Industrial Development - Breakthrough in 2011-2015

The achievements recorded by the industrial sector of Lao Cai in 2006-2010, with average growth rate of 27.6 a year, have greatly contributed to the successful implementation of the Resolution of the XIII Party Congress of the province. In 2010, added value increased to VND710 billion and state budget revenue was VND296 billion, or nearly 30 percent of the total income of the province. The industry-construction sector increased from 25.6 percent of provincial GDP in 2005 to 35.5 percent in 2010. The industrial structure transformed in the right direction with an increased ratio of processing industry.

 

Objectives are set for 2015: Industrial value will be VND5,200 billion (1994 constant price), 2.4 times that of 2010; added value will increase to VND1,700 billion, 2.39 times that of 2010; average growth rate in 2011-2015 will be 19.2 percent a year; the ratio of industry-construction will make up over 41 percent of provincial GDP, or 5.5 percent more than 2010; budget revenue will be around VND700 billion, 2.36 times that of 2010; and over 10,000 jobs will be created, 10 percent more than in the previous period.

To attain the above objectives, in early 2011, the province has reviewed local conditions and solutions, and mobilized all resources to implement the key programme “Development of industry, industrial zones and handicraft centres in 2011-2015.”

 

The province will make the best use of its advantages in mineral resources including apatite, copper, and iron. Mineral exploitation and processing will be the main industry of the province in the coming years. It will then develop other industries such as metallurgy, fertilizer, and chemicals.

With local mineral resources of apatite, serpentine, quartz, and limestone, the province can produce fertilizer and chemicals and by 2015 can ensure 330,000 tonnes/year of DAP fertilizer, 200,000 tonnes/year of super phosphate, 200,000 tonnes/year of melt phosphate, yellow phosphate, animal feed additives (DCP), sulphoric acid, NPK, phosphoric acid, and phosphorate.

 

The metallurgy will concentrate on ferrous and non-ferrous metals based on the resources of copper and iron ore. The production of ferrous metal will rely on iron ore mines in Quy Sa, Lang Lech - Ba Hon, Lang Vinh - Lang Co. The province will accelerate the implementation of two steel projects: Tang Long Phase I (500,000 tonnes/year by 2013) and Phase II (1 million tonnes/year by 2015) and Ban Qua – Bat Xat (220,000 tonnes/year by the end of 2013).

 

Regarding copper production, Lao Cai has comparative advantages with the two biggest mines in Vietnam (Sin Quyen and Ta Phoi). The province also has the first copper processing plants in Vietnam which started operating in 2008 with capacity of 10,000 tonnes/year. In 2011-2015, Tang Loong plant will be expanded with capacity increasing to 30,000-40,000 tonnes/year, and Ban Lau plant to 10,000 tonnes/year. At capacity of 40,000 tonnes/year, the plant can get by-products of gold (over 1,000kg/year), silver (500kg/year), and sulphuric acid (160,000 tonnes/year) for fertilizer production.

 

The province will develop agriculture-forestry processing industry in material rich areas such as high quality tea processing projects in Phong Hai – Bao Thang and Thanh Binh – Muong Khuong. Tobacco drying centres will be built to meet the demand of 1,000 hectares of tobacco plants in Muong Khuong, Si Ma Cai, and Bac Bat Xat. A factory will be built to process tobacco from the province and elsewhere. Regarding forestry processing, the province will start the operation of Bao Thang wood processing plant in 2011 and accelerate the investments in pulp plants of Bao Yen, Van Ban and Bat Xat.

 

For the building materials industry, the province will focus on the production of cement, brick and various kinds of stone: accelerating the building of Phong Hai cement plant of 450,000 tonnes/year, developing brick projects to meet local demand of 160,000-180,000 million bricks a year. Large-scale exploitation of stone and sand will be developed to meet the demand of building Lao Cai – Hanoi highway and other projects in the province.

For energy, as demand will increase in the years to come with big industrial projects, the province will continue to invest in developing its power grid and local hydro power stations.

 

The province will also develop supporting industries such as mechanics repairing machines, equipment and transport vehicles; linking urban areas and industrial centres; producing additive materials, for instance, quartz, dolomite, and limestone; as well as metal containers, PP packages, cement bags for metallurgy, chemical and mineral industries.

 

 In addition to industries, the province will develop handicraft, encouraging all economic sectors and mobilizing all resources for the development of handicraft with high quality and bigger quantity, especially traditional products such as brocade, fine art articles, agriculture and forestry products to meet local demand and export.

 

The province will develop infrastructure for existing industrial zones and handicraft centres in Dong Pho Moi, Bac Duyen Hai, and Tang Loong, prepare for the development of 2-3 industries zones in Tan An – Tan Thuong (Van Ban), West of Lao Cai City, Bat Xat and alongside Lao Cai – Hanoi highway, and build infrastructure for 10 industrial centres (at least one centre in each district or town). By 2015, 80 percent of the new industrial zones and centres will be filled with investment projects.

 

Lao Cai will continue to improve business and investment environment and encourage all economic sectors to invest in the province, especially projects of high efficiency, high technology, infrastructure, intensive processing, and labour intensive projects. The province will focus on financial, banking and credit policies and accelerate administrative reform to increase competitiveness and product brands, and to expand markets. Human resources development is also a priority to train entrepreneurs, managers and skilled workers to meet the increasing demand of industrial projects in the province.