Lam Dong Province Speedy Reforms to Lure Investment

 

From 2003 to May 31, 2008, Lam Dong had 448 projects with a combined registered investment capital of VND64,337 billion (US$2 billion) and a total leased area of 61,649 ha. Of the some, 273 projects have obtained the licences with registered VND39,420 billion, 146 projects are being carried out with registered VND8,936 billion, 35 projects have been put into operation with VND633 billion. The number of private-invested projects increases year after year. In 2003, the People’s Committee of Lam Dong Province licensed 27 projects with a total registered investment capital of VND3,384 billion but the current figure is 448 projects with a combined registered capital of VND64,337 billion. The annualised average growth is 192 per cent in terms of projects and 198 per cent in terms of capital. This shows that Lam Dong is very attractive to domestic and international visitors.

 

From 2007 to April 2008, the provincial authority approved 30 foreign-invested projects and licensed 25 new ones with registered US$214.5 million, raising the total licensed projects in Lam Dong to 105 with registered US$451.636 million, in which 86 projects are wholly foreign-invested, 16 projects are joint ventures and three cooperation contracts. The investment efficiency of foreign-owned enterprises played an important role in the provincial economic development. The export revenue of the foreign-led sector makes up more than 70 per cent of province’s total export turnover. This sector created jobs for some 7,500 people. The proportion of disbursed capital increased year after year. To date, US$181 million has been disbursed, equalling 40.1 per cent of total registered capital. This shows the trust of foreign investors in the investment and business climate in Lam Dong Province.

 

To extricate difficulties for investors from the initial steps to project operation, the People’s Committee of Lam Dong Province issued many documents concerning administrative reforms like the Decision No. 866/QD-UBND dated April 9, 2008 on the list of investment projects calling for capital in the 2008-2010period, the Decision No. 09/2008/QD-UBND dated March 20, 2008 on the process, procedure and regime, policy of investment attraction in Lam Dong Province, the Decision No. 15/2008/QD-People’s Committee on land compensation, support and resettlement, and the Decision No. 1072/QD-UBND on administrative reform toward one-door policy at the Department of Planning and Investment. Besides, the People’s Committee adopted one-door administrative policy in the province.

 

Apart from issuing the above documents, Lam Dong Province hosted meetings with enterprises in Ho Chi Minh City, Hanoi and Da Lat City to listen to difficulties from them and seek solutions. The provincial authority will examine all unimplemented licensed investment projects and will revoke bad ones to give the fortune to other investors. Typically revoked projects include the tourism project in Dai Ninh hydropower reservoir with US$500 million and 5,000 ha developed by Van Phuc Company and South Korea’s YonWon Company and Hasol Company.

 

To speed up the social and economic development in the 2008-2010 period and in the latter period, Lam Dong Province will need to mobilise more local and external resources. It will adopt measures to improve the investment environment. It will carry out the Decision No. 09/2008/People’s Committee dated March 20, 2008 on the process, procedure and regime, policy of investment attraction in Lam Dong Province. Lam Dong will launch programmes to support the development of small and medium-sized enterprises in accordance with the Decision 143/2004/QD of the Prime Minister on training for enterprises. The province will set up a fund to support local small and medium-sized enterprises, especially newcomers.

 

Apart from creating the most favourable conditions for investors, the province will revoke ineffective or unimplemented projects.