Kon Tum Province: Trusted Destination for Investors

 

In spite of being landlocked, Kon Tum province has its own outstanding strengths to attract investment. Situated in the central point of the Indochinese nations, Kon Tum province is a goods depot, linking the Central, Central Highlands and South-eastern regions and Ho Chi Minh City of Vietnam to Laos and north-eastern Thailand. It has great advantages for the development of production, outsourcing and goods processing for exports.

 

With total acreage of 967,656 hectares, three fourths of which are covered with forests, Kon Tum province boasts great potential of agricultural development. The province now has over 100,000 hectares of land for cultivation. In addition, the province has advantages for mining development as it is home to 31 mines and 49 ores of Wonfram, iron, pit coal, diatomit, dolomite and construction stone. The locality also boasts great hydroelectricity development potential with capacity of between 1 MW-70 MW as well as tourism development and some other sectors.

 

Over the past years, provincial authorities have paid due attention to upgrading and development of infrastructure with priorities given to power grids, water supply and drainage, and traffic systems inside industrial parks economic zones and tourism areas. Stable politics and good security have also fostered a favourable investment environment in the province.

 

Provincial authorities are striving to create a favourable and attractive climate for investors with a focus on site clearance compensations, land for housing, social works, infrastructure and land leasing. The province is encouraging foreign investment in goods production for exports, processing, supporting industries for agricultural and rural development, with priorities given to companies from developed countries that boast good financial competence and advanced technologies.

 

In order to make full use of provincial advantages, due attention should be paid to investment promotion, administrative reform, particularly the implementation of one-stop policy so as to attract more investment in industrial parks and border gate economic zones.

 

Between 2006 and 2007, the province attracted 112 investment projects capitalized at VND10 trillion (US$561.356 million), including one licensed foreign direct investment (FDI) project. In 2008, the province lured 28 investment projects worth VND376 billion (US$21.10 million), of which four projects focused on agriculture, 16 on industry and construction, and eight on trade and tourism.

 

Kon Tum province was ranked the 59^th out of total 64 cities and provinces across Vietnam in 2008 in terms of provincial competitiveness index (PCI), one step back from its rank in 2007. 

 

Fully aware of its shortcomings, provincial authorities have drawn out a plan entitled “Enhancing provincial competitiveness in terms of investment environment”, which is one of the drastic measures to intensify efficiency of investment. The province will place due attention to curbing inflation, maintaining economic growth rate, preventing economic decline and applying government’s demand stimulus solutions in combination with improving investment environment to attract more investment from 2009 and the years to come.

 

Using its advantages, the province has been continuously accomplishing policies to create favourable environment for investors to become a trusted destination for domestic and foreign investors.