LamDongProvince Economy: Promoting Investment for Development

2:58:05 PM | 10/17/2007

Over the past years, key programmes and construction of Lam Dong province have created a basic and sustainable foundation for the development of the local economy and society. These programmes have also been important breakthroughs in the area’s socio-economic development.
 
So far, Lam Dong has had eight key programmes and nine key constructions. Programmes include hi-tech agricultural development; traffic and irrigation development in combination with small and medium hydropower; development of ecotourism, resorts and the MICE tourism; industry and draft industry; poverty reduction, employment and urging issues in ethnic minorities; IT and human resource training; urban expansion and development planning; and socio-economic cooperation programmes with Ho Chi Minh City. Key constructions involve Lien Khuong Airport expansion and upgrade, Dau Giay-Da Lat Expressway, Urban Road 723 from Da Lat to Khanh Hoa province, Loc Son Industrial Park, Phu Hoi Industrial Complex, Tuyen Lam Lake Tourism, Dan Kia-Suoi Vang Tourism Zone, Dong Nai 03 and Dong Nai 04 Hydopower Plants, and Bao Lam Bauxite-Aluminium Complex.
 
As the beginning of this year, state expenditure had reached VND17.16 billion, including VND991 million for planning, VND1.79 billion for model investment, and over VND11.6 billion for two projects (raising capacity for industrial trees and fruit trees). Direct investments in these programmes have been effective. From the provincial budget, Lam Dong province has built some successful models to plant vegetables, flowers and strawberries, with revenue from vegetables in Da Lat City reaching VND300 million/hectare/year, red peppers in Don Duong district VND1,200 million, strawberries in Da Lat City VND300 million, daisies in Da Lat and Duc Trong district VND500-600 million, gladiolus in Duc Trong district VND500 million/hectare/year. With tourism development programmes, the province used capital from many sources to invest in infrastructure for key tourism zones such as Tuyen Lam Lake Road, Dinh III-Tuyen Lam Lake Road, Lat-Langian Peak Road and Bao Loc Road-Dam Bri Stream. Statistics said that since 2001, total investment capital for tourism infrastructure in the province reached over VND147 billion, including VND42.5 billion from the provincial budget, and the remaining from the central budget. In the same period, apart from two big projects in ecotourism and resorts, Dan Kia-Suoi Vang and Tuyen Lam Lake, many projects combined resort tourism with eco-tourism, such as Hoa Pensée, Thien Tahnh, Nam Ho and Huyen Thoai in Da Lat City, Da Sar Stream in Lac Duong district, Préh spa water, Lien Khang plant park in Duc Trong district, seven-storey Ta Ngao Stream. In terms of resort tourism, some luxury resorts are being built, including Ana Mandara Villas Da Lat, Hoang Anh-Gia Lai, Ngoc Lan, Sai Gon-Da Lat, Rex-Da Lat and Tran Hung Dao Villa.
 
Among nine key constructions, the project to expand and upgrade Lien Khuong Airport has total capital of up to VND750 billion, being developed in September 2003. The project is now in the last phase. Since the Prime Minister approved the Dau Giay-Da Lat Expressway project, Lam Dong province has built the section from Lien Khuong airport to the foot of Prenn mountain pass, 19.22 kilometres, in alliance with 7/5 Company under the Ministry of National Defence in form of BOT. The section from Da Lat City to Lac Duong district’s Da Chair commune under the Da Lat-Khanh Hoa Road 723 project has been upgraded with total capital of VND216 billion, and the section from Da Chair to Khanh Hoa border has been built with total value of VND163 billion. The province is building 5 kilometres of road in Loc Son Industrial Park worth VND23.2 billion and completed construction plans for a power network and telecom station. In this industrial park, as many as 20 projects have been licensed so far (including some 100 per cent-foreign-invested projects), with capital of over VND400 billion. In tourism, the outstanding project is Dan Kia-Suoi Vang tourism area. The survey, inventory and compensation planning (estimated at VND226 billion) for this project are being carried out, together with finishing design documents to construct two resettlement areas. So far, planting a border landmark for the tourism area has been completed with 5,071 hectares, and three kilometres of road from Suoi Vang Bridge to Tay Bac are being built. The provincial electricity industry is also preparing to build a 110kV transformer station to serve the tourism area.
 
However, the province is also facing many difficulties. The progress of some key projects and programmes is still slow, affecting the capital attractiveness of economic sectors inside and outside the country. In addition, site clearance of some projects has been delayed, slowing down the investment rate of enterprises.
 
From the above difficulties and shortcomings, Lam Dong province will focus on hastening site clearance in planned areas in the coming time for the development of hi-tech agriculture, tourism, trade, and industry; raising capital for building infrastructure, compensation and resettlement for key constructions by hastening investment progress; and enhancing authorities’ investment promotion activities to call investment into Lam Dong province. The province will also soon finish and apply management and investment mechanisms in industrial parks and tourist areas. The provincial authority must effectively carry out administrative reform and facilitate investors in the province.

Hong Hanh