack of time on the air, but highlighted some points where efforts should be focused.

The presence of M-12 highway, which is still under construction, is a new opportunity and challenge for the region. On the plus side, Avdeev cited the location of new industries, which will increase the tax base and create additional jobs. On the downside – the outflow of personnel, as people will go to major metropolitan areas in search of work and a better life.

“It’s very hard for regions to compete with megacities that are close by. If we miss the opportunity to get points of development on the territory of the Vladimir region, [we risk] becoming hostages to the fact that Moscow, Nizhny Novgorod and Kazan will develop, we may slide to the fact that our resources along this highway will go to the West or the East,” Avdeev said.

Vladimir region needs new factories and “generiums” to increase GRP by 30%
The Acting Governor added that in general the region-33 has good indicators, but against the background of neighboring regions they are not ideal. In order to achieve good development figures, the Vladimir region should increase the gross regional product (GRP) by at least 30-50%.

“We need, roughly speaking, to increase the economy by 50%. You can look at what our main taxpayers and major enterprises, we all know them. They are ZiD, Generium, Mondeliz Rus, Rusclimate ICSEL, and others. So imagine what efforts it takes to increase the volume of production by 30-50% and, accordingly, to increase the potential of the economy,” said Alexander Avdeev.

The region is in the penultimate place in the CFD by the volume of production in agriculture. According to Avdeev, to break into the “middle class” it is necessary to double the production and this is “a huge task”. If agriculture is high-tech, it will become profitable, profitable and interesting, says the Acting Governor.

All these directions will require revision of a number of approaches to attract investment, develop enterprises and create new points of growth.

Original publication

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