5:25:29 PM | 9/3/2015
In 2014, the industry and trade sector of Dak Lak province continued to be affected by the economic downturn. Production output shrank, prices of agricultural products were volatile, and many companies difficultly accessed bank loans to expand operations. However, the industry and trade sector achieved remarkable results.
Positive trade and investment signs
In spite of difficult economic situations, the circulation of goods and market prices was relatively stable, meeting the needs of consumers. Total retail value of consumer goods and services reached VND49,425 billion as expected, up 14.8 percent over 2013. In 2014, exports reached US$730 million, up 12.3 percent, but the value failed to meet expectations.
The province attracted 32 investment projects in 2014, including 13 projects in industrial zones, with a registered capital of VND3,454 billion, an increase of 10 projects and VND354 billion over 2013. The province also achieved a significant progress in foreign investment attraction, mainly ODA projects. Dak Lak granted 12 projects valued at VND1,973 billion, an increase of seven projects over 2013, and one FDI project, bringing total FDI projects to 10 with US$173.7 million. Among them, eight projects with US$86.31 million went into production and two projects with US$91.8 million were being prepared. The province continued to focus on mobilising ODA capital and managed to attract Development Triangle border infrastructure support project funded by the Asian Development Bank (ADB). Currently, the Ministry of Planning and Investment and ADB are working on project launch.
Selecting industrial investment directions
By the end of 2014, the province of Dak Lak had announced plans for building one large-scaled industrial park and 15 industrial complexes, covering 914.83 ha in total. The province built one large-scaled industrial park and eight industrial complexes, covering 614.73 ha but the construction had not been completed. Developers spent VND407 billion on infrastructure construction, including VND269 billion from the State Budget.
To date, industrial zones lured a total of 143 projects with a total registered investment capital of VND6,776 billion, of which 68 have gone in operation, 22 are under construction, and 53 are being prepared. According to the industry development plan until 2020, Dak Lak province plans to invest VND240 billion to build five more cassava processing plants with a total processing capacity of nearly 76,000 tonnes a year to tap local abundant resources.
The Department of Industry and Trade said, according to industrial product strategy to meet competition demand and economic integration in the 2013-2015 period, towards 2020, approved by the Provincial People's Committee, industrial products will be manufactured by three sub-regions. The centre sub-region will process coffee, rubber, food, electricity, high-tech and supporting industries. The northern sub-region will process agricultural products, forest products and mechanical products. The southeast sub-region will process products from short-day industrial crops and minerals. The industrial production value will reach VND9,500 billion by 2015 (up 2.8 times more than in 2010) and nearly VND19,300 billion by 2020 (up 2 times more than in 2015). To accomplish this goal, the industry and trade sector will mobilise capital to develop industrial products, construct infrastructure of industrial zones, expand consumer markets, and carry out priority policies.